Application Portfolio Management (APM) is a strategic approach that enables organizations to manage and optimize their owned or developed applications. This approach is not only technical but directly affects an organization’s business strategy and decision-making.
Enhancing Targeting and Resource Optimization
APM (such as Thinking Portfolio Application Portfolio) provides organizations with a comprehensive view of their application architecture, enabling effective targeting and optimization of resources. By identifying all applications in use and their associated costs, organizations can make strategic decisions about which applications are most important and bring efficiency to the business.
Prioritization and Strategic Alignment
APM helps organizations prioritize their applications according to their business strategy. Each application’s significance and its ability to support business goals can be evaluated, ensuring resources are allocated correctly and that applications support the organization’s long-term objectives and strategy.
Risk Management and Compliance
APM also assists organizations in managing risks and ensuring applications comply with regulations across different industries. Organizations can assess application security, data privacy, and other risks to ensure compliance with all required standards such as DORA, NIS2, and ISO27001.
Improving Internal Collaboration
APM promotes internal collaboration within organizations. Different teams can work together in assessing and making decisions about applications, fostering better knowledge sharing and collaboration, leading to improved decisions and outcomes.
Increasing Financial Transparency
APM also increases financial transparency within organizations by providing accurate information about application usage and associated costs. This helps organizations make informed decisions and ensures that skills and resources are utilized optimally.
Application Portfolio Management is an essential part of strategic management and decision-making. It helps organizations improve targeting, make the right choices, and optimize resource utilization. A comprehensive view of the application landscape helps organizations achieve business objectives more effectively and ensures that applications support the organization’s long-term success. Organizations lacking a comprehensive understanding and transparency into their application architecture may misallocate resources and struggle to respond effectively to changes in the operating environment. Application Portfolio Management is a modern approach to decision-making and communication that every organization should embrace without delay.
