Budget by Phase, Not by Project
Success factor No. 4: Budget by phase, not by project Positioning an application development modernization initiative as a "project" wrongly implies a beginning and an end to what will, in fact, be a continual process over the long term. This distinction is essential, in part to enable the reinvestment strategy outlined earlier.This change in perspective, meanwhile, can allow organizations to transcend the longstanding silo-based model of IT investment, whereby each business unit funds development and support of its own application. This traditional approach often results in redundant capabilities and duplication of efforts, with the IT organization left holding the bag of supporting and maintaining the dysfunctional environment. Application modernization represents an opportunity to break out of this trap and to adopt a more strategic approach to operational management-one that links IT to business requirements and to improving the efficiency of critical business processes.
In addition to allowing for continued investment, a phase-based approach facilitates a broader perspective. A phase-based approach makes it easier to leverage the benefits of enterprisewide applications as an enterprise resource planning (ERP) solution, or to leverage the benefits of enterprisewide data storage capabilities as a storage area network (SAN) solution-rather than simply focusing on discrete infrastructure operations.