(Length: 17 pages)

October 20, 2005

Building The Business Case For APM

Dashboards Increase Your Capacity To Innovate And Rebalance IT Spending

This is the fifth document in the "Modernizing The Practice Of Application Maintenance" series.

by Phil Murphy

with Laurie M. Orlov, Mike Gilpin, Kimberly Q. Dowling

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.

TABLE OF CONTENTS

NOTES & RESOURCES

itemIT Management Can't See Its Biggest Expenses . . .

item. . . But APM Makes Those Expenses Visible

itemDevelop Metrics To Build Your Case For APM

itemAnalyze Cost/Benefit, Address Risks, And Favor Flexible Options

itemPackage And Present The Results For APM Success

recommendations

itemRationalize Your Application Spending

What It means

itemMake The Effort — Before Someone Else Does

itemSupplemental Material

Forrester interviewed Allen Systems Group, BluePhoenix Solutions, CAST, Compuware, HAL Knowledge Solutions, IBM, Information Balance, Metallect, and some companies in the early stages of implementing APM. We also drew data from Forrester's Business Technographics® November 2004 North American And European Benchmark Study.

Related Research Documents

itemAPM Tools Will Reach $500 Million To $700 Million By 2008

July 22, 2005, Market Overview

itemIIM's Dashboards Serve Many Constituents

June 13, 2005, Trends

itemIntegrated IT Management Drives Efficiency

February 2, 2005, Forrester Big Idea

Find Documents In Related Categories

This document falls under the following categories. Click on a link below to find similar documents.
Analyst: Phil Murphy
Technology: Application Development, Application Development Processes & Tools, Architecture & Technology Strategy
Geography: Asia Pacific, Europe, North America

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