Download chapter 11: 'Putting It All Together'
Excerpted from the book titled, "The New Language of Business: SOA & Web 2.0", authored by Sandy Carter, published by IBM Press, February, 2007, ISBN 013195654X, Copyright 2007 by International Business Machines Corporation. All rights reserved.
Chapter Excerpt:
A flexible business—a flex-pon-sive* business—requires flexible
IT. Innovation requires change and SOA makes it easier for companies
to change. Given this focus on business flexibility, growth,
and innovation, the technology that most expedites these business
goals is service oriented architecture (SOA). According to most of
the analyst firms, SOA will become the de facto standard for business
flexibility and collaboration among companies.
As we discussed in this book, SOA is all about an approach that
views a business as linked services and considers the outcomes
they bring. Because it is built on open standards, it is a way for
businesses to tap into their existing technology investments and
flexibly link previously fragmented data and business processes,
creating a more complete view of operations, potential bottlenecks,
and areas for growth.
As we learned, advances in open standards and software-development
tools have made SOA applications easier to develop.
However, this does not mean that everyone is deploying SOA
applications; the market is at the early stages of adoption. Services
that join together to support business processes within SOA are
designed in such a way that different parts can operate independently
of one another. Because of this, any one feature can be
changed without breaking other parts of the application. This
makes companies that have adopted principles of SOA much more
responsive to changing business requirements than those that rely
on traditional software development, with one feature change
potentially derailing an entire application.
The companies that master SOA technology operate more efficiently
than their competitors and adapt more quickly to changing
business conditions in their industries. And as we discussed earlier,
Web 2.0 facilitates the collaboration aspects, and SOA enables
the infrastructure for flexibility.
A great example is a retailer deciding whether to issue a credit
card to a customer. It could use the technology to tap different
sources and pull together information on a customer's creditworthiness
and buying habits. A bank can use the same computing
services to handle account transfer requests, whether they are
coming from a teller, an ATM, or a Web application, avoiding the
need for multiple applications. A manufacturer could measure
more closely what is happening in its production process and then
make adjustments that feed back instantly through its chain of
suppliers.
SOA enables profitability through revenue growth and cost cutting.
SOA enables innovation through collaboration and flexibility.
Your checklist for becoming a flex-pon-sive* business should
include the following:
- Understand SOA and Web 2.0. Chapters 3 and 4, "SOA as the
DNA of a Flex-pon-sive* and Innovative Company," start to
articulate what you need to consider, but the goal of this book
is not to make you technology experts. Rather, the goal is to
provide you with enough information to ask the right questions
to begin your journey.
- Develop the skills needed to embrace these new technologies.
- Understand the business implications of the new technologies.
The companies that master SOA technology can operate more efficiently
than their competitors and can more quickly adapt to
changing business conditions in their industries. Meeting innovation
priorities requires the ability to change flexibly, and companies
should take a business-centric view of SOA (as opposed to an
IT-centric view) to achieve these innovation goals (see Figure
11.1). As discussed in Chapter 4, "SOA as the DNA of a Flex-ponsive*
and Innovative Company," a recent study of more than 500
companies conducted by Mercer Management Consultants showed
that these companies are approaching SOA from entry points of
people, process, and information, or all three. The lessons learned
from the SOA entry points are furthered by the IBV study about
SOA business value. This study of approximately 30 customers
reveals some other lessons about revenue growth and cost cutting.
51% of the clients interviewed for this study expected their SOA
deployment to grow their revenue, primarily by unlocking the
potential of an existing process. To explore this in a real-world setting,
review a bank's processes, such as a residential mortgages
system, credit card system, or loan-servicing system. Following
the IBM case study, an evaluation of those processes should reveal
reusable parts, such as "submit loan application," "perform credit
check," "determine credit line," or "calculate interest rate." SOA
enables IT to recombine these reusable parts to create new products,
such as a tailored home equity line of credit. With SOA, the
business strategist is free to innovate.
Companies that started from one of these entry points have stories
to illustrate the lessons that can be learned from other companies'
experiences. Enterprise transformation powered by an SOA is
really the holy grail the customer seeks. This enterprise transformation
can begin with a set of entry point projects as a way for
customers to start their transformation journey.
Chapter 11: 'Putting It All Together'
Visit the IBM Press website for a detailed description and to learn how to purchase this title.
