In today’s digitally-driven economy, uncontrolled technology sprawl has become one of the biggest threats to innovation, efficiency, and cost control. For many organizations, especially in sectors like healthcare, a cluttered tech ecosystem of redundant, outdated, or underutilized applications not only eats away at IT budgets but also drags down performance and productivity.

Yet, despite the hype, traditional Application Rationalization efforts often fail to yield the promised savings or improvements. Why? Because they focus too heavily on the tools — and not enough on the people who use them.

Tollanis Solutions offers a people-first approach to Application Rationalization that puts user engagement, efficiency, and total cost of ownership (TCO) at the heart of the process. It’s time to clean house — and do it right.

The Hidden Costs of Application Overload

Studies show that 45% to 65% of all application functionality is never used. Whether due to poor user experience, insufficient training, or sheer redundancy, these unused features still cost money — and lots of it. Over time, maintenance and support for legacy systems grow exponentially. Meanwhile, new applications get layered on top, creating overlap, confusion, and skyrocketing costs.

In many organizations, up to 90% of IT budgets go toward “keeping the lights on,” leaving little room for innovation or digital transformation. Add in the rapid expansion of cloud-based SaaS platforms and decentralized purchasing power, and you have a recipe for sprawling, expensive, and inefficient systems.

Why Traditional Approaches Fail

Traditional Application Rationalization methods typically begin with a technology audit. But this misses the most important part of the equation — how people actually use the technology. Even the most advanced systems still rely on human interaction. If a tool doesn’t serve its users, it doesn’t serve the business.

This is where Tollanis Solutions takes a different route: we begin with the people.

A People-First Approach: The Tollanis Way

Tollanis starts with a seven-step process rooted in user needs, business goals, and operational realities. The first step? Understanding how your people interact with tools — and identifying the barriers to operational excellence.

This includes reviewing how customers, employees, and partners engage with applications daily, and how those tools contribute (or fail to contribute) to their success.

Key Challenges That Drive Application Sprawl

1. Mergers and Acquisitions

M&A activity often results in overlapping platforms and conflicting systems. Performing rationalization early in a merger can reduce long-term application costs by up to 60%. Delaying it leads to compounded costs and organizational inefficiencies.

2. SaaS "Freelancing"

The rise of cloud-based, self-serve applications allows departments to bypass IT and onboard tools independently. While this encourages innovation, it also creates redundancy and integration challenges across the enterprise.

3. De-Prioritized or Abandoned Projects

Many organizations have shelves full of unused or partially implemented applications, which still incur monthly licensing and maintenance fees. Without a process to identify and retire these dead tools, costs continue to pile up.

4. Resistance to Change

Users grow attached to legacy applications, especially those that have been customized over time. Emotional resistance and lack of change management often prevent organizations from retiring outdated systems, even when they are no longer cost-effective or supported.

Making Application Rationalization a Success

1. Start with People and Their Needs

Identify how applications are actually being used and how they impact everyday workflows. Rationalization should ensure that tools remain relevant, effective, and valuable to those using them.

2. Assess for Strategic Value and Total Cost of Ownership

Don’t just evaluate features or technical capabilities. Consider how each application supports your business goals, and analyze total costs including licensing, maintenance, support, and training.

3. Classify Applications: Optimize, Augment, Retire, Replace

Conduct a comprehensive assessment that categorizes applications based on user roles, personas, use cases, and cost-efficiency. Use this data to develop a rationalization heat map and prioritize actions.

4. Invest in Change Management

Application Rationalization is not just an IT project — it’s an organizational change initiative. Communicate the reasons for change clearly. Engage end users early. Address concerns, reduce fear, and highlight personal benefits (the "What’s In It For Me" factor). Make change feel like an upgrade, not a threat.

5. Create a Clear, Objective Plan

Plan your rationalization initiative with a cross-functional team that has minimal bias toward specific tools. Consider technical, financial, operational, and user experience elements. Define a strategy before retiring or replacing applications to avoid operational disruptions.

6. Monitor Adoption and Performance

Post-rationalization, keep a close eye on how new tools are being used. Track adoption, identify friction points, and respond quickly to emerging needs. Establish a feedback loop as part of your vendor and application lifecycle management strategy.

7. Anticipate Change Before It Becomes Costly

Don’t wait until an application becomes so deeply embedded that replacing it is no longer viable. Stay ahead of the curve by continuously scanning for market shifts, business needs, and user feedback.

Realigning IT for Innovation

By simplifying and streamlining your application portfolio, you can unlock significant cost savings, increase agility, and better align IT with business strategy. But most importantly, you free up critical budget and resources that can be reinvested into innovation, customer experience, and growth.

Application Rationalization isn’t just about cutting — it’s about clearing the path for what’s next.

Final Thoughts from the Founder

Stephen Smith, Founder and CEO of Tollanis Solutions, puts it simply: “Application Rationalization must start with people. Technology is only as effective as the value it creates — and that value is always defined by the humans who use it.”

As a career CIO and serial entrepreneur, Stephen has helped Fortune 500 organizations in healthcare, financial services, retail, and more reimagine their technology strategies for lasting impact.

Ready to Clean House?

If your organization is bogged down by outdated systems, unused tools, and rising tech costs, now is the time to act. Tollanis Solutions offers the insight, experience, and people-first framework to help you reclaim your IT budget and refocus your business on what truly matters.

Let’s start your Application Rationalization journey today.