What is the application portfolio management (APM)?

Posted by Alan David
3
Oct 4, 2013
561 Views
APM is a framework for managing enterprise IT software application and software based services. Application provides manager with an inventory of the company’s software application and metrics to illustrate the business benefit of each application. Application portfolio management uses a scoring algorithm for generating reports about the value of each application and the health of the IT infrastructure as a whole by gathering application’s age how often is used the cast it takes to maintain it and its interrelationships with other application a manager can use more than just an educated guess to decide whether or not a particular application should be kept, replaced and updated.

It is also implementing a repeatable process to assess what we have and if an application is not performing or does not meet our architectural requirements and eliminating it and replacing it with a better performing application. It reduce the money we spend on maintaining existing applications and freeing up that money to invest in new and better performing applications.

There increasing pressure from CxOs to cut costs and reduce inefficiencies to foster agility in systems for many enterprise architects. The enterprises invest more than 70 percent of their budgets purely on maintain their existing asset investments. It is a clear present broken link between strategic business objectives and keeping the lights on in the IT department. It is verified in recent report by AMR Research that reports that 75 percent of IT organizations have little oversight over their project portfolios and employ non-repeatable and chaotic planning processes.
IT decision makers can gain visibility into the application’s impacts that reside in the enterprise by using an application without having a clear application management strategy and there is impedance on the business. The enterprise architects have struggled to get to this target state because there are many challenges.

The following are the main reason
1.    The lack of process:
In this process can help put a method to the madness when there are decisions being made that are not in the best interest of the enterprise.
2.    The Limited views into the enterprise:
The having a holistic view into an enterprise is essential because it provides context for decision making and allows for proper road mapping. It will provide a true rationalization of the impacts of the IT organization
3.    The poor visibility into asset base.
The without having a clear understanding of the assets an organization holds it is difficult to make the right decision when the time comes.

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