What It Is: App Rationalization is the process of reducing redundancies that exist in an application portfolio in the interest of reducing complexity, cost of ownership, and improving speed-to-market.
Why It Matters: Organizations typically spend anywhere between 50-80% of their IT budget maintaining and supporting systems in place. That limits investment in innovation and competitive advantage.
Key Concepts
- Understand that rationalization is more about change management than technology
- Ensure there are healthy relationships in place and strong leadership support for the work
- Focus in on critical areas of the portfolio that drive cost. Don’t boil the ocean
- Don’t worry about creating the perfect infrastructure day one. Clean that up along the way
- Start with how your business operates and simplify and standardize processes first
- Align your future blueprint as cleanly to your desired operating footprint as possible
- Consider your Artificial Intelligence (AI), cloud, and security strategies in the future vision
- Simplification can come through reducing both unique applications and instances of applications
- Address how systems will be supported and enhanced moving forward in your design
- Explicitly include milestones for decommissioning in your roadmap. Don’t let that go undone
- Expect the work to continually evolve and adapt. Plan for change and adjust responsively
- Include rationalization as part of your ongoing portfolio strategy so it’s not a one-time event
Approach
- Align – Obtain organizational support critical to defining vision, scope, and facilitating change
- Understand – Gather an understanding of the current state and alignment to operations
- Evaluate – Leverage something like the Gartner TIME model to evaluate portfolio quality and fit
- Strategize – Develop a future state blueprint, CBA, and proposed changes to the environment
- Socialize – Obtain feedback, iterate, clarify the vision, and finalize the initial roadmap
- Mobilize – Launch first wave of delivery, realign ongoing work as required
- Execute – Deliver on 30-, 60-, and 90-day goals, governing and adjusting the approach as you go
For Additional Information: Part 1: Managing the Intangibles, Part 2: Laying the Foundation, Part 3: Executing the Process
Excellence doesn’t happen by accident. Courageous leadership is essential.
Put value creation first, be disciplined, but nimble.
Want to discuss more? Please leave a comment and contact info. I’m happy to explore with you.
-CJG 10/29/2025
Organized Chaos 