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Report Summary
Title: Towards the Service-Based Business
Author: Richard Veryard and David Sprott
Publication Date: 23 September 2003
Report Type: Journal
Report Class: Best Practice
Abstract: We have commented on many occasions that Web Services technology and SOA are the easy part, it's the business reengineering and cultural change that are the areas of real challenge and opportunity. Today's use of Web Services is overwhelmingly tactical, based on project specific ROI. Enterprises adopting SOA are doing so primarily to address weaknesses in application structure and to be able to respond more quickly to business requirements. However as business management gain in confidence, service orientation will gradually become increasingly strategic. At the heart of this change will be the recognition that the Service Based Business is an important strategic direction that can deliver radical improvements in business fundamentals.
Backgrounder: There are two alternative sets of arguments for justifying a move towards Web Services and the service-oriented architecture - system level and business level. While some vendors like to make sweeping and visionary long-term claims for the strategic opportunities of Web Services, most of them focus their sales arguments on the tactical opportunities. Meanwhile, user management is – perhaps rightly – suspicious of new technologies, especially those offering radical breakthroughs. Underlying the strategic arguments for web service technologies is a business-level shift towards the service-based business. We have often talked about various aspects of the service-based business. In this article, we are going to provide a consolidated view of the opportunities and benefits.
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