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Rationalize Your Application Portfolio

Establish an evergreen application portfolio management (APM) program to deliver the best possible return on investment.

When organizations consider application oversight a low priority and app portfolio knowledge is poor:

  • No dedicated or centralized effort to manage the app portfolio means no single source of truth is available to support informed decision-making.
  • Organizations acquire more applications over time, creating redundancy, waste, and the need for additional support.
  • Organizations are more vulnerable to changing markets. Flexibility and growth are compromised when applications are unadaptable or cannot scale.

Our Advice

Critical Insight

  • You cannot outsource application strategy.
  • Modern software options have lessened the need for organizations to have robust in-house application management capabilities. But your applications’ future and governance of the portfolio still require centralized oversight to ensure the best overall return on investment.
  • Application portfolio management is the mechanism to ensure that the applications in your enterprise are delivering value and support for your value streams and business capabilities. Understanding value, satisfaction, technical health, and total cost of ownership are critical to digital transformation, modernization, and roadmaps.

Impact and Result

Build an APM program that is ready for action and fit for size:

  • Understand your current state, needs, and goals for your application portfolio management.
  • Create an application and platform inventory that is built for better decision making.
  • Rationalize your apps with business priorities and communicate risk in operational terms.
  • Create a roadmap that improves communication between those who own, manage, and support your applications.

Rationalize Your Application Portfolio Research & Tools

1. Rationalize Your Application Portfolio Deck – A guide that helps you establish your core application inventory, simplified rationalization, redundancy comparison, and modernization roadmap.

Enterprises have more applications than they need and rarely apply oversight to monitor the health, cost, and relative value of applications to ensure efficiency and minimal risk. This blueprint will help you build a streamlined application portfolio management process.

2. Application Portfolio Management Diagnostic Tool – A tool that assesses your current application portfolio.

Visibility into your application portfolio and APM practices will help inform and guide your next steps.

3. Rationalize Your Application Portfolio Playbook – A template that builds your application portfolio management playbook.

Capture your APM roles and responsibilities and build a repeatable process.

4. Rationalize Your Application Portfolio Tool – A tool that stores application information and allows you to execute rationalization and build a portfolio roadmap.

This tool is the central hub for the activities within Rationalize Your Application Portfolio.

5. Application TCO Calculator – A tool to help you calculate TCO for applications in your portfolio.

Use this tool to compile the various costs of your applications.

Member Testimonials

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve. See our top member experiences for this blueprint and what our clients have to say.


Overall Impact


Average $ Saved


Average Days Saved




$ Saved

Days Saved

Oregon Department of Justice

Guided Implementation




It was great to learn about APM and how it can be utilized. This is something that we will plan to implement in the future. An executive summary... Read More

Community Aid, Inc.

Guided Implementation




Hong was extremely helpful, pliable and accessible. We greatly appreciate his patience and expertise. Worst part is the rationizations input ta... Read More

North American Air Travel Insurance Agents Ltd.

Guided Implementation




Another excellent & insightful meeting with Hans! His App spreadsheet is really helping us uncover a lot of facts about applications are users like... Read More

Braun Intertec Corporation

Guided Implementation




Suneel does a great job to help put context around approach and ask good questions to help us shape what it is that would help guide us to get the ... Read More

Diamond Offshore, LLC

Guided Implementation




Alignment and explanation of how I can use the tool to bring value by doing an Application Portfolio Management exercise to the org and more import... Read More

Tri-State Generation and Transmission Assoc.

Guided Implementation




Washington State Department of Health

Guided Implementation




Having the discussions about what EA is thinking vs reality. Take that with the methodology of the offering will assist when working within the DOH... Read More

The Corporation of United Counties of Stormont, Dundas and Glengarry

Guided Implementation




Australian Institute of Company Directors

Guided Implementation




Best part - a proven cost effective framework supported by knowledgeable people

Consumers Energy





Best part - Hans is exceptionally knowledgeable and a skilled facilitator. This is a tough topic to tackle, fraught with politics and fear, and he... Read More


Guided Implementation




The PPT Slides and Excel templates are awesome!!! Also, Hong's advice was invaluable!! No negatives whatsoever!

Consumers Energy





Kieran was an excellent partner for this workshop. He was flexible, knowledgeable, and helped build trust with our business partners.


Guided Implementation




Alfred H. Knight Holding

Guided Implementation




Hans is an expert in his field. He is a great sounding board for my plans and thoughts, mainly because he validates what I am saying but also align... Read More

Ministry of Social Development and Poverty Reduction

Guided Implementation




Best parts: 1. Positive and friendly service. 2. Understood my need and was flexible to accommodate for it. 3. Very timely follow-up after the c... Read More


Guided Implementation




The methodology is sound and I use it in the presentation. The advisors show great interest to help. We need more to work on solutions and have... Read More

Cameron County, TX

Guided Implementation




It was a great and instrumental experience. Mr. Suneel, did a great job of guiding and explaining the tools and the most efficient way to use them ... Read More

City of Penticton

Guided Implementation




Pima County Community College District

Guided Implementation




Suneel was amazing! This initiative has proven to be the foundation on which so many other initiatives are being build on/around. I didn't expect... Read More

Guild Education





The best part of the workshop was working with Hans . He lead the workshop and gave great insights all along the way. Looking forward to more worki... Read More

University of the Fraser Valley

Guided Implementation




Bi-State Development





Best: Seeing the team pull together their knowledge of our applications and beginning to see the light bulbs go off as they saw the metrics and res... Read More

BDO Canada LLP

Guided Implementation




Anne Arundel Community College

Guided Implementation




The best part of the experience was the thorough knowledge of the principal research director, Hans, and his ability to translate the broader conce... Read More

Bloomfield Hills Schools

Guided Implementation




Andrew was awesome in prompting, questioning, and letting us brainstorm an approach, etc. No bad part of the experience at all.

VCU Health System Authority

Guided Implementation




Strathcona County

Guided Implementation




Best part- great suggestions, things to consider, risk mitigation conversations to help increase value to our team and build a process that is simp... Read More

Braeston Proprietary Limited

Guided Implementation




It was too short due to the changes on my side of the business.

Toronto and Region Conservation Authority

Guided Implementation




Greenheck Fan Corporation

Guided Implementation




Knowing we're on the right track. Feeling like the bottleneck was really just on our side to do the work.

Application Portfolio Management

Support your ongoing business objectives with a rationalized application portfolio while remaining aligned with your current and future technology needs.

This course makes up part of the Applications Certificate.

  • Course Modules: 6
  • Estimated Completion Time: 1 hour
  • Featured Analysts:
  • Ricardo de Oliveira - Research Director

Now Playing:
Academy: Application Portfolio Management | Introduction

An active membership is required to access Info-Tech Academy

Workshop: Rationalize Your Application Portfolio

Workshops offer an easy way to accelerate your project. If you are unable to do the project yourself, and a Guided Implementation isn't enough, we offer low-cost delivery of our project workshops. We take you through every phase of your project and ensure that you have a roadmap in place to complete your project successfully.

Module 1: Lay Your Foundations

The Purpose

  • Work with key corporate stakeholders to come to a shared understanding of the benefits and aspects of application portfolio management.

Key Benefits Achieved

  • Establish the goals of APM.
  • Set the scope of APM responsibilities.
  • Establish business priorities for the application portfolio.




Assess your current application portfolio

  • An understanding of your current application portfolio

Determine narrative

  • Current narrative for why we need to rationalize our application portfolio

Define goals and metrics

  • Set short- and long-term goals and metrics

Define application categories

  • List of application categories

Determine steps and roles

  • A list of steps and roles for your rationalization program

Module 2: Improve Your Inventory

The Purpose

  • Gather information on your applications to build a detailed inventory and identify areas of redundancy.

Key Benefits Achieved

  • Populated inventory based on your and your team’s current knowledge.
  • Understanding of outstanding data and a plan to collect it.




Populate inventory

  • Initial application inventory

Assign to business capabilities

  • Alignment of inventory to business capabilities

Module 3: Rationalize Your Applications

The Purpose

Work with the application subject matter experts to collect and compile data points and determine the appropriate disposition for your apps.

Key Benefits Achieved

  • Dispositions for individual applications
  • Application rationalization framework




Assess business value

  • Business value score for individual applications

Assess technical health

  • Technical health score for individual applications

Assess end-user perspective

  • End-user satisfaction score for individual applications

Assess total cost of ownership

  • Assessed TCO for individual applications

Module 4: Populate Your Roadmap

The Purpose

  • Work with application delivery specialists to determine the strategic plans for your apps and place these in your portfolio roadmap.

Key Benefits Achieved

  • Prioritized initiatives
  • Initial application portfolio roadmap
  • Ongoing structure of APM




Review APM Snapshot results

  • A clear view of areas to focus on

Review Rationalization results

  • A view of recommended dispositions and priorities for your applications

Determine dispositions

  • Confirmed set of dispositions for your applications

Assess redundancies (optional)

  • Identified set of redundant applications

Determine dispositions for redundant applications (optional)

  • Dispositions for redundant applications

Prioritize initiatives

  • Prioritized new potential initiatives

Determine ongoing cadence

  • Established an ongoing cadence of activities

Rationalize Your Application Portfolio

Establish an evergreen application portfolio management (APM) program to deliver the best possible return on investment.

Analyst Perspective

You can’t outsource accountability.

Hans Eckman

Many lack visibility into their overall application portfolio, focusing instead on individual projects or application development. Inevitably, application sprawl creates process and data disparities, redundant applications, and duplication of resources, and it stands as a significant barrier to organizational agility and responsiveness. The shift from strategic investment to application maintenance creates an unnecessary constraint on innovation and value delivery.

With the rise and convenience of SaaS solutions, IT has an increasing need to discover and support all applications in the organization. Unmanaged and unsanctioned applications can lead to increased reputational risk. What you don’t know will hurt you.

You can outsource development, you can even outsource maintenance, but you cannot outsource accountability for the portfolio. Organizations need a holistic dashboard of application performance and dispositions to help guide and inform planning and investment discussions. Application portfolio management (APM) can’t tell you why something is broken or how to fix it, but it is an important tool to determine if an application’s value and performance are up to your standards and can help meet your future goals.

Hans Eckman
Principal Research Director
Info-Tech Research Group

What is application portfolio management (APM)?

Application Inventory
The artifact that documents and informs the organization of your application portfolio.

Application Rationalization
The process of collecting information and assessing your applications to determine recommended dispositions.

Application Alignment
The process of revealing application information through interviewing stakeholders and aligning to organizational capabilities.

Application Roadmap
The artifact that showcases the strategic directions for your applications over a given timeline.

Application portfolio management:

The ongoing practice of:

  • Providing visibility into applications across the organization
  • Recommending corrections or enhancements to decision makers
  • Aligning delivery teams on priority
  • Showcasing the direction of applications to stakeholders

Is this research right for you?

Research Navigation

Managing your application portfolio is essential regardless of its size or whether your software is purchased or developed in house. Each organization must have some degree of application portfolio management to ensure that applications deliver value efficiently and that their risk or gradual decline in technical health is appropriately limited.

Your APM goals

If this describes your primary goals

  • We are building a business case to determine where and if APM is needed now.
  • We want to understand how well-supported our business capabilities, departments, or core functions are by our current applications.
  • We want to start our APM program with our core or critical applications.
  • We want to build our APM inventory for less than 150 applications (division, department, operating unit, government, small enterprise, etc.).
  • We want to start simple with a quick win for our 150 most important applications.
  • We want to start with an APM pilot before committing to an enterprise APM program.
  • We need to rationalize potentially redundant and underperforming applications to determine which to keep, replace, or retire.
  • Start with Rationalize Your Application Portfolio.
  • We want to start enterprise APM, with up to 150 critical applications.
  • We want to collect and analyze detailed information about our applications.
  • We need tools to help us calculate total cost of ownership (TCO) and value.
  • We want to customize our APM journey and rationalization.
  • We want to build a formal communication strategy for our APM program.

Executive Summary

Your Challenge

Common Obstacles

Info-Tech’s Approach

  • Organizations consider application oversight a low priority and app portfolio knowledge is poor.
  • No dedicated or centralized effort to manage the app portfolio means no single source of truth is available to support informed decision-making.
  • Organizations acquire more applications over time, creating redundancy, waste, and the need for additional support.
  • Organizations are more vulnerable to changing markets. Flexibility and growth are compromised when applications are unadaptable or cannot scale.
  • Decision-making
  • Application portfolio management (APM) implies taking a holistic approach and compiling multiple priorities and perspectives.
  • Organizations have limited time to act strategically or proactively and need to be succinct.
  • Uncertainties about organizational value and fit prevent IT from successfully advising software decision-making.
  • IT knows its technical debt but struggles to get the organization to act on technical risks.
  • Attempts at exposing these problems rarely gain buy-in and discourage the push for improvement.

Leverage APM to drive application rationalization goals:

  • Think “low priority” over “no priority.”
  • Integrate these tasks into your mixed workload.
  • Create an inventory built for better decision-making.
  • Rationalize your apps by organizational priorities and communicate risks on their terms.
  • Create a roadmap that improves communication between those who own, manage, and support an application.
  • Build your APM process fit for size.

Info-Tech Insight: You can’t outsource strategy.

Modern software options have decreased the need for organizations to have robust in-house application management capabilities. Your applications’ future and governance of the portfolio still require centralized IT oversight to ensure the best return on investment.

APM can be even harder for small enterprises and siloed IT

#1 challenge small enterprise owners face in their use of technology:

Taking appropriate security precautions


The costs of needed upgrades to technology


The time it takes to fix problems


The cost of maintaining technology


Lack of expertise


Breaks in service

Source: National Small Business Association, 2019.

Having more applications than an organization needs means unnecessarily high costs and additional burden on the teams that support the applications. Especially in the case of small enterprises, this is added pressure the IT team cannot afford.

A poorly maintained portfolio will eventually hurt the organization more than it hurts IT. Legacy systems, complex environments, or anything that leads to a portfolio that can’t adapt to changing organizational needs will eventually become a barrier to organizational growth and accomplishing objectives. Often the blame is put on the IT department.

56% of small businesses cited inflexible technology as a barrier to growth

Source: Salesforce as quoted by Tech Republic, 2019.

APM comes at a justified cost

The image contains a screenshot of a graph that demonstrates apm comes at a justified cost.

The benefits of APM

APM identifies areas where you can reduce core spending and reinvest in innovation initiatives.

Other benefits can include:

  • Fewer redundancies
  • Less risk
  • Less complexity
  • Improved processes
  • Flexibility
  • Scalability

Create a balanced approach to value delivery

Enterprise Agility and Value Realization

Product Delivery Lifecycle (Agile DevOps)

Enhance enterprise agility by leveraging an Agile mindset and continuously improving your delivery throughput, quality, value realization, and adaptive governance.

Application Portfolio Management (We're here)

Transform your application portfolio into a cohesive service catalog aligned to your business capabilities by discovering, rationalizing, and modernizing your applications while improving application maintenance, management, and reuse.

Product Lifecycle Management

Align your product and service improvement and execution to enterprise strategy and value realization in three key areas: defining your products and services, aligning product/service owners, and developing your product vision.

The image contains a screenshot of the thoughtmodel: What Do We Mean by an Application Department Strategy.
The image contains a screenshot of the thoughtmodel: Accelerate Your Transition to Product Delivery.

Every organization experiences some degree of application sprawl

Causes of sprawl:

Poor Lifecycle Management

Turnover & Lack of Knowledge Transfer

Siloed Organizational Units & Decentralized IT

Business-Managed IT (Shadow IT)

Mergers & Acquisitions

Problems with sprawl:

Redundancy and Inefficient Spending

Disparate Apps & Data


Difficulties in Prioritizing Support

Barriers to Change & Growth

Application sprawl:

Inefficiencies within your application portfolio are created by the gradual and non-strategic accumulation of applications.

You have more apps than you need.

Only 34% of software is rated as both IMPORTANT and EFFECTIVE by users.

Source: Info-Tech’s CIO Business Vision

Build your APM journey map

The image contains a screenshot on building your APM journey map.

Application rationalization provides insight

The image contains a screenshot on how application rationalization provides insight.

Review the value drivers of your applications

The image contains a screenshot of a value matrix.

Financial vs. Human Benefits

Financial benefits refer to the degree to which the value source can be measured through monetary metrics and are often quite tangible.

Human benefits refer to how an application can deliver value through a user’s experience.

Inward vs. Outward Orientation

Inward orientation refers to value sources that have an internal impact and improve your organization’s effectiveness and efficiency in performing its operations.

Outward orientation refers to value sources that come from your interaction with external factors, such as the market or your customers.

Info-Tech Best Practice

Replace organizational value and fit with your strategic enterprise goals or priorities. Use the value matrix to help identify value drivers and sources of value.

Increase Revenue or
Deliver Customer Value

Reduced Costs and Drive Efficiency

Enhanced Services

Reach Customers

Application functions that are specifically related to the impact on your organization’s ability to generate revenue and deliver value to your customers.

Reduction of overhead. How an application limits the operational costs of operational functions.

Functions that enable business capabilities that improve the organization’s ability to perform its internal operations.

Application functions that enable and improve the interaction with customers or produce market information and insights.

Understand the back end and technical health of your applications

Technical health identifies the extent of technology risk to the organization.


The degree to which the application is compatible with business continuity/disaster recovery (BC/DR) policies and plans that are routinely tested and verified.


Applications should be aligned and compliant with ALL security policies. Are there vulnerabilities or is there a history of security incidents? Remember that threats are often internal and non-malicious.


RAS refers to an app’s reliability, availability, and serviceability. How often, how long, and how difficult is it for your resources to keep an app functioning, and what are the resulting continuity risks? This can include root causes of maintenance challenges.


How easily can the app be enhanced or scaled to meet changes in operational needs? Does the app fit within the organizational strategy?


The degree to which an app is integrated with current systems. Apps require comprehensive technical planning and oversight to ensure they connect within the greater application architecture. Does the app fit within your enterprise architecture strategy?

Info-Tech Best Practice
Technical health represents the most important aspects and priorities for your enterprise technology. Adjust, merge, or replace these sample criteria to match your priorities and goals. For example, many teams are using SaaS and cloud readiness as technical health criteria.

Unfortunately, the business only cares about what they can see or experience.

Rationalization is your opportunity to get risk on the organization’s radar and gain buy-in for the necessary action.

End users provide valuable perspective

Your end users are your best means of determining front-end issues.

Data quality

To what degree do the end users find the data quality sufficient to perform their role and achieve their desired outcome?


To what degree do the end users find the application effective for performing their role and desired outcome?


To what degree do the end users find the application reliable and easy to use to achieve their desired outcome?


To what degree are end users satisfied with the features of this application?

What else matters to you?

Tune your criteria to match your values and priorities.

Info-Tech Best Practice

When facing large user groups, do not make assumptions or use lengthy methods of collecting information. Use Info-Tech’s Application Portfolio Assessment to collect data by surveying your end users’ perspectives.

Consider the spectrum of application cost

An application’s cost extends past a vendor’s fee and even the application itself.

LICENSING AND SUBSCRIPTIONS: Your recurring payments to a vendor.

Many commercial off-the-shelf applications require a license on a per-user basis. Review contracts and determine costs by looking at per-user or fixed rates charged by the vendor.

MAINTENANCE COSTS: Your internal spending to maintain an app.

These are the additional costs to maintain an application such as support agreements, annual maintenance fees, or additional software or hosting expenses.

INDIRECT COSTS: Miscellaneous expenses necessary for an app’s continued use.

Expenses like end-user training, developer education, and admin are often neglected, but they are very real costs organizations pay regularly.

RETURN ON INVESTMENT: Perceived value of the application related to its TCO.

Some of our most valuable applications are the most expensive. ROI is an optional criterion to account for the value and importance of the application.

Info-Tech Best Practice
The TCO assessment is one area where what you are considering the ”application” matters quite a bit. An application’s peripherals or software components need to be considered in your estimates. For additional help calculating TCO, use the Application TCO Calculator from Build a Rationalization Framework.

APM is an iterative and evergreen process

APM provides oversight and awareness of your application portfolio’s performance and support for your operations and value delivery to all users and customers.

Determine scope and categories

Build your list of applications and capabilities

Score each application based on your values

Determine outcomes based on app scoring and support for capabilities

1. Lay Your Foundations

1.1 Assess the state of your current application portfolio.

1.2 Determine narrative.

1.3 Define goals and metrics.

1.4 Define application categories.

1.5 Determine steps and roles (SIPOC).

2. Improve Your Inventory

2.1 Populate your inventory.

2.2 Align to business capabilities.

3. Rationalize Your Applications

3.1 Assess organizational value and fit.

3.2 Assess technical health.

3.3 Assess end-user perspective.

3.4 Assess total cost of ownership.

4. Populate Your Roadmap

4.1 Review APM Snapshot results.

4.2 Review rationalization results.

4.3 Determine dispositions.

4.4 Assess redundancies (optional).

4.5 Determine dispositions for redundant applications (optional).

4.6 Prioritize initiatives.

4.7 Determine ongoing cadence.

Repeat according to APM cadence and application changes

Executive Brief Case Study


SOURCE: Deloitte, 2017

Supermarket Company

The grocer was a smaller organization for the supermarket industry with a relatively low IT budget. While its portfolio consisted of a dozen applications, the organization still found it difficult to react to an evolving industry due to inflexible and overly complex legacy systems.

The IT manager found himself in a scenario where he knew the applications well but had little awareness of the business processes they supported. Application maintenance was keeping things operational, but there was little consideration given to business strategy.

As the business demanded more responsiveness to changes, the IT team needed to be able to react more efficiently and effectively while still securing the continuity of the business.

The IT manager found success by introducing APM and gaining a better understanding of the business use and future needs for the applications. The organization started small but then increased the scope over time to produce and develop techniques to aid the business in meeting strategic goals with applications.


The IT manager gained credibility and trust within the organization. The organization was able to build a plan to move away from the legacy systems and create a portfolio more responsive to the dynamic needs of an evolving marketplace.

The application portfolio management initiative included the following components:

Train teams and stakeholders on APM

Model the core business processes

Collect application inventory

Assign APM responsibilities

Start small, then grow

Info-Tech’s application portfolio management methodology

1. Lay Your Foundations

2. Improve Your Inventory

3. Rationalize Your Applications

4. Populate Your Roadmap

Phase Activities

1.1 Assess your current application portfolio

1.2 Determine narrative

1.3 Define goals and metrics

1.4 Define application categories

1.5 Determine steps and roles

2.1 Populate your inventory

2.2 Align to business capabilities

3.1 Assess organizational value and fit

3.2 Assess technical health

3.3 Assess end-user perspective

3.4 Assess total cost of ownership

4.1 Review APM Snapshot results

4.2 Review rationalization results

4.3 Determine dispositions

4.4 Assess redundancies (optional)

4.5 Determine dispositions for redundant applications (optional)

4.6 Prioritize initiatives

4.7 Determine Ongoing Cadence

Phase Outcomes

Work with the appropriate management stakeholders to:

  • Extract key business priorities.
  • Set your goals.
  • Define scope of APM effort.

Gather information on your own understanding of your applications to build a detailed inventory and identify areas of redundancy.

Work with application subject matter experts to collect and compile data points and determine the appropriate disposition for your apps.

Work with application delivery specialists to determine the strategic plans for your apps and place these in your portfolio roadmap.

About Info-Tech

Info-Tech Research Group is the world’s fastest-growing information technology research and advisory company, proudly serving over 30,000 IT professionals.

We produce unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. We partner closely with IT teams to provide everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.


Overall Impact

Average $ Saved

Average Days Saved

After each Info-Tech experience, we ask our members to quantify the real-time savings, monetary impact, and project improvements our research helped them achieve.

Read what our members are saying

What Is a Blueprint?

A blueprint is designed to be a roadmap, containing a methodology and the tools and templates you need to solve your IT problems.

Each blueprint can be accompanied by a Guided Implementation that provides you access to our world-class analysts to help you get through the project.

Need Extra Help?
Speak With An Analyst

Get the help you need in this 4-phase advisory process. You'll receive 5 touchpoints with our researchers, all included in your membership.

Guided Implementation 1: Lay your foundations
  • Call 1: Establish goals and foundations for your APM practice.

Guided Implementation 2: Improve your inventory
  • Call 1: Initiate inventory and determine data requirements.

Guided Implementation 3: Rationalize your applications
  • Call 1: Initiate rationalization with group of applications.
  • Call 2: Review result of first iteration and perform retrospective.

Guided Implementation 4: Populate your roadmap
  • Call 1: Initiate your roadmap and determine your ongoing APM practice.


Ricardo de Oliveira

Hans Eckman

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