The Differences Between Application Lifecycle and Application Strategy

Understanding the Differences Between Application Lifecycle and Application Strategy

Introduction

In the evolving landscape of enterprise architecture, managing applications effectively is critical for business agility and resilience.

However, professionals often confuse two key concepts: application lifecycle and application strategy. Though closely related, they serve different purposes. This article unpacks the distinctions between the two and offers guidance for enterprise architects and IT leaders striving for operational excellence and strategic alignment.

Defining Application Lifecycle

The application lifecycle refers to the series of stages an application passes through from its inception to retirement. These stages ensure that applications are efficiently developed, maintained, and decommissioned when no longer useful.

Application lifecycle should be based on how your organisation is treating the application now, and you may plan to change this in the future as part of your architectural runway.

Stages of the Application Lifecycle

You may customise these stages to suit your organisation, but a common approach is:

1. Emerging/Phase In: Identifying business needs and defining requirements through to implementation
2. Standard/Core: The application is actively promoted and focus is on increasing the value derived from it
3. Contain: This application has been superseded or no longer preferable, and new use cases should be discouraged
4. Retiring/Phase Out: Actively decommissioning and replacing the application when obsolete
5. Eliminated: The application is no longer in use and has been removed

Defining Application Strategy

Application strategy is a forward-looking evaluation that captures how applications support business objectives. It provides advice on how the application portfolio evolves to meet enterprise goals such as innovation, cost reduction, and scalability.

Key Inputs of an Application Strategy

• Business Criticality: Prioritising applications based on their impact on business operations.
• Business Fit: How well does the application align to the organisation needs and value generation.
• Technical Fit: How well does the application align to the organisations desired technology management objectives.

Areas of the Application Strategy

You may customise these stages to suit your organisation, but a common approach is:

1. Tolerate: Accept the application in its current state, but no further investment is planned
2. Invest: Prioritise the application for investment and improvement to increase value
3. Migrate: Work on finding a replacement for the application and migrate to a new solution
4. Eliminate: Remove the application from the portfolio, as it is no longer needed

The key is using business criticality, change impact, and capacity for change to determine the best course of action for each application and prioritize the sequence of change.

Key Differences Between Application Lifecycle and Application Strategy

The Role of Enterprise Architects in Managing Both

Enterprise architects are uniquely positioned to bridge the gap between application strategy and lifecycle execution.

• Strategic Alignment: Ensure lifecycle decisions are in line with strategic goals.
• Business Capability Mapping: Link applications to business outcomes.
• Governance and Risk Management: Identify redundant applications, manage compliance.

Application Lifecycle Management Best Practices

• Build relationships: Identify in your organisation where decisions happen that affect lifecycle change.
• Lifecycle Governance: Define stage gates for moving between phases, have agreed forums to discuss and approve changes.
• Single source of trust: Ensure that changes to applications are tracked and communicated.
• Refresh Portfolio Review annually with views of change over the next 3-5 years.

Building a Robust Application Strategy

To develop a strategy that delivers business value:

• Assess the Current Portfolio: Use tools like Colloquial, LeanIX or ServiceNow APM.
• Define Objectives: Align with business priorities like agility, innovation, and compliance.
• Prioritize Initiatives: Modernisation, integration, cloud migration.

Real-World Use Case

Scenario: A multinational bank is transforming its legacy systems to a cloud-native environment.

• Lifecycle Alignment: Applications not fit for cloud are slated for retirement. New apps are developed in microservices architecture with containerization.
• Application Strategy: Adopt a cloud-first strategy and rationalize legacy tools.

Outcome: Reduced costs, increased agility, and improved customer experience.

Common Pitfalls to Avoid

• Confusing Operations and Strategic Planning: Lifecycle management isn’t strategy.
• Lack of Visibility: Disconnected lifecycle tracking tools.
• Siloed Stakeholders: Strategy is set by executives; lifecycle by product owners—without alignment.

Tools and Frameworks Supporting Both Domains

• TOGAF: Enterprise strategy planning
• ArchiMate: Visual modeling of lifecycle and strategy
• SAFe (Scaled Agile Framework): Links strategic themes to operational execution
• ITIL: Provides guidance on lifecycle stages

Aligning IT Governance with Lifecycle and Strategy

• Review Boards: Approve new application investments
• Steering Committees: Align strategy with business goals
• Integrate Portfolio Management: Merge financial, strategic, and technical views

Conclusion

Application lifecycle and application strategy, though interlinked, play different roles in application portfolio management. The lifecycle handles execution, while strategy drives change. For organizations aiming to thrive in a digital era, understanding and managing both effectively is crucial.

Call to Action: Assess your current application portfolio and ensure your lifecycle management practices align with a clearly defined application strategy.

FAQs

1. Can application lifecycle be part of the application strategy? Yes, the lifecycle of each application should be governed by the overarching application strategy to ensure alignment with business goals.

2. What tools help manage both strategy and lifecycle? Colloquial, LeanIX, ServiceNow APM, ArchiMate, and TOGAF are among the most effective tools.

3. Who owns application lifecycle vs. strategy? Lifecycle is typically owned by IT operations and development teams, while strategy is guided by enterprise architects and CIOs.

4. How do I align application investments with strategic outcomes? Establish a strategic roadmap, use capability-based planning, and apply value scoring to investment decisions.

5. What role does EA play in bridging lifecycle and strategy? Enterprise architects ensure that lifecycle activities contribute to the long-term vision by connecting execution with strategy through governance and modeling.