Web services strategy

Abstract

Everything is connected to everything. El Aleph (1945), by Jorge Luis Borges[1] This thesis addresses the need to simplify and streamline web service network infrastructure and to identify business models that best leverage Web services technology and industry dynamics to generate positive business results. Web services have evolved from the simple page-display protocol of their origin and now reach beyond the links that simply updated web data dynamically from corporate databases, to where systems can automatically transact. These Web services represent a series of network business technology standards and capabilities that irrevocably change the way in which businesses will do business. In fact, every business today is a networked business and has opportunities to grow using Web services. This study focuses on the implementation challenges in the financial services market, specifically the On Line Transaction Processing (OLTP) sector where legacy mainframes interface with multiple tiers of distribution through proprietary EDI links. The OLTP industry operates under stringent regulatory requirements for availability and audit-ability of not only who performed what transaction, but who had access to the information about the information. In this environment organizational demands on network infrastructure including hardware, software and personnel are changing radically, while concurrently Information Technology (IT) budgets are under pressure. The strategic choices for deploying web services in this environment may contain lessons for other industries where cost effective large scale processing, high availability, security, manageability and Intellectual Property Rights (IPR) are paramount concerns. In this paper we use a systems dynamics model to simulate the impact of market changes on the adoption of innovative technologies and their commoditization on the industry value chain, with the aim of identifying business models and network topologies which best support the growth of an Open Systems network business. From the results of the simulation we will derive strategic recommendations for networked business models and web services integration strategies to meet Line Of Business (LOB) objectives.