How are Key Performance Indicators (KPIs) utilized in APM?

Key Performance Indicators (KPIs) play a crucial role in Application Portfolio Management (APM) by providing measurable metrics that help assess how well applications are performing. Utilizing KPIs allows organizations to evaluate the effectiveness and efficiency of their applications by measuring various dimensions such as user satisfaction, return on investment, operational costs, and compliance with service level agreements.

By measuring application performance through KPIs, decision-makers can make informed choices about application management strategies. This includes identifying applications that may require optimization, the potential need for upgrades, or even deciding whether to retire underperforming applications. Overall, KPIs serve as a vital tool to enhance decision-making processes in APM, ensuring that applications align with the organization’s goals and deliver the expected value.

In this context, KPIs are not used to mask poor performance or to eliminate the necessity of ongoing assessments. Instead, they facilitate continuous improvement and a data-driven approach to managing the application portfolio effectively.