Also written by Chris Doig:
Five ways inadequate requirements wreak havoc with enterprise software purchases
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How to do software rationalization right

From a high-level perspective IT budgets have two parts: maintenance and strategic initiatives. Maintenance tends to grow at the expense of strategic initiatives and, left unchecked, ultimately stifles innovation. In mid to large IT organizations, this has resulted in the emergence of Application Portfolio Management or APM. APM is a disciplined approach to aligning enterprise applications to maximize business value while minimizing lifecycle ownership costs.