Selling SOA to the Business

Posted by
Hartmut Wilms
on
Aug 23, 2007 08:39 A
Richard Veryard, a software industry analyst for the CBDi Forum, ponders the question: Do we have to sell SOA? If yes, how should it be done? He also talks about the cost and ROI of SOA.

As Richard Veryard points out right from the beginning, SOA
marketing "involves two-way communication [...] - this entails
listening and responding to what the business wants. And that means
what a particular business specifically wants, not just vague
generalizations like 'adaptability' and 'customer satisfaction'". He
does so in reaction to Steve Jones' article "SOA needs Marketing", which clearly states that SOA has to be sold to the business:

Well guess what, the think about trying to communicate your
SOA strategy, service repository, service or whatever is... a marketing
job. You've got to think about it as a core part of your SOA approach
and develop an actual marketing plan.

The question if SOA has to be sold to the business directly leads to
the question "whether it makes sense to measure the ROI of SOA". John Devadoss discusses this question
and says that on the one hand "Service Oriented Architectures are
[merely] a means to an end", and that "any project, regardless of how
poorly organized, how over-budget, and how miserably aligned with the
business requirements can claim a good ROI, as long as the project
costs are amortized over a long-enough period of time". On the other
hand the question is, "can the business survive long enough to realize
the return?".

John Evdemon expresses his doubts that it makes sense to measure the ROI of SOA without a realistic "time frame":

ROI is not an exact science and will vary from one
organization to another (much like SOA itself). There are many ROI
models available, some more complex than others. The best ROI models I
have seen are relatively straightforward. Overly complicated ROI models
may require spending more time maintaining the model instead of working
on the project to be measured. When it comes to ROI use realistic data
points and time frames to determine the value an implementation may
have generated. SOA ROI requires patience - benefits may take a year or
more to be properly recognized.

So, do we have to sell SOA at all? Does the business need to know about SOA? Nick Malik has a blunt answer:

I’ve decided that the best way to “Sell SOA” to the
business is not to sell SOA to the business. Let’s talk about the
asthetics, the features, the speed and reliability, the automation of
their business processes to allow them to focus and innovate where it
counts. Let’s not talk about standard parts.

If SOA is a means to an end and if we don't have to sell SOA, then is it free? Loraine Lawson does not think so:

Much of the benefits of SOA — agility, quicker deployments,
less cost for development — won’t come immediately. And even if you
could reap that ROI immediately, there’s still the credibility problem.
You see, IT has promised all of this before. And in recent years, the
business has grown impatient with spending money on technology
solutions that promise to fix business problems, only to find next year
IT wants more money, again to fix the same problems.

Richard Veryard concludes that although SOA might be free and there
might not be a need to sell SOA regarding financial aspects, we'll have
to convince the business to play along and make them accept the demands
of an SOA undertaking:

[...] it doesn't mean we don't have to sell SOA to the
business. SOA makes demands on the business - perhaps not financial or
technological ones, but demands associated with architecture and
governance. For SOA to be successful (let alone "free"), the business
may need to consider certain structural opportunities, and to engage
with IT requirements in new ways.

The whole discussion about the costs, ROI or marketing of SOA boils
down to one thing: Business and IT have to adopt a common mindset - a
service-oriented mindset.

Original URL...

Coase's law

A firm will tend to expand until the costs of organizing an extra transaction within the firm become equal to the costs of carrying out the same transaction on the open market. As long as it is cheaper to perform a transaction inside your firm, keep it there. But if it is cheaper to go to the marketplace,do not try to do it internal.

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How BPM Software Improves Employee Satisfaction

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Improvements in the budgeting and planning process create a ripple effect that boosts employee satisfaction.

In weighing the incentives to replace spreadsheet-only budget management practices with automated budgeting and planning software, CFOs typically focus on gains in productivity, control, fiscal accuracy, and time savings. But along the path to achieving those goals through a performance management approach, many companies also encounter a surprising side benefit: a noticeable improvement in employee satisfaction, retention, and commitment to excel.

While it may not be a core driver of ROI, the influence that intuitive and collaborative budgeting technology can have on keeping good employees happy in their work is well worth a CFO's attention. According to an October 2004 study by The Corporate Leadership Council (CLC), turnover-related productivity losses and out-of-pocket expenses can total 200 percent of the annual salary for a position. In addition to the time and direct costs involved in recruiting, screening, interviewing, and training a replacement, companies lose valuable expertise when an employee walks out the door.

How does business performance management (BPM) software improve employee satisfaction and retention?

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The 7 Habits of Highly Effective Technology Leaders

from alfresco blog:

The habits of highly effective business leaders are:

1. Focus on business models and processes before they focus on technology infrastructure or applications
2. Track technology that matters by focusing on the distinction between operation and strategic technology and the chasm between technology concepts, prototypes, and bona fide technology clusters
3. Identify and prioritize business pain - and approaches to pain relief - as they move toward the create of business pleasure
4. Optimize the value of shared services in centralized and decentralized companies, organize around the distinction between operation and strategic technology, and champion governance above and below the operational and strategic line
5. Manage computing and communications and infrastructure professionally and const-effectively through negotiated service-level agreements (SLAs) and measurement best practices
6. Communicate often and predictably, communicate good news and bad news in business terms, and provide transparent insight into technology initiatives through tools like dashboards
7. Actively market their roles in the company as well as technology's ongoing contribution to the business through a variety of tools and techniques

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Designing Your Organization for BPO and Shared Services

By Alsbridge

This article provides guidance on organizational design (OD) for organizations that are undertaking or contemplating a shared service or business process outsourcing (BPO) initiative. It comes from the series, "Guidelines for Shared Services and BPO," developed by Alsbridge to reflect a shared understanding of good practice in outsourcing. Related columns will discuss the following areas: developing a business case, change management and SLAs and service levels, charging and benchmarking.

Organizational design is sometimes used to mean simply the design of an organization chart. However, this article uses a broader definition which covers the operating model, the organizational structure (including the organization chart), the roles, competencies and job descriptions.

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MBA In A Day (Good Book)

MBA In A Day: What You Would Learn At Top-Tier Business Schools (If You Only Had The Time!)

Book Description:
The same critical information top business schools teach
Based on Professor Stralser's popular seminar series, MBA in a Day? is specifically designed for the busy professional (physician, attorney, architect, nonprofit executive, etc.) or entrepreneur/small business owner, who needs to know about the "business-side" of their practice, organization or business. With comprehensive coverage of vital business topics, important concepts and proven strategies taught at top graduate schools, this handy book offers a complete business education without the hassle of enrolling in an MBA program. Divided into four sections covering management and policy; economics, finance, and accounting; marketing; and systems and processes; this straightforward guide is easy to navigate and simple to use. Packed with illustrative examples, helpful anecdotes, and real-world case studies, this commonsense guide covers everything busy professionals would learn at the very best business schools-if they only had the time.
Steven Stralser, PhD (Phoenix, AZ), is Clinical Professor and Managing Director, The Global Entrepreneurship Center at Thunderbird: The American Graduate School of International Management and founder and CEO of The Center for Professional Development, Inc., an organization dedicated to post-graduate training and education of today's professionals

amazon link

u can find pdf copy (non printable) @ emule network

CEO and others

CEO, CFO, CIO, CTO , CSO, and CCO are abbreviations that stand for: Chief Executive Officer, Chief Financial Officer, Chief Information Officer, Chief Technology Officer, Chief Security Officer, and Chief Compliance Officer. Modern corporations commonly use these terms to describe their top executives.

The CEO (Chief Executive Officer) is often but not always also the President of a company. The CEO reports to the Chairman of the Board and board members. The CEO is usually the most important spokesperson for the company, the person who is responsible for quarterly results, and the best paid member of the company.

The CFO (Chief Financial Officer) is sometimes also the company Treasurer and, in many companies, is seen as the second most important person in the company (since managing the quarterly results often depends on an understanding of how to keep the books).

The CIO (Chief Information Officer), a relative newcomer to the ranks of the top executives in a corporation, is responsible for a company's internal information systems, and, especially with the arrival of the Internet, sometimes in charge of the company's e-business infrastructure.

The CTO (Chief Technology Officer), another relatively new arrival to the top executive ranks in many companies, is likely to be seen as the second or third most important person in any technology company. The CTO is responsible for research and development and possibly for new product plans.

The CSO (Chief Security Officer), a recent arrival, is responsible for the security of a company's communications and business systems.

The CCO (Chief Compliance Officer), yet another newcomer, is responsible for ensuring that a company and its employees are in compliance with government regulations and internal policies.

Does Technology Make Managers Lazy?

Technology does not replace the need for good management. Without such management, technology can create more problems than it solves.

It's hard to resist the easy option. Buy this customer relationship management (CRM) software, and you will efficiently and cost-effectively be able to manage your customer relationships. Buy this content management software, and you will be able to efficiently and cost-effectively manage your content.

Software does not manage. People manage. Software is a tool that can help you manage better, but it is not a manager. It is not strategic. Before you can manage customer relationships, you have to have relationships with your customers

http://www.cmswire.com/cms/featured-articles/does-technology-make-managers-lazy-000963.php

Must-Have Non-Technical Skills for IT Pros

 

 You have all the top-notch certifications, you're on top of all the latest technologies and you've put in a number of years with the same company. All signs point to a vertical move within your enterprise. However, when that next promotion comes down the line, you get passed up. Why? According to some experts, it might be your lack of non-technical skills. IT pros today need more than technology skills to graduate into managerial roles. It takes a combination of soft skills, business savvy and project management expertise to move up in today's IT sector.

 

 

 

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