The Retail Exchange Company has all of their applications in a single system of record and ownership has been established. Which level of the maturity model are they in right now?

The Application Portfolio Management (APM) maturity model begins with establishing a foundational inventory. Level 1, "Applications Under Management," is characterized by creating a comprehensive, single system of record for all business applications and assigning clear ownership. The scenario described, where the company has achieved these two specific goals, perfectly aligns with the definition of this initial maturity level. They have not yet progressed to assessing or rationalizing the portfolio, which occurs in subsequent levels.

B. Level 2: Basic Rationalization: This level involves assessing applications against criteria like business value and technical risk, which is not mentioned in the scenario.
C. Level 3: Advanced Rationalization: This level uses deeper integrations and data for strategic alignment and roadmapping, far beyond the described state.
D. Level 4: Continuously Optimized Portfolio: This is the highest level, focusing on continuous improvement and proactive management, which the company has not yet reached.

ServiceNow Product Documentation, "Application Portfolio Management," Doc ID: apm-release-notes, Section: "APM guided setup." The guided setup for APM implementation follows the maturity model, starting with "Categorize and assess" which requires a complete inventory (Level 1) as a prerequisite.

ServiceNow Product Documentation, "APM maturity model," Doc ID: cAPMMaturityModel, Section: "Level 1: Inventory." This section explicitly states, "The first step is to create a comprehensive inventory of all business applications and establish ownership."