The TIME model (Tolerate, Invest, Migrate, Eliminate) is a widely used framework in Application Portfolio Management (APM) to evaluate and categorize applications based on their strategic value and performance. This simple yet effective model helps organizations make data-driven decisions about which applications to retain, improve, or retire. By applying the TIME model, IT leaders can streamline their portfolios, optimize costs, and ensure alignment with business goals.
3.5.1 What is the TIME Model?
The TIME model categorizes applications into four distinct quadrants, each representing a specific action to take based on the application’s performance, cost, and alignment with business strategy:
- Tolerate: Applications that are performing adequately but do not warrant additional investment.
- Invest: Applications that deliver high value and require further investment to maximize their potential.
- Migrate: Applications that are critical but need modernization or migration to more efficient platforms.
- Eliminate: Applications that are no longer valuable and should be retired to reduce costs and complexity.
By mapping applications into these categories, organizations can prioritize their resources effectively and focus on maximizing the value of their IT investments.
3.5.2 The Four Categories of the TIME Model
- Tolerate
- Definition: Applications that are stable, functional, and meeting current needs but are not strategic or high-performing.
- Characteristics:
- Low priority for improvement or modernization.
- Adequate performance without significant issues.
- May serve niche or legacy functions.
- Action Plan:
- Maintain the application with minimal investment.
- Monitor for emerging risks, such as performance decline or compliance issues.
- Reevaluate periodically to determine if the application should move to another category.
- Invest
- Definition: High-performing applications that align closely with business goals and provide significant value.
- Characteristics:
- Core to business operations or competitive advantage.
- Scalable and aligned with future growth.
- Demonstrates a strong ROI and strategic alignment.
- Action Plan:
- Allocate resources for enhancements, upgrades, or expansion.
- Integrate with other systems to unlock additional value.
- Regularly measure performance to ensure continued ROI.
- Migrate
- Definition: Applications that are important to the business but are outdated, inefficient, or misaligned with future needs.
- Characteristics:
- Built on legacy platforms or lacking scalability.
- Critical for business continuity or compliance.
- Increasing maintenance costs or technical debt.
- Action Plan:
- Plan for migration to modern architectures (e.g., cloud, SaaS, microservices).
- Address technical debt and improve performance.
- Align migration efforts with digital transformation initiatives.
- Eliminate
- Definition: Applications that are redundant, underutilized, or misaligned with organizational strategy.
- Characteristics:
- No longer delivering value to the business.
- High TCO with little or no ROI.
- Replaced by newer, more efficient solutions.
- Action Plan:
- Decommission the application and migrate or archive data as needed.
- Communicate with stakeholders about the retirement process.
- Repurpose resources to higher-value initiatives.
3.5.3 How to Apply the TIME Model
- Assess Performance and Value:
- Evaluate each application based on cost, usage, technical health, and business alignment.
- Use metrics like ROI, TCO, and utilization rates to determine value.
- Categorize Applications:
- Assign applications to one of the four TIME categories based on the assessment.
- Involve stakeholders across IT and business units to ensure alignment.
- Develop a Strategic Action Plan:
- Define specific actions for each category (e.g., investment strategies, migration roadmaps, or retirement plans).
- Prioritize initiatives based on organizational goals and resource availability.
- Monitor and Adjust:
- Regularly review and update the categorization as business needs and application performance evolve.
- Use governance processes to ensure consistent application of the TIME model.
3.5.4 Benefits of the TIME Model
- Simplicity and Clarity: The model provides an intuitive framework for decision-making, making it accessible to both IT and non-IT stakeholders.
- Strategic Alignment: Ensures that resources are allocated to applications that align with business goals and deliver the most value.
- Cost Optimization: Identifies opportunities to reduce costs by eliminating redundant or inefficient applications.
- Proactive Management: Encourages regular evaluation of applications to prevent stagnation and address emerging risks.
3.5.6 Common Challenges in Using the TIME Model
- Subjective Categorization: Without clear criteria, applications may be placed in inappropriate categories.
- Incomplete Data: Lack of accurate or comprehensive data can lead to incorrect assessments.
- Resistance to Change: Stakeholders may resist decisions to eliminate or migrate applications, especially if they are long-standing or widely used.
To overcome these challenges, organizations should establish clear metrics, involve cross-functional teams, and communicate the rationale behind decisions effectively.
3.5.7 TIME Model in Practice: A Quick Example
Imagine an organization evaluating its application portfolio:
- Tolerate: An internal HR system that meets current needs but is not strategic.
- Invest: A customer-facing e-commerce platform driving significant revenue.
- Migrate: A legacy ERP system critical for operations but running on outdated infrastructure.
- Eliminate: A redundant project management tool replaced by a modern, centralized solution.
By categorizing these applications and taking appropriate actions, the organization can optimize its portfolio for cost, performance, and strategic value.
3.5.8 Key Takeaways
- The TIME model categorizes applications into Tolerate, Invest, Migrate, or Eliminate, providing a clear framework for decision-making.
- It helps organizations optimize their portfolios by focusing resources on high-value applications and addressing inefficiencies.
- Regularly applying the TIME model ensures that the portfolio remains aligned with business goals and evolving IT landscapes.
In the next section, we will explore Application Inventory Basics, covering the critical first steps in building a comprehensive view of your application portfolio.
