I’ve long believed many large and mid-size organizations are missing an opportunity by not “engaging” in IT architecture. I confirmed it again the other day during an informal discussion with David C. Robertson, professor at IMD in Lausanne, Switzerland, and one of the authors of the book “Enterprise Architecture as Strategy”.
For the second year running we have surveyed European telecoms on their IT use. Our benchmark study looks at IT spending as a share of revenues and also probes the IT effectiveness of telecom operators. While the IT spend on revenues is easy to measure, IT effectiveness is more complicated. We have developed a score that takes into account three key dimensions: time-to-market for new products and new tariffs, IT service availability and functional coverage per key IT domain (e.g., sales & marketing, provisioning).
Preliminary findings show that fixed line operators have improved their cost position by about 1 percentage point, which is a a significant improvement, while their effectiveness score rose by about 10 percent. Mobile operators have not improved their cost position but have improved their IT effectiveness by about 6 percent.
There’s a lot of buzz around the idea that service oriented architecture (SOA) is dead. It’s true that there haven’t been many fans of this somewhat difficult concept, and there haven’t been a lot of large scale success stories for IT departments to brag about. And let’s face, it, it’s hard for businesses to build a strong case for something that promises “improved agility”.
