Building an initial application inventory is a critical step in establishing an effective Application Portfolio Management (APM) practice. This process involves systematically identifying, cataloging, and organizing information about the organization’s applications to provide a comprehensive view of the IT landscape. The following steps guide organizations through the process of creating a foundational inventory.
1. Define the Scope and Objectives
Before beginning the inventory process, it is essential to define its purpose and boundaries. This ensures that efforts remain focused and aligned with organizational goals.
- Purpose: Clarify why the inventory is being created (e.g., cost optimization, risk reduction, compliance, or rationalization).
- Scope:
- Determine the types of applications to include (e.g., on-premises, cloud-based, SaaS).
- Decide whether to focus on specific departments, regions, or the entire organization.
- Expected Outcomes: Establish clear deliverables, such as a list of applications, associated attributes, and initial insights.
2. Assemble a Cross-Functional Team
An effective inventory process requires input from a variety of stakeholders to ensure comprehensive coverage and accuracy.
- Team Members:
- IT staff (e.g., application owners, infrastructure teams, architects).
- Business representatives (e.g., department heads, process owners).
- Finance or procurement teams for cost-related data.
- Roles and Responsibilities:
- Assign roles using a RACI matrix (Responsible, Accountable, Consulted, Informed) to clarify who owns specific tasks.
- Ensure accountability for data collection, validation, and documentation.
3. Develop a Data Collection Plan
A well-defined plan ensures that data collection is systematic and efficient.
- Key Data Points:
- Identify the minimum viable data set (MVD), including application name, owner, cost, business value, and technical details.
- Define optional data points to capture if resources allow (e.g., integration points, compliance status).
- Templates:
- Create standardized templates to collect data consistently across teams.
- Use tools such as spreadsheets or entry-level APM platforms to centralize data.
4. Identify Data Sources
Collecting accurate data requires identifying and utilizing reliable sources.
- Existing Documentation:
- Review IT asset records, licensing agreements, and architecture diagrams.
- Automated Tools:
- Use discovery tools (e.g., CMDBs, network scanners) to identify installed applications.
- Stakeholder Input:
- Conduct interviews or surveys with application owners and business users to fill gaps in automated data.
5. Perform Application Discovery
Application discovery is the process of identifying all applications in the organization’s IT landscape.
- Automated Discovery:
- Use tools like Lansweeper, Spiceworks, or AWS Config to scan networks and gather baseline data.
- Manual Discovery:
- Engage stakeholders to uncover undocumented or shadow IT applications.
- Iterative Approach:
- Begin with critical systems and expand to include less visible applications over time.
6. Document and Organize the Data
Once data is collected, it must be documented and organized in a format that facilitates analysis and decision-making.
- Centralized Repository:
- Store data in a single, accessible location (e.g., spreadsheets, CMDBs, or APM tools).
- Categorization:
- Group applications by business function, criticality, or hosting environment.
- Standardization:
- Use consistent naming conventions and data formats to avoid confusion.
7. Validate the Inventory
Validation ensures the accuracy and completeness of the inventory, minimizing errors and gaps.
- Stakeholder Review:
- Share the inventory with application owners and business stakeholders for verification.
- Cross-Referencing:
- Compare data against procurement records, network logs, and other sources to identify discrepancies.
- Iterative Refinement:
- Address gaps or inconsistencies through follow-up discovery and validation efforts.
8. Identify and Address Gaps
No inventory is perfect on the first attempt. Identifying and addressing gaps is a critical part of the process.
- Common Gaps:
- Missing applications (e.g., shadow IT, legacy systems).
- Incomplete data fields (e.g., owner, cost, or usage metrics).
- Action Plan:
- Create a prioritized list of gaps to address based on business impact.
- Schedule follow-up activities to close gaps in subsequent inventory cycles.
9. Communicate and Share Results
Once the initial inventory is complete, share the results with stakeholders to build awareness and drive engagement.
- Dashboards and Reports:
- Create simple visualizations to highlight key insights, such as application count, costs, and criticality.
- Stakeholder Meetings:
- Present findings to IT and business leaders, emphasizing early wins and opportunities for improvement.
- Collaboration Tools:
- Use shared platforms (e.g., Google Drive, SharePoint) to provide ongoing access to the inventory.
10. Plan for Maintenance and Updates
An initial inventory is a snapshot in time. To remain useful, it must be maintained and updated regularly.
- Ongoing Updates:
- Establish processes for adding, modifying, or retiring applications as the portfolio evolves.
- Periodic Reviews:
- Schedule regular reviews (e.g., quarterly or annually) to ensure data accuracy.
- Ownership and Governance:
- Assign responsibility for maintaining the inventory to a specific team or individual.
11. Leverage the Inventory for Actionable Insights
The inventory should provide a foundation for actionable APM activities.
- Quick Wins:
- Identify redundant or unused applications for immediate rationalization.
- Highlight opportunities for cost savings or risk mitigation.
- Strategic Planning:
- Use the inventory to align IT capabilities with business goals and prioritize investments.
- Rationalization Roadmap:
- Develop a plan for more in-depth analysis and rationalization efforts based on the inventory.
Conclusion
Building an initial application inventory is a structured process that lays the foundation for effective APM. By following these steps—defining scope, assembling a team, developing a data collection plan, and validating the results—organizations can create a reliable and actionable inventory. This inventory provides visibility into the application portfolio, enabling cost optimization, risk management, and strategic alignment while preparing the organization for ongoing APM maturity.
