Benefits of SaaS Application Portfolio Management

Application portfolio management is the process of organizing SaaS applications within a company for the purpose of addressing its particular business needs. The key job of application portfolio managers is to examine present as well as future applications, including projects carried out by the organization.

Through this examination, managers are able to spot gaps and errors, creating methods to improve the application portfolio. Regularly, the organization or its SaaS department is allocated permanent resources to maintain, operate and support of the operation of SaaS applications.

Primary Goals of Application Portfolio Management

The main goal of application portfolio management is multifaceted: 1) identification of best performing application and project combination for highly optimized and efficient business processes; 2) provide basis for executive decision making; and 3) increased visibility for SaaS projects. Other goals of application portfolio management, among many others, include the creation of a single source for all application portfolios, such as initiatives, assets, potential investment and other similar info.; and streamlining budget management, both for specific projects and overall.

Application portfolio management is deemed highly similar to stock portfolio management, requring substantial preparation and risk and reward analysis. Depending on the allotted SaaS budget, the adoption of a management system allows the SaaS manager to change, postpone or discard projects that are performing poorly on investment returns. In addition, it lets company management to examine their assets in the portfolio and make smart decisions. A well-managed application portfolio helps managers understand a certain project's thoroughly prior to implementation.

Core Benefits of Application Portfolio Management

There are a lot of benefits that await your organization with a streamlined portfolio management. When portfolio management of SaaS projects is done correctly, managers are able to keep track of costs and lower expenses where possible. Application portfolio management also enables executives to centralize project information and management, giving them a more detailed and complete appreciation of their current portfolio assets. This process can also help improve internal communication in the team and organization, as well as the daily operations of the business.

Finally, with effective application portfolio management, management is able to determine redundant projects and reduce the chances of repetition, hence ensuring there will be no waste of assets and resources. This also allows the combination or modification of redundant projects to implement various initiatives. SaaS organizations can take advantage of application portfolio management advantage by applying a data-centered process that compares project costs and business values, thus promoting wise decisions, rather than making a separate assessment of each project.

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