Cost Reduction
Application Rationalization Framework
Application Rationalization Framework is a case interview framework for cost reduction, modernization, technical debt. Use to plan retirement, consolidation, or modernization of application portfolio
When to use it
Use to plan retirement, consolidation, or modernization of application portfolio
Where it fits
Best for cost reduction, merger integration, modernization, and technical debt cases
How to use it in a case
Create 2x2 matrix: Business value (Y-axis) vs Technical health (X-axis). Classify each app as Invest, Tolerate, Migrate, Consolidate, Replace, or Retire. Prioritize actions based on cost/effort/impact.
- Business Value Assessment. Score each application based on revenue impact, strategic importance, user count
- Technical Health Assessment. Score based on maintainability, security, performance, architecture quality
- Classify Applications. Place in matrix and assign to one of 6 categories (Invest, Tolerate, Migrate, Consolidate, Replace, Retire)
- Define Roadmap. Prioritize actions, estimate effort/cost/benefit, sequence over time
- Execute. Retire, replace, or consolidate apps according to roadmap
Case types
Cost Reduction, Modernization, Technical Debt.
Source: Gartner, industry standard.