{"id":48946,"date":"2009-11-25T07:37:40","date_gmt":"2009-11-25T04:37:40","guid":{"rendered":"https:\/\/www.altoros.com\/blog\/?p=48946"},"modified":"2021-11-24T22:50:02","modified_gmt":"2021-11-24T19:50:02","slug":"application-consolidation-to-simplify-data-integration-on-business-value","status":"publish","type":"post","link":"https:\/\/www.altoros.com\/blog\/application-consolidation-to-simplify-data-integration-on-business-value\/","title":{"rendered":"Consolidating Apps and Data to Cut Operational Costs"},"content":{"rendered":"<p><center><\/p>\n<p><small>(<a href=\"http:\/\/graphics.eiu.com\/files\/ad_pdfs\/eiu_intel_sap_business_intelligence_.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">Featured image credit<\/a>)<\/small><\/p>\n<p><\/center><\/p>\n<p>&nbsp;<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.altoros.com\/blog\/application-consolidation-to-simplify-data-integration-on-business-value\/#Find_value_in_your_apps\" >Find value in your apps<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.altoros.com\/blog\/application-consolidation-to-simplify-data-integration-on-business-value\/#Consolidate_data\" >Consolidate data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.altoros.com\/blog\/application-consolidation-to-simplify-data-integration-on-business-value\/#Evaluate_business_processes_and_finance\" >Evaluate business processes and finance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.altoros.com\/blog\/application-consolidation-to-simplify-data-integration-on-business-value\/#Further_reading\" >Further reading<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Find_value_in_your_apps\"><\/span>Find value in your apps<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It\u2019s a common thing for an enterprise to have multiple applications working with business-critical information. On average, a data warehouse gathers information from 12 distinct sources, according to a TDWI <a href=\"http:\/\/download.101com.com\/tdwi\/research_report\/2003ETLReport.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">survey<\/a>. The Economist Intelligence Unit also <a href=\"http:\/\/graphics.eiu.com\/files\/ad_pdfs\/eiu_intel_sap_business_intelligence_.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">found<\/a> that, for business intelligence suites, 34% of the companies utilize software from 2 to 3 vendors, while additional 14% of respondents rely on applications from 4 to 7 providers.<\/p>\n<p>So, some day, here comes the time to consider consolidating enterprise systems and to maybe remove some of them\u2014to simplify data integration, cut costs, and improve business agility. In particular, <a href=\"https:\/\/www.linkedin.com\/in\/ted-friedman-4494a43b\/\" rel=\"noopener noreferrer\" target=\"_blank\">Ted Friedman<\/a> of Gartner <a href=\"https:\/\/www.altoros.com\/blog\/cutting-data-integration-costs-through-rationalization-and-open-source\/\">noted<\/a> in April that rationalizing data integration tools can save companies more than $500,000 annually.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/ibm-data-mart-proliferation.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/ibm-data-mart-proliferation-1024x613.png\" width=\"720\" class=\"aligncenter size-large wp-image-65083\" \/><\/a><small>The consequences of data duplication (<a href=\"https:\/\/www.redbooks.ibm.com\/redbooks\/pdfs\/sg247210.pdf\" rel=\"noopener noreferrer\" target=\"_blank\">image credit<\/a>)<\/small><\/center><\/p>\n<p>The question is, which applications should stay and which should be dismantled. Such decisions don\u2019t usually come easy and require a lot of preparatory work, as well as the right strategy. According to Gartner\u2019s <a href=\"https:\/\/www.gartner.com\/DisplayDocument?doc_cd=165510\" rel=\"noopener noreferrer\" target=\"_blank\">principles<\/a> of application consolidation and expert <a href=\"https:\/\/web.archive.org\/web\/20091124212558\/http:\/\/searchcio.techtarget.com\/news\/article\/0,289142,sid182_gci1374177,00.html\" rel=\"noopener noreferrer\" target=\"_blank\">advice<\/a> I\u2019ve found at SearchCIO.com, several steps should be taken to make the right decisions and ensure the success of the project.<\/p>\n<div id=\"attachment_64919\" style=\"width: 160px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/phil-murphy-forrester.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-64919\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/phil-murphy-forrester-150x150.png\" width=\"150\" height=\"150\" class=\"size-thumbnail wp-image-64919\" \/><\/a><p id=\"caption-attachment-64919\" class=\"wp-caption-text\"><small>Phil Murphy<\/small><\/p><\/div>\n<p>First of all, <a href=\"https:\/\/www.linkedin.com\/in\/philmurphyforrester\/\" rel=\"noopener noreferrer\" target=\"_blank\">Phil Murphy<\/a>, an analyst at Forrester, suggests CIOs need to look at all their applications and ask, &#8220;Why are we doing all this?&#8221;<\/p>\n<blockquote><p>&#8220;Application portfolios are being overloaded with 40 years of adding applications and not taking anything out, and [CIOs] can&#8217;t tell you what&#8217;s in the bucket exactly, only that it costs more than they want it to.&#8221; \u2014Phil Murphy, Forrester<\/p><\/blockquote>\n<p>This initial strategic step includes asking yourself questions about the value of applications used in the company, their functions, the ability to support them in the long term, etc.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Consolidate_data\"><\/span>Consolidate data<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Going further, Jeff Kadlec, IT Director at Ridley, recommends looking for redundancies and noncompliance to corporate requirements. The steps may include:<\/p>\n<ol>\n<li style=\"margin-bottom: 6px;\">Searching for sources of data replication.<\/li>\n<li style=\"margin-bottom: 6px;\">Creating strict standards for &#8220;data definitions, technologies, and application sets&#8221; to be allowed within the enterprise, eliminating the ones that do not fit.<\/li>\n<li>Deciding which data is important. Though tricky, this decision will help to define the applications to keep or to get rid of. So, the choice should be done from the data point of view, as the goal of consolidation is to provide better <a href=\"https:\/\/www.altoros.com\/blog\/wrong-approach-to-data-quality-right-approach-to-data-quality\/\">data quality<\/a>, having more consistent data views and dimensions from less applications to simplify data integration and business analytics, according to Jeff.<\/li>\n<\/ol>\n<blockquote><p>&#8220;What impact will bringing old [data] into that system have, and what effort will it take to massage that information in the new repository to get it to meet what you want it to do? Sometimes, it&#8217;s better to simply do some reentry of data; in other cases, you will have to massage it and clean it.&#8221; \u2014Jeff Kadlec, Ridley<\/p><\/blockquote>\n<p>Earlier, numerous studies found that enterprise data and applications operate in silos, indeed, while different departments within the same enterprise have different approaches to data integration, and there&#8217;s a room for improvement there.<\/p>\n<p><center><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/tdwi-developing-a-data-integration-strategy-2002.png\"><img decoding=\"async\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/tdwi-developing-a-data-integration-strategy-2002-1024x722.png\" width=\"720\" class=\"aligncenter size-large wp-image-64798\" \/><\/a><small>Within the same enterprise, there are different approaches to data integration (<a href=\"https:\/\/tdwi.org\/~\/media\/TDWI\/TDWI\/Miscellaneous\/2002\/08\/TDWI_Data_Integration_Webcast%20pdf.ashx\" rel=\"noopener noreferrer\" target=\"_blank\">image credit<\/a>)<\/small><\/center><\/p>\n<p>You will still need to consider the consequences of removing each application, but this methodology should help you focus on the most important points.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Evaluate_business_processes_and_finance\"><\/span>Evaluate business processes and finance<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There&#8217;s also the phase essential from the financial point of view\u2014analyzing the cost of system support compared to business value of each application. Such analysis will help to make the right decision on what application to keep, and what to stop using. Furthermore, the company may discover the systems with low business value but requiring costly maintenance. Here, some spendings can be cut.<\/p>\n<p>Still, before removing any application, it\u2019s wise to make sure nobody needs it; otherwise, add the functionality to other systems before replacing the old app or leave it <i>as is<\/i>. Each consolidation initiative should define the sources of savings but do not harm.<\/p>\n<blockquote><p>&#8220;If the business department is making $10 million using this application, even though it costs more than other applications to support, is it a smart move to replace it or disrupt a money-making business process?&#8221; \u2014Phil Murphy, Forrester<\/p><\/blockquote>\n<div id=\"attachment_64920\" style=\"width: 160px\" class=\"wp-caption alignright\"><a href=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/andy-kyte-gartner.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-64920\" src=\"https:\/\/www.altoros.com\/blog\/wp-content\/uploads\/2009\/11\/andy-kyte-gartner-150x150.jpg\" width=\"150\" height=\"150\" class=\"size-thumbnail wp-image-64920\" \/><\/a><p id=\"caption-attachment-64920\" class=\"wp-caption-text\"><small>Andy Kyte<\/small><\/p><\/div>\n<p>However, not only the needs of data integration should drive application consolidation. Gartner&#8217;s VP Analyst <a href=\"https:\/\/www.linkedin.com\/in\/andy-kyte-42043\/\" rel=\"noopener noreferrer\" target=\"_blank\">Andy Kyte<\/a> recommends that any activity like that should be the responsibility of both business and technical sides. As an example, in his <a href=\"https:\/\/www.gartner.com\/DisplayDocument?doc_cd=165510\" rel=\"noopener noreferrer\" target=\"_blank\">report<\/a>, he warns that a manufacturer can have separate software systems at its facilities because of different production models and processes, which may not require consolidation.<\/p>\n<blockquote><p>&#8220;To be successful, application consolidation initiatives must be led by business managers with IT support.&#8221; \u2014Andy Kyte, Gartner<\/p><\/blockquote>\n<p>Finally, of course, the critical data should be backed up, since, as soon as the application is removed, all the information will be lost.<\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Further_reading\"><\/span>Further reading<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/cutting-data-integration-costs-through-rationalization-and-open-source\/\">Gartner Suggests Rationalizing Data Integration Tools to Cut Costs<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/gartner-names-approaches-to-successful-data-integration-projects\/\">Gartner Names Five Approaches to Successful Data Integration<\/a><\/li>\n<li><a href=\"https:\/\/www.altoros.com\/blog\/what-should-data-migration-plan-comprise\/\">What Should a Data Migration Plan Comprise?<\/a><\/li>\n<\/ul>\n<hr\/>\n<p><center><small>The post is written by <a href=\"https:\/\/www.altoros.com\/blog\/author\/olga\/\">Olga Belokurskaya<\/a> with contributions from <a href=\"https:\/\/www.altoros.com\/blog\/author\/alex\/\">Alex Khizhniak<\/a>.<\/small><\/center><\/p>\n","protected":false},"excerpt":{"rendered":"<\/p>\n<p>(Featured image credit)<\/p>\n<\/p>\n<p>&nbsp;<\/p>\n<p>Find value in your apps<\/p>\n<p>It\u2019s a common thing for an enterprise to have multiple applications working with business-critical information. On average, a data warehouse gathers information from 12 distinct sources, according to a TDWI survey. The Economist Intelligence Unit also found that, for business intelligence suites, 34% of [&#8230;]<\/p>\n","protected":false},"author":81,"featured_media":64677,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":"","_links_to":"","_links_to_target":""},"categories":[7],"tags":[960,895],"class_list":["post-48946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-opinion","tag-data-integration","tag-research-and-development"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consolidating Apps and Data to Cut Operational Costs | Altoros<\/title>\n<meta name=\"description\" content=\"Eliminating unnecessary applications has many benefits, but how do you decide what to remove? Here is some advice from the industry experts.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.altoros.com\/blog\/application-consolidation-to-simplify-data-integration-on-business-value\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Consolidating Apps and Data to Cut Operational Costs | Altoros\" \/>\n<meta property=\"og:description\" content=\"(Featured image credit) &nbsp; Find value in your apps It\u2019s a common thing for an enterprise to have multiple applications working with business-critical information. On average, a data warehouse gathers information from 12 distinct sources, according to a TDWI survey. 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