BPM and SOA – Leading Modernisation Initiatives during the Downturn


In a recent article from CBR it states that research shows evidence that many organisations are focussing their modernisation initiatives around BPM and SOA technologies and approaches.data-analysis

CIOs are abandoning the rip-and-replace culture in favour of modernising existing systems, research from Software AG has revealed. 

The research, which quizzed over 150 IT directors, revealed an appetite for implementation of BPM and SOA initiatives as organisations try to cut costs and improve service delivery in the tough economic climate. “Strategic investment in modernisation will deliver cost cuts and free-up talented IT staff to concentrate on business critical projects and fight the downturn,” Jim Close of Software AG said. 

A priority in ensuring success with modernisation is to choose a preferred set of common tools. In cases where organisations have many disparate data integration tools, rationalisation is required to esure a fit for purpose toolset. Not doing so increases maintenance costs, licensing and having to have a diverse and often specialist skills and resource pool.

Software AG found that 21% of respondents to its poll see application modernisation as a top priority with some 24% of the sites surveyed viewing business process management initiatives as the top choice to fight the downturn.  They said that sloppy process management damaged customer service delivery. 

In further research from Software AG, it found that in Germany companies report that business flexibility supported by IT is a key concern.

The study revealed that financial services companies are significantly ahead of other industries in their adoption of Service-Oriented Architecture (SOA) and Business Process Management (BPM). Despite enduring massive turmoil and organizational change, including forced mergers, a scramble for transparency and major cost-cutting, the financial services industry will bounce back quicker than most.

“More than any other sector, financial services see IT as having a strategic role,” said Dr. Peter Kürpick, Chief Product Officer of Software AG. “Rather than view IT as simply a cost of doing business, banks and insurers value it as an enabler of business growth.”

IT security is of highest importance to financial services companies; however, the study also revealed that IT is not solely a security topic. A full 80% of banks and insurers reported that the creation of a more flexible IT landscape is important or very important. The biggest driver behind implementing a flexible IT infrastructure was the need to gain greater transparency into IT assets and business processes.

To achieve this flexibility, the overwhelming majority of companies—93%—reported that they are looking to enabling technologies, such as SOA and BPM, to leverage existing IT investments, with only 7% of respondents opting for “rip and replace” solutions. More than 56% of financial services companies already work with BPM, and 32% already have complete process management, far ahead of other sectors.

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One thought on “BPM and SOA – Leading Modernisation Initiatives during the Downturn

  1. Pingback: A General Idea on Sap Master Data Management | Maintenance and Repair

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