APM is the ongoing management process of categorization, assessment and rationalization of the IT application portfolio which allows organizations to identify which applications to maintain, invest in, replace, or retire. To understand current APM strategies and practices, the authors convened a focus group of senior IT managers from a number of organizations. Results of the focus group discussion pointed to the need to develop three inter-related APM capabilities: (1) strategy and governance, (2) inventory management, and (3) reporting and rationalization. To deliver value with APM, organizations must establish all three capabilities. Experience suggests that organizations tend to start by inventorying applications and work from the “middle out” to refine their APM strategy (and how it is governed) as well as to establish efforts to rationalize their applications portfolio. As such, APM represents a process of continual refinement. Fortunately, experience also suggests that there are real benefits to be reaped from the successful development of each capability. The paper concludes with some lessons learned based on the collective experience of the members of the focus group.
McKeen, James D. and Smith, Heather A.
"Developments in Practice XXXIV: Application Portfolio Management,"
Communications of the Association for Information Systems:
Vol. 26, Article 9.
Available at: http://aisel.aisnet.org/cais/vol26/iss1/9