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Achieving Results Through Application Rationalization – Modernizing Application Portfolio and Achieving Cost Savings

Blog, Enterprise Architecture, IT portfolio management, NISH Capabilities, ,

Chief Information Officers (CIOs) must manage business and IT applications as assets. The applications must have a positive return on investment (ROI) in order to justify their existence. The business value for computing the ROI may consists of productivity, revenue, regulatory compliance, and mission criticality.

With increasing budget constraints and rapid technology innovation, IT leaders are under increasing pressure to manage their application portfolio efficiently while leveraging modern technologies. Outdated, obsolete, and redundant legacy applications stifle IT innovation. Business surveys show that legacy IT systems are not only inhibiting IT departments’ modernization efforts, but are also threatening to curtail business improvement and growth.

Application Rationalization is an analytical approach to decisions about maintaining, upgrading, modernizing, and retiring applications. Organizations can use it to free-up IT resources from unused, redundant, and “high maintenance” legacy applications and create an effective roadmap for each application and modernization project pipeline. Application Rationalization also prepares the application portfolio for valuable IT initiatives, such as digital signature, identity management, and cloud migration (Platform-as-a-service or Software-as-a-service).

NISH’s approach to Application Rationalization is pragmatic and based on industry best practices. Our approach includes the following recommended activities:

  1. Obtain executive and upper management sponsorship, especially from the  business.
  2. Establish and communicate goals with clearly defined milestones (aka project plan).
  3. Assemble a team of business and IT analysts, IT architects, cost analysts, and project manager.
  4. Adopt a methodology (including evaluation criteria) and transparent process.
  5. Identify and engage both business and IT stakeholders throughout the process.
  6. Use one tool to collect and analyze data.
  7. Communicate regularly and frequently.
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Three steps to begin addressing FITARA requirements

Blog, Emerging Trends in Federal IT, ,

The Federal Information Technology Acquisition Reform Act (FITARA) requires Federal agency heads to ensure that their respective chief information officers (CIOs) have a significant role in information technology (IT) decisions, including annual and multi-year planning, programming, Time for Changebudgeting, execution, reporting, management, governance, and oversight functions. The Office of Management and Budget’s (OMB) annual information technology capital planning guidance directs Federal CIOs (excluding the military departments) on how to implement the law.

The guidance outlines CIO responsibilities and authorities under FITARA and directs them to: (1) approve their agency’s IT budget requests, (2) certify that IT investments adequately implement incremental development, and (3) ensure that all requested IT positions meet ongoing requirements.

As OMB is finalizing the guidance on how to address the requirements of the new law, federal leaders can begin with these three steps:

  1. Establish an agency-level “FITARA board” – Senior leadership of the department/agency should immediately establish a “FITARA board,” responsible for addressing the FITARA requirements and reporting to both the department/agency head as well as oversight bodies such as OMB and Congress. Chaired by the CIO, the board membership should include the chief financial officer (CFO), chief acquisition officer (CAO), and chief management officer (CMO).
  1. Define scope of IT – The CIO should review the current scope of department/agency IT investments and application of IT spending under under OMB Circular A-11. FITARA defines a much broader scope for IT resources, in comparison to the Circular and the Clinger-Cohen Act. As a result of this expanded perspective, the CIO may be required to update the current definition and scope of IT resources in the  department/agency.
  1. Evaluate current governance processes – Current governance processes for IT budget, acquisition, and program management are likely “siloed” and fragmented in most agencies.

In depth-review of these processes, to identify the gaps in addressing FITARA requirements, will help the CIOs implement integrated governance processes that are based on the principles of transparency, risk management, and accountability.

These steps are initial recommendations for how agencies and departments can begin to address some of the FITARA requirements. In the days and months to come, a comprehensive implementation plan will be needed to effectively address FITARA and achieve the goals of improved management and oversight of IT resources.


OMB has published proposed guidance to implement FITARA and is seeking feedback from the general public. Vist https://whitehouse.github.io/fitara/.

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FITARA takes major steps towards consolidating CIO authority over IT spending

Blog, Emerging Trends in Federal IT,

The Federal Information Technology Acquisition Reform Act (FITARA) requires the heads of Federal agencies to ensure that their respective chief information officers (CIOs) have a significant role in information technology (IT) decisions, including annual and multi-year planning, programming, budgeting, execution, reporting, management, governance, and oversight functions. The law also requires the Office of Management and Budget (OMB) annual IT capital planning guidance to require CIOs to (1) approve their agency’s IT budget requests, (2) certify that IT investments adequately implement incremental development, and (3) ensure that all requested IT positions meet ongoing requirements. Click FITARA to review the law in its entirety. Also, visit https://whitehouse.github.io/fitara/ to provide feedback on OMB’s proposed guidance.