Partner Perspective: AppRat – Hard Work, but Well Worth It; And Here’s How You Get Started

Rationalize your applications, they say. It will lead to cost savings, a streamlined portfolio, and aid in the release of resources for innovation and technological advancement, they say. So why do we groan at the idea of starting an application rationalization effort if it has so much to offer? Immediate reactions to AppRat, as it is commonly called, are often due to the complexity of the work, lack of bandwidth, and simply not knowing where to begin. It’s often considered a “not now, but maybe later” task that is driven by bigger strategic moves like M&A, cloud migration and EHR implementations, further complicating these mission imperatives, adding to their timelines, and increasing their cost.

Over time, even the most well-managed IT environments accumulate technical debt. Siloed purchasing, legacy systems, and shadow IT can create a bloated application portfolio that could:

• Drain IT support resources
• Increase cybersecurity risk
• Inflate licensing and maintenance costs
• Complicate integration and data governance
• Impact patient safety

Application sprawl quietly erodes operational efficiency and financial flexibility, with the most significant impacts observed at small to mid-sized hospital systems. However, application rationalization as a strategic lever introduces efficiencies through the elimination of overspending on resources and duplicated functionality.

When done right, application rationalization can:

• Fund transformation by freeing up capital tied to redundant or underused systems.
• Accelerate innovation by simplifying the IT landscape, enable faster adoption of technology.
• Improve clinician experience by reducing system fragmentation and login fatigue.
• Streamline training and support by setting up your organization with enterprise standards vs. siloed applications.
• Strengthen security posture by eliminating outdated or unsupported applications.

Positioning Your Organization for Optimal Outcomes

We know the upside can be high. Our experts have led programs that decommissioned as many as 30% of an organization’s applications over five years, resulting in savings close to $70M. Given the value of resources that can be redirected to patient care, staff development, and digital innovation, the potential impact of an AppRat initiative is even higher.

Timing matters but waiting for the “perfect time” often means it never happens. Instead, we need to reframe AppRat as a foundational part of transformation, not a follow-up act. AppRat should be a thoughtful, repeatable process embedded in the planning phase of any major initiative—not an afterthought.

Leverage the findings and tools of those who have done the work before you. The CIO Council’s The Application Rationalization Playbook is available as a free download. It’s a great starting point to understanding methodology.

Lean on companies, like CereCore, who offer application rationalization advisory services if your staffing bandwidth just isn’t there, or you simply don’t know where to start. Consider staffing support for parts of the work or support developing an organization-specific program from initial assessment to decommissioning and archiving data. Prioritize a partner that knows healthcare.

Charting Your Path

We recommend the following approach.

Phase 1: Project Initiation and Assessment

Partner with your stakeholders and designated staff to determine roles and responsibilities, how and when we communicate, and your overall objective of this phase. What that means is frame what your organization would like to target in an application rationalization initiative. Typically, when we are involved, we will do a full application inventory documenting such information as version, capabilities, and usage. This will illustrate, at a high level, what your application footprint looks like and will call out redundancies and antiquated apps. Once it can be seen all plainly laid out, recommendations can be made.

• Are you specifically looking to target legacy applications?
• Would you like to use this information to optimize/renegotiate contracts?
• Is an overall pro-active Application Portfolio Management overhaul that supports cybersecurity and innovation important to you?

It’s important to frame the goals and develop a timeline to accomplish what your organization is seeking.

Phase 2: Application Analysis and Recommendation

This is a “deeper dive” phase of application analysis. We recommend gathering information on cost, vendor, contract details, app owners and SMEs, etc. The information will help you develop recommendation(s) and highlight different opportunities. Documentation will include current vs. potential future states and a project plan to get you there.

• What are the early termination clauses and end dates for your vendor contracts?
• Are there different versions of the same application supplied by different vendors?

Phase 3: Implementation Planning and Execution

Once a path has been decided, a project pan can be developed. In this phase, work is done on migrating data from retired apps to archive (when appropriate), change management planning for adoption of new workflows, and integration and testing. If you leverage an outside partner, communication will be integral during this phase, with a regular meeting cadence and reporting to appropriate parties. Avoiding surprises whenever possible is a goal.

• Who are the resources dedicated to the AppRat effort?
• How and where will data be archived? For which applications?
• What are the necessary deliverables for the rationalization exercise and for ongoing application portfolio management? Who is responsible for each?

Phase 4: Evaluation and Closure

As you wrap up the scope of your application rationalization goals, it’s important to gather with stakeholders and key players to present and review project deliverables. This will include documentation illustrating realized benefits (retirement of legacy apps, financial impacts, improved user experience and onboarding through standardized workflows, etc.), future state projections and plans for ongoing application portfolio monitoring and optimization. Additionally, this is when stakeholder approval and sign off is attained.

• What are the legacy applications to retire?
• What financial impact can be achieved with the recommendations?
• What are priorities and processes for ongoing application portfolio management?

Phase 5: Portfolio Optimization and Support

An important part of application rationalization is understanding that you are laying the foundation for a fully realized application portfolio management integrated workflow. Essentially, following the gathering of your full portfolio of apps (incl. contract details, business capabilities and associated support teams) you have full transparency to monitor and continually improve your tech stack. Your app rat partner should aid in the establishment of workflows and tools to ensure minimal staff impact and maximum control of your applications. Key considerations:

• Is a partnership in order? For which AppRat duties?
• Is AppRat a core competency of your organization? Should it be?

Key Opportunities, Common Missteps and Final Thoughts

Gaining quick wins in application rationalization involves identifying and acting on high-impact, low-effort opportunities that streamline the application portfolio. Start by targeting redundant or underutilized applications—those that serve overlapping functions or show minimal usage—using data from usage logs, license audits, and stakeholder feedback. Taking vendor contracts into consideration is also imperative. Having a clear understanding of opportunities to consolidate or renegotiate terms puts your organization in a strong position to explore optimization points.

Application rationalization efforts can fall short when key factors are overlooked. Common pitfalls include the absence of clearly defined goals, incomplete application inventories, and a lack of alignment with business needs. Failing to engage stakeholders or assess application interdependencies can lead to disruptions. Additionally, focusing solely on cost reduction without considering functionality or strategic value may result in poor decisions. Inadequate change management planning can also hinder user adoption.

In a rapidly evolving digital landscape, waiting means falling behind. Rationalizing your application portfolio today is not just a smart move—it’s a strategic necessity for staying competitive and future-ready.

 About the Author

Amy Penning is a Senior Application Analyst at CereCore®, an IT services firm that makes it easier for hospitals and healthcare systems to focus on supporting hospital operations and transforming healthcare through technology. We partner with clients to extend their team through comprehensive IT staffing and application support, technical professional and managed services, IT advisory services, and EHR consulting, because we know firsthand the power that integrated technology has on patient care and communities.