In one of my earlier posts I talked about the 70/30 ratio and how IT leaders want to free up the 70% of vital IT budget which is currently being spent on maintenance of applications and infrastructure so that it can be used on innovation. In order to enable that I proposed three phases that the organization must go through: assess, modernize and manage. In this post I will zoom in on the assess component and talk about one of the key enablers of this phase -- Application Portfolio Management (APM).
Application Portfolio Management can mean many things to many people. To some people APM represents a project management approach – i.e. how do I effectively manage the projects or initiatives which are focused on delivering and/or changing my applications? Others may take a financial spin to this, looking at APM as a way to leverage financial management techniques to justify and measure the efficiency and value that each application provides to the organization in terms of cost and risk. Other disciplines may look at APM as a way to assess the complexity of the applications from a code or integration perspective. The bottom line is that APM can be all these things, and actually it is most effective when parts or all of these components are used and assessed in conjunction with one another.
I don’t normally blog about products (even though I work for HP). However, earlier this week HP made an interesting announcement– launching a combination of products and services in the Application Portfolio Management space. The reason I liked the announcement is because it highlighted/reinforced a few things we have been discussing here:
However, one thing that really came across to me from speaking to businesses who have successfully implemented an Application Portfolio Management approach is the importance of two simple but crucial items:
It would be great to hear from the forum members on this topic, do you agree that automation and a continual approach to APM are success factors of an organizations application transformation?