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.

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