9.7. Rationalizing Duplicate and Overlapping Applications

Duplicate and overlapping applications are a common source of inefficiency in an organization’s portfolio. Rationalizing these applications not only reduces costs but also simplifies IT operations, minimizes confusion for end-users, and enhances governance. This section outlines a structured approach to identifying and rationalizing duplicate and overlapping applications as part of early-stage APM efforts.

9.7.1 Understanding Duplicate and Overlapping Applications

• Duplicate Applications
  • Two or more applications perform the same or nearly identical functions.
  • Often arise from decentralized purchasing decisions or mergers and acquisitions.
  • Example: Multiple email platforms in use across different departments.
• Overlapping Applications
  • Applications with significant feature overlap but not necessarily identical functionality.
  • Typically used by different teams for similar purposes.
  • Example: Multiple project management tools offering comparable functionality.

9.7.2 Why Address Duplicates and Overlaps?

• Cost Savings
  • Reduces licensing, maintenance, and support costs associated with redundant applications.
• Operational Efficiency
  • Simplifies IT operations by reducing the number of systems to manage.
• Improved User Experience
  • Eliminates confusion caused by multiple tools serving similar purposes.
• Stronger Governance
  • Streamlines governance processes by focusing on a standardized set of tools.

9.7.3 Steps to Rationalize Duplicate and Overlapping Applications

1. Identify Candidates for Rationalization
   • Analyze Inventory: Review the application inventory for duplicates and overlapping tools based on functionality and usage.
   • Engage Stakeholders: Collaborate with business units to confirm duplicate or overlapping applications.
   • Use Surveys or Interviews: Gather feedback from end-users to identify tools serving similar purposes.
2. Evaluate Applications
   • Cost Comparison: Compare the Total Cost of Ownership (TCO) for each application.
   • Usage Metrics: Assess adoption and usage levels across the organization.
   • Business Value: Evaluate the contribution of each application to business goals and processes.
   • Technical Fit: Determine compatibility with current IT architecture and future plans.
3. Determine Rationalization Approach
   • Retain One Application: Select the most cost-effective, widely adopted, or feature-rich application to retain.
   • Consolidate Features: Migrate key features from less-preferred applications into the primary tool, if feasible.
   • Retire Duplicates: Decommission redundant applications with minimal disruption.
4. Plan the Transition
   • Data Migration: Ensure all critical data is transferred to the retained application.
   • Training and Support: Provide end-users with training to ease the transition to a single application.
   • Communication: Clearly communicate the rationale and benefits of the rationalization to stakeholders.
5. Execute and Monitor
   • Phased Implementation: Gradually roll out the rationalization plan to minimize disruption.
   • Monitor Adoption: Track user adoption of the retained application to ensure a smooth transition.
   • Measure Outcomes: Evaluate cost savings, operational improvements, and user satisfaction post-rationalization.

9.7.4 Criteria for Selecting Applications to Retain

• Cost-Effectiveness
  • Lower licensing, support, and infrastructure costs.
• Adoption Levels
  • Higher adoption rates among end-users and business units.
• Business Alignment
  • Stronger alignment with organizational goals and strategic priorities.
• Technical Integration
  • Compatibility with existing systems and enterprise architecture.
• Vendor Support
  • Availability of ongoing vendor support and regular updates.

9.7.5 Challenges in Rationalizing Duplicates and Overlaps

• Stakeholder Resistance
  • Challenge: Business units may resist retiring applications they rely on.
  • Solution: Engage stakeholders early and emphasize the benefits of rationalization.
• Data Migration Complexity
  • Challenge: Migrating data from retired applications to the retained system can be resource-intensive.
  • Solution: Plan and test data migration processes thoroughly before execution.
• User Training
  • Challenge: End-users may struggle to adapt to the retained application.
  • Solution: Provide comprehensive training and support to ensure a smooth transition.
• Overlooking Hidden Dependencies
  • Challenge: Retiring an application without understanding its dependencies can disrupt other systems.
  • Solution: Map all integrations and dependencies before making rationalization decisions.

9.7.6 Examples of Rationalization

• CRM Tools
  • Scenario: Two departments use different CRM tools with overlapping features.
  • Action: Retain the CRM with lower costs, better adoption, and stronger integration capabilities.
• Collaboration Platforms
  • Scenario: Multiple collaboration tools (e.g., Slack, Microsoft Teams) are in use.
  • Action: Standardize on the tool with enterprise-grade features and broader organizational adoption.
• Project Management Software
  • Scenario: Various teams use separate project management tools.
  • Action: Consolidate onto a single platform that meets the needs of most users.

9.7.7 Best Practices for Rationalizing Duplicates and Overlaps

• Start with Low-Risk Applications
  • Focus on non-mission-critical applications to minimize disruption during early rationalization efforts.
• Engage Cross-Functional Teams
  • Involve stakeholders from IT, finance, and business units to ensure well-rounded decision-making.
• Leverage Data
  • Use usage, cost, and business value metrics to make objective rationalization decisions.
• Communicate Clearly
  • Regularly update stakeholders on the rationale, progress, and outcomes of rationalization efforts.

9.7.8 Outcomes of Rationalization

• Cost Savings: Reduced expenses from eliminating redundant licenses and support contracts.
• Simplified Portfolio: Fewer applications to manage, resulting in operational efficiency.
• Improved Governance: Easier enforcement of policies and standards with a streamlined portfolio.
• Enhanced User Experience: Clearer guidance on which tools to use for specific purposes.

Rationalizing duplicate and overlapping applications is an impactful way to kickstart the rationalization process, delivering immediate benefits while setting the stage for more comprehensive portfolio management.