APM, short for Application Portfolio Management, is a framework for monitoring and managing all the software a company owns and uses. With the Application Portfolio Management approach, a company’s applications are listed and stored altogether. This enables people in charge to better understand the IT architecture of the company by evaluating applications that are compiled in a single place, which brings about both responsiveness and detailed info.
With Application Portfolio Management, the business value of an application can be understood with grounded data. This is because APM gathers all the applications and comparing these assets become quite practical.
So, a company can handle their IT landscape thanks to APM by keeping track of the efficiency of its software applications. So, APM could make it easier to optimize the IT budget as it enables decision-makers to actually see which application is more valuable for the business. Most would agree that IT is one of the most important parts of a company today, so understanding the real values of software applications in a company would benefit both the current IT budget and business plans in the future. See Application Portfolio Management’s overall interaction and value for IT Asset Management, the umbrella term for any kind of asset management in IT, here.
One should also know that APM is a comprehensive and practical approach towards IT Asset Management, so there may not be just a single “correct answer” on employing it. That is, there might be different understandings as there could be several ways to handle APM. These ways might differ from business to business, sector to sector, or even from department to department. Yet, a tendency towards APM software is more generally preferred than sticking to legacy techniques like storing application data on spreadsheets or in physical materials. In parallel, conducting efficient APM has some widely accepted metrics.
A metric means the important points that should be centred around while measuring something. These metrics differ, slightly or heavily, for each concept compiled under IT Asset Management but some pivots could be constant and almost always considered important.
For example, concepts mentioned below are almost always crucial in the business:
The same business-fit metrics aforementioned are also the focused points of Application Portfolio Management. Yet, they may appear in slightly different wordings that better account for the aims of Application Portfolio Management.
Here are some metrics of interest for Application Portfolio Management:
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