Rationalization
A strategy used in IT management to identify which applications should be kept, replaced, or consolidated.
Rationalization is a strategy used in IT management to identify which business applications should be kept, replaced, retired, or consolidated. The goal is to improve efficiency, reduce complexity, and lower costs by having an optimized and high-performing application portfolio. It's an important process during digital transformation efforts, cloud migration, and IT modernization.
Rationalization steps include:
- •Complete Inventory: List all existing applications
- •Value Analysis: Evaluate the business importance of each application
- •Technical Analysis: Assess technical status and maintenance costs
- •Decision: Categorize according to the TIME model (Tolerate, Invest, Migrate, Eliminate)
- •Execution: Implement decisions with a transition plan
Rationalization can generate significant savings while improving organizational agility.
All terms
5R Method
A strategy used during application rationalization to determine the best approach for managing applications.
8R Method
An extended version of the 5R method used in application portfolio management and migration strategies.
Application
A computer program or set of programs designed to streamline business operations.
Architecture
Refers to the structure and behavior of IT systems, processes, and infrastructure within an organization.
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