Value of Exponential Technologies on Application Portfolio Management

Application Portfolio Management (APM)

by Shamsul
Application Portfolio Management
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Value of Exponential Technologies on Application Portfolio Management



Organizations are under the requirement to improve their business processes so as to enhance velocity as well as service along with reducing the costs of processing and differentiate from the intense market competition (Engert et al., 2016). The business has increased its focus on information management to be a major determinant in determining success or failure; the implementation of exponential information technology proposals embeds enticing benefits for the business (Bican and Brem, 2020). Application Portfolio Management (APM) is that practice which aims to synchronize business activities with that IT activities, regaining control over application usage, measuring the associated financial benefits of every application relative to its cost along with creating as well as maintaining adequate inventories of available functionalities to hamper the growth of portfolio along with reversing it through actively eliminating duplicate functionality.

The value of exponential technology in application portfolio management is that it helps overcome the gap created between the business and IT by aligning IT-based investments and IT practices with the demands and needs of the business. It is a way for organizations to answer what should be measured and how, what needs to be made part of the portfolio, and what are the ways to optimize the use of applications so that the portfolio tends to create value for the business both externally as well as internally (Vogelzang, 2002).


Problem Statement

Studies that are related to digitization have suggested that exponential technologies have the potential to bring a positive contribution to the organization’s effort to become sustainable (Ordieres-Meré et al., 2020 and Bican and Brem, 2020). However, this suggestion is not quite clear and holds various opinions as well (Mohout and Kiemen, 2017). Exponential technology eliminates the need for material resources and pursues a strong social commitment, including considerable economic benefits. It is essential for businesses to ensure their permanence in the market and should be closely aligned with sustainable development.

This report will aim to determine the addition of an IT framework that extends support to decision-makers to make effective, valuable, and well-informed decisions and deal with application portfolios today and in the future.


Scope and Delimitations

The main objective of the present research paper is

  • To determine how application portfolio management has changed the way of doing business
  • To bridge the knowledge between exponential technologies and application portfolio management within organizations.

Research Question

The research question of this review is:

Q.1 “How does exponential technology add value to application portfolio management in an organization?”

Structure of the paper

Chapter 2 of the report presents a critical review of the literature on the different concepts useful during this work. We will analyze the aspect of application portfolio management and its importance in modern business organizations. Then chapter 3 will present the research methodology adopted for this report. Chapter 4 presents the discussion and conclusion that will be useful for future research on the topic.



Conceptual Model/Framework

Application Portfolio Management is like a proactive approach to managing your wardrobe. Take that t-shirt you bought on the spur of the moment before heading home and realize that it doesn’t match any other piece you own. Things would turn out better if you had taken a more methodical approach. For example, you could have examined your existing clothes before shopping, identifying your needs before choosing new items to complement your wardrobe. The same applies to enterprise applications (Bondugula and Kasargod, 2005).

As organizations grow, IT departments and affected employees buy applications to solve pressing problems without worrying about the implications (or at least not caring enough). As a result, applications accumulate, and it is difficult, if not impossible, to integrate them with existing applications or other systems (Kogekar, 2009). Similar apps performing the same tasks are purchased multiple times. Others are left out and no longer in use but are always paid for and never uninstalled. And others are bought and never used.

The methodical approach to avoid these scenarios is as follows:

  • Carry out a complete inventory
  • Decide on the value of each application
  • Keep the most useful applications
  • Update/change apps that are useful but no longer quite suitable
  • Remove/remove applications that are no longer suitable
  • Use the updated overview to decide what you need before purchasing other apps


Now, imagine that the following process has to cover hundreds or even thousands of applications simultaneously. For many organizations, the task seems so big that they just don’t have the time to do it.


Value of Exponential Technology in Application Portfolio Management

Failure to update your app portfolio means organizations spend unnecessarily on apps that don’t add value, leaving less money and resources to spend on software and services that could add value and boost the organization’s competitiveness. This also leaves them vulnerable to potential compliance and security breaches (Hallikainen, 2003).


Enable Cloud-Native Policies

A dynamic application catalog is a prerequisite for securely upgrading key business-critical IT processes and implementing cloud-native development standards that are both responsive and efficient. As a practical resource for enterprise and cloud architects, APM exposes organizational barriers during the repeated expansion of cloud environments and the integration of agile principles ().


Mitigate Security and Compliance Vulnerabilities

Compliance issues arising from the lifecycle of end-of-life application services can be predicted using IT portfolios integrated with vendor information databases or managed distributively. In addition, all applications dealing with customer data but running time-sensitive software licenses can be tracked to support audit management.


Optimize Cloud and Hybrid Costs and Resources

IT managers need to help businesses analyze cloud costs and investments. This process, along with strategically distributing workloads between on-premises data centers and public cloud spaces, requires contextualized and automated updates on cloud cost trends across multiple accounts and business units, such as allowing application inventories directly integrated with cloud providers.


Upgrade Processes with Lean Principles and the TBM (Technology Business Management) Framework

Data from APM’s programs are used to measure company-wide adoptions of the TBM framework. By documenting the specific services of cloud providers based on their ability to help information technology optimize business change and operating expenses, APM is making its mark on business leaders. IT and businesses that want to scale services cost-effectively.


Ensure the Adoption of Strategic Platforms Offering a Global Vision Through Effective Reports

APM offers enterprise architects and executive-level players the ability to oversee large-scale IT transformation projects. Specifically, most businesses are using fully configurable or automated reporting mechanisms so as to measure the impact of evolving technologies in real terms.



Leveraging agile mapping is essential in today’s business climate. With digital transformation driving customer demand, IT architecture must dynamically adapt to rapidly changing market needs. Most organizations spend 70-80% of their IT budget supporting aging, low-value legacy applications, leaving very little money to invest in optimizing business processes.

The objective of Application Portfolio Management is to articulate a unique architectural vision to enable the achievement of business objectives, respond effectively to strategic drivers, comply with architectural principles and standards, and respond to the concerns and objectives of key players. APM, businesses can optimize application stack, establish transparency amongst the stakeholders and bring added value to the business in real terms.


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