Application portfolio management is a process for managing the applications of a specific business operation within the enterprise. It involves classifying specific applications into enterprise portfolios, reviewing all applications as a portfolio, and prioritizing them by each business unit. The portfolio manager is responsible for all aspects of IT for a specific business unit, including managing employees, contracts, and customer relationships. Effective application portfolio management requires an understanding of operational costs and costs of improving software applications. Most portfolio management strategies include ROI reviews for proposed IT initiatives.
Most businesses are divided into business units that specialize in particular areas of business operations. Application portfolio management is a process for managing the applications of a specific business operation within the enterprise. Some examples include sales, marketing, manufacturing and banking. A portfolio is typically the set of all applications of a company.
Application portfolio management is an enterprise technique that classifies specific applications into enterprise portfolios. An application portfolio is a set of software used by a company. This includes both administrative and business-specific applications. By reviewing all applications as a portfolio, senior executives can better understand the company’s priorities.
The first step in implementing portfolio management is to access the company’s existing application inventory. This application catalog will provide an overview of investment costs and activities across your organization. Once the catalog has been created, it can be reviewed and prioritized by each business unit.
Most application portfolios are managed by computer program (IT) managers. These managers are responsible for the day-to-day support and operations of all applications within a specific portfolio. The Director of Application Portfolio Management is an individual experienced in managing large programs with competing priorities.
The portfolio manager is responsible for all aspects of IT for a specific business unit. Usually manages employees, contracts and customer relationships. The application portfolio management process is a daunting task that requires excellent project management skills. Most program managers are certified in project management skills.
Effective application portfolio management requires an understanding of the operational costs and costs of improving the software application. These costs include support centers, networks, and hardware devices. Information technology costs continue to grow as new applications are added to an operation’s portfolio.
Most portfolio management strategies include ROI reviews for proposed IT initiatives. A business case is typically required for any new IT investment. This business case defines the business need, expected value, and return on investment for the application. This document is subsequently reviewed within the portfolio to determine whether the new application is truly necessary.
Application portfolio management is a disciplined approach to enterprise software management. This technique provides vital insight into a company’s cost, productivity, and overall performance. Without portfolio management, operational costs can quickly spiral out of control.
Protect your devices with Threat Protection by NordVPN
