Introducing Application Rationalization in ServiceNow
Sankhadeep Dhar
ServiceNow ITBM expert & Power BI / Tableau designer

Introducing Application Rationalization in ServiceNow


This is the 2nd in the series of our APM blogs. Click here for the previous post.

Now that you have a trustworthy inventory of Business Applications, we will move over to its next use case - Application Rationalization. To understand this use case, let's consider the below (simplistic) conversation between CIO, Enterprise Architect, and IT Leadership team.

CIO: Our company leadership wishes IT to support the Enterprise Strategy of "Improve the Bottom Line". The office of CIO has come up with the IT strategy "Move to Cloud" and its related goals. Also, we have identified the top Goal to Reduce Application TCO by 50% in the next 4 years. I need your help to enable IT to reach the goal. I would like to understand the financial and additional impact of putting this into action. How and where can we start?



Enterprise Architect: We are in luck! We just implemented APM, our inventory of Business Applications, and its related metrics. That has set a solid foundation for us to analyze the data further supporting the Application Rationalization process.

CIO: That sounds promising! Can you please explain more?

Enterprise Architect: Sure! Let's consider the below HR systems. I have had good details collected by our HR IT and Business Application owners.

Attendance & Payroll Mgmt System: In general users are very happy with this application. The application is stable, requires low maintenance, and is already in the cloud. For now, I would suggest maintaining this application as is; no further investment required for now.

Matching Gift: This is a homegrown application and we know that our users are not very satisfied with this application. Not a lost cause, but I think if we replace this with a Commercial Off-the-Shelf (COTS) cloud-based application, we will be able to turn it around. This is a good contender to replace and move to the cloud.

HR Onboarding: This is a very critical application and has a large user base. This is a bit on the higher side if we consider the maintenance costs, but we think we can reduce that by upgrading it to its latest version.

You will notice that based on the contextual data collected against the Business Applications, I have identified actions to be taken against them (maintain, replace, upgrade, etc) and are currently waiting for our IT teams to prioritize and execute.

IT Leadership: Yes, these Demands from the Enterprise Architect community are already in the IT pipeline as Demands. After proper assessments and advanced scenario planning, our Portfolio Managers have approved these as Projects.

CIO: This is a GREAT example of team effort and workflow enabling our Strategy to Portfolio value stream. Very happy that we have a platform to support this!! Let me know when I can check the status!

With a happy CIO, our Enterprise Architect
and IT Leadership gets back to work with a purpose!!

For a demo on how ServiceNow Application Portfolio Management supports the full process, please view the below video (under 3 minutes).

APM Application Rationalization video

In this blog, we introduced Application Rationalization as a process to identify actions against a Business Application in order to act on a Strategy and meet an organization Goal. Supporting this process is a number of application indicators that you might have noticed in the video. Some of these were also introduced in the conversation above. Setting up these requires some pre-work and will be introduced in an additional post.



ServiceNow APM also provides Application Roadmap visibility
into all the Demands and
Projects running against a Business
Application. This enables an application owner or a stakeholder
to look into the related
investments in real-time.



We have more posts to publish on this topic in the coming days, so come back for more! Also, feel free to share and comment.