opinion

The SOA Marketplace

Software leaders provide their perspective on developments in the services-oriented architecture space and how it will impact the industry.

The New Value Equation

By Britton Manasco

Mar. 03, 2005


The SOA movement has the potential to transform the software industry -- elevating it to an entirely new level of impact and relevance. But this outcome is not predetermined. Kicking off this discussion at SandHill.com, John Hagel, author of Out of the Box and the forthcoming book The Only Sustainable Edge, makes a compelling case that today's software vendors must rethink their business strategies if they are to seize this momentous opportunity (Read Hagel's oped here.)

"Most enterprise software vendors are still too focused on large-scale, long-term implementations of software platforms and have not made the difficult organizational changes required to effectively commercialize much more targeted and pragmatic, implementations of technology," contends Hagel.

However, the Web services technology associated with this architectural shift gives us a vital opportunity to "think different" as solution providers (not just technology vendors). Rather than actively selling technology (and then moving on to the next prospect), we can now focus on enabling our clients to leverage technology to realize demonstrable and measurable business results. It is on a foundation of results that we will continue to grow our businesses.

This is a radically different perspective than the one that has dominated the software world in the past. Traditionally, we have sold "modules" and "packages" and, essentially, thrown them over a wall. We had no true visibility into or ability to learn from the continuing efforts of our clients as they tried to capitalize on our technology. Indeed, we often took no real responsibility at all for business outcomes. No wonder we are now in the midst of a client backlash.

Through Web services technology, we now can build companies that focus on business success. Our value, in fact, will increasingly revolve around our ability to "diagnose" a value opportunity and actively collaborate with our clients to build a high-impact solution. As a matter of fact, we should stop thinking about "solutions" as if they were merely a matter of picking, packing and shipping software code. In truth, relevant, value-rich solutions cannot be created without the active participation of the client.

SOA sets the stage for new software solution providers that dynamically collaborate with clients to detect, develop and perpetually assess value. They will leverage the measurable and visible success of short-term projects to build momentum, initiate new projects throughout existing accounts and open up opportunities at new ones. It is validated client success (as opposed to faddish product hype) that will beget new success.

The solution providers that will thrive in this environment will be ones that develop a new mindset, new disciplines and a new set of skills. They will be deeply skilled at diagnosing a client's concerns, objectives and opportunities in complex, politically charged environments. But it won't stop there. They also will actively learn from their implementation projects and use that learning to advise and consult. Active diagnosis, learning and demonstrable success will prove to be the foundations of successful selling and marketing in the SOA era.

Britton Manasco is a consultant with Prime Resource Group, which specializes in sales and marketing performance. He can be reached at 512-301-4881 or via email at BManasco@PrimeResource.com . Manasco also produces, along with Joe McKendrick, a blog that focuses on SOA.

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