Defining the Business Application Life Cycle

Adopting this more-holistic approach enables multiple application initiatives to be aligned under a macro business application strategy that considers business requirements, IT strategies, and the constraints and standards of the existing application portfolio. This approach also "closes the loop" at the end of the life cycle, making application retirement or replacement a viable choice. Enterprises should strive to manage the life cycle as an integrated program that consistently carries program management and change management activities throughout all phases.

The business application life cycle has four phases: strategize, evaluate, execute and manage. We describe the four phases and the subcategories within each.

1. Strategize

This set of activities enables an enterprise to accurately and adequately plan for upcoming business and technology initiatives.

Vision and planning include the identification of specific business needs and precedes the launch of software selection activities. This stage provides the "guideposts" for initiatives, including standards, methods and constraints. Activities at this stage focus on defining the overarching architecture, as well as devising application and sourcing strategies. It requires the enterprise to think about how this application will affect the way it does business in the future, including how applications will help solve business issues and what key capabilities the applications must provide to meet evolving business needs. Business case development also occurs at this time and must be predicated by baseline measurement of current business performance. Surveys of key stakeholders (users, suppliers and customers) may be conducted to identify areas that need improvement. Lastly, if outsourcing is a consideration or a strategic direction, it should be appropriately identified as such. The enterprise's appetite for outsourcing will greatly influence the subsequent phases of the life cycle.

2. Evaluate

This set of activities results in the acquisition of a business application as a response to specific business process requirements.