How does APM contribute to business value?

Application Portfolio Management (APM) plays a vital role in contributing to business value primarily by reducing costs, improving application performance, and ensuring better resource allocation. APM focuses on assessing the existing applications within an organization to determine their usefulness and effectiveness in meeting business objectives. This evaluation enables organizations to identify applications that may be redundant, outdated, or underperforming, allowing for informed decisions about which applications to maintain, improve, or retire.

By streamlining the application portfolio, businesses can significantly lower costs associated with licensing, maintenance, and support of unnecessary applications. Moreover, improving application performance directly impacts productivity, as employees can work more efficiently with optimized tools at their disposal. Finally, better resource allocation ensures that investment is directed toward applications that truly add value to the organization, supporting overall strategic goals and enhancing agility in responding to market demands.

In summary, APM is instrumental in maximizing the value derived from IT investments by focusing on efficiency, effectiveness, and strategic alignment, all of which drive greater business value.