Enterprise change management offers multi-faceted advantages to software deployment

Rethink IT, August, 2004

Change to software after deployment, and the implementation of and support for that change accounts for three-quarters of the cost of ownership of an enterprise application on average, but this figure can vary wildly according to how efficiently change is managed and tracked. Lack of sound practises in this area greatly increase the risk attached to a major project, with the danger of inconsistent and uncoordinated modifications damaging the quality, efficiency and security of the system, and letting it slip miles away from the actual business function.

Now enterprise change management (ECM), for many years relegated to a dark corner of the mainframe-based software world, is taking its place right in the application lifecycle. The big suppliers, like Computer Associates, see it as a key element of their full lifecycle products, while specialists like Serena are making acquisitions or partnerships to take their tools on to a broader platform. Following the acquisition this year of Merant, whose change management tools worked in a client/server environment, Serena is no longer talking about spot tools but its Serena Application Framework for Enterprises (Safe), which claims to "drive IT efficiency through process-to-process integration" and management of the whole application lifecycle.

For many companies though, lifecycle management is too broad to be considered and they are only just getting to grips with carrying out change management at all.

According to a report by the Robert Frances Group (RFG), which surveyed Serena's customer base, there are many ways to justify ECM. "Some of the justification involves tangible costs and benefits, while some justification relies on intangible elements. Justification is therefore multifaceted, as there are many issues and departments involved."

Past analyses focused on the benefits of version control, yet today's change management implementation in enterprises involves much more. RFG defines a return on value (ROV) approach for analyzing initiatives germane to a specific enterprise. Generally, to deliver ROV, an IT initiative must increase worker productivity, improve IT business alignment, make the enterprise more money, and/or save the enterprise money, Specifically, the ROV of a proposed or ongoing incumbent project depends upon the project's effect on competitive, financial, functional, process, relationship, strategic, technical, and/or usage levels.

COMPETITIVE

Enterprises that can quickly respond to customer requirements and market changes are at an advantage over their slower competitors. The ability to develop more applications with the same staff, while improving collaboration with business unit customers, provides clear competitive advantage. Faster implementation of new features and changes into the production applications keep the enterprise nimble to respond to competitive pressures.

FINANCIAL

Financial ROI analyses can be designed to affect the top line by demonstrating cost savings, or the bottom line by anticipating increased revenue. For many IT departments this is the only analysis done. However, ROI alone does not provide a complete picture. While the costs of ECM are relatively straightforward, the financial benefits are typically subtler. For example, audit compliance is a key driver in some industries, as lack of sound process can result in lost business, fines, and sanctions. In addition, this study shows reduction in staff as a common benefit of using ECM solutions, even at enterprises acquiring and/or merging with other companies and their IT departments.

FUNCTIONAL

The functional component measures how well IT applications line up with business needs. Those interviewed for the study believe ChangeMan helps them be more responsive to business requirements. The clients concur that ChangeMan, augmented with improved processes, provides the ability to handle application changes with more frequency, more speed, and with far fewer errors. This, combined with the documentation improvements inherent in effective ECM deployments, mean much better alignment with the business requirements.

PROCESS

Process improvement is a major driver for ECM and one of the most important areas of benefit. Many companies struggle with issues around a lack of control over application changes. Implementation provides an opportunity for enterprises to implement stricter processes. These processes lead to definitive improvements in application delivery and support with lower long term costs.

RELATIONSHIP

Customer and partner satisfaction are critical to business success. The ability to adapt applications for external access, for example, and to modify customer applications quickly, help enterprises better their external and internal relationships.

STRATEGIC

The strategic component involves determining whether proposed or incumbent projects align with the enterprise goals. For development, such alignment involves support for changing business requirements, improved collaboration with business units, and scalability of the ECM infrastructure to support business expansion.