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What CFOs Need To Know About SOA

Corporate leaders are not happy with their IT department's inability to react to rapidly changing market and competitive conditions, and many are placing their hopes for a more adaptable enterprise in service-oriented architecture (SOA), according to a survey by the Business Performance Management (BPM) Forum and business integration software provider webMethods Inc. SOA is an approach to systems architecture that provides a standardized interface to increase interoperability between applications. SOA breaks down functionality that's typically encased in large, tightly coupled systems into more useful components that can easily be rearranged and linked.

"Most CFOs would agree that the current approach of relying on a series of monolithic systems -- such as ERP, CRM and supply chain management software -- to meet specific requirements doesn't provide businesses with the flexibility and agility that they need to be successful," notes David Mitchell, president and CEO of webMethods. "Too often, data isn't easily accessible, or customer requests for specialized services can't be met in a timely manner. Using a building-block approach, SOA provides enterprises with the ability to reconfigure existing IT assets to more precisely, quickly and cost-effectively meet these needs."

The survey polled more than 300 executives and business line managers in a broad cross section of industries. While only about 17 percent of respondents report that their organization has an SOA initiative well under way, more than one-third (34 percent) say they're in the planning and discussion stage.