What does alignment with business strategy mean in the context of application portfolio management (APM)?

Alignment with business strategy in the context of application portfolio management (APM) refers to the practice of ensuring that the applications within a portfolio actively support the key strategic goals of the organization. This means that every application is evaluated not only for its technical capabilities and functionalities but also for its relevance and contribution to achieving the broader objectives of the business.

When applications are aligned with business strategy, they help drive value by facilitating operational efficiency, enhancing customer experience, or supporting decision-making processes that propel the organization forward. This alignment ensures that resources are not wasted on applications that do not contribute directly to business outcomes, and it fosters an environment where technology investments are directly tied to the organization's success metrics.

This concept of alignment is crucial because it helps prioritize application development and maintenance efforts based on how well each application addresses specific business needs, rather than just focusing on technical features or cost-saving initiatives. It leads to a more effective APM approach that ultimately helps organizations achieve their strategic vision by streamlining their application landscape to support the goals they prioritize.