Many organizations today utilize thousands of apps on a day-to-day basis to support their business operations. The use of apps has become increasingly prevalent with the growth of mobile devices, cloud computing, and the digital transformation of businesses.
However, managing so many apps can be challenging for organizations. It requires a significant investment in time, resources, and infrastructure to ensure that apps are optimized for performance, security, and user experience. It also requires effective app management and governance to ensure that apps are being used effectively and efficiently. To address these challenges, App optimization through TBM can be a game changer.
Here's how Technology Business Management (TBM) can support this app optimization objective in today's times in several ways:
- Cost optimization: by analyzing the cost of delivering the app and identifying areas where costs can be reduced.
- Improved user experience: TBM can help you identify areas in your app that are causing user frustration or leading to user churn.
- Data-driven decision-making: TBM provides you with detailed insights into how users are interacting with your app, which can help you make data-driven decisions about how to improve your app's performance.
- Increased revenue: TBM can help you identify revenue opportunities within your app, such as new features or monetization strategies.
- Competitive advantage
With a detailed discussion of all the above pointers, I worked with the customer to drive the use case of Application portfolio optimization. We first figured out the kind of data sets that were available to the customer. Luckily, we could readily feed the data from their APM tool into Apptio. After several iterations, we were satisfied with the data precision and then we moved on to building up the model. Following ATUM taxonomy, we were able to build the model up to Apps so that we could utilize the App list, App review, and App portfolio kind of OOTB reports.
When these reports were lit up with the data flow, we had two validation iterations with different CC owners coming in and verifying and validating the numbers that they were seeing for various apps used by them. After this project was live and the end users were completely accustomed to the frontdoor portal, we started to focus on App optimization. The customer analyzed the App list to see the top spend as well as top usage. This moved on to the process of consolidation, replacement, and heritage elimination for Apps and they were able to cut down the App list by 8% which resulted in savings of 15% of the total app spend.
The customer's IT and finance team has really seen the value of mapping Applications. The immaturity of the financial and IT perspective has been tackled with accurate reporting that was being tried to achieve in the last couple of years. They have been able to go beyond the Apps layer and have built the model for Business units. Overall, App TCO optimization can be an effective strategy for organizations looking to reduce their IT costs and improve efficiency and has the potential to achieve significant cost savings in the range of 10% to 30%.
Please find the screenshot below and an attached pdf for more details!
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