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Features Rethink SOA - A Recipe for Business Transformation
Imagine you had the ability to create an entirely new business offering, unlike anything available from your competition
By: Bruce Tierney
Jul. 20, 2011 11:30 AM
One sure fire way to keep budget and buzz away from your projects is for you and your department to be associated with incremental improvement. Projects can generally be classified into two categories. The first is "business transformation," which includes projects that generate excitement. The second category is for projects that fund incremental improvement to what is frequently considered the "cost center," often with a strong ROI but seriously lacking when it comes to excitement... And without excitement comes underfunded and understaffed projects likely to underachieve the goals they set out to accomplish. So where does SOA belong? Is it one of the most powerful weapons in the business transformation arsenal or is it merely a tool for the cost center to provide incremental improvement? If we look at the traditional benefits of SOA, such as re-use of services, agility, scalability, and visibility, then SOA brings incremental improvement to the infrastructure. Although this incremental improvement can provide impressive returns that easily justify the investment, they are still more incremental than transformative to the business. Imagine you had the ability to create an entirely new business offering, unlike anything available from your competition in just a few months. How would you accomplish this? From a packaged application? Highly unlikely since it's available worldwide, meaning there is no barrier to entry for your competitors. Build a one-of-a-kind application from scratch? After a year or more of development, your first-to-market advantage is lost. How can business transformation take place in such a short time frame? Of the many aspects of a comprehensive SOA platform, such as service creation, service orchestration, governance, integration and business rules, there is one aspect of SOA that provides the key enabler to rapid business transformation. It's not new to SOA but seriously underappreciated for its potential. It is the "composite application" that provides the ability to rapidly create an entirely new application, composed of a mix of existing and new re-usable services, unlike any other application in the world in short order. Take a moment to think of other technologies providing the ability to rapidly deliver an entirely new business offering. If you came up with anything else... it's a pretty short list. What is so special about the composite application? Take a look at the following scenario: In a few months' time:
You have just tapped into a new business channel where over 700 billion minutes per month are spent. Equally important was the fact that 75% of this project was already completed before the project even started. This may sound far-fetched but it is in production today. New business offerings derived directly by SOA are numerous at OnStar where they treat SOA as a key enabler for new business initiatives instead of as merely a tool to provide incremental improvement. OnStar is one of a growing number of leading edge companies rethinking SOA. These companies have the necessary ingredients of innovation combined with an understanding that they can "Rethink SOA" from "incrementalism" into the driving force of their business transformation strategy. Although the number of companies is small today, it's easy to tell when a company has moved beyond SOA incrementalism. When speaking about their Oracle SOA Suite implementation, OnStar's Chief Architect Doug Mutart speaks less about the traditional SOA benefits of efficiency, re-use, etc. and instead refers to bringing entirely new projects to life. For example, when OnStar needed new channels through mobile devices such as the iPhone and other smartphones, a key enabler was SOA. Mutart states: "The flexibility of SOA has enabled us to bring these projects to life." -Doug Mutart, Chief Architect, OnStar To deliver the mobile composite application before the launch of the Chevrolet Volt, OnStar leveraged existing services to back-end customer data and applications, transforming OnStar into a leading edge provider through new distribution channels enabled by SOA.
OnStar iPhone App Enabled by SOA Why is this new mindset to SOA so important? Because projects associated with business transformation get the executive sponsorship, budget, and access to key resources needed to ensure success. Projects associated with incremental improvement however are hit-and-miss...sometimes you get what you need and other times you are in the mode of "doing more with less" which translates to doing more work with less staff, less budget, and less likelihood of success. How does one begin the process of rethinking SOA to take advantage of the opportunity of SOA, and specifically service-based composite applications within SOA, provides? To rethink SOA from incrementalism into business transformation through SOA, here is a recipe: Rethink SOA - A Recipe for Business Transformation
Oracle SOA Suite 11g is an integrated, best-of-breed suite that helps customers rapidly design and assemble, deploy and manage, highly agile and adaptable business applications. For more Oracle SOA Suite customer innovation case studies, follow Oracle SOA Suite on Twitter and Facebook Reader Feedback: Page 1 of 1
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