How are Key Account Management and Application Portfolio Management strategies related?
Key account management (KAM) and application portfolio management (APM) are two separate but potentially related business strategies.
KAM is a business strategy that is designed to optimize the value of an organization’s relationships with its most important customers. This involves identifying the organization’s key accounts, developing a plan for managing these accounts, establishing a dedicated account team, regularly reviewing, and tracking the performance of these accounts, and maintaining strong communication and collaboration with these accounts.
APM, on the other hand, is a strategy for managing an organization’s portfolio of applications. This involves evaluating and reviewing the organization’s current and future application needs, identifying, and prioritizing new application projects, and optimizing the organization’s overall application portfolio in order to support business objectives.
While KAM and APM are separate strategies, they can be linked in certain circumstances. For example, if an organization has a key account that is heavily reliant on a particular application or group of applications, then the success of that key account may be closely tied to the performance and effectiveness of those applications. In this case, the organization’s APM strategy may need to consider the needs and expectations of this key account in order to ensure that the applications are meeting their business needs.
Overall, while KAM and APM are separate strategies, they can be linked in certain circumstances, particularly when the success of a key account is closely tied to the performance of specific applications. By considering the needs and expectations of key accounts as part of its APM strategy, an organization can ensure that its application portfolio is optimized to support the success of these important relationships.