Deep-diving into costs, Bain analysis revealed that App cost (App support + App Development) was a major cost for the company. Further analysis showed that the top 250 apps were responsible for 90% of the total cost of ownership (TCO) for the app segment even though the total number of apps was 1600. Total Cost of Ownership, by app ($M), Indexed Application TCO PERCENT OF APPLICATION, RANKED BY TOTAL COST OTAL COSTS Top 5 Applications Top 10 Applications Top 25 Applications Top 100 Applications Top 250 Applications 30% 40% 55% 78% 91% Primary focus area 100 Number of Applications 250 1600 Figure 2 Deciding to focus on these 250 apps, Bain decided to look at the costs involved Total Top 250 Apps by TCO ($M), Indexed $50.0M $42.0M $36.0M $128M 100% Out of scope 80 Need to Keep (costs remain) Don't Know Function (may hold upside redundancy) 60- Business Case (upside potential for redundancy) 40 Already Retired (costs to go away) 20 Strong Hypothesis for Redundancy (base case opportunity) 0 Marketing, Sales, and Supply Chain Shared Non-ERP Systems & Products Figure 3 Q4. Based on the above graph (Figure 3), what is the quantum of cost that presents a strong hypothesis to address redundancy in costs? a) $25m-$30m b) $30m-$35m c) $15m-$20m d) >$30m