Identifying “quick wins” is a critical first step in early-stage rationalization. Quick wins are small, easily achievable rationalization actions that deliver immediate value with minimal effort. They help demonstrate the benefits of Application Portfolio Management (APM) and build momentum for larger, more complex rationalization initiatives.
9.1.1 What Are Quick Wins?
Quick wins in the context of rationalization refer to straightforward actions that result in:
- Immediate cost savings (e.g., eliminating unused licenses).
- Reduced redundancies (e.g., consolidating duplicate applications).
- Streamlined IT operations (e.g., retiring outdated legacy applications).
- Enhanced organizational confidence in the APM process.
The focus is on addressing low-hanging fruit—issues that are easy to identify and resolve but still have a noticeable impact on the organization’s application portfolio.
9.1.2 Criteria for Quick Wins
To identify quick wins, applications should meet one or more of the following criteria:
- Low Usage or Adoption
- Applications that show minimal usage across the organization.
- Tools or platforms introduced but no longer actively used by employees or business units.
- Duplicate Functionality
- Applications that provide overlapping features with other tools in the portfolio.
- For example, multiple Customer Relationship Management (CRM) platforms serving similar purposes.
- High Cost with Low Business Value
- Applications with a high Total Cost of Ownership (TCO) but little contribution to critical business processes or goals.
- Low return on investment (ROI) applications often fall into this category.
- Obsolete or Unsupported
- Legacy applications that are no longer supported by vendors or have become technologically outdated.
- These can pose security and compliance risks and should be prioritized for retirement.
- Redundant Licensing
- Applications with unused or underutilized licenses that can be scaled back to match actual usage.
9.1.3 Steps to Identify Quick Wins
- Review the Application Inventory
- Use the application inventory created in earlier chapters to filter for candidates based on the quick-win criteria.
- Focus on easily accessible data, such as usage metrics, licensing costs, and overlap with existing tools.
- Engage Stakeholders
- Involve application owners, business units, and IT teams to validate findings.
- Collaborate with stakeholders to identify applications that are unnecessary or redundant from their perspective.
- Leverage Data Analytics
- Use basic scoring models to evaluate applications based on usage, cost, and business value.
- Prioritize applications with low scores for rationalization.
- Conduct Surveys and Interviews
- Collect feedback from end-users and teams to uncover applications that are no longer meeting their needs or being used effectively.
- Focus on Non-Mission-Critical Applications
- Avoid targeting high-risk or mission-critical applications during the initial rationalization phase.
- Concentrate on simpler targets that are less likely to face resistance.
9.1.4 Examples of Quick Wins
- Eliminating Duplicate Productivity Tools
- Example: An organization using multiple video conferencing tools can standardize on a single platform, reducing licensing costs and simplifying support.
- Retiring Unused Legacy Systems
- Example: An outdated payroll system replaced by a modern cloud-based solution can be retired, saving maintenance and support costs.
- Scaling Back Licenses
- Example: Reducing the number of licenses for an underutilized project management tool to match the current user base.
- Consolidating Data Storage Solutions
- Example: Merging overlapping data storage applications to reduce costs and complexity.
9.1.5 Benefits of Quick Wins
- Immediate Value Realization: Quick wins provide tangible results, such as cost savings or reduced complexity, that can be measured and communicated to stakeholders.
- Stakeholder Buy-In: Early success helps build confidence in the APM process, encouraging broader support for more complex initiatives.
- Momentum Building: Quick wins establish a sense of progress and set the tone for ongoing rationalization efforts.
- Risk Reduction: Early-stage rationalization addresses security and compliance risks associated with unsupported or unused applications.
9.1.6 Challenges and Mitigation Strategies
- Resistance from Stakeholders: Address concerns by clearly communicating the rationale and benefits of rationalization.
- Incomplete Data: Use approximations or prioritize easily accessible data to make informed decisions.
- Overlooking Long-Term Impacts: While focusing on quick wins, ensure decisions align with the organization’s long-term IT strategy.
By focusing on quick wins, organizations can kickstart their rationalization journey, delivering immediate value while laying the groundwork for more comprehensive and strategic portfolio management efforts.
