POST| What’s an Application Portfolio Matrix?

What’s an Application Portfolio Matrix?

With today’s ever-changing technological landscape, it’s becoming increasingly important to keep track of and manage your applications. An application portfolio matrix is a structure and tool used to evaluate and identify opportunities in your application portfolio. It provides insights into areas related to technology, services, and resources – as well as the current trends and business objectives that could impact the portfolio. With this information, executives and decision makers can make better decisions about allocating resources, optimizing processes, and making strategic changes to deliver better results.

According to Mayank Kothari, Chief Product Officer at Oracle Corp, “the application portfolio matrix should be the foundation of an organization’s IT strategy. By utilizing this tool, businesses can gauge the performance of existing applications, the strategic long-term value, and the cost savings associated with the portfolio. This can help to identify cost savings or competitive advantages in the short and long-term.”

The application portfolio matrix has four primary components: application, performance, architecture, and maturity. It provides an in-depth assessment of each application in terms of functionality, performance, strategy, technology, and maintenance costs. The application portfolio matrix enables decision makers to prioritize investments, identify opportunities for improvement, and optimize the overall portfolio.

The application portfolio matrix can also be used to proactively plan for future investments. By considering the organization’s existing applications and understanding their benefits and technical requirements, businesses can build a better understanding of their technological needs and deploy resources accordingly. This approach helps the business increase their return on investment and minimize risks associated with new technologies

Today, organizations need to be agile and responsive to keep up with rapid changes. An application portfolio matrix helps them achieve this by providing insights into existing applications and their value to the business. By leveraging the application portfolio matrix, they can optimize their application portfolio and be best positioned to take on the future.