Chapter Overview
The primary goal of this chapter is to set the stage for the entire APM Fundamentals volume by introducing the concept of Application Portfolio Management (APM) and illustrating why it is critical for modern organizations. It is designed for beginners who may be unfamiliar with the nuances of portfolio-level thinking, as well as those who have heard of APM but lack a clear understanding of its strategic purpose and potential impact. By grounding readers in the core definitions, objectives, and misconceptions around APM, this chapter lays a foundation that will enable more detailed discussions and practical guidance in subsequent chapters.
Purpose and Scope
- Define APM: The chapter begins by clarifying what APM is and why it is distinct from other IT disciplines, such as basic application inventory or software asset management. Readers will gain a precise definition that captures APM’s holistic scope, encompassing cost, risk, lifecycle management, and strategic alignment.
- Explain Relevance: In an era of increasing complexity—driven by cloud services, distributed architectures, and ever-evolving business demands—APM has emerged as an essential practice for CIOs and senior IT leaders. This chapter spells out the drivers behind that trend, covering topics such as reducing costs, mitigating risks, and fostering innovation.
- Debunk Myths: Because APM is sometimes misunderstood as a narrow exercise focused solely on cost-cutting or legacy retirement, this chapter also addresses common myths and misconceptions. By clearing up these misunderstandings, readers will better appreciate the full breadth of APM’s value proposition and its ongoing, iterative nature.
Key Takeaways
- APM’s Value Proposition: Readers will come away with a clear picture of how APM can deliver substantial, multifaceted benefits—ranging from quick wins like decommissioning redundant applications to long-term strategic gains such as improved agility and stronger alignment with business goals.
- Contextual Understanding: Through real-world anecdotes and illustrative examples, readers will grasp how APM efforts typically evolve within organizations of varying sizes and industries.
- Foundation for Subsequent Chapters: This chapter serves as an anchor for the rest of Volume 1. Future chapters will delve more deeply into specific areas—such as building a business case, assembling an application inventory, and establishing governance structures. By completing Chapter 1, readers will be prepared to engage with the more detailed processes, frameworks, and methodologies covered later in the book.
Overall, Chapter 1 seeks to guide readers from a position of little or no familiarity with APM to a point where they understand its essential purpose, its broader strategic context, and its potential to transform how IT portfolios are managed. This sets the stage for the rest of APM Fundamentals, where the practical and operational aspects of establishing an APM practice will be explored in much greater detail.
