Independent Applications Assessment Offering

The TCO Consulting Group, as an independent Information Technology advisory firm, has developed a unique offering to conduct a fact-based, unbiased assessment of a client’s enterprise application portfolio to define an application’s value to the business. An organization that has had its application portfolio grow dramatically over the years through M&A activities, for example, should consider an independent assessment of their portfolio. The TCO Consulting Group has developed the tools and processes to quickly identify where all their applications are positioned for providing value to the business.

Application Portfolio Assessments

Most IT organizations have evolved over the past several decades. Combining a mix of older technologies (typically home grown) with newer off the shelf or ERP technologies creates a less than cost efficient environment. These heterogeneous environments are oftentimes extremely complex utilizing hundreds, if not thousands, of cross-system interfaces. The ability to introduce new business functionality is risky, time consuming, and costly, leaving IT management teams almost helpless to support new business initiatives and strategies. Moreover, these IT teams typically spend most of their time supporting older systems by responding to system outages and performance problems.

Typical Enterprises Contain:

• Too many technologies
• Too many applications and customizations
• Too many databases and interfaces
• Redundant applications

The TCO Consulting Group Assessment Methodology

A portfolio assessment is a full review of all business applications. The assessment begins by collecting critical information and characteristics about each major application. These application attributes such as age, number of users, size, complexity, databases, and numbers of interfaces, all contribute toward business value to the organization. This data is then loaded into our proprietary tool, the scoring matrix, which enables us to calculate overall risk to the organization. Once loaded, each application is scored using a mathematical algorithm that determines risk and value. Scores are then translated into red, yellow, and green. Red scores indicate a potentially high-risk application, requiring immediate attention. When all of the applications are scored, we facilitate a technology road mapping exercise that forms the foundation for moving from a current state to a desired state. These results enable a CIO to communicate the condition of the enterprise, not relying only on anecdotal examples but on real evidence supported by data. The foundation of a business case has now been formed that will facilitate a transformation of technology.

Portfolio Assessment Benefits Include:

• Reduced complexity
• Simplified environment
• Less Redundancy
• Increased asset utilization
• Better alignment of IT projects with business strategies
• Reallocation of support costs for new initiatives
• Overall cost reduction

Tools, Techniques, and Deliverables

 
The TCO Consulting Group employs a variety of assessment tools and techniques that produce an actionable set of deliverables that enables quality decision making. Our clients have used these deliverables to transform their technology with amazing results. Our practitioners develop financial models that assist with the reallocation of funds from support to enhancements to complete transformation.

• Data Collection and Assembly Tools
• Application Scoring Matrix
• Application Dashboards
• Technology Roadmaps
• Financial Models

Scoring Results Below Highlight the Need for Application Renovation