"The Only Thing Constant is Change."
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©2007 www.phire-soft.com | All Rights Reserved.
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____Solutions > Lowering Cost of Ownership
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Application Change Management (ACM) solutions can
help your business maximize the return on investment
you've made in software development and increase
productivity to achieve faster results in deploying new
applications across the enterprise. With a focus on
reducing the total cost of ownership, while providing a
flexible and scalable tool for managing the software
development life cycle, change management
solutions provide a complete enterprise solution that
allows you to stay ahead of the competition in
developing and deploying your applications.
In 1999 the Yankee Group performed a survey of
current ACM customers to determine the impact of
their ACM solution in seven key areas of application
programming support and development.
The results found improvement in all seven areas.
The Yankee Group reported a 23% improvement in
time to market and an 18% reduction in development
costs indicating customers are not only improving
application quality but delivering updates and
enhancements faster and at a lower cost.
Other benefits include reduced development time,
increased programmer productivity, reduced backlog,
and the ability to handle a higher volume of changes.
In addition, Gartner Group's 1999 report on the causes
of unplanned downtime estimated that application
quality would improve by 25% through change
management process re-engineering. This is
consistent with the Yankee Group finding of a 28%
improvement in application up time by customers who
have implemented ACM solutions. All of these
improvements directly affect the bottom line of the
company and their success, including the total cost of
ownership.
In today’s competitive and dynamic business
environment, the role of IT is changing. It is now
charged with rapidly deploying new business
initiatives and applications in extremely short periods
of time, ranging typically from a few weeks to a few
months. Since the new applications are business
critical, capabilities and reliability are critical. As a
result, these applications are being constantly and
rapidly upgraded and changed, increasing the
likelihood for problems that could result in issues that
put your business at risk.
Not only is it difficult to manage a single application in
today's environment, but companies are faced with the
additional challenge of synchronizing these
applications with other applications, within a
heterogeneous environment, across the enterprise
and the globe. Development teams must work
concurrently and simultaneously from various
locations, strengthening the necessity for an integrated
and comprehensive ACM solution to ease the
deployment of these new technologies and
applications.

Lowering Cost of Ownership
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Quantifying Return on Investment
business initiatives are likely to fail in some way, in
part because of inability to rapidly create the new
applications required, transform existing applications,
integrate legacy data and manage them all in an
enterprise system.
Companies can avoid being a part of that alarming
statistic. But doing so requires a thorough analysis of
business processes and how a ACM solution can
ensure you are able to meet these challenges. The
following provides a framework for estimating the
savings and benefits of implementing an ACM
solution.
Costs can be categorized into two components:
- Direct Costs (hardware, software,
development, support, staffing, training,
product license, implementation, etc.) – those
costs that are typically in a budget.
- Indirect Costs (down-time, costs of errors, cost
of inefficient or manual processes, etc.)
Savings can be categorized into two components:
- Hard Dollar Savings - directly translate into
financial savings
- Soft Dollar Savings - indirectly translate into
financial savings
HARD DOLLAR SAVINGS
Overall
- Increased Development, IT, and Corporate
productivity
- Possible reduction in software license fees
- Staff Reduction– removes manual intervention
in the development life cycle, reduces staff
administrative workload; eliminates
maintenance costs on homegrown system
Version Control and Management
- Reduces time searching for lost code and
objects, makes the most of existing software
code/assets
- Enables orderly concurrent development and
version merging, significantly reducing errors
from overwritten code
- Provides impact analysis across applications
to improve code reuse
Issue Tracking and Management
- Detects software defects early in the
development life cycle, when they are less
expensive to correct
- Reduces software-related support calls
Release Management
- Project schedules are shorter and more
reliable because of less re-work
- Streamlines the migration process
SOFT DOLLAR SAVINGS
Overall
- Developers can use their talents more
creatively and productively, instead of spending
valuable time and energy in migration meetings
- Profit and productivity increases from faster
time-to-delivery and increased uptime and
reliability
- Improves employee satisfaction and retention
by automating routine, mundane tasks, and by
meeting development milestones
Version Control and Management
- Time savings associated with standardizing
processes, detecting problems before they
occur through impact analysis, streamlining
approvals, and automating paper based
processes
- System efficiency gains from better source
code storage
Issue Tracking and Management
- Application quality greatly improves translating
to reductions in downtime and reduced time-to-
delivery
- Improves code quality, which improves user
satisfaction
Release Management
- Reduces costs of the activities required to
move code through the application life cycle,
from development, testing, approval,
promoting, and auditing applications