Before you learn how to use IT application strategies to create your portfolio, it is important to form the right strategies. Today, many organizations build IT application strategies on a premise that is more often than not, flawed.
Where to begin strategizing
The premise of using single and integrated portfolios for IT applications is not the most ideal option as your organization needs more than a common timeline and set of criteria to manage this portfolio. If you want to make simple changes to the system, you will have to put in significant effort. The smallest changes can alter the foundation system to a great extent. By reclassifying your IT applications depending on their roles and functions, you can develop efficient strategies that are attuned to the accelerating developments in IT portfolios.
With a monolithic structure however, you could find it expensive and difficult to make changes in your IT portfolio. A great strategy when creating and managing your IT portfolio is to categorize applications based on their functions.
Categorizing application types in IT portfolios
The following application types should ideally be handled separately as they have different requirements, life spans, and regulatory implications.
- Recording applications
- Transformation applications
- Differentiation applications
Applications and systems that record data are considered the foundation of IT portfolios as they manage information vital to business operations. These applications are transaction-oriented and essential for regulatory compliance and financial reporting. These applications have long life spans, generally spanning decades, and are slow in terms of change.
Transformation systems of applications have the main function of innovation within your organization and are generally developed when necessary. These applications are associated with concentrated functions and with specific initiatives. Typically having short life spans, transformational applications are collaborative, driven, and are developed from business budgets. Owing to their dynamic nature, these applications are suited for cloud-based structures as well as deployment and can be structured or non-structured.
Differentiation systems and applications help your business connect with trading partners along with customers while speeding your developments in the market. These systems are collaborative and draw data from your business records while maintaining additional information. Differentiation systems are stable and possess a lifespan of a few years to a decade. Similar to record systems, most differentiation systems are developed on premises they can be delivered on cloud-based applications. Applications in the transformation and differentiation categories are often funded, managed, and implemented outside organizations.