Application Portfolio Management

An optimisation study
In order to continue to deliver services within increasingly tight budgets, our public sector customers are having to innovate and adapt their organisations.

As a result, they are continually looking for ways to find savings without compromising on legislative duties; they are having to do more with less budget and staff, while delivering service improvements to achieve efficiencies and savings.

Technology, however, continues to be a genuine enabler within the current economic reality. Many organisations have been turning to, or enhancing their practice in Enterprise Architecture in order to explore opportunities across their organisation and increase efficiency by aligning the technology they have to their business vision.

Sopra Steria’s experience in working with clients to develop or enhance their Enterprise Architecture capability includes our Application Portfolio Management Study.

Capability-based Application Portfolio Management (APM)

Application Portfolio Management is the continual measurement of the business and financial impact of an organisation’s application portfolio against the benefits provided to the organisation in order to identify opportunities to optimise the assets running within their architecture.

Just as a fund manager in finance will optimise their holdings, using APM, an organisation will look to dispose of or replace those applications not performing well (i.e. not delivering business value for their cost, ageing or redundant), with applications that will perform well (e.g. modern applications or technology, consolidated applications or platforms).

To further maximise the opportunities available and ensure true business alignment, organisations need to move beyond traditional APM and ensure they consider their portfolio in terms of the business capabilities required and how they are met through capability mapping.

Jump to Application Portfolio Optimisation Study Breakdown

Why undertake an APM study?

  • You are looking to modernise or transform your existing application estate – reducing risk and improving capability.
  • Your existing portfolio is costing too much to operate and enhance.
  • You would like to integrate new services into your existing architecture in a sustainable manner.
  • You recognise the value of APM but do not know where to start.

How does it work?

The APM Study lasts around 10 days and is designed to understand your existing application portfolio and explore what opportunities exist to improve return on investment based on your business-technology strategy.

The study uses a combination of structured questionnaires and interviews to create an inventory of your existing portfolio.

Where possible, the inventory is mapped against your organisation’s required capabilities (if known) to allow a capability-based optimisation review. This provides true business alignment and deeper insight into potential opportunities and risks.

The inventory is then analysed through reviewing key aspects of the portfolio such as cost-benefit analysis, risk, and architectural fit, to explore the impact of adjusting components within the architecture.

Following the review, a concise report (10-15 pages) detailing our findings and recommendations will be prepared and presented back to you.

The results

  • Identifying Total Cost of Ownership improvements for your existing portfolio - by highlighting how the current portfolio can be adjusted to reduce operating costs.
  • Outlining recommendations for your optimisation roadmap – for both tactical and strategic changes.
  • Enhancing business alignment – by ensuring the portfolio roadmap meets the current and any identified future capabilities via a capability-based review.

Application Portfolio Optimisation Study Breakdown

Define

  • Define Study Scope and Objectives
  • Identify Stakeholders & Owners
  • Agree Questionnaire Recipients
  • Agree Interview Candidates
  • Set Response and Interview Schedule

Assess

  • Review Business & IT Strategy
  • Review Questionnaire Responses
  • Review Interview Responses
  • Create Application Inventory
  • Create Application-Capability Mapping
  • Perform Portfolio Analysis

Report

  • Prepare Detailed Findings and; Recommendations
  • Finalise Study Report
  • Present Study Summary and Next Steps  to Stakeholder Team

Knowledge Management

  • Enterprise; Architecture
  • IT Strategy
  • Systems  Architecture  and Design
  • Asset  Management  System

Business Insight

  • Corporate  Strategy
  • Financial  Profile Information
  • Service Profile Information
  • KPI  Information
  • Programmes  and Projects
  • Change Plans
Return to Application Portfolio Optimisation Study diagram