A method for application portfolio rationalization

Application portfolio rationalization (APR) aims to analyze and restructure the complete set of applications in an organization. This paper presents a new APR method that assimilates various research results and empirical experiences. It explains that APR does not automatically return on investment: it is important to use the right method in order to get benefits. APR consists of three main steps: the assessment phase, where information on the applications and the portfolio is gathered, the evaluation phase, where the information is analyzed, and the planning phase, where all actions are planned that improve the portfolio and reduce complexity. A real life case of a financial services company shows the method in practice.