Report and Rationalize: The inventory in APM maintain a standardized report. It assists a company in measuring when there is a need for a new application or an upgrade


The organization and administration of all the applications that a company uses to generate value are known as application portfolio management (APM). McKeen & Smith (2015) lists some APM capabilities:
-Setting Governance: The goal of APM is to make a company financially and systematically efficient. They achieve the goal by removing any applications that do not provide value to the company or are unnecessary. In addition, it also removes duplicate or repetitive data or applications, software licenses to systematically sound the company. APM structures policy and decision making in an organization. The process includes the selection of applications and setting procedures to integrate them into the company.

-Management of Inventory: APM focuses on listing all the applications that a business has. Next, they further the process by matching requirements for the company with the applications. They also exercise technical, cost, value, information, and application categorization of all applications. All this information is listed in the inventory of APM.

-Report and Rationalize: The inventory in APM maintain a standardized report. It assists a company in measuring when there is a need for a new application or an upgrade. APM provides the tool for a company to assess the efficiency of applications.


McKeen, J. D., & Smith, H. (2015). IT strategy issues and practices (pp. 114-120). Boston: Pearson.


Application portfolio management is a comprehensive approach which includes a framework for managing enterprise IT software applications and software based services.APM helps in management of company’s applications and metrics to illustrate the business benefits of each application.

For the effective delivery of APM,three interrelated capabilities are required which are as follows:

1.Strategy and governance:With good planning and research, a destination is reached.

2.Inventory management:Here ,identifications of applications to make the project up and running is done.

3.Reporting and Rationalization:Here reports are generated which help to monitor the project.


Key organizational enablers for effective demand management:


               The role of a leader plays a crucial part in organizational enablers who provides the vision, path and the scope of the project to make it successful. A formal leader is not allocated to each and every team, leadership must be within every team. Most of the teams need a supervisory vision that provides skills in how team should operate within the organization and how to achieve final goals.  

Knowledge & Skill:

               People involved in project responsibilities, deliverables and the continuing management of the process need to consider more progressive education and knowledge. The level of communication, information, knowledge and skills are directly related to effective management. 

Individual responsibility:

              Even though leader is responsible for any failure of the team, it is does not mean leader takes blame for everything, every member in team is equally responsible for their own actions. Individual responsibility is about doing best work and make thing in align with the goals of the team. A responsible person will be attentive on making the whole team great, in spite of making themselves look great. 


McKeen, J.D., and Smith, H.A., “Application Portfolio Management”, Communications of the Association for Information Systems, Volume 26, Article 9, March 2010, pp. 157-170.


The company needs to meet the internal demands of the company. This is because IT affects several parts of the business. McKeen & Smith (2015) has listed some points that help them enable effective demand management:

-Strategic Initiative Management- A company needs to prioritize their IT funding investments to meet with the demands of the organization. Prioritizing important projects allows the company to focus on their goals, visions as well as manage their expectations. The process can only be achieved by effective strategic planning.

-Application Portfolio Management- APM builds an efficient and competent system in the company by managing their user applications. The process removes any redundant processes or applications to save the company money.

-Enterprise Architecture: To address the demands of the company, all the departments of the company should combine their architecture model. There must be a standardized model for all the departments to follow.

-Business-IT Partnership: Both business and IT must collaborate to function in every aspect. They maintain a utility, technological, and business partnership to implement daily operations, an improvement in technology, and business value.

-Governance and Transparency: Adopting IT technology costs a lot of money. Plus, new and upgraded IT systems circulate in the market in a span of a short time. Therefore, decision-makers should carefully assess to select IT technology. They should also track and monitor progress. They should also hold a meeting to review projects to maintain transparency in the organization (Desmet, 2016).

        All these factors above provide effective demand management for the organization.


Desmet, B., & Desmet, B. (2016, June 16). A Five-Step Approach to Effective Demand Planning Implementation. Retrieved from

McKeen, J. D., & Smith, H. (2015). IT strategy issues and practices (pp. 114-120). Boston: Pearson.

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