What does "application classification" entail in APM?

Application classification in Application Portfolio Management (APM) involves organizing and categorizing applications based on their business value and purpose. This process enables organizations to understand the roles that different applications play in achieving business objectives, ensuring that resources are allocated effectively. By focusing on business value, stakeholders can prioritize investments in technology, decommission underperforming applications, and make informed decisions regarding future development or acquisition of software.

This approach supports strategic alignment between IT and business goals, allowing companies to ensure that their application portfolio contributes positively to overall performance and value delivery. It is important to assess applications beyond mere technology, user count, or cost, as this broader perspective facilitates comprehensive management of the application landscape.