Defining the Business Application Life Cycle

Upgrade analysis: At a certain point in the life cycle, users of packaged applications are faced with the increasing age of their deployed version. Analysis should be performed to determine if an upgrade is available and appropriate. If retaining the application is not an option, a retire and replacement strategy must be evaluated.

Upgrade or retire: Based on the upgrade analysis, users will decide to continue with support, embark on an upgrade or pursue a replacement initiative. Upgrade and replacement decisions lead back to the vision and planning stage of the life cycle for resource allocation, business case development and further stages in a renewed life cycle.

Key Facts: The business application life cycle consists of four phases, each with certain steps that must be followed.

1. Strategize Vision and Planning

2. Evaluate Software Selection Software Negotiating and Contracting

3. Execute ESP Selection Implementation Planning ESP Negotiation and Contracting Active Implementation

4. Manage Support Improvement Upgrade Analysis Upgrade or Retire

Bottom Line: Enterprises must consider all phases of the business application life cycle to best navigate the challenges that each phase presents. Failure to include a phase, or any of the subcategories within a phase, will waste valuable resources and possibly doom the project to longer time frames, greater costs - or failure. Discrete project planning (for example, the planning of customer relationship management, enterprise resource planning and supply chain management) as stand- alone applications cannot be done in isolation. Planning must be incorporated into a life cycle of business planning that includes these phases and stages to ensure coordination to create the greatest potential for managing value and cost.

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