ALM to drive CIOs agenda for Competitiveness, Agility & Profitability
Application Landscape Management (ALM) forms an integral part of a CIO’s portfolio. Present-day CIOs are constantly balancing between, driving digital innovation related business model changes while ensuring that applications deliver the inherent business value. Although, IT is currently at an inflection point due to multiple transformative forces at play, the importance of IT applications is not going to diminish as revealed by Capgemini’s study, “Executive Insights on Application Landscape Management”. Our study establishes that effective ALM plays a key role in securing the competitiveness of enterprises – providing a consistent ability to win in the marketplace, and realizing world-class performance.
Capgemini’s study reveals that it is important to focus on Run and Innovate dimensions of ALM. Both of these dimensions are deeply connected. Run actions also need to incorporate ongoing improvement actions. ALM is effective when world-class performance practices are implemented with business-technology insights and rigor, delivering a strong P&L and organizational impact. A few examples aligned to the above principles are:
1. Well-known retailer: Improved the performance of Digital Commerce assets in critical customer journeys to arrest substantial revenue leakage per year
2. Discrete manufacturer: Business outcome oriented automation delivering six times the cost reduction realized from reducing labour associated with repetitive functional and technical tasks
3. Financial services firm: Realized complex international expansion of the business in an effective manner accomplishing a 60% rise in agility in terms of speed-to-market, reduction in the cost of business transactions ranging from 30% to 67%, and an IT component re-use factor of ~4 and 2,000+ releases per week
4. Distribution firm: Combined business-IT teams for Digital Commerce, Payroll platforms implemented to drive rapid issue resolution, effective preventive maintenance actions aided by powerful automation, and enhanced time-to-market for new business initiatives
Besides enabling rigor in day-to-day operations, these principles, promote flexibility that is essential to support launch of new products and services – a hallmark of a trusted partner who puts the client’s interest ahead of theirs
A characteristic of IT applications of the future would be to equip customer journeys and their key business processes with, the right insight at the right place, and at the right time with the right level of granularity. Having said that, Data Management programs are successful only when they grab the attention of the business based on visible business value creation. An example aligned to the above principle is:
5. Consumer goods firm: Supported executive management decisions through state-of-art business insights solution; it helped to retain and grow market share in a VUCA (Volatile Uncertain Complex, and Ambiguous) environment.Such impact is possible only when there is focus on: key elements of Master and transactional data, on-going simplification of the database and applications else they become akin to the long pole on the tent and impede speed-to-market of innovative new capabilities.