For organizations just starting with Application Portfolio Management (APM), achieving quick wins and identifying early success indicators can provide tangible results and build momentum for further initiatives. Quick wins help demonstrate the value of an application inventory while addressing immediate challenges, such as cost reduction, risk mitigation, or process improvements. This section highlights practical quick wins and the key metrics to track early success.
1. Identifying Redundant Applications
Redundant applications, such as multiple tools performing the same function, are common in organizations with decentralized IT operations. Eliminating these redundancies can yield immediate cost savings and streamline processes.
- How to Achieve:
- Cross-check inventory data for applications with overlapping functions.
- Engage stakeholders to confirm redundancy and evaluate consolidation options.
- Retire or consolidate redundant applications while ensuring no critical functionality is lost.
- Success Indicators:
- Number of redundant applications identified and retired.
- Cost savings from reduced licenses, support, or infrastructure costs.
2. Highlighting Underutilized Licenses
Many organizations pay for software licenses that are underutilized or unused. Reclaiming these licenses can free up budget for higher-priority initiatives.
- How to Achieve:
- Analyze usage data collected during the inventory process to identify underutilized applications.
- Adjust license counts to match actual usage.
- Cancel or renegotiate contracts for applications with consistently low usage.
- Success Indicators:
- Reduction in license costs.
- Improved alignment between license counts and actual user needs.
3. Mitigating Risks from Unsupported Applications
Legacy or unsupported applications pose significant security and compliance risks. Addressing these risks early on can prevent costly breaches or regulatory penalties.
- How to Achieve:
- Use the inventory to identify applications approaching or past their end-of-life (EOL) dates.
- Prioritize critical applications for updates, replacements, or retirements.
- Document plans for mitigating risks associated with unsupported systems.
- Success Indicators:
- Reduction in the number of unsupported applications.
- Improved compliance with security or regulatory requirements.
4. Engaging Stakeholders with Transparency
Sharing the results of the inventory process builds trust and encourages broader participation in APM initiatives.
- How to Achieve:
- Create simple dashboards or reports summarizing inventory insights (e.g., total applications, costs, criticality).
- Highlight early wins, such as cost savings or reduced risks.
- Use stakeholder feedback to refine inventory processes and demonstrate their value.
- Success Indicators:
- Positive feedback from stakeholders.
- Increased engagement and data contributions from business and IT teams.
5. Simplifying Governance and Decision-Making
A complete and accurate inventory simplifies governance by providing the data needed for application lifecycle decisions.
- How to Achieve:
- Use inventory data to establish governance policies, such as criteria for retiring, investing in, or consolidating applications.
- Create a lightweight governance committee to review applications and make recommendations.
- Success Indicators:
- Improved clarity in decision-making processes.
- Faster resolution of governance-related issues.
6. Demonstrating Cost Transparency
Many organizations struggle with understanding the total cost of ownership (TCO) for their applications. Providing cost transparency early in the process enables better financial planning.
- How to Achieve:
- Use inventory data to calculate TCO, including licensing, maintenance, and infrastructure costs.
- Identify high-cost applications and explore opportunities for cost reduction.
- Share cost insights with finance and leadership teams.
- Success Indicators:
- Clear visibility into application costs.
- Identified opportunities for cost optimization.
7. Reducing Shadow IT
Shadow IT can lead to inefficiencies and security risks. Early efforts to identify and address unauthorized applications can yield immediate benefits.
- How to Achieve:
- Use discovery tools to uncover undocumented applications in the network.
- Validate findings with business units and evaluate the need for formal approval or replacement.
- Consolidate shadow IT applications into approved platforms where possible.
- Success Indicators:
- Number of shadow IT applications identified and addressed.
- Increased compliance with IT policies and standards.
8. Enhancing Collaboration Between IT and Business Units
The inventory process offers an opportunity to strengthen collaboration between IT and business teams by aligning on shared goals and priorities.
- How to Achieve:
- Involve business stakeholders in inventory reviews to align applications with business needs.
- Use the inventory to identify applications that directly support critical business functions.
- Foster a sense of ownership by assigning roles and responsibilities for maintaining the inventory.
- Success Indicators:
- Increased stakeholder participation in APM activities.
- Better alignment between IT capabilities and business objectives.
9. Creating a Foundation for Rationalization
Quick rationalization efforts, such as retiring unused or low-value applications, provide immediate results while setting the stage for long-term optimization.
- How to Achieve:
- Use a simple scoring model (e.g., cost vs. business value) to evaluate applications for rationalization.
- Prioritize quick wins, such as retiring applications with low usage and high costs.
- Communicate rationalization benefits to stakeholders.
- Success Indicators:
- Number of applications retired or consolidated.
- Short-term cost savings or operational efficiencies.
10. Building Momentum for Future APM Efforts
Quick wins serve as proof of concept, demonstrating the value of APM to leadership and stakeholders. This helps secure buy-in for scaling and maturing APM practices.
- How to Achieve:
- Document and share success stories from the inventory process.
- Highlight measurable outcomes, such as cost savings, risk reduction, or improved transparency.
- Use these results to advocate for additional resources or investment in advanced tools and processes.
- Success Indicators:
- Increased support for APM initiatives from leadership.
- Secured budget or resources for scaling APM efforts.
Conclusion
Quick wins and early success indicators are essential for demonstrating the value of an application inventory and building momentum for APM. By focusing on immediate opportunities—such as identifying redundant applications, mitigating risks, or enhancing transparency—organizations can deliver tangible benefits while laying the groundwork for long-term success. Tracking these early indicators ensures that progress is measurable and provides a foundation for continuous improvement in APM practices.
