Great Expectations, Part 2

Creating a coherent, farsighted action plan is a critical step in any Internet technology initiative

Application services. This layer includes the common application services (custom or packaged) that offer specific functionality needed to build Internet-based solutions. These services can be used and accessed by more than one application, so you should implement a reusable design that can be called by all applications requiring those services. Because there are many applications providing unique services in this area, I have partitioned the layer in our example into four sections: core, commerce support, customer support, and decision management.

• The core section comprises services that are most likely to be needed by multiple Internet initiatives. Therefore, they make up the foundation for our list of application services.
• Commerce support contains services that are most common to e-commerce transaction sites. Order processing and payment, product catalog management, content management, and delivery are basic components of such systems.
• Customer support-related services focus on supporting multiple channels by which customers can interact to resolve their issues and concerns.
• Decision management capabilities address technologies that aid in making a business decision for the site users and owners. Decision-support tools typically collect and summarize data into information needed for improvements in services and offerings.

Any e-business initiative involves many of these services, so choosing software packages that meet all those needs can be problematic. (In this context, "packages" refer to canned applications for e-business transactions and collaboration.) The two main approaches here, of course, are best of breed and all in one.

In the best-of-breed approach, a solution is created by choosing multiple packages from different vendors based on application expertise and good fit with desired business functionality. The criteria may or may not include technical suitability of each package within the enterprise architecture. The best-of-breed approach has more potential to create differentiation by supporting the best features if the packages can easily integrate.

Alternatively, in the all-in-one approach - currently championed by Oracle - a single package supports every service. With this option, while the issue of technical suitability is not eliminated, it is less complex because all packages of the suite run in the same environment.

The all-in-one approach speeds implementation, but is also more risky for the long term. The services involved are so tightly knit together that it is almost impossible to replace components with other products. Vendors that have taken the all-in-one approach in the past are now redesigning their products to give customers more choice in replacing some of their own components, such as content management and personalization modules or transaction engines, with those from different vendors such as BroadVision Inc., Open Market Inc., IBM, and BEA Systems Inc.

Although the number of compatible packages have increased recently (due to in part technology partnerships, consolidations, or standards), it is still the architecture team's responsibility to make sure that all pieces will work together well. The idea is that all application services can be easily reused when they are needed by other initiatives. For example, if a company is already using a middleware tool internally for asynchronous interapplication communication, it should use the same technology to implement back-end integration for an e-business portal. The cost of acquiring these services will then be seen as an investment, rather than an expense, in growth.

ENTERPRISE CULTURE

Enterprise "culture" is another important factor in creating and executing e-business strategies. The effect of this key corporate value is frequently underestimated; it is often assumed that everyone is on board with the idea and clearly know what is expected from them. The reality, especially in more conservative organizations, is that the effort needed to convince the top corporate managers takes more time. A feedback loop is required between the members of the senior management and the e-business sponsor (such as the CEO), and the impact on the rest of the existing organization must be carefully planned.

Therefore, you must obtain commitment and co-operation from the key corporate managers for these initiatives. Everyone must clearly understand the dangers of diversion from key enterprise standards and procedures in creating an Internet-enabled corporation. Different business units and departments must comply with enterprise technology standards and strategy, and not give in to the temptation to select short-term solutions from vendors who pressure-sell.

No enterprise can afford to invest in multiple Internet architectures. When this fact is ignored, millions of dollars are spent to create stand-alone solutions rather than easily integrated, complementary solutions; in addition, valuable time is lost in building a critical business advantage. Later, it will take even more time and money to reverse that situation.

For that reason, you must manage the key Internet architectures centrally. That means the design of all Internet system architectures and vendor and tool selections must be reviewed and approved by the same enterprise technology organization: Everyone must clearly understand the business and technology vision if the investments involved are to return their expected benefits.

PUTTING IT ALL TOGETHER

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The Internet has created a new way of thinking about and doing business. But careful planning and preparation are critical in order to safely capitalize on this advance. Above all else, you'll need to understand the implications of your short- and long-term choices - and the action plan I've described here will help you do so.

Tulu Tanrikorur [wtmtrk@yahoo.com] is vice president of technology at Diversified Investment Advisors in New York. He has 15 years of experience in system design and development.

INVESTING IN TOMORROW

• Address where you are today. Create an inventory of technologies and standards currently in use at your company for each layer of the framework.
• Decide where you want to be. Build a vision around reliability, scalability, manageability, and openness for your e-business systems.
• Find out what technologies you will benefit from. Identify key Internet technologies and tools needed for the enterprise, not just for a single project.
• Advocate your vision. Get buy-in to your vision from executive management. Explain key capabilities that will give your company advantage over competition.
• Establish criteria. Build enterprisewide criteria for your company to choose Internet technologies within each layer of the framework.
• Choose your vendors carefully. Ensure vendor standards are compatible with yours. Know who their technology partners are. Examine financial stability.
• Manage key technology decisions centrally. Review and approve key Internet technology investments and architectures for all departments, divisions, and business units.