Executives Guide to Web Services (SOA, Service-Oriented Architecture) - page 31

In the collaboration phase of Web services adoption, the benefits will build upon those realized in the Integration stage. Once the invisible yet seemingly insurmountable barriers of internal integration have been overcome , followed by B2B integration across organizational boundaries and firewalls, then the business benefits of collaboration can be realized. Benefits here include reduced transaction costs, an increase in shared information and extended business processes with trading partners, and closer relationships with customers, suppliers, and partners .

The innovation phase of Web services adoption will give rise to new ways of doing business across corporate boundaries, as well as new business models built on distributed business processes. New sources of value will be derived from rapid innovation of Web services solutions, and the first movers will reap tremendous benefits from their initial investments in Web service-enabled extended business processes, while late adopters will gradually cede leadership in their industries. The producer, consumer, and broker roles of Web services blur as Web services become the de facto method of conducting business. Once again, the benefits of Web services continue to build on previous phases, conferring significant advantage to the organizations that have progressed through the earlier phases of integration and collaboration.

By the time organizations reach the domination phase of the Web services adoption model, they will have separated themselves from their competitors . These organizations will leverage the innovations and ideas of the previous phases, turning them into new ways of providing value to new and existing customers. These organizations will become the dominant players in their respective industries, and will wield significant influence over contiguous industries as market boundaries blur.

The specific benefits of Web services in the adoption model will emerge as the standards and technologies of Web services are developed and stabilized. Many organizations are already well into the collaboration phase based on their early adoption of XML and SOAP. Not surprisingly, these are organizations that were first movers in using the Internet as a means of conducting business. The lesson from the Web services adoption model is clear: Begin using Web services now, and gain cycles of learning quickly. Apply Web services to real business problems, and deliver true business value from early projects. Wait too long and your future may be imperilled.

ENDNOTES

1. www.cio.com, CIO Magazine , August 15, 2002, “Return on Investment,” by Sari Kalin.

2. Forrester Research, December 2001, “Reducing Integration’s Cost,” by Laura Koetzle.

3. EAI Journal , January 2002, “Building A Business Case For EAI,” by Christy Bass and J. Michael Lee.

4. Forrester Research, December 2001, “The Web Services Payoff,” by Simon Yates, 6.

5. www.cio.com, CIO Magazine , September 1, 2002, “Web Services—Still Not Ready for Prime Time,” by Ben Worthen.

6. PC Magazine, June 30 2002, “Web Services Warm Up,” by Sarah L. Roberts-Witt.

7. www.intel.com, Processor Hall of Fame.

8. Harper Business, New York, 1994, “Built to Last,” by James C. Collins and Jerry I. Porras, pp. 90, 93–94, ISBN 0-88730-671-3.