What is SOA?
As I continue my progress through the MPS in EA program, it is becoming quite clear that my technical knowledge and skills aren’t as developed as many of the other individuals in my classes. Although I never expect to be technologically proficient, I do want to have a much better understanding of prominent technology and the impact it may (or may not) have on future developments. Therefore, I’m beginning to realize that I can use these blog entries as a way to explore topics or areas of interest/significance to me and hopefully better solidify my understanding of technology as a whole.
Service-Oriented Architecture (SOA) is a strategy by which an organization chooses to use the service-oriented programming methodology. The approach of SOA involves centralizing the IT development methodology and creating software applications that are capable of being reused across the organization. By having a centralized process based on a single methodology, the idea is that different departments across an organization will avoid designing services that are incompatible with other services in the organization thus increasing productivity and efficiency.
Effective governance is vital for SOA reaching its full potential. A well-designed, understood, and followed process needs to be implemented to ensure all development initiatives and service request changes are channeled through the centralized staff of architects, developers, and project managers.
The primary benefits of SOA include:
- Software Reuse – services (or part of services) are reused to maintain compatibility standards, minimize complexity, and eliminate redundancy.
- Productivity/Efficiency Increases – reuse of services improves project cycle time and reduces integration efforts.
Although many organizations can benefit from SOA, large, complex organizations or organizations that offer a multitude of similar services stand to benefit the most from adopting the SOA strategy. That’s not to say that smaller, more simple organizations can’t benefit from SOA, it’s just that the impact of software reuse and gains in productivity and efficiency won’t be as impactful given the size and scale of a smaller organization.
I personally believe in the SOA strategy for its centralized approach. The departments in my organization still largely operate as individual silos that aren’t compatible with one another. We lack a unified development methodology and instead continue to utilize a collection of methodologies that typically serve a specific group of stakeholders rather than the entire organization. In certain cases, I do see our business strategy as the foundation for our decision making, but that is often short-sighted and inconsistent. Finally, our individual silos share similar services that would significantly benefit from SOA’s service reuse approach.
References
CIO Staff. (2007, March 19). CIO. SOA Definitions and Solutions. Retrieved on September 7, 2017, from https://www.cio.com/article/2439274/service-oriented-architecture/soa-definition-and-solutions.html
What is ERP?
For this post, I decided to delve into Enterprise Resource Planning (ERP) to improve my understanding of the software and ultimately determine the potential positives and negatives that organizations may encounter when deciding to implement an ERP system.
ERP is a system that attempts to integrate various software systems from departments such as HR, sales, customer service, accounting, procurement, distribution, etc. into a single system that tries to serve the specific needs of those departments. The philosophy behind this model is that an ERP system compared to various disparate systems provides organizations with a central platform more capable of sharing information and improving collaboration.
ERP systems were initially designed for physical manufacturers. However, customized ERP packages are now available to meet the needs of various industries, such as process manufacturers, retail, media, utilities, higher education, and banking.
While ERP systems appear to offer organizations the ability to streamline processes, reduce or eliminate rework, integrate information, and improve collaboration, it is important to research the history of successful and unsuccessful ERP endeavors to emphasize potential scenarios that may be encountered throughout the ERP journey. It is also important to remember that every organization’s ERP journey will vary depending on their type of industry and ERP vendor (SAP, Microsoft, Oracle, Infor, etc.).
Potential Advantages of ERP
- Automation – processes are able to be automated to eliminate rework, minimize resources, and increase productivity.
- Standardization/Best Practices – ERP is built upon industry best practices to ensure standardized procedures are implemented.
- Integration – Processes and data are integrated to simplify business operations and improve information management capabilities.
- Accountability/Responsibility – streamlined processes allow for enhanced monitoring and tracking practices to identify points of inefficiency and waste.
- Communication – central ERP system provides integrated processes and information for more efficient communication.
Potential Disadvantages of ERP
- Implementation Time – installing an ERP system can be time consuming (3-6 months – and that’s with no major hiccups).
- Expensive – TCO may be expensive when hardware, software, professional services, and internal staff costs are calculated.
- Limitations – ERP may not be capable of certain customization requirements necessary to meet business needs.
- Change – employees and processes may need to adapt to an ERP system which may be met with resistance.
ERP comes in a myriad of flavors that provides tools and services capable of standardizing business processes and increasing efficiency. However, these capabilities may not integrate effectively with legacy systems and can potentially require an abundance of resources (time and money). Ultimately, every organization interested in a central, integrated system that manages standard functions must thoroughly research the pros and cons of instituting an ERP system to decide if it is right for their business model.
References
Wailgum, T. (2017, July 27). CIO. What is ERP? A guide to enterprise resource planning systems. Retrieved on September 4, 2017, from https://www.cio.com/article/2439502/enterprise-resource-planning/enterprise-resource-planning-erp-definition-and-solutions.html
What is CRM?
A business strategy and primary focus of most organizations is to consistently provide superior services that effectively meet, and hopefully exceed their customers’ expectations. When I think about organizations such as Apple, Fossil, L.L. Bean, and Honda that continue to earn my business, I focus on the products and services that they provide and how they impact or enhance my life based on principles that are important to me and my family. The difficulty that organizations encounter when attempting to entice new customers and serve their current customers is constantly managing fluctuating markets often created by disruptions from advancements in technology and the unpredictability in customers’ expectations that organically stems from serving a diverse population. One tool that organizations are beginning to employ to help them better serve their customers is a Customer Relationship Management (CRM) system.
Customer Relationship Management (CRM) is a strategy that guides an organization to improve their understanding of customers’ needs and subsequently provides direction for developing and adapting business services to meet their needs. The process derived from the CRM strategy begins with implementation of a CRM system. A CRM system is a tool that extracts customer data from variety of sources, including email, websites, brick and mortar stores, call centers, mobile sales, and marketing and advertising campaigns. Once the data is collected, it is analyzed to identify patterns and ultimately develop a holistic view of the customer. This information is then used by the organization to determine how to best serve that customer. For example, if data indicates that a banking customer is nearing their retirement age and does the majority of his or her banking online, it might be beneficial for the bank to send an email to the customer advertising the financial services they offer for retirement.
The implementation process and cost of a CRM system depends on the functionality and level of support desired by an organization. CRM vendors often offer a wide variety of packages capable of being modified to meet an organization’s needs. With that in mind, it is advised to be highly selective in choosing a CRM vendor as the process of changing vendors can be incredibly disruptive to business operations.
From a business perspective, implementing a CRM system provides a comprehensive view of customers that enables organizations to adapt their products, services, and support to meet their needs. More importantly, CRM data can be compared with market trends to develop business strategies capable of reaching a broader audience and impacting new markets that may have been overlooked or undeveloped. From a customer perspective, it is understandable why organizations would decide to use a CRM system to improve their business processes. However, it isn’t always transparent what security measures are implemented to address privacy and safeguard customer profiles from other interested parties (either legally or illegally obtained). And that is still a component of CRM that I believe concerns many customers.
References
Wailgum, T. (2017, July 14). CIO. What is a CRM system? Your guide to customer relationship management. Retrieved on September 4, 2017, from https://www.cio.com/article/2439505/customer-relationship-management/customer-relationship-management-crm-definition-and-solutions.html
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