Capgemini-通过软件产品创新开启增长前沿（英）

UNLOCKINGTHE

GROWTHFRONTIER

THROUGHSOFTWARE

PRODUCT

INNOVATION

FOREWORD

Today,softwareproductsareanintegralpartofyourcompany:acriticalcomponentofproductfunctionality,customerexperience,newservices,andrevenuegeneration.Theyhavebecometheprimarytouchpointtotakethepulseofyourcustomersandasourceofcontinuousinnovationwhichiscrucialtothriveintoday’srapidlyevolvingtechnologicalanduserlandscape.

Naturally,enterpriseswanttomaximizethevalueoftheirsoftwareproductportfolio.However,manyoftenstruggletodeliveronthis.Whileexistingandlegacyproductsgeneratesignificantrevenueforenterprises,theirmaintenanceconsumesconsiderableresources,depletingR&Dbudgetsandlimitingopportunitiestocreatenewandmodernizedproductsthatcanleadtolong-termgrowth.“CTOsandCIOsofscaledenterprisesoftenspend60-80%oftheirR&Dbudgetonjustthemaintenanceoftheirexistingandend-of-lifeproductsandseektostriketherightbalancebetweenthefundsrequiredforinnovationversuskeepingthelightson.”,accordingtoEverestGroup.

Thissub-optimalallocationoftheR&DbudgetisasymptomofR&Dplanningdifficulties.DevelopingacohesiveR&Dplaniscomplexbecausemanyfactorsneedtobereconciled.Theseincludeabloatedportfoliocomprisingmultiplesoftwareproductswithoverlappingfunctionality,adeficitofsoftwareengineeringtalent,users’reluctancetomigratetonewproducts,andtheneedtocontinuetocatertotheirlegacycustomerbase.

Thekeytoresolvingthesedifficultiesisgreatervisibilityintothesoftwareproductlifecycleacrossthethreephases–innovation,developmentandenhancement,andend-of-life.Itisthecriticalstartingpointforenterprisestomakebetterbusinessdecisions,gainacompetitiveedge,andimproveproductefficiency.

Theimpactofgettingitrightistransformative.AnindustrialtechnologyconglomeratewithaU.S.andEUpresencefacedfragmentedproductchallenges,impactinginnovationandefficiency.TheypartneredwithCapgeminiEngineeringand,usingour“in-houseSoftwareLifecycleMaturitymethodology,”increaseddevelopmentefficiency,centralizedsustenance,andreducedoperationalcostsby10-15%.Thesesavingsallowedthecompanytopursuenewproductinnovationandgreatlyacceleratedtheirproductroadmaps.Resultslikethesearenotoutliers.

ThisviewpointbyEverestGroup,supportedbymyteamatCapgeminiEngineering,examineshowtoorchestrateacomprehensiveR&Dstrategyforyourcompany,alignresourcesandcapitalfornewproducts,enhanceexistingofferings,andmodernizelegacysystems.ThisstrategicallocationensureseffectiveoutcomesandROIassessment,pavingthewayforasustainableandprofitablefuture.

Wehopeyoufindthiswhitepaperenlighteningandexciting.

JianiZhang

EVPandChiefSoftwareOfficer,

CapgeminiEngineering

EverestGrop

UnlockingtheGrowthFrontier

throughSoftwareProductInnovation

ThisdocumenthasbeenlicensedtoCapgeminiEngineering

NishantUdupa,PracticeDirectorMayankDawar,SeniorAnalyst

Copyright©2023,EverestGlobal,Inc.Allrightsreserved.

Contents

Introduction03

UnderstandingtheSoftware

04

ProductLifeCycle(SPLC)

Burgeoningchallengesinhibiting

08

innovation

Implicationsforenterprises11

Conclusion16

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3

Introduction

R&Dspendingonengineeringsoftwareproductsispoisedtogrowat~9%CAGRfrom2022andtouchtheUS$650billionmarkby2025,withthe

IndependentSoftwareVendor(ISV)andinternet,mediaandentertainment,BFSI,andhealthcareandmedicaldevicesverticalsdrivingthespend.Theimportanceofsoftwareproductsisincreasingwiththeproliferationof

platform-basedbusinessmodels,whichcontinuetodominatebothproduct-andservices-centricverticals.Withsoftwareemergingasthekeycustomer

touchpointacrossindustries,enterprisesshouldkeepinnovatingonsoftwareproductstostaycompetitiveinthemarketandserverapidlyevolvinguserneeds.

Oftentimes,however,despiteknowingthatinnovationfuelsgrowthandis

paramounttostayingaheadofthecompetition,enterprisesstruggletocraftacoherentR&Dstrategy.Infact,enterprisesoftenspendwaytoomuchoncontinuingexistingorlegacyproducts,whichdrainsR&Dbudgetsand

leaveslittleroomforinnovatingandmodernizingproductstosteerthetoplineinthemediumtolongterm.CTOsandCIOsare,therefore,actively

lookingtofindtherightbalancebetweenthebudgetrequiredforinnovationversusmaintenance.

Inthisresearch,weexploreandanswerthefollowingquestions:

WhatisSoftwareProductLifeCycle(SPLC),andwhydoenterprisesneedtounderstandtheSPLCstageoftheirsoftwareproducts?

Whydoenterprisesgetcaughtupininnovatingsoftwareproductsversusmaintainingthem?

Whatarethecommonroadblocksinhibitingenterprisesfrominnovating?

Howcanenterprisesfine-tunetheirR&Dstrategiestofosterinnovationandfuture-prooftheirbusinesses?

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UnderstandingSPLC

SPLCreferstotheentirelifespanofasoftwareproductthatbeginsassoonasthemarketrealizestheneedforthesoftwareandendswhenitisnolongersupported.Itinvolvesproductideationanddesign,prototypecreation,solutionarchitecture,testing,deployment,rollout,performancemanagement,andproductsustenanceandmaintenance.AlltheseactivitiesfallunderthreebroadstagesofSPLC:

innovation,developmentandenhancement,andendoflife.

Noenterprisewantsitssoftwareproductstobecomeobsoleteandreachtheendoftheirlifecycle

beforetheanticipatedtime.Thus,tomakebetterbusinessdecisionsaboutwhentoupdatethe

software,gainacompetitiveedgebyacceleratingworkflows,optimallyadjustcoststoalignwith

budgetaryrequirements,andimproveproductefficiency,itiscrucialforenterprisestounderstandatwhatSPLCstagetheirproductis.

Exhibit1providesasnapshotofthedifferentSPLCstages.

EXHIBIT1

PhaseswithinSPLC

Source:EverestGroup(2023)

Developmentandenhancement

Innovation

End-of-life

Technologyadoption

Time-to-market

Costinvolved

Userbase

Medium

High

Medium

High

Low

Low

Medium

Medium

HighHighHigh

Low

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5

Belowwetakeacloserlookatthethreestagesandthekeyenterprisefocusareasforeach.

Innovation:Duringtheinnovationstage,thesoftwareproducthasnotyetenteredthemarket.ThisstagerequiressignificantcapitalinvestmentandR&Dwithoutanyrevenuegeneration.Itinvolves

planningandrequirementanalysis,designing,softwaredevelopment,testing,beta-productrelease,andfinalproductlaunch.Enterprisestypicallyfocusonaspectssuchasproductdesign,user

experience,quality,andtime-to-market,duringthisphase.

Speedhasbecomethenewcurrencyofthesoftwareproductbusiness.Time-to-marketand

aninteractiveuserexperiencecanactascatalystsinproductcommercialization.Delaysin

innovatingnewsoftwareproductsbasedonemergingtechnologiescanoftenresultinmissedmarketopportunities.

Developmentandenhancement:Tokeeppacewithevolvingconsumerexpectationsandensureagreatuserexperience,softwareproductsrequirecontinuousmaintenanceandenhancement,whichfallunderthedevelopmentandenhancementphase.Duringthisstage,aproductreceivesversion

upgradesinlinewithmarketneeds,andtheuserbaseofthesoftwareproductpicksmomentumandreachesitspeak.Atthisstage,enterprisesfocusonhandlingthecomplexityofrequestsfor

enhancement,whichcontinuestocreateconsumervaluewithoutimpactingtheproduct’sfundamentalarchitecture.

Theriseofautomation,AI/ML,andDevOpshasactedasacatalystforthesoftware

developmentprocess.Advancesinthesoftwaredevelopmentmethodology-fromwaterfalltoagileandfromsiloedDevOpstoend-to-endDevOps-havechangedtheentiresoftwaredevelopmentlandscape,withshortertime-to-marketandincreasedscalability.

End-of-life:Noproductcanremaininaprolongedgrowthstageorlastforever.Eventually,asoftwareproductentersitsend-of-lifephase,whenitisnolongerscalable,andtheunderlyingtechnologyusedtobuildthesoftwarecannotbeleveragedfurthertoenhancetheproduct.Thisiswhentheproduct’s

revenuebeginstodecline,anditsuserbasereachesasaturationpointandstartstofall.Inthis

phase,enterprisesbegintograduallyphaseouttheproductfromthemarket,stopreleasingfurthersoftwareupdates,andoptimizethecostsofmaintainingtheproductinthemarket.

Users’reluctancetomigratefromagingsoftwareduetotheirfamiliaritywiththeproductoftenforcesenterprisestocontinuewithlegacyandmonolithsoftwareoveranextendedperiod, leadingtoanastronomicalriseinthemaintenancebudgetforend-of-lifeproducts.

Thekeyactivitiesandenterpriseprioritiesineachofthreestagesarelistedbelow.WealsoexplainthelifecyclethroughacasestudyofAdobeLiveCycle.

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Activities

Ideationanddesign

Prototypecreation

UI/UXideation

Softwareproductdevelopment

Testingandcertification

Deploymentandrollout

Technicalsupportandtroubleshooting

Productupgrades

Userdataanalysis

Testingandcertification

UI/UXupdates

Performancemanagement

DevSecOps

Criticaldefectfixing

Sustainingandsupportingend-of-lifeproducts

FeatureandUI/UXimprovements

Securityupdates

Enterprisepriorities

Maintainingend-of-life

productstoservethe

needsofthelegacy

product’scustomerbase

Minimizingthecostofmaintainingend-of-lifesoftwareproducts

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6

InnovationDevelopmentandenhancementEnd-of-life

Identifyingandservingcustomerneeds

Onboardingskilledtalenttodriveinnovationand

efficiencies

Acceleratingthetime-to-market

Productqualityandcompliance

Acceleratingthetime-to-market

Releasingproductupdatestoaddnewfeaturesandenhancesoftwaresecurity

Productqualityandcompliance

Onboardingskilledtalent

Optimizingenhancementcosts

Optimallyhandling

enhancementrequestssothattheydonotchangetheoriginalproduct’sfundamental

architecture

Followingtheproduct’srelease,

AdobereleasedmultiplesoftwareupdatestotheLiveCyclesuitetoenhancecapabilitiesarounduserexperience,businessprocess

management,datasecurity,

informationprocessing,andformsautomation,amongothers.By

September2008,LiveCycle

productshadbecomeoneofthehighestrevenue-drivingsoftwareproductsforAdobe.

AdobeLiveCycle

Adobeintroducedthe

LiveCyclesoftwarein2004tostreamlinethecreationand

publishingofPDFformsfor

enterprisesandgovernmentagencies.Thesoftwarehadcapabilitiessuchascapturingandstoringformand

documentdataandfeaturesincludingthedrag-and-dropfunctionality,command

buttons,andcheckboxes.

AdobeLiveCyclePDF

formsprovidedagreatuser

experienceondesktopsandlaptops,butitwasnotable

tomatchitonmobiledevices,duetowhichitsrevenue

startedtodecline.Adobe

discontinuedcoretechnicalsupportforAdobeLiveCycleinMarch2018andoffered

extendedmaintenanceandsupportthroughMarch2020.

Casein

point:

Modernizinglegacyproductsthroughtransformation

Innovationfuelsbusinessperformanceandgrowthacrossindustries.Giventherapidlychanging

technologylandscapeandconsumerexpectations,enterprisesrealizetheneedtofosterinnovationinsoftwareproductsandarethusinvestingheavilyintoR&Dtostayaheadofthecompetition.Global

ER&Dspendingonsoftwareproductsgrewstronglyat10.2%CAGRfrom2017through2022toalmosttouchUS$500billionin2022.Thistrendislikelytocontinuein2023despiterecessionaryheadwinds,with96%ofengineeringenterprisesplanningtoincreasetheirR&Dspendingormaintainitat

2022levels.1

1EverestGroupKeyIssuesSurvey2023

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End-of-life

Innovation

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ThemarketisinundatedwithadvancedtechnologiessuchasAI/ML,cybersecurity,andblockchain,andenterprisesthatcomeupwithinnovativeandupgradedsoftwareproductsatafastclipcanunlocknewbusinessopportunitiesandenhancecustomerexperiencetogetanupperhandinthemarket.Legacy

softwareproductsoftenfailtomeettheseobjectivesandalsoposechallengessuchashigh

maintenancecostsandsecurityrisks.Modernizingortransformingthemisnecessarytoaddressthesechallenges,staycompetitive,andenableinnovationbyprovidingnewfeatures,betterperformance,

integrationwithnewtechnologies,andimprovedsecurityandcompliance.Exhibit2showswherethistransformationphasefitsintheSPLC.

EXHIBIT2

ThetransformationphaseinSPLC

Source:EverestGroup(2023)

Transformation

enhancement

Developmentand

Enterprisestypicallyconsidermodernizingtheirlegacyproductswhenoldersoftwareversionsbecomepronetothefollowingproblems:

Dwindlingcustomerinterestanddeclininguserbase

Increasedvulnerabilitytocybersecuritythreats

Lackofscalabilityandinabilitytoaccommodatenewfeaturesandcapabilities,resultinginmissedmarketopportunities

Mobilityissuesandexcessivedependencyonhardware,thatis,thesoftwarecanonlybeaccessedthroughmainframeswithinphysicalpremises

Outdatedtechnology

Cannolongersupportmoderntechnologicaldemands

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Costinvolved

Riskinvolved

Short-termimpact(+ve)

Long-termimpact(+ve)

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Thebillion-dollarquestion:innovateormaintainormodernize?

EnterpriseshavethreeoptionswhenconsideringwheretochannelizetheirR&Ddollars:

Innovatenewanddisruptivesoftwareproductstocreateadditionalrevenuestreams

Developandmaintainlegacyproductsthatcontinuetoactasacashcowfornowbutmaybecomeobsoleteinthelongterm

Modernizelegacysoftwaretoacceleratetime-to-marketandshifteconomiesofscale

Enterprisesoftenendupfocusingontheshort-termbusinessimpactofsoftwareproductsratherthantheirlong-termvalue,leadingtothemisallocationofR&Dfundstowardmaintaininglegacysoftwareproducts.Thismisallocationtranslatesintolimitedbudgetsforinnovatingonnewproductsand

modernizinglegacysoftware,eventuallyresultinginasoftwareproductportfoliothatisskewedtowardend-of-lifeproducts.

Exhibit3liststhefactorsthatmakeitdifficultforenterprisestochoosethepaththeyshouldtakewhenconsideringwhethertoinnovateversusmaintainversusmodernize.

EXHIBIT3

Factorsthatleadtotheenterprisedilemma

High

Source:EverestGroup(2023)RelevanceLow

Channel

Parameter

Innovatinga

newproduct

Maintainingalegacyproduct

Modernizingthelegacyproduct

Burgeoningchallengesinhibitingsoftwareproductinnovation

Whilethebenefitsofinnovationareclear,enterprisesareunabletofosteritduetomanyreasons,

includinginappropriateallocationoftheirR&Dbudgets,shortageofsoftwareengineeringtalent,andhighsoftwaremaintenancecoststhatdraintechnologybudgetsandleavelittleroomforinnovation.

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Sub-optimalallocationoftheR&DbudgetacrossthethreestagesofSPLCisthegreatestimpedimenttogrowththatpreventsenterprisesfromtakingup-frontinnovation-orientedinitiatives.

Unusedcapabilities,end-of-lifeproducts,andoverlappingandredundantsoftwaresteerthebottomlinesforbothproduct-andservices-centricenterprises.TheCTOsandCIOsofmatureandscaledenterprisesoftenendupspending60-80%oftheirR&Dbudgetsonmaintainingexisting,end-of-lifeproductsandstruggletofindtherightbalancebetweenthebudgetrequiredforinnovationversus

keepingthelightson.

Exhibit4highlightsthebarriersthathinderenterprises’innovationpaths.

EXHIBIT4

Roadblockstoenterpriseinnovation

Source:EverestGroup(2023)

Bloatedsoftwareproductportfolio

Softwareproductswithsimilarfunctionalities,whichaccumulateduetoorganicgrowthandM&As,

consumethelion’sshareoftechnologybudgets.

Legacyandmonolithsoftware

Users’resistancetomigratefromlegacy

softwaredrivesupproductlifecyclecosts.

Availabilityofandaccessibilitytotalentatscale

Talentshortagedelaysprojectcommencement,andenterprises

areforcedtoshelloutapremiumtogettherighttalent.

Wetakeacloserlookatthesefactorsbelow.

Bloatedsoftwareproductportfolio:Enterprisesaddmultiplekindsofsoftwaretotheirproduct

portfoliosovertimeduetoorganicgrowth,evolvingcustomerdemands,geographicexpansion,andM&As.Someoftheseproductsmayhaveoverlappingusecases,andtheneedtomaintainproductswithsimilarfunctionalitiescanoftenconsumethelion’sshareoftechnologybudgets.Inmanycases,enterprises’engineeringteamsareunabletodownsizesoftwareproducts,sincesmallsetsofuserscontinuetousetheseproducts,andenterprisesdonotwanttolosethesecustomers.Thefollowingfactorscausetheduplicationofsoftwareproducts:

–M&As:Theduplicationofapplications,features,andproductsisinevitableduetothemany

softwareoptionsinthemarket.Further,anacquiringorganizationandtheacquiredentitymaycontinuetousesoftwareproductsthathavesimilaroroverlappingfunctionalities

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10

–Siloedbusinessunits:Suchunits/linesresideoutsidetheparentorganization’ssupervisionandscrutiny,andtheyindependentlypurchasemanysimilarsoftwareproductsacrossgeographies

–Zombiesoftware:Thisreferstoapplicationsforwhichretirementplanswerenotfullycompletedsuccessfullyorthosethatsimplysitontheportfolioshelfwithoutbeingused

Legacyandmonolithsoftware:Legacysoftwareproductsareinnovationsofthepastthatbecomeliabilitieswithtime.Enterprisescontinuetomaintainlegacysoftwareproductsduetothefollowing

reasons:

–Thecostofmodernizinglegacysoftwaremayexceedthemodernizedproduct’sbusinessvalue(increasedrevenueorloweroperatingcosts)

–Despitebeingoldandoutdated,legacysoftwareisalreadycost-effectiveinservingcustomerdemandsandhencedoesnotrequireanyadditionalmodernization

–Culturalinertiawithinorganizationsimpedesinnovationormodernizationofproducts

–Userresistanceandoutrightdefiancetomigratefromlegacysoftwareduetofamiliaritywiththeproduct

However,asthesoftwareages,improvingandmaintainingthelegacyarchitectureandcodebecomesacost-drainingactivity.Improvingtheinnumerablelayersoflegacycodeforthesoftwarewrittenby

manyengineerswhokeeponchangingalsobecomescumbersome.Thesituationreachesatippingpointwhenthesesoftwareproductsbecomesooutdatedthatanenterprisenolongerhasatechnicalsupportspecialistwhounderstandsthecode.

Availabilityandaccessibilitytotalentatscale:Thereisasignificantsupplyshortageofdigitalandsoftwaretalent.Accordingto

EverestGroup’sKeyIssuesSurvey2023

,findingengineeringtalent

availabilityatscaleisoneofthekeychallengethatengineeringenterprisesfaceacrossindustriesandgeographies.Thistalentshortagehasresultedin:

–Wageinflation:Enterprisesareforcedtoshelloutapremiumtoaccesstalent,especiallyR&D

talentskilledinemergingsoftwareengineeringthemes,suchascloudengineering,cybersecurity,bigdataanalytics,andAI/ML

–Delaysinprojectcommencement:SeveralEngineeringResearchandDevelopment(ER&D)

initiativesandimplementationprogramsgetpushedbackduetothelackofacompetentresourcepoolinemergingtechnologies

However,despitetheabovechallenges,severalenterpriseshavesucceededinfindingtheoptimal

balancebetweeninnovationandmaintenance,enablingthemtogainacompetitiveedgebydevelopinginnovativesoftwareandmodernizinglegacyproducts.Thefollowingcasestudydescribeshowone

suchenterprisemodernizedalegacyproducttoservechangingcustomerneedsandovercomestagnatingproductrevenue.

Thetalentshortagehasreachedacrisispitch.Thelackofjob-readydigitaltalenthasbecomeanexistentialthreattobusinessesaroundtheworld.

–GabrielDalporto,CEO,Udacity

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CASESTUDY

FROMTHEDESKTOTHECLOUD:HOWINTUITMADETHESHIFT

RehostingQuickBooksDesktoptocloud-basedQuickBooksOnline

In2013,IntuitannounceditsdecisiontorehostQuickBooks,anaccountingsoftwareproductforbusinesses,tothecloudandrebuilditasanopenplatformfollowingstagnatingrevenuefromthedesktopproductecosystem.QuickBooksDesktoplimitedthenumberofapplicationsthatcouldbeintegratedwithit,causingcustomerstoswitchtootheroptions.Afterbeingrehostedtothecloud,QuickBooksOnlinewasabletoconnectwithover

2,000apps,andtheopenstructureincreasedcustomerretention.Themodernizedversionalsooffered

enhancedsecurity,remoteaccessibility,andbetterefficiency.IntuitannouncedthediscontinuationofitsolderversionsofQuickBooksDesktopafterMay31,2021,andofadd-onservicesafterMay31,2023.

Implicationsforenterprises

Innovationisthecommondenominatorforenterprisesthatsuccessfullynavigatethepathtosuccess.Itnotonlyhelpsenterprisestoremaincompetitive,butalsotostayafloatanddisruptthemarketby

continuouslyintroducingnewproductsthatserveevolvingcustomerneeds.However,enterprisesneedtorecognizethatmaintenanceoflegacyproductsisalsonecessary,andtheyneedtoallocatetheir

budgetstothisaspectaswell.Strikingtherightbalancebetweenthetwoisoftenachallenge,andwemaketworecommendations,asExhibit5illustrates,thatcanhelpenterprisesachieveit.

EXHIBIT5

OrchestrateacoherentR&Dstrategy

Enterpriseimperativesforsuccess

Source:EverestGroup(2023)

Optimizeyour

softwareproduct

portfolio

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Optimizeyoursoftwareproductportfolio:Enterprisesshouldplanandcarryoutastrategic-fit

assessmentperiodicallytoanalyzeandoptimizetheirsoftwareproductportfolios,especiallyafterM&As.Thiscanhelpthemgetvisibilityacrosssoftwareproducts,enablingthemtostreamlinetheirexistingportfoliosbydeterminingwhichproductstoretain,modernize,orretire.

EnterprisestypicallyallocateR&Dbudgetsatthestartofeachfinancialyearacrosssoftware

products,withoutconsideringoverlappingfunctionalities.Byadoptingaportfolio-basedapproach,CIOsandCTOscanidentifyredundant,underused,andsimilaruse-casesoftwaretoeliminateorconsolidateduplicatesoftwareassets.Theapproachwillenabletechnologyleaderstoreducethecostthatischannelizedtomaintainsuchsoftwarewhileimprovingthequalityofserviceand

satisfactionofthosewhorelyonit.Thesavedamountcanbeusedtofundinnovationtoadvancetheenterprise’sbusinessgoalsandexpeditetherolloutsofnewproductsandtechnologies.

Rationalizingandoptimizingthesoftwareproductportfoliocanalsoassistin:

–Reducingtechnologyobsolescenceandthetotalcostofownershipofsoftwareproducts

–Retiringlegacy,lowbusinessvalue,andredundantsoftware

–Providinginsightsaboutgapsintheexistingproductportfolioandintroducinginnovativeproductstoenhancecustomerexperience

–Capturingtheinformationaboutlifecyclesofvarioussoftwareproductsandtheirdeployments

–Obtainingacomprehensiveunderstandingofthevalueofsoftwareproductsfromtechnicalandbusinessstandpoints

InExhibit6,weoutlineanenterpriseroadmaptoportfoliorationalization.

EXHIBIT6

Roadmaptoportfoliorationalization

Source:EverestGroup(2023)

Quantifythebusinessandtechnicalimpactofeachsoftwareintheportfoliobyscoringitbasedon

relevantattributesoutlinedintheCategorizephase

Analyzethecollateddatatoidentifysimilarsoftwareproductsbeingdeployedacrosstheorganization

Createaproductcatalog

ofallsoftwareproducts

usedacrossgeographies,

acquiredentities,and

businessunits

DiscoverCategorizeAssessPlanandexecute

Classifysoftwareproducts

basedonattributessuchas

businessusecase,ReturnonInvestment(RoI),activeuserbase,maintenancecost,

revenueshare,lifecycle,andkeystakeholders

Benchmarkathresholdvaluebasedonbusinessand

technicalfitandanalyzethesoftwareportfoliodatatoget

bettervisibilityintowhichsoftwareneedstoberetained,

consolidated,modernized,orretired.Softwareproductswith:

AscorehigherthanthethresholdvaluecancontinuetoreceivethegreatestshareofR&Ddollars

Ascorelowerthanthethresholdvalueshouldbemodernizedorconsolidated

Anegligibleuserbasecanberetired

Similarfunctionalitiesshouldbeconsolidated

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Carryingoutastrategic-fitassessmentperiodicallycanhelpenterprisesgetvisibilityacrosssoftware products,enablingthemtodeterminewhichproductstoretain,modernize,orretire.

ROLEOFPROVIDERS

Toservethesizablebutstagnatingcustomerbasethatcontinuestouseend-of-lifeandlegacy

products,enterprisesshouldoutsourcethesupportandmaintenanceoftheseproductstoserviceproviders.ThiswillhelpthemtochannelizetheirresourcestoinnovatenewproductsandSaaS

offeringsinsteadofsparingresourcesonlegacyproductsthatarenotgrowing.Itwillalsoensurethatthereisnorevenuelossfromlegacycustomersasthe