Getting Portfolio Modelling Right: The Difference Between App and Tech Components

Understanding Enterprise Architecture Portfolio Modeling

Enterprise Architecture (EA) provides a structured framework for aligning IT infrastructure and software with business goals. One of the core practices in EA is portfolio modeling—organising and visualising assets to enable better decision-making.

One of the most common challenges with this process, distinguishing between application components and technology components. Here I address the difference between these two elements, helping current and aspiring enterprise architects build more robust, scalable portfolio models.

What is an Application Component?

In EA frameworks like ArchiMate, an application component represents a modular part of a software application that delivers specific functionality. These components directly support business capabilities and are often tied to user-facing systems.

Examples:

• Customer Relationship Management (CRM) systems
• Enterprise Resource Planning (ERP) systems
• Human Resource Management Systems (HRMS)

Characteristics:

• Support business processes and user interactions
• Encapsulate functionality and data (business objects)
• Often governed by application lifecycle management

Where I see it go wrong

• An application is not software - just because it is installed on a server does not make it an application.

Examples of poor classification

• Auth0 - this provides a “technical” component for technology management - it does not encapsulate business data
• Storage Management Application - this also provide a “technical” component for technology management - it accesses business data, but does not directly manage it
• Zoom - a tough one here, but again we’re providing a technical service - there are no business objects that are modified or surfaced through Zoom

What is a Technology Component?

A technology component refers to the underlying software, infrastructure or platform that enables application components to function. This includes software and hardware resources like servers, databases, operating systems, and middleware.

Examples:

• PostgreSQL databases
• Amazon Web Services (AWS) EC2 instances
• Kubernetes clusters

Characteristics:

• Not directly tied to business processes
• Support application components by offering computational resources or services
• Often managed through IT infrastructure lifecycle policies

Key Differences Between Application and Technology Components

What about edges cases you ask? Well ServiceNow and and Salesforce platforms are great examples where the lines are blurred. In particular these provides both a technical component (e.g. Salesforce platform) and application components (Salesforce Service Cloud).

Defining these on your portfolio should be guided by how your organsation make investment decisions. This is why you’re an Enterprise Architect, not a Solution/Application/Technical Architect. :-)

Key Attributes of Components

To effectively model components in a portfolio, it’s crucial to define key attributes that apply across both types:

• Component Name and Description: Clear identification and functional summary.
• Classification: What type of application is it (ideally pick one category that aligns best).
• Lifecycle Stage: Planned, active, or deprecated.
• Strategy: Gartner’s TIME model is famous - Tolerate, Invest, Mitigate, Eliminate (TIME).
• Business Alignment: Which business capability or goal it supports.

Modeling Best Practices

• Use consistent naming conventions and metadata.
• Avoid overlaps by clearly distinguishing between business and technical responsibilities.
• Always link components to business capabilities for traceability.
• Leverage standard modeling languages like ArchiMate to maintain clarity.

Modeling Best Practices in EA Tools

Best practices when using tools:

• Model application and technology layers separately but show clear relationships.
• Tag components with lifecycle and ownership metadata.
• Integrate tools with CMDBs and ITSM platforms for up-to-date data.

Benefits of Clear Distinction

• Improved Governance: Clear ownership and responsibility for each component.
• Change Impact Analysis: Easier to assess how changes in technology affect applications and vice versa.
• Rationalization: Identify redundant or outdated components more easily.

Common Mistakes and Misconceptions

• Misclassifying a database as an application.
• Modeling middleware as an application component.
• Failing to update lifecycle statuses consistently.
• Considering software an application.

Case Study: Higher-Education Portfolio Model Example

Scenario: A Higher-Education Organisation is undergoing a digital transformation.

Step-by-Step Component Mapping:

1. Select a reference model - we recommend CAUDIT!
2. Identify all applications used based on the types of application found on Application Portfolio Model. Ideally start by targettng one domain of the model.
3. Map these to the underlying technologies based on the Technology Portfolio Model (e.g., authentication services, databases).
4. Map your applications to the Business Capabilities that they support.
5. Capture lifecycle status and business owners.

Lesson Learned: Visualising these layers clarified redundancies in authentication mechanisms and led to consolidation.

Implications for Digital Transformation

• Alignment with Strategy: Ensure each component serves a purpose.
• Application Rationalization: Sunset legacy systems.
• Technology Modernization: Migrate to scalable, cloud-native platforms.

The Role of Enterprise Architects

• Bridge business strategy and technology execution.
• Drive architectural governance and best practices.
• Serve as the stewards of component lifecycle and portfolio integrity.

Tools and Frameworks for Component Modeling

• ArchiMate: Provides a visual language for modeling layers.
• TOGAF ADM: Offers a step-by-step approach to architectural development.
• SaaS Tools: Colloquial, LeanIX, BiZZdesign, Orbus—support integration, dashboards, and governance.

Conclusion

Differentiating between application and technology components is foundational to effective enterprise architecture. With clearly modeled components, organizations can streamline operations, align IT with business goals, and accelerate digital transformation. For aspiring enterprise architects, mastering portfolio modeling is not just beneficial—it’s essential.

Call to Action: Explore EA modeling tools, pursue certifications like TOGAF, and begin modeling your IT ecosystem with precision.

FAQs

1. What are the most commonly used EA tools for modeling application and technology components? Colloquial, Sparx Enterprise Architect, BiZZdesign, and LeanIX are top-tier tools widely used by enterprise architects.

2. Can a component be both application and technology? While components can have overlapping functions, they should be classified based on their primary role to avoid ambiguity.

3. How do EA frameworks like TOGAF define these components? TOGAF defines applications as systems supporting business functions and technology as the underlying infrastructure and platforms.

4. Why is it important to differentiate application from technology components? Clear differentiation improves portfolio clarity, ownership, lifecycle management, and change analysis.

5. How do I start learning EA component modeling? Begin with frameworks like TOGAF and ArchiMate, use open-source modeling tools, and consider EA certification courses.