(Length: 17 pages)

Executive Summary (This is a document excerpt)

In a small number of firms today, IT management is using application portfolio management (APM) tools to shave 10% to 30% or more from the maintenance budget, achieving ROI within the first 12 months. These savings provide the opportunity to increase innovation capacity by 30% to 95%. Detailed application metrics allow IT management to discuss spending in business terms with system stakeholders, resulting in greatly improved business/IT relationships in these firms. CIOs of medium-size to large organizations really can't afford not to make APM a top priority in the next budgeting cycle. However, APM implementations require significant commitment from senior executives, and they also require a six-figure financial investment, dedicated staff, and will disrupt the status quo as they reset spending priorities. CIOs must build a compelling business case that details cost, benefit, flexibility, and risk to garner the support of executive management.