Wednesday, July 2, 2008

Blending Technology buzzword called SOA with Business

Thanks to the development of technologies, it is no longer processes we are talking about but the business activities which make up a process. Hence it is becoming possible to design many business activities akin to kids world of Lego blocks. What is SOA ? just a new way of designing and deploying software that supports business activities and finally a process.  Each activity can be termed as a "Web Service".
What are the business Activities which can become candidates for Web Services ? This could be derived  on :
Business Value : An Activity or a process which is very critical for your company so that your efficiencies , Uniqueness and gives you competitive advantage determines the Business Value.
Current Performance : If the performance of the business activity is very poor , Will investments made on the same justify the higher performance you can derive from the same 
Predictability : If the performance of the business activity is highly unpredictable then neither can it be shared or shifted out.
More often then not When SOA is being applied with out rethinking the overall design of the business , then the full potential and the opportunity to create a much more focussed , efficient and flexible organization is lost.
Hence Building SOA or buying SOA should be the last step and not the first step in creating a New Operating Model which could be analyzed keeping in mind : 
Primary : Should be kept In-house 
Shared : Can be shared with others / divisions
Shifted : Can be outsourced to customers / specialists 
Automated : If capabilities and User interface can be automated then it can be turned into a Web service
This is a summary from HBR June 2008 issue

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