Application Rationalization via eTOM Segmentation
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Solution Overview
Problem
Current information technology management lacks an effective method for application and infrastructure rationalization, leading to inefficiencies such as misalignment with business strategy, proliferation of applications, duplication of functionality, and fragmented information architecture, which hinder cost effectiveness and revenue growth.
Innovation Solution
A method for application rationalization that uses industry process-based models like the Enhanced Telecom Operations Map (eTOM) to aggregate and analyze applications, prioritize opportunities, and develop a detailed financial analysis and implementation plan, focusing on cost reduction and redirecting savings to align with business strategy, while also addressing IT governance and infrastructure optimization.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If application portfolio expansion continues to support business growth, then business capability and revenue growth are improved, but system complexity and operational costs increase
Solution Approach 1:
The patent segments the application portfolio into distinct categories (strategic applications, utility applications, legacy applications) based on business value and complexity. This segmentation enables differentiated management strategies for each category, allowing the organization to maintain necessary business capabilities while systematically reducing overall system complexity through targeted rationalization of non-strategic applications
Solution Approach 2:
The patent extracts and removes redundant, non-strategic, or legacy applications from the application portfolio that no longer provide sufficient business value. By taking out these low-value applications, the system reduces complexity and operational costs while preserving the core strategic applications that drive business growth and capability
2Loss of energy
If infrastructure components are consolidated to reduce costs, then operational costs are reduced, but flexibility and adaptability may be compromised
Solution Approach 1:
The patent applies local quality by implementing differentiated consolidation strategies for different infrastructure components based on their specific requirements. Critical infrastructure components that require high flexibility are consolidated selectively while maintaining necessary adaptability, whereas non-critical components undergo more aggressive consolidation for cost reduction. This localized approach ensures cost efficiency without compromising the flexibility needed for business adaptability
3Device complexity
If application rationalization is pursued aggressively to reduce complexity, then system simplicity and cost effectiveness improve, but business alignment and functionality may be compromised
Solution Approach 1:
The patent performs preliminary action by conducting a comprehensive assessment and classification of the application portfolio before implementing rationalization. Strategic applications are identified and protected in advance, ensuring business alignment is maintained. The rationalization process then focuses on non-strategic applications, achieving system simplicity without compromising the functionality and business alignment of critical applications
Data Source
AI summary
A method for application rationalization to assist clients in reducing the complexity of information technology (IT) and expedite the benefits of IT transformation. One exemplary application is described using the disclosed methodologies within the communications industry.