Summary: This article describes howapplication portfolio management (APM) compliments an enterprise architect’smulti-faceted role. APM provides key information into the IT enterprisearchitect (EA) management process. It answers questions such as “Can yesterday'sapplications meet tomorrow's needs?”

1         Contents

Introduction
Application Portfolio ManagementOverview
    TheStory of Woodgrove Bank
    APMand Project Portfolio Management
Synergies Between EnterpriseArchitecture and APM
APM’sRole in Organizational Policy
    APM’s Role in StrategyDevelopment
    APM’sRole in EA Programs and Projects
Conclusion
References

2       Introduction

Formany enterprise architects, there is increasing pressure from CxOs to cutcosts, reduce inefficiencies, and to foster agility in systems. Enterprisesinvest more than 70 percent of their budgets purely on maintaining theirexisting asset investments. This shows that there is a clear and present brokenlink between strategic business objectives and “keeping the lights on” in theIT department. This is verified by a recent report by AMR Research that reportsthat 75 percent of IT organizations have little oversight over their projectportfolios and employ non-repeatable, chaotic planning processes.

Byusing an application portfolio management (APM) practice, IT decision makerscan gain visibility into the application’s impacts that reside in theenterprise.

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