Question

You have joined a team in an ICT department located in a large bank. After the recent Royal Commission into banking, your employer wants to upgrade many aspects of governance. Your team has been asked about APM. In particular, the bank wants to know how APM might influence benefits management. What should the team say?

The Bank wants to know about what research tells us about the realities of implementing and using APM. What are the success rates? What impediments have been experienced? How is it effectively deployed? Does it assist due diligence?

Answer 1

APM stands for Application performance monitoring tools used by mostly financial service companies . Financial service companies operates in a stress full and risk vulnerable surroundings heavily overburden with regulations and strict compliance of law across the world therefore this types of tools are very effective to make their system efficiently working and make secure from potential threat of Intruders against any mischief or loss they might cause

APM might influence Benefit management as follows:

1. APM may trace & track every transaction flow ,identify the problem and fix it for resolution.

2. APM cause alerts about exceptional nature transactions.

3. It provides data base for transactions their slowness and their Impact on revenue for greater analysis.

4. This are user focused thereby provides greater importance to customer as interface

Therefore team must endorsed APM implementation and adoption in companies as information and communication technology.

In APM implementation there is Success rate up to 100% depends up on type of vendor organisational structure skilled persons and end users .

Followings are the recently research based findings and hurdles in implementing APM in a research conducted by Fed Reichheld of Bain & company following facts emerged

1.Customer retention and customer focused companies through APM can attracts more customers and Enhance their profit up to 95%

2 New customer acquisition cost more than 6 to 7 times instead retaining and maintaining existing customer

3. APM results in asset protection efficient business process and resulting in enhance money and security, as Risk mitigating factor. in view of that over some time businesses may lose their customer

In a another research it was shown that there is a correlation between customer royalty and revenue more royalty results in greater revenue.

Following are the impediments that might have been faced while implementing APM

1. Availability of skilled persons is a great challenge in implementation and maintaining APM

2 It is difficult to monitor APM among its component because it can not be monitored by itself.

3 Organisational immaturity because many among them are nontechnical users and they are involved in decision making for implementation as primarily

4. Complexity of Application technology for identification and remedial issues in operation and process

5 .It is difficult to make responsible to someone because normally there are many stakeholders of APM.

Due to application virtualization there is a increase in variability of measurement it means different results are produced for a given problem in terms of their quantification.

Followings are the key factor for deploying APM effectively

1. Willingness of Organisation and its employee they must be ready and should not resist to adopt it.It need strong leadership and participation of all.

2.User must use it as as business impact management tool because it does not own itself produce benefits.

3 it should be easily usable by common users with proper understanding.

4 Proper prototype or simulation of system is required before implementation and participation in development is needed across the organisation

5. It should be of reasonable size and scale in over time as per needs and requirement

6 It should be reasonably on cost and benefit analysis.

7 It should take consideration into latest technology and programming languages and cloud structures for efficient functioning over time

8 it should be well integrated with other business functions and ERP.

9 right application must be taken from right vendor for optimum benefit

10 Risk and there mitigation like insurance etc must be considered.

Yes APM assist in due diligence by tracking and tracing root cause of problem and by which remedial actions can be taken.to overcome barriers and improve functionality.It consolidates lots of data which can be rejoined with relevant information to identify and address problem through this it assist due diligence.