Software re-use has always been a key part of component-based software models, but it rarely has been practical to implement. Web services may be different. Some early adopters envision syndicating existing software systems (e.g., an investment bank’s derivatives calculator or other complex algorithms) to partners and customers. Other re-use ideas include leveraging the standards-based interoperability to deliver data to a variety of formats and devices (e.g., web browsers, mobile devices, and interactive television).
Automation and Productivity.
Disparate systems still result in a remarkable amount of manual integration processes. As a result, web services’ interoperability promise to yield tremendous opportunities for productivity improvements through automation of business processes and employee productivity. Example projects might include exposing order status tracking and past purchase history to customers. Automation initiatives could yield results similar to the so-called “ATM Effect,” which has helped significantly simplify the cost structure and increase the profitability of retail banking.
Visibility into Operations.
Businesses consistently seek to improve the accuracy of their inventory and revenue forecasts but are constrained by a lack of clear visibility into operating data. Web servicesbased “digital dashboards” are one way adopters hope to address this challenge. Several specific categories of information that are hot-button issues include demand forecasting throughout the supply-chain, real-time cash flow and operating capital, and production and inventory availability. Bottom-line, better visibility will yield a dramatic impact on a company’s cost structure.
Exploring New Business Models.
Most companies evaluating web services today are focused squarely on efficiencies and tend to put new web services-based revenue opportunities into a “sometime in the future” bucket. A few early adopters are exploring new subscription or pay-peruse business models, however. Further down the road, companies may spin off non-strategic (but potentially valuable) web service competencies, just as many tangible assets were “unlocked” at an increased value as stand-alone entities over the past ten years.
Web Services Technologies
- SOAP (Simple Object Access Protocol)
- XML (Extensible Markup Language)
- Common Internet Transport Protocols
- WSDL (Web Services Description Language)
- UDDI (Universal Description, Discovery, and Integration)
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