Most well-established companies have amassed a complex infrastructure of applications, including both new and legacy systems. Their application portfolios become increasingly costly to support and maintain, and enhancements and integration of new solutions become more and more difficult to implement. This inflexibility and costly support fails to provide the ROI expected by the business. IBM's Application Portfolio Management Services are designed to help you meet these challenges, and transform your application portfolio to more closely align to the business and respond quickly to business change.
Application Portfolio Management is the process of continually assessing and evaluating the IT portfolio based on balanced business and technical ROI criteria, then managing the transformation to align the portfolio with the strategic needs of the business.
In today's rapidly changing and competitive marketplace, complex application portfolios must be transformed to align with and support the demands of the business. Typical problem areas include the legacy of duplicate applications - often the result of mergers or acquisitions - which increase the cost and complexity of implementing new requirements. Similarly, past pressures to deliver solutions rapidly may have created a legacy of tactical solutions rather than a structured application portfolio. Additional interfaces to support these solutions add yet more complexity to an already unstructured applications architecture.
Yet no enterprise can afford, nor wait for, large-scale strategic replacement of the applications portfolio. More cost effective solutions must be found to portfolio transformation.
IBM Application Portfolio Management Services help companies rapidly and efficiently transform their IT environments to align more directly with business priorities. As an example, portfolio assessment and optimisation are key preparatory measures toward the successful implementation of e-business on demand - a next generation business model characterised by fully integrated and highly responsive systems, real-time communications and dynamic, reactive service, support and collaboration.
The assessment process is the core of aligning the application portfolio with the business direction. ROI is evaluated in 3 critical ways:
These criteria can be applied to any component of the application portfolio, for example Packaged software or custom applications. Based on assessment results, informed decisions can be made regarding the direction of a particular application component:
The output of the assessment is a strategic road map for portfolio management and transformation.
Managing the transformation drives the implementation of the strategic portfolio road map with ongoing transformation management and governance of the application portfolio to ensure and measure the business value of the portfolio transformation strategy against identified objectives.
Going forward, it is vital that the portfolio is reassessed periodically to ensure it continues to support changing business priorities. Re-assessment should also take place after major business changes, e.g., mergers or acquisitions.
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