An Approach to Extract the Business Value from SOA Services

• Published in: Exploring Services Science Vol. 82; pp. 42 - 52
• Main Authors: Kryvinska, Natalia, Auer, Lukas, Strauss, Christine
• Format: Book Chapter
• Language: English
• Published: Germany Springer Berlin / Heidelberg 2011; Springer Berlin Heidelberg
• Series: Lecture Notes in Business Information Processing
• Subjects: Break-even Point (BEP); Business Value Analysis (BVA); Cost-volume-profit (CVP); Information Technologies (IT); Return of Investments (ROI); Service-Oriented Architecture (SOA)
• ISBN: 9783642215469; 3642215467
• ISSN: 1865-1348; 1865-1356
• DOI: 10.1007/978-3-642-21547-6_4

Enterprises deploy SOA for the cost-effective flexibility and enhanced usage of legacy IT. But, the shift to SOA does not come easy and cheap. Building an effective SOA platform requires tight integration between new and existing product categories, and it may require large investments. Therefore, conventional investment valuation methods need to be combined with other modern techniques to reflect SOA’s long-term strategic investment nature, the inherent uncertainty and the managerial discretion. Some emerging value-based analytical methodologies have started to be developed extensively under the umbrella concept of Business Value Analysis (BVA). However, BVA is not yet a wholly integrated and the theoretical foundation for it needs to be strengthened. Thus, in this paper, we apply modified CVP/BEP method developed under the BVA umbrella for the evaluation of SOA projects, in particular for the services reuse.