summary

1 | 2 » 

take cost out and increase profitable revenue

Today's dynamic business environment is causing CXO's to take a fresh look 
at their business to see how to take cost out and increase profitable revenues.
CXO's search for under performing assets that can be eliminated or replaced 
with high return assets. 

ROR must exceed shareholder expectations

Each capital expenditure goes through an increased level of analysis to insure
the rate of return (ROR) is what shareholders expect and addresses a
business issue that will contribute to an increase in profitable revenues. Then,
and only then, will the business case support a capital investment.

systems that are financially under-performing 

This Executive Summary identifies information technology (IT) assets that
are financially under-performing your capital return criteria. They are generally
identified as legacy systems; mainframes and technology that is over 8 
years-old. Why is IT still operating these low return assets?

1. Applications provide unique business value

---

First, these systems are typically providing unique business value by
delivering applications with business rules that support your operational
initiatives. Changing these applications may produce unintended 
consequences, a risk that may be greater than the gains received. 

2. Until recently, there was a lack of legacy system alternatives

---

Second, until recently, there have not been adequate alternatives. 
Legacy systems provide a level of performance and security that was 
heretofore unavailable elsewhere, but today is widely available on 
inexpensive, open, industry-standard platforms. 

3. Overcome resistance to change

---

Third, change will impact the social order that has been in place for 
decades—the internal IT staff that supports the legacy systems  
are long time employees, and the associated vendor relationships 
are long standing and trusted. To capture the financial and business 
benefits presented by this opportunity, the CXO will have to 
overcome inertia by being an enthusiastic supporter of the CIO.

Best companies get 10X the economic value

Measuring IT productivity requires an analysis to determine the Value of
Information Productivity (VIP). While VIP varies from industry to industry, the
best in class are getting ten times more economic value then average 
performers. High VIP provides a huge economic advantage, which sales
 and marketing can turn into profitable growth in market-share.

Methods to address compelling business opportunity

Below, we have identified the business opportunities that are causing 
companies to act to increase their VIP, and the 4 most appropriate 
migration methods to address this compelling business opportunity. We
have identified the major advantages and disadvantages of each, and 
estimated the payback period (which varies depending on method selected)
from 3 and 72 months.

Your analysis will determine the optimal approach

By adding company specific information to this CXO Executive Summary,
you will have the basis from which you can do your business and financial 
analysis. 

conversion then migration is the best approach

Enterprises of all sizes and in all industries will realize significant benefits from the
replacement of financially under-performing, proprietary, legacy systems with open,
industry standard systems. In all cases, there is a cost-saving with agility to 
increase profitable revenue. A review of the replacement alternatives reveals 
conversion of legacy applications and migration to open, industry standard systems
as being the best—shortest timeframe, lowest cost, least risk, least impact on 
users, highest value from use of customized business rules, and ease of integration
for improved decision-making. 

Get started developing your value proposition

There are various first steps: