An Overview of Application Portfolio Management – If you’re trying to grow your business through software development, application portfolio management is something you should seriously consider.
This method helps identify which products are right for your company’s business goals, and where you can invest capital and resources. It also helps you identify demand-side initiatives and stakeholders. This article provides an overview of the process.
If you’re not sure about application portfolio management, read on to learn how to get started. You’ll be glad you did!
It helps identify SaaS applications
Strategic pre-purchase review is a crucial component in preserving the value of SaaS applications. Not only does it reduce the risk of a new application being purchased, but it also helps plan the introduction of a new tool. Various organizations use different processes to review SaaS applications. In some cases, an IT manager performs a review, while others employ an internal review board.
Regardless of the approach used, cross-checking applications is critical to preserving the value of the new tool. In addition to identifying applications, the onboarding process must be well defined to include ownership, roles, and benchmarks for each new tool.
The most effective way to detect SaaS applications is by analyzing usage information. Expense and accounting data can help identify which applications are used the most. Most SaaS applications are free or on a freemium model, which means that you don’t have to pay for the full version at the beginning. Modern methods, such as SSO/CASB, can provide insight into application use and enable you to manage access controls more easily.
It helps identify capital reinvestment
Application portfolio management is the process of managing and assessing the performance of an organization’s IT assets. This process helps organizations streamline processes, reduce cost of ownership (TCO), improve agility, and ensure compliance.
The rationalization of applications frees up resources for new innovation and research. Without active application portfolio management, enterprises may encounter application sprawl, or the unmanageable growth of their IT portfolio. By integrating APM practices into IT strategies, organizations can avoid the risks of application sprawl and stay competitive.
The process of application portfolio management utilizes several data and system inputs to provide data on IT assets and their usage. Data inputs include Cost, Effort, Usage, and Availability. The end result is an overview of an application portfolio that enables business and IT management to decide how to dispose of assets throughout the lifecycle. It helps identify capital reinvestment in application portfolio management
It helps identify demand side initiatives
Application Portfolio Management (APM) is a process for determining priorities and allocating resources for business projects and applications. It provides high-level clarity of business objectives, identifying redundancies and technological gaps that could be improved. It integrates a network of applications and services and identifies the implications of service lifecycle phase-outs. It also allows operations teams to analyze the reliability of application interfaces.
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As organizations look to achieve digital transformation, application portfolio management has become a key discipline. Those tasked with APM must keep track of applications’ lifecycles and prioritize their replacements. It is important to note that an application’s successor may depend on it.
Furthermore, application portfolio management is vital to many stakeholders within an organization. From the CTO to the security officer, all underlying applications should be in sync, as well as the application roadmap.
It helps identify stakeholders
Identifying stakeholder groups is a critical component of an effective application portfolio management strategy. Stakeholder groups can include senior executives, project organization leaders, clients, alliance partners, suppliers, IT operations, customers, and so on.
In addition to formal groups, there are informal groups of stakeholders. Most individuals belong to more than one stakeholder group, which tends to emerge in response to specific events. For example, a project might have a number of stakeholders, but these groups are not necessarily related to one another.
In addition to identifying stakeholder groups, application portfolio management helps IT managers identify capital for reinvestment. It is vital for IT managers to determine which applications are vital to business goals and which ones should be abandoned.
This information can be gathered through a survey of real users of applications. For example, a grocer had 12 applications. With this large number, it was difficult for the grocer to react to the rapidly changing industry and the business demands.