Using Portfolio ManageMent to align Projects and Manage BUsiness aPPlications
chaPter 1: aPM Processes: deterMining aPPs’ BUsiness ValUe
Real-time application management.
The real-time application managementcapabilities o APM tools keep tracko changing business objectives andstrategies. These help bring in new ap-plication initiatives into the compari-son. The cost and business value o oldand about-to-be-retired applicationscan be compared with those o pro-posed ones. This step enables orga-nizations to make sure that capital isallocated in an optimal way.
Real-time nancial tracking andmanagement.
Following an inven-tory o applications, accurate costgures or applications are broughtin rom existing nancial systems.When comparing the business valueo an application to its cost, billableand non-billable costs brought inrom nancial systems help producemore accurate calculations. That’sbecause they will be allocatedproperly.
Business value collection mecha-nisms.
Business value is assessed bytaking surveys o end users. These sur-veys assess how valuable and useulan application is to its users. I the ap-plication has users outside the com-pany—say, consumers—then they arealso surveyed.
Application portolio visualization,analytics and reporting.
Once APMtools collect all the data, powerul vi-sualization capabilities like heat mapsand bubble charts are used to repre-sent the money spent on various ap-plications and the business value theyprovide. Analytics and reporting ea-tures do this side by side and alsoperorm deeper analysis or optimaldecision making.
Application portolio adjustments.
Once the APM analysis phase is over,the results are used to reallocate re-sources to applications that providemore business value. Applications thatprovide marginal business value can beretired and promising new ones takenup or development.
It reduces costs and optimizes value.
There may always be a disconnectbetween what an application coststo develop and maintain and its busi-ness value to its end users. APM helpsassess this issue and make sure that
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