5 Maturity Levels of Application Portfolio Management

The primary objective of application portfolio management is to help organizations optimize application inventory and achieve precise business objectives. According to a McKinsey research report, improved application portfolio efficiency will contribute more than $250 billion in the U.S. by 2025.

Organizations must adopt an Application Portfolio Management Maturity Model approach to improve application portfolio performance. The maturity model approach will enable continuous benchmarking to help organizations determine their present state, compare it with industry peers, recognize improvement areas, and identify opportunities to move to the next maturity level.

The process of reaching a particular maturity level is not a one-time event. The portfolio should be appropriately managed and continuous improvement is a must by carrying out small, evolutionary steps.

The application portfolio management maturity has been divided into five levels.

  • Level1- Application Portfolio Understanding
  • Level2- Application Portfolio Intelligence
  • Level3- Application Portfolio Quality
  • Level4- Application Portfolio Excellence
  • Level5- IT Portfolio Excellence

This ebook provides behavioral characteristics of each of the level. It also provides organizations ideas as to what they must achieve to move to the next level.


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