SOA and Market Forces

2 Aug

Just a quick comment on a post by Joe Mckendrick while I’ve been on holiday.  Essentially Joe discusses the need to demonstrate the value of IT – and hence SOA – through ensuring that people are charged correctly for their consumption.  As I’ve discussed many times I totally agree with this with one exception; basically I feel that organisations need to get a more coherent view of their business capabilities and then charge for the delivery of those capabilities.  At the end of the day IT has no value to an organisation beyond its contribution to the delivery of discernable business value.  As a result the requirement from my perspective is to use metrics and charging to surface two different but related issues for both the enterprise and the owners of individual capabilities:

1) Is the business capability offered to the enterprise at a competitive price; and 2) Does the cost of the IT needed to run my capability enable me to be competitive. 

I believe strongly that current one-size-fits-all approaches to enterprise architecture will rapidly be exposed as one-size-fits-nobody as capability owners understand the costs of IT provision and the enterprise gets better metrics with which to squeeze them. 

As a result, apportioning the costs of IT to each capability owner and then allowing them to cross charge for the total service that they offer seems to me a more visible and sustainable way of demonstrating value.

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One Response to “SOA and Market Forces”

Trackbacks/Pingbacks

  1. Todd Biske: Outside the Box » Blog Archive » Is a competition model good for IT? - August 3, 2007

    […] blog about it at the time, but this topic was brought back to the forefront of my mind by this post from Ian Thomas, with some follow-on commentary from Joe […]

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