2005Journal of the Association for Information SystemsOpen access

Extensible Architectures: The Strategic Value of Service Oriented Architecture in Banking

Richard Baskerville, Marco Cavallari, Kristian Hjort‐Madsen, Jan Pries‐Heje, Maddalena Sorrentino, Francesco Virili

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Abstract

Information and communication technology (ICT) has helped to drive increasingly intense global competition. In turn, this intensity increases the need for flexibility and rapid changeability in ICT to support strategies that depend on organizational agility. We report a comparative, cross-cultural case study of the implementation of Service Oriented Architectures (SOA) at a Scandinavian bank and a Swiss bank. The strategic rewards in the adoption of SOA appear to go beyond marketplace issues of ICT capability acquisition, and unexpectedly arise in the creation of an extensible organizational ICT architecture. The extensibility of the ICT architecture that results from the adoption of SOA provides potential for greater organizational agility (and thereby competitiveness).

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Information and communication technology (ICT) has helped to drive increasingly intense global competition. In turn, this intensity increases the need for flexibility and rapid changeability in ICT to support strategies that depend on organizational agility. We report a comparative, cross-cultural case study of the implementation of Service Oriented Architectures (SOA) at a Scandinavian bank and a Swiss bank. The strategic rewards in the adoption of SOA appear to go beyond marketplace issues of ICT capability acquisition, and unexpectedly arise in the creation of an extensible organizational ICT architecture. The extensibility of the ICT architecture that results from the adoption of SOA provides potential for greater organizational agility (and thereby competitiveness).

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Available abstract

Information and communication technology (ICT) has helped to drive increasingly intense global competition. In turn, this intensity increases the need for flexibility and rapid changeability in ICT to support strategies that depend on organizational agility. We report a comparative, cross-cultural case study of the implementation of Service Oriented Architectures (SOA) at a Scandinavian bank and a Swiss bank. The strategic rewards in the adoption of SOA appear to go beyond marketplace issues of ICT capability acquisition, and unexpectedly arise in the creation of an extensible organizational ICT architecture. The extensibility of the ICT architecture that results from the adoption of SOA provides potential for greater organizational agility (and thereby competitiveness).

Key concepts: Information and Communications Technology, Extensibility, Architecture, Service-oriented architecture, Flexibility (engineering), Competition (biology), Knowledge management, Service (business)

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