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Application Portfolio Management - Today, major organizations have many information systems. A common problem today is how to handle and gain control of this great number of systems.
 
The application portfolio management process
The picture shows the way to handle the whole application portfolio. It is important to understand the current situation by collecting all applications. It is when it is known what one has that one can measure and be able to manage applications in the future.
 
The application portfolio management methodology
 
Find all current applications (AS IS) and collect them in a database
To have an overview and control over the application portfolio it is necessary to have a dynamic documentation, a system to keep track of all the applications. This system has to contain information about the applications and it is important to identify what kind of information the users want to know about them. There is also a need to find all the current applications and by that get the “As Is” portfolio.
 
Manage the database
If the application database is going to survive, it is a must that users are included and motivated to use the system. People are used to being a little bit reserved concerning the survival of such a system. This is because they had experienced that similar projects about application inventories ended up with the information being stored on an excel sheet and ended up in a bookshelf without ever being read. Because the information was not available for the users, the up-dates were not easily reached and therefore the database had no value at all for the users. The solution can come from an application web or citrix enabled.

For database survival it is also important to clarify who is responsible for what. Usually different roles exist in an organization and a good idea is to use these to build up responsibility areas regarding the application database. It is important to accurately define the roles and their responsibilities clearly.
 
Classify applications
To handle an application portfolio and to make an analysis of the As Is condition, the managers have to classify the applications. This is done to be able to make future decisions about the portfolio. It allows also to find the right amount of attributes for the applications to be assessed. Do not define too many attributes, or end users will not fill in all information, and do not use too few because the future system will not supply correct information and the system will have no value.
 
Analysis
Based on the application classification, the results are read and put together in an analysis. The analysis can provide information such as where the applications are in the life cycle and its business contribution.
 
Plan for a future portfolio (TO BE)
Based on the analysis results, the future could be planned. For instance, application portfolio could allow to analyze future business contribution of existing, planned and potential applications.
An application can be defined as high potential, strategic, key operational or support depending on its current or expected contribution to the business success.
From the four different states picture, recommendations and suggestions can be discerned about how applications should be managed. Applications that are in the high potential phase are important to identify to find out if they have any value to the business. This prevents one from investing in an application that will not live up to the organization demands.