Rationalization vs. Modernization?
posted by Peter Mollins at 11:24 AM
A reader placed an interesting post on our Application Portfolio Management sister site. The question was whether application rationalization is the same as application modernization. There are various opinions on the topic, with many suggesting that rationalization is an IT activity distinct from and on par with modernization. I think that is more helpful to consider it to be a subset of modernization.
Traditionally, application modernization has been thought of as an IT activity that involves IT-centric manipulations of existing code bases. Rationalization was seen as outside of this classic view because it involved the wholesale purging of applications, rather than updating them. It also was seen as separate because it was often the first step of clearing the site to make room for more targeted application modernization actions.
But as application portfolios have become recognized as key enablers of business processes, this IT-centric view of modernization has begun to recede. Changes to the application portfolio are increasingly in response to overarching business pressures and are no longer isolated within the IT department. For instance, modifications could involve introducing more dynamic application architectures to respond to shifting business strategies. Or, the elimination of non-strategic applications to cut costs as business needs change.
This adapting of application portfolios to respond to business pressures is application modernization. We start by asking what business requirements we have and then selecting our IT activities from our basket of alternatives (SOA, outsourcing, redevelopment, rationalization, etc.) based on what will best address this need. This trend has accelerated with the adoption of application portfolio management capabilities that allow IT to govern applications as business assets.
By thinking of application modernization as a business-led activity first, we elevate the process and increase its results (and relevance) for management. By thinking of rationalization as an alternative within the application modernization schema, we ensure that APM-led business decisions determine which path we will take toward efficient and flexible application portfolios. Certainly rationalization is often the first path taken because it can generate immediate budget benefits, but IT management should view all modernization options as being on the table for any portion of the application portfolio.
Traditionally, application modernization has been thought of as an IT activity that involves IT-centric manipulations of existing code bases. Rationalization was seen as outside of this classic view because it involved the wholesale purging of applications, rather than updating them. It also was seen as separate because it was often the first step of clearing the site to make room for more targeted application modernization actions.
But as application portfolios have become recognized as key enablers of business processes, this IT-centric view of modernization has begun to recede. Changes to the application portfolio are increasingly in response to overarching business pressures and are no longer isolated within the IT department. For instance, modifications could involve introducing more dynamic application architectures to respond to shifting business strategies. Or, the elimination of non-strategic applications to cut costs as business needs change.
This adapting of application portfolios to respond to business pressures is application modernization. We start by asking what business requirements we have and then selecting our IT activities from our basket of alternatives (SOA, outsourcing, redevelopment, rationalization, etc.) based on what will best address this need. This trend has accelerated with the adoption of application portfolio management capabilities that allow IT to govern applications as business assets.
By thinking of application modernization as a business-led activity first, we elevate the process and increase its results (and relevance) for management. By thinking of rationalization as an alternative within the application modernization schema, we ensure that APM-led business decisions determine which path we will take toward efficient and flexible application portfolios. Certainly rationalization is often the first path taken because it can generate immediate budget benefits, but IT management should view all modernization options as being on the table for any portion of the application portfolio.
