--- sourceDocument: Australia Enterprise Architecture sourceDocumentLink: https://www.servicenow.com/docs/r/application-portfolio-management Release : - australia ft:locale : - en-US ft:publication_title : - Australia Enterprise Architecture ft:clusterId : - appportman bundleId : - appportman workflow : - Technology --- # Rationalization of business applications # Rationalization of business applications {#ariaid-title1} * Release version: Australia * * Updated March 12, 2026 * * ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 2 minutes to read Summarize ![AI sparkle icon](https://servicenow.com/docs/portal-asset/ai-sparkle-icon) Summarized using AI This content was generated using new OpenAI-powered functionality. Results are provided on an as is basis and are not guaranteed to be accurate or complete. ## Summary of Rationalization of Business Applications Application rationalization enables Enterprise Architects to evaluate and manage business applications effectively by categorizing them into invest, sustain, migrate, or retire decisions. This process helps optimize the application portfolio by assessing multiple indicator scores and lifecycle stages. Show full answer Show less Access the Application Rationalization page via the application rationalization icon, where you can analyze applications, create demands, set planned dispositions, and add lifecycle details. Applications marked as Retired or End of Life are hidden by default but can be viewed by updating a system property with assistance from your ServiceNow account manager. Insights generated by Now Assist enhance understanding of application statuses and support better decision-making. ## Key Features * **Bubble Chart View:** Interactive graphs display applications in quadrants based on indicator scores, guiding decisions to invest, sustain, migrate, or retire. * **List View:** Displays all business applications with high-level details and associated indicator scores for comprehensive analysis. * **Enterprise Architecture Workspace Insights:** Insight cards identify candidates for retirement, migration, investment, or highlight mismatches between planned dispositions and scores, facilitating quick prioritization. * **Indicator Scores and Fiscal Periods:** Scores are shown for the latest fiscal period by default, with options to select other periods. Scores derive from indicator data normalized and weighted through a multi-step pipeline. * **Technical Debt Indicator:** Measures non-compliance with Technology Reference Model (TRM) standards for technologies linked to an application, offering a measurable value for analysis. * **Technology Lifecycle Risk Score:** Quantifies risk based on proximity to end-of-support or end-of-life milestones, aggregated from technologies up to business applications to highlight lifecycle exposure. ## Practical Benefits By using application rationalization, ServiceNow customers can strategically optimize their application portfolios, reduce technical debt, manage lifecycle risks, and align application investments with business priorities. The visual tools and insights streamline decision-making and help maintain a current, efficient application ecosystem. As an Enterprise Architect, you can use application rationalization to evaluate your business applications. ## Application rationalization overview {#eaw-rationalize-business-applications__section_msj_stg_yyb} Rationalize all business applications in a category and decide whether to invest, sustain, migrate, or retire an application. Select the application rationalization icon (![Application rationalization icon.]()) to navigate to the Application Rationalization page. You can perform the following using application rationalization: * Analyze business applications based on multiple scores. * Create a demand for a business application. * Set the planned disposition of a business application. * Add life-cycle details to an existing business application. {#eaw-rationalize-business-applications__ul_pyy_xsg_yyb} You can view all the business applications in a bubble chart view or in a list view. However, business applications marked as Retired or in End of Life lifecycle stage aren't displayed on the Application Rationalization bubble chart or list view pages. However, you can view those business applications by updating the sn_apm_ws.business_application_default_filter system property. Contact your ServiceNow® account service manager to update the system property. You can also generate insights into business applications using Now Assist. For information, see [Generate insights into business applications](https://www.servicenow.com/docs/5IxrApCiC6pxAgomznqTEQ "Learn the details of business applications and gather concise and actionable insights on business applications from the summary that is generated by ServiceNow Otto for Enterprise Architecture (EA). The business application insights are context-aware, that is the summary automatically includes relevant information from the specific page where you generate the insights."). Figure 1. Bubble chart view Figure 2. List view ## Application rationalization insights on the Enterprise Architecture Workspace home page {#eaw-rationalize-business-applications__section_q3z_hys_zyb} The application rationalization feature of Application Portfolio Management also provides insights for your business applications. To see the insight cards, navigate to WorkspacesEnterprise Architecture Workspace and select the Insights section. The insights cards display information based on scores derived from application rationalization. The following insight cards are available: * Candidate business applications for retirement-business applications that might fit for retirement based on their indicator scores. * Candidate business applications for migration-business applications that might fit for migration based on their indicator scores. * Candidate business applications for investment-business applications that might fit for investment based on their indicator scores. * Candidate business applications with mismatch planned disposition-business application with mismatch between their planned disposition and their indicator scores. {#eaw-rationalize-business-applications__ul_wvl_jzs_zyb} On selecting a particular card, the Application Rationalization page appears to display the relevant business application data, based on your selection. Note: To return to the main Application Rationalization page, select Go to Application Rationalization. ## Indicator scores based on fiscal period {#eaw-rationalize-business-applications__section_qcy_tyd_nhc} All the indicator scores are displayed according to the latest fiscal period, by default. You can also select a different fiscal period from the Scores for fiscal period list. Your fiscal period preferences are saved and applied the next time you visit the page. The latest fiscal period is derived from the apm_app_indicator_score list. The fiscal period type (month, quarter, or year) is derived from the system property com.glide.fiscal_calendar.fiscal_unit. Note: You can zoom on this page to 200% or 400% through your browser settings without the loss of content or functionality. Page layouts are transformed into a vertical, stacked view automatically. * **[Bubble chart view of application rationalization](https://www.servicenow.com/docs/UYoOh_HBHWdwspQ_Uva5Qw)** Bubble charts are interactive graphs that position applications in different quadrants, based on their indicator scores. Based on the position of the business application in the quadrants, enterprise architects can take decisions to invest in, sustain, migrate, or retire the business applications. * **[List view of application rationalization](https://www.servicenow.com/docs/XrzAeDgW6C7dEggG1I9xnQ)** As an Enterprise Architect, you can view the list of all business applications. The List view enables you to see high-level information on all your business applications and all the indicator scores that are attached to them. * **[Application indicator score calculation in Enterprise Architecture Workspace](https://www.servicenow.com/docs/_t8N9gDwPO6c5FbsUeWP8w)** Enterprise Architecture Workspace calculates a composite score for each business application and business capability by running data from configured indicators through a multi-step pipeline. The pipeline normalizes raw values, applies weighted contributions, and aggregates the results into a final score per fiscal period. * **[Tech debt indicator score for application rationalization](https://www.servicenow.com/docs/HKXw411Njy42tE6hL3tnGg)** The Technology Reference Model (TRM) Technical Debt indicator is a customizable application metric that evaluates the technical debt score for each Business Application. This score reflects the number of associated technologies that don't comply with established TRM standards. It offers a clear and measurable value that can be leveraged across the Enterprise Architecture workspace for scoring, analysis, and visualization. * **[Technology lifecycle risk score in Enterprise Architecture Workspace](https://www.servicenow.com/docs/3im2BTXZzc2VAioHwPLEew)** The Technology Lifecycle Management (TLM) lifecycle risk score is a numeric value that quantifies how close a technology is to its end-of-support or end-of-life milestone. Risk scores roll up from individual technologies through application services to business applications, and serve as an indicator in scoring profiles to surface lifecycle exposure across the portfolio. **Related concepts** * [Working with application rationalization](https://www.servicenow.com/docs/tplCk5ZnPURDCKDL2puP8Q "Application rationalization helps enterprise architects evaluate, optimize, and govern the business application portfolio with clarity and strategic intent. Application rationalization is a structured process to assess all business applications by category, capability, or family and determine whether to invest, sustain, migrate, or retire.") **Related tasks** * [Generate insights into business applications](https://www.servicenow.com/docs/5IxrApCiC6pxAgomznqTEQ "Learn the details of business applications and gather concise and actionable insights on business applications from the summary that is generated by ServiceNow Otto for Enterprise Architecture (EA). The business application insights are context-aware, that is the summary automatically includes relevant information from the specific page where you generate the insights.") *[\>]: and then