UMT360 Blog

Blog Posts from the Leader in Enterprise Portfolio Management

Debunking the Growth Capacity Gap

Written by Ben Chamberlain on May 5th, 2014 at 2:57 pm

In Gartner’s recently released 2014 CEO and Senior Executive Survey, a third of the executives surveyed named growth as their top priority.   Businesses want growth but face a series of challenges when it comes to finding ways to paying for it.   Among other things, the run-the-business investments are eroding capacity, consuming funds needed for growth, so the business has to find a way to rationalize the operational spend.  As a result, organizations are taking a hard look at their Application Portfolio Management (APM) to determine what they need to do to make it more effective.

UMT360 CEO Mike Gruia says four key factors affect the success or failure of an organization to manage investments in applications:

  1. Integration – In a recent UMT360 poll, ranked the highest priority of the four factors.  Its absence leads to sub-optimal decisions and a limited ability to reduce redundancy and the cost of ownership.
  2. Financial Maturity – Low maturity results in ineffective estimating and tracking of the application total cost of ownership and related cost drivers.
  3. Synchronization – Lack of synchronization leads to disjointed investments that may ignore the time element that binds them.
  4. Technology – It provides the descriptive and diagnostic intelligence for planning and transformation decisions.

Learn more about how to improve the way application investments are managed by reading Mike Gruia’s complimentary white paper now available here.

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