European Research Institute in Service Science

Business Cases for Service Oriented Applications

To understand the specific business drivers and inhibitors for the adoption of the service oriented approach within firms the research should be focused on different case studies in different business/industry environments. Investment analyses, or business cases, will be conducted to provide answer to three key questions:

• How is Service Oriented Architecture (SOA) related to the business and IS objectives of a firm?
• What tangible and intangible benefits can a SOA achieve in the organization?
• What are required investments, structural costs and risks of SOAs?

If the responses to these questions lead to the conclusion that the application of a SOA in the organization is desirable and rational from a cost-benefit perspective, then there is a positive business case for applying a SOA.

The most important consideration is the extent to which a contribution will be made to the organization's objectives. This consideration will often be decisive and forms the cornerstone of the business case analysis. If such a contribution is identified, the cost-benefit analysis can proceed. The key question is whether these contributions offset the costs involved. If no contribution or no sufficient contribution is made, the preparation of the business case can be stopped. Like in many investments, the benefits offered by a SOA will be quantitative or qualitative.