Application Portfolio Management (APM)
Application Portfolio Management (APM) is a strategic approach used by organizations to analyze, evaluate, and manage their collection of software applications. It involves assessing the current state of an organization's application landscape, determining the value and alignment of each application with business objectives, and making decisions about investment, maintenance, or retirement of applications based on their strategic importance and performance.
Key aspects of Application Portfolio Management include:
Inventory: Creating a comprehensive inventory of all applications used within the organization, including details such as purpose, functionality, technology stack, ownership, and dependencies.
Assessment: Evaluating each application in the portfolio based on various criteria such as business value, alignment with organizational goals, technical health, cost of maintenance, and risk.
Rationalization: Making decisions about the future of each application, which may involve consolidation, modernization, migration, retirement, or replacement. This process aims to optimize the portfolio by reducing redundancy, improving efficiency, and aligning with business needs.
Prioritization: Establishing priorities for investment and resource allocation based on the strategic importance and performance of each application. This helps organizations focus their efforts and resources on the most critical and valuable applications.
Governance: Implementing governance processes and frameworks to ensure effective management of the application portfolio over time. This includes establishing policies, standards, and procedures for application development, acquisition, deployment, and maintenance.
Lifecycle Management: Managing the entire lifecycle of applications from inception to retirement, including planning, development, deployment, operation, maintenance, and eventual decommissioning.
Overall, Application Portfolio Management helps organizations optimize their IT investments, improve business agility, reduce costs, mitigate risks, and enhance the overall value delivered by their application portfolio. It enables informed decision-making and alignment of IT initiatives with business objectives.
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