CIS-APM practice question 2 of 10

Which of the following Application Categorization methods helps APM users to better assess the technical health of an application?

Full set: 204 questions
Answer options
A: By business criticality
B: By technical health and business value Correct answer
C: By application license cost
D: By end-user feedback
Correct Answer:
B. By technical health and business value
Explanation

To assess an application's overall health and its contribution to the organization, APM utilizes a multi-dimensional approach. Categorizing applications by both their technical health (e.g., architecture, stability, maintainability) and their business value (e.g., criticality, usage, financial performance) provides a holistic view. This two-axis model, often visualized in a bubble chart, allows portfolio managers to identify which high-value applications are in poor technical health (and need investment) and which low-value, unhealthy applications are candidates for retirement. This method is fundamental to the APM rationalization process.

Why Incorrect

A. Categorizing by business criticality alone assesses an application's importance but ignores its technical condition, providing an incomplete picture for health assessment.
C. Application license cost is a financial metric; it does not provide any insight into the technical stability, performance, or architectural soundness of the application.
D. End-user feedback measures user satisfaction or functional fit, which is a component of business value, but it does not directly assess the underlying technical health.

References

1. ServiceNow Product Documentation. Application rationalization. This section describes using indicators for business value, technical risk, and cost to evaluate applications. The combination of these factors, including technical health, is key.

2. ServiceNow Product Documentation. APM portal and dashboards. The documentation describes the "Application 4-quadrant analysis" bubble chart, which plots applications based on their technical score and business value score to aid in decision-making.

3. ServiceNow Community. (2021). APM Fundamentals. Section: "Application Assessment." This training material explains that assessments are based on indicators grouped into categories like Business Value, Technical Risk, and Cost.

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