We’ve stated previously that application portfolio management (APM) tools are generally more of a subset or use case of enterprises architecture (EA) tools. When you search for APM software, you’re more than likely to see some of the larger players in the EA tool space (LeanIX, Alfabet by Software AG, Hopex by Mega, iServer by Orbus).
Not all APM tools are EA focused, but most fall into this pattern of being an APM use case within a larger software category as its common primary function. For instance, many project portfolio management (PPM) tools offer APM, as do some service desk tools or other tools that provide some element of managing applications or software. The problem is, the methods of APM become heavily skewed to whatever that primary function is.
Any APM tool needs to have two very basic functions: application inventory control, which is simply the documentation of apps with several data fields to capture useful information, and application rationalization. An oversimplified description of application rationalization is a decision-making framework to help determine the strategic direction of your apps. Where rationalization can really range is with the inputs captured and applied to a framework that generates recommendations and informs those decisions on your applications or the portfolio.
A review of this tool space shows that different tool groups skew their rationalization framework by the information they are primarily designed to collect and analyze.
This is not to say that these tools all neglect other data points. Most of the tools will have data fields to input scores or ratings for the data points they do not specialize in, but the means of collecting this information leaves much to be desired. More likely than not, there will be substantial manual data collection and analysis even with integrations and additional software purchases.
This presents a couple problems for those looking for an APM solution:
As much as many IT managers don’t want to accept it, application rationalization requires manual steps. As mentioned above, rationalization is a decision-making framework, but it is also a process of stakeholder engagement and data collection.
Info-Tech’s Five Lens Model for application rationalization outlines the five main criteria for evaluating your apps.
Each lens is represented by the factors or specific data points that are the inputs into your rationalization decision-making framework. Unfortunately, many of the data points are somewhat qualitative or subjective and no software provides the full picture needed to perform rationalization properly or arrive at the best-possible decisions for the organization.
The important lesson here does not differ from that of any software: the tool is only as good as your process around it. Regardless of what APM solution you select, you still need to put in the steps to ensure the quality and appropriateness of data. You still need to build in the responsibilities of ownership of the tool and stewardship of the information. You still need to secure sponsorship from the organization’s leader and build relationships and engage with key application stakeholders. Application portfolio management tools don’t automate APM, you still need someone to fill that role.
When selecting your APM tool, focus on your priority goals for the application portfolio:
If an image is worth a thousand words, a visual roadmap will save you a thousand hours.
This note outlines some of the fundamental KPIs that you should measure to show the success of the enterprise architecture team. It also discusses how you measure them and visualize the result.
Application rationalization fails when the chosen framework does not match your scenario or the goals for your application portfolio. This note looks at how to apply application rationalization during an M&A.
Often people misidentify the purpose of application rationalization, leading to misuse and unsatisfactory results. We try to break application rationalization down to its simplest form to understand how to make the most of this critical IT function. tr
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Many application rationalization tools and frameworks miss the true benefits of this practice, as they only assess the individual application without consideration for its redundancies. Infusing an enterprise architecture perspective, as seen with LeanIX, will generate the bigger savings you are looking for.
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