An Application Portfolio Management Method for Implementation at Scania CV AB : Design and validation with focus on business value aspects

University essay from KTH/Industriella informations- och styrsystem

Abstract: Information Technology (IT) has become a vital tool for most industrial businesses and Scania CV AB is no exception. As the importance of IT generally has increased, the usage and number of applications has grown as well. Applications are substantial assets for an organization that is heavily supported by IT. Consequently, a way of managing applications efficiently and sustaining the costs of applications rather low – doing more with less – is required. In addition it is also important, from a business perspective, that applications as part of IT are aligned with business strategies and goals. Application Portfolio Management (APM) is a practice and a business-centric activity aimed to allocate IT resources to support business objectives and strategies; it helps determining the impact of applications and the relative importance of each application in the portfolio to the business. APM attempts to justify and measure the financial benefits of each application relative to the costs of the applications’ maintenance and operations. Performing APM successfully is nevertheless a complicated issue, and something that many businesses are challenged with on a daily basis. New applications are constantly and regularly added, downloaded, purchased or self-developed – too often without any further control. In order to regain the control of the software that automates the business, and ensuring that the applications adds value and reliability to the company, Scania CV AB requires a rigorous and comprehensive method for an APM approach. In this master thesis together with Erik Nylén’s thesis 1, such a method is provided. The thesis also offers a suggestion on how to proceed with the APM effort at Scania CV AB.

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