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Definition

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.

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