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Lowering Cost of Ownership
 
Lowering Cost of Ownership

Application Change Management (ACM) solutions can help your business maximize the return on investment you have made in your ERP applications and increase productivity to achieve faster results in deploying application changes. Change management solutions provide a complete enterprise solution that allows you to stay ahead of the competition in developing and deploying your applications by reducing the total cost of ownership and providing a flexible and scalable tool for managing the software development life cycle.

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 report on the causes of unplanned downtime estimated that application quality would improve by 25% through change management process re-engineering.

The following provides a framework for estimating the savings and benefits of implementing an ACM solution.

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 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.
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
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