Cloud computing, mobile enterprise, compliance and so on - the highly competitive business environment puts more pressure on IT to meet fast and smooth the agile business demands. But the application landscape has grown over the years, resembling more a non-transparent jungle than an English garden landscape.
Indeed, constantly expanding ICT application environments within the companies call for ever greater HR and financial expenditure on operations, service, maintenance and user support. This in turn leaves very little flexibility to do what is equally necessary - modernise your ICT installations.
The question therefore is: how do I modernise my business without disrupting its very core? Secondly, how do I ensure that a new application adds value to a business instead of making matters worse? Thirdly, how do I manage these applications to eliminate redundancies and encourage their use?
The answer lies in an effective application management and modernisation
(AMM) strategy that enables you to understand the entire application life cycle while alleviating complexities and gaining the most from your modernisation investments.
What sets AMM apart?
At its core, AMM goes beyond application support offerings, effectively combining a holistic approach of application operation outsourcing with the modernisation of the application landscape.
Critical to the success of AMM is clearly defined service level agreements (SLAs) to ensure the operation, maintenance, support and further development of the applications.
Also, your outsourcing partner will, as part of the AMM process, design and evaluate typical modernisation drivers in terms of cost-efficiency and business effectiveness.
That said, what sets AMM really apart? Cost savings. It is estimated a company can save as much as 25% on existing costs. Plus, savings from day one of the service provision can also cover the investment in modernisation.
The modernisation blueprint and execution plan derives from the T-Systems BIS assessment, a market-leading consulting methodology to takes a holistic view on the customer's business, ICT infrastructure and services situation and needs, and develops a roadmap to meet the business demand in steps of industrialisation, consolidation and transformation, ranging from quick wins as “lift and shift” of applications to industrialised platform to consolidation projects, eg, in streamlining SAP landscapes or migrating to cloud landscapes and integrating cloud services.
The required resources can also be adapted flexibly and quickly. In this way, companies become more agile and increase their international competitiveness through modernisation and innovation.
AMM enables organisations to exploit the functions and features from the technology developed for their industries. It is not about maintaining the status quote, but rather, doing better business - and this is what an AMM strategy brings to the table.
Key to success
When embarking on an AMM process it is important that your service provider is highly flexible and offers a suitable mix of onsite, offsite and offshore delivery.
It should also be collaborative relationship, moving away from mere performance obligations; this in turn will greatly service provision.
“A collaborative partnership is the only way to promote and implement topics such as innovation, for example,” comments global market analysis and strategy consultancy firm Pierre Audoin Consultants (PAC).
“Knowledge of company and industry processes, as well as mastery of state-of-the-art technologies, are further key criteria - ones that, incidentally, are also significant when it comes to selecting providers.
“Although price is important, for international companies in particular, this service provider know-how and global delivery capability play a crucial role in the success of AM projects,” says PAC.
Not the size
Interestingly, and considering the above, AMM does not only pertain to large enterprises, but is very relevant to medium-sized business due to its standardised nature.
Again, it lowers risk as you are working with a factory model, which has been developed specifically for your industry's needs - this is a major benefit to organisations that operate in the highly regulated financial services sector.
Also, you benefit from all the experience gained throughout the years across multiple organisations and their industries.
Lastly, AMM truly serves a validation tool when it comes to assessing the benefits gained from a modernisation rollout. Most organisations are well aware of how much they spend on support costs - continuous business is testament to a successful AMM strategy and the various technology components that go with it.
The future
What are the future prospects for AMM? Industrialisation - and with it the issue of re-harnessing of services - will increasingly become a major driver.
Also, the seamless integration with the industry standard for service management - the IT Infrastructure Library (ITIL), which will also involve different, global operating service providers.
In this light, AMM offers a forward-looking service package that provides support to customers in the implementation of innovative business models and the further development of their ICT landscape, allowing companies to seize market opportunities and increase profitability.
AMM is an engine of non-stop renewal and represents transformational outsourcing. The model allows companies to realise their organisational infrastructure's full potential.
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Deutsche Telekom
Deutsche Telekom is one of the world's leading integrated telecommunications companies with around 128 million mobile customers, 36 million fixed-network lines and approximately 17 million broadband lines (as of 31 March 2011).
The group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in over 50 countries and has around 244 000 employees worldwide. The group generated revenue of EUR 62.4 billion in the 2010 financial year - more than half of it outside Germany (as of 31 December 2010).
T-Systems
Drawing on a global infrastructure of data centres and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems provides integrated solutions for the networked future of business and society. The company's 47 600 employees combine industry expertise and ICT innovations to add significant value to customers' core business all over the world.
T-Systems generated revenue of around EUR 9.1 billion in the 2010 financial year.
Since the inception of T-Systems in South Africa in 1997, the company has cemented its position as one of the most successful T-Systems companies outside of Europe. As the leading ICT outsourcing service provider locally, T-Systems offers solutions in both the ICT operations and systems integration markets. Its extensive portfolio of services covers the vertical, horizontal, IT and TC space. T-Systems South Africa's head office is located in Midrand, with another major office in Cape Town, and 20 further representative offices in locations throughout southern Africa.
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