Certified Implementation Specialist (CIS) Application Portfolio Management (APM) Practice Exam

How does APM integration with FM benefit application management?

1. It identifies application user satisfaction levels

2. It assesses application costs and associated breakdowns

3. It monitors application performance metrics

4. It manages software updates and patches

The correct answer is: It assesses application costs and associated breakdowns

The integration of Application Portfolio Management (APM) with Financial Management (FM) significantly benefits application management by enabling a comprehensive assessment of application costs and their associated breakdowns. This relationship allows organizations to understand the financial implications of maintaining various applications within their portfolio. By leveraging FM data, APM can provide insights into not just the total cost of ownership for each application but also how costs are allocated across various categories such as maintenance, licensing, and operational expenses. This detailed financial analysis plays a crucial role in making informed decisions about which applications to retain, retire, or invest in. Furthermore, understanding these cost dynamics helps organizations realign their application strategy with overall business objectives, ensuring that resources are allocated efficiently and that investments yield optimal returns. In an age where businesses are continually seeking ways to enhance financial performance, integrating APM with FM fosters a financially driven approach to application management, thereby supporting better resource management and prioritization of investment opportunities.