What is application portfolio management?
Application Portfolio Management (APM) is an IT management process that uses cost-benefit analyzes and other business analyzes for IT decisions. Application Portfolio Management sees each program and equipment as part of a company's overall portfolio and gives it a score based on factors such as age, importance, number of users, and so on. Under APM, further investments in upgrades or changes in the portfolio mix must be justified by projected returns and other measurable factors.
IT management is often seen as a constant battle against the daily fire. APM is designed to look beyond the daily routine and evaluate an organization's IT infrastructure to decide when and where improvements should be made. To be effective, APM must have a structured and repeatable process for making assessments and recommendations. By standardizing the process, APM can be scaled to the needs of larger companies.
The concepts of application portfolio management have been incorporated into enterprise and enterprise software to help organizations automate these practices.
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