The application step is how we live out what we have read and studied. The goal is heart transformation not just information. This is WHY we study the Bible. The goal is to have internal heart transformation which in time will result in external behavior modification.
(Hendricks, 338-342)
Many of these suggestions came from Living by the Book, the Art and Science of Reading the Bible, written by Howard and William Hendricks. Moody Publishers, (2007).