A $16B global automotive products company had completed a $4B merger and acquisition. As a result of this acquisition, there were over 2000 applications in the application portfolio. IT was challenged by the CEO to reduce costs. Evaluating the application portfolio was one opportunity to identify potential cost savings. By reducing the application footprint and consolidating systems, there was great potential to identify cost savings.
In an effort to reduce maintenance and licensing costs, our client engaged Full On Consulting to lead an effort to identify savings and optimize their application portfolio.
The client did not know how to embark on an application rationalization effort. They looked for outside expertise to help them define a strategy, execution plan and future state roadmap to help them achieve their goals. Full On Consulting was engaged to provide the expertise necessary to succesfully deliver a large-scale, enterpise effort.
Full On Consulting defined the strategy and approach to successfully deliver the engagement. Functional and technical teams across the organization were assembled to review and validate the current state application portfolio. Working with the Finance and IT Procurement teams, licensing and maintenance costs were defined for each application. This would help in the analysis of quantifying savings.
Once the current state as define, Full On Consulting worked with each team to define the future state environment. The target technlogies and platforms were identified. Transistion and implementation plans were defined along with an overall cost to achieve. These items were asembled into a final report which was presented to IT executives and the CEO.
The final report identified $16M is savings that IT could achieve. Our client could achieve significant savings by consolidating business areas onto a common SAP platforms. This would significantly reduce maintenance and Licensing costs. There were several other application platforms that could be consolidated as well.
As a result of this effort, our client started the first phase of reducing their application portfolio. This initial program consisted of 10 projects which result in $6M of annual savings.
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