Application Portfolio Rationalization (APM) and
IT-vendor management (Kraljic model) features

APC’s portfolio analysis feature is integrated with several pre-defined methodologies and advices, as well as the ability to be customized to meet the specific needs and key challenges of an organisation. APC’s portfolio analysis enables real-time assessment and overview of the application portfolio, that enables data-driven decisions and a clearer understanding of the current situation as well as opportunities and risks.

The portfolio analysis feature also provides easy to use functionalities and advanced search criteria to be able to look at sub-portfolios and a well-defined process and sharing functionalities, to be able to distribute the application assessment process to the relevant parts of the organisation. Below is an overview of the main parts of the portfolio analysis functionalities in APC.

Application and IT vendor portfolio matrices

APC's matrix provides a clear overview of the situation and opportunities. The matrix is the basis for strategic and tactical decisions facilitating portfolio governance.

APC's matrix:

• Provides real-time information, ensuring decisions on real facts.
• Provides an overview as well as details of the application portfolio and its applications.
• Provides the ability of interactive control of the matrix views and granularity of the application portfolio.
• Provide guidance based on the organisation's assessment of the applications. The assessment can, for example,be of the applications':
  • Value for and impact on operations
  • Delivery risk and complexity
• Simplifies the overview and decisions based on the categorization of included applications.

Categorization analysis of applications and IT providers

APC provides pre-defined methods for assessing the applications. The purpose of a method is to provide insight, guidance and advice to tactical and strategical application plans and roadmaps that fulfils a desired future state on portfolio level.

APC’s pre-defined and standard methods support:

• Portfolio Rationalization and Optimization
• Sourcing Optimization (Kraljic’s)

Methods can be changed and new ones added depending on the key challenge at hand.

Roadmaps - whole portfolio and sub-portfolios

Decision makers and key stakeholders needs to see the portfolio of applications in different views and sub-portfolios in order to see through the complexity, get insights, take decisions and create roadmaps and plans. To perform analysis on sub-portfolio level is often to seek answers to questions like consolidation opportunities, supplier exposures, sourcing alternatives and mitigate operational risks.

Visualizations of sub-portfolio matrices can easily be created based on all application attributes e.g. application types (ERP, CRM), process support, technical attributes like operating systems, organisation attributes like Business Units and locations.

Strategical advice and transformation guidance

Built-in advice and guidance supports:

• Selective sourcing strategies:
  • Krajlic’s and  Gelderman& van Wheele’s selective sourcing models.
  • Clear category-based advice for strategy, objectives, key activities and delivery models.
• Portfolio optimization strategies based on the application's: business value, complexity and delivery risks in combination with cost aspects.
• Consolidation and delivery options.
• Assessment and scoring of business impact by a set of predefined questionnaires that provide:
  • Areas and issues based on requirements for specific businesses and organisations.
  • Risk assessment based on MIT's Sloan Center's "IT risk pyramid".

Assessments of suppliers and applications

APC's assessment methodology is based on valuation and prioritization in a pre-defined questionnaire.

APC's valuation and questionnaires start with the organisation's goals and priorities and:

• Empowers fact-based strategic & tactical prioritizations and decision-making.
• Forms the basis for delegated assessments.
• Includes templates based on accepted practices e.g. risk assessment based on MIT's Sloan Center's "IT risk pyramid".
• Are adapted to both private companies and government agencies.
• Are flexible to fully or partly adapt to the organisation.