Published:
January 27 2012, 10:36 AM
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by
Mary Cauwels
As we prepare to close the first month of the new year, I am looking back on how I spent a lot of the weekends using the "out with the old, in with the new" mantra. And
that got me thinking (scary, I know) about the relationship between innovating new products or services and transforming application portfolios or moving services to the cloud.
In order to make room for the new ideas, it is necessary to make space by evaluating the so-called "old" products and services. This rationalization might actually need to occur prior to innovation activities or at the very least in lock-step with it. However, it is not a simple matter of carte blanche removal of all things old. I learned that while sitting on the floor with my son during the "clean out" of his room. Surrounded by LegosTM, race cars, and plastic army men, my son and I had to discuss what to keep, what to donate to charity, and what to throw away or recycle. This is the case in organizations as well. The dialogue between IT and business is critical.
Consider the path that Nordea Bank took when embarking on their Total Application Portfolio Assessment project (TAPAS), recently published in a customer success story.
Nordea recognized that years of mergers and acquisitions have resulted in redundant, antiquated, or unused applications. Meanwhile, they needed to gear up to bring new innovations in financial products and services to market quickly which meant freeing up resources. Enter CA Clarity PPM. It brought Nordea the solution they needed to evaluate the 3,300 business applications spanning from banking systems to customer relationship management, human resources, and accounting applications.
According to Michael Steffensen, Head of Group IT Business Support at Nordea, "The CA Technologies PPM solution provides comprehensive visibility of application details to support the TAPAS project and enables greater governance. It also acts as a tool for communication between business and IT to ensure an open dialogue is maintained and that application decisions are supported by all key prospects." This included the selection of the evaluation criteria. Now Nordea can maintain a score for each application that relates to the business criteria such as functional quality, business and strategic value with IT criteria such as application costs and technical quality. This qualitative and quantitative data guides more "informed decisions as to whether to retire, keep as-is, upgrade or replace an application," explains Steffenson.
The result is an expected €3.5 million in cost savings which will not only free up funding resources for new innovation but will also free up IT staff to support new projects. Fortunately for Nordea, they expect continued benefits for years to come. And with the latest release of CA Clarity PPM, coordinating innovation and transformation and aligning business and IT is even easier.
As for my son, our transformation project was a success as well - for now at least.
Lego image provided by Mary Cauwels.