How did Consultic assist a global manufacturing leader in reducing their application estate and aligning it with a global SAP template?

We collaborated with a prominent global manufacturing company, aiming to streamline their IT infrastructure by reducing the number of applications supporting their Target Operating Model (TOM). Thoroughly assessing 4,500 applications across five regions, we provided valuable insights on application-business alignment.

Our recommendations included identifying quick wins and establishing phased reduction and consolidation opportunities. With a well-planned roadmap, we guided the manufacturing company through a successful transformation, resulting in a fully populated application catalog aligned with the target operating model.

The evaluation revealed that up to 30% of deployed applications were not actively supporting any business activity, leading to substantial streamlining efforts. This achievement impacted critical functions such as Finance, Sales, Customer Service, Order Management, Procurement, and Fulfillment.

Through our partnership, the manufacturing company achieved their ambitious reduction targets while gaining a clearer understanding of their technology landscape. They now operate with a streamlined IT infrastructure, aligned with global SAP standards, maximizing operational efficiency in a rapidly evolving industry.

Business goal

1. Key IT KPI, reported to the board, is the absolute number of applications used to support Client’s Target Operating Model (TOM) – the number is required to halve between 2017 and 2021.
2. The business required confidence that the legacy application estate could be reduced and aligned to the deployment of a global SAP template.

Strategy

1. Apply custom toolset to develop in-depth understanding of degree to which applications support business priorities.
2. 4500 applications were assessed against 1100 level 3 business services across 5 global regions.
3. Recommendations included identification of quick wins and phased annual reduction and consolidation opportunities.
4. Transition roadmaps constructed in support of transformational journey.

Results

1. Fully populated and accurate application catalog aligned to target operating model.
2. Up to 30% of deployed applications found not to be supporting any business activity.
3. Transformational journey to meet 5 year 50% reduction target defined and understood.
4. Major teams involved within Finance, Sales, Customer Service, Order Management, Procurement and Fulfillment.