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Build vs. Buy vs. Rent: Rental Applications Are Becoming More Competitive by Paul D. Hamerman - Forrester Research
"What is the potential of rental, pure-play hosted application
vendors to compete with established licensed software vendors for common
business functions, for example, accounting, human resources, enterprise
resource planning (ERP) and customer relationship management (CRM)?"
Build vs. Buy vs. Rent: Enterprise Application Strategies by Erin Kinikin - Forrester Research
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Choosing to buy or build or
rent enterprise applications depends on the maturity of the application, the
scope of the requirements and the fit of the application to company needs.
Generally, the advantages of packaged applications are depth of functionality
and future flexibility to add and deepen functionality. Custom-built
applications offer pay-as-you-go cost (especially for small deployments) and
more customized fit (potentially greater benefits). Application service
providers (ASPs) provide fast time to market and low maintenance costs, but the
least long-term flexibility. All three approaches present risk: provider
viability, availability of expertise and the business cost of missing critical
functionality.
Buy vs. Build: The Best of Both Through Service Orientation by Randy Heffner - Forrester Research
How do the emergence of service orientation and the maturing of layered application architectures change the dynamics of buy vs. build decisions for enterprise applications
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How do the emergence of service orientation and the maturing of
layered application architectures change the dynamics of buy vs. build decisions for enterprise applications? -
Service orientation enables a mix of buy and
build, - 5 more annotations...
Buy vs. Build vs. Rent: The Right Application Strategy Depends on Company Needs by Erin Kinikin - Forrester Research
What's the real story on the trade-off of buy vs. build? (We find that departmental applications often cost six to eight times as much to buy than to build.)
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Generally, the advantages of packaged applications are depth of functionality
(more benefits faster) and future flexibility to add and deepen functionality
(without writing it from scratch). -
The advantages of custom-built applications are pay-as-you-go cost (especially
for small deployments) and more customized fit (potentially greater benefits). - 5 more annotations...
Buy vs. Build: The ERP/Comprehensive Enterprise Application Perspective by Byron Miller - Forrester Research
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It does not make sense to develop software for application areas that are truly
common to businesses in general. This is especially true of areas such as
finance and human resources where there are substantial offerings with every
conceivable configuration option. -
It does make sense to develop software where the vendors have not provided deep
or broad enough vertical coverage or where there are other specialty needs - 1 more annotations...
MyPage Community
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- Traditional technical domain and component models must be augmented with
more applied end-to-end models (technical patterns) and shared-infrastructure
models (technical services) as key planning concepts.
- Traditional technical domain and component models must be augmented with
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Through 2010, IT organizations that fail to develop enterprisewide, structured
approaches to reduce technology complexity will be unable to quickly deliver or
upgrade high-quality, cost-efficient solutions for the business - 3 more annotations...
IBM's Acquisition of Ilog Will Fill Gap in WebSphere
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IBM Buys Wisely. IBM's planned acquisition of Ilog will fill
a serious gap in native WebSphere business rule-processing functionality,
especially as IBM seeks to dominate the business process management suite (BPMS)
market, and show leadership in complex event processing (CEP) and
service-oriented architecture (SOA). While IBM partners with Fair Isaac,
Corticon Techologies and Ilog — for example, Ilog provides visualization
capabilities for WebSphere Business Events and is a common partner with IBM's
FileNet — IBM's lack of direct ownership of quality rule-processing technology
limits its reach, vision and credibility when compared to BPMS vendors such as
Pegasystems. With Ilog, IBM will gain a premier BRMS. In addition, IBM is
expected to leverage Ilog's presence in optimization and visualization —
emerging topics that are relevant to BPMS and business activity monitoring/CEP
opportunities.
Rule Engines and Event Processing
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- One of the major benefits of a BRMS is that it can identify the
relationships among rules, expose inconsistencies and make it easier for users
to resolve those inconsistencies. - BRMS and CEP engines can be used to support human decision making or to
compute fully automated decisions. - Rule engines in BRMSs are typically request-driven, while CEP engines are
typically event-driven. This largely determines the technical architecture of
each product type. - There is nothing to prevent a vendor from creating a single product that is
good at both kinds of rule processing, but the algorithms and technical
architectures used for each would need to be different.
Key Findings
- One of the major benefits of a BRMS is that it can identify the
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- Use a BRMS or CEP system to externalize business rules in applications in
which the rules change frequently or can be shared among multiple applications. - Use a BRMS for operational applications in which complex business decisions
are made for transactions that can be processed individually. - Use a CEP system for calculations that involve time windows, patterns or
aggregate results (such as totals and averages) on a large set of event data
considered together.
Recommendations
- Use a BRMS or CEP system to externalize business rules in applications in
Taking the Mystery Out of Business Rule Representation
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- Decision tables and decision trees are popular, user-friendly formats for
business rule representation. - Standards for business rule management are not well-embraced. Expect
differences in how vendors implement their business rule representation
approaches. - Pure natural language is not ready for the BRM market, so enterprises should
not consider it as a solution to their business rule needs.
Key Findings
- Decision tables and decision trees are popular, user-friendly formats for
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- Select your business rule representation approaches based on your own
understanding of the trade-off between complexity (what you put into the effort)
and linguistic power (what you will get out). - Consider simpler approaches when your users are nontechnical, business
process owners who prize simplicity and clarity over power. - Consider structured languages for IT-savvy users who are familiar with
programming languages and concepts and who want more linguistic power in their
business rule implementations. - Consider constrained natural languages (limited syntax, vocabulary and so
on) when syntactic variation, flexible levels of textual interaction (for
example, querying in natural language), and other "it must read like English,
French or German" requirements are in place. - Although the benefits are substantial, investments in an ontology and/or a
taxonomy are not required for every BRM effort.
Recommendations
- Select your business rule representation approaches based on your own
- 1 more annotations...
The Art and Science of Rules vs. Process Flows
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- For processes with low volatility and a strong core stream with few possible
paths, then most activity should be folded into the process itself, including
rules. - For processes with high volatility and with many exceptions, there should be
a focus on having most activity based on explicit rules. - Most processes have a mix of strong core process paths and evolving
exceptions, so understanding the process/rule continuum will enlighten process
designs. There are a good number of options that leverage the best of both.
Key Findings
- For processes with low volatility and a strong core stream with few possible
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- Organizations should perform a volatility analysis on rules and flows to
determine the agility needs of the eventual process. - Organizations are encouraged to project agility needs over the long term by
considering likely business scenarios. - Organizations with strong planning cultures and/or with higher-risk
situations should plan for greater volatility that will need to be managed and
linked to planned business scenarios. In this case, organizations are likely to
plan for outlier scenarios. - Organizations that have a higher component of rules in and around their
processes are encouraged to practice business rule management. - Organizations should expect to blend rules and processes, and that means
blending rule technology (for example, business rule management system [BRMS]
and business rule engine [BRE]) and process technology (for example, business
process management systems [BPMSs]).
Recommendations
- Organizations should perform a volatility analysis on rules and flows to
- 2 more annotations...
What is ERP?
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ERP's main goal is to integrate data and processes from all areas of an
organization and unify it for easy access and work flow. -
ERP's usually accomplish integration by creating one single database that
employs multiple software modules providing different areas of an organization
with various business functions - 2 more annotations...
Introducing Pattern-Based Strategy
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success will largely continue to be measured in terms of growth, profit, cash
and company value. -
we expect an increased focus on detecting leading indicators of change in order
to detect change (innovations or disruptions) early and quantify risk, rather
than an obsessive focus on lagging indicators of performance.
Five Eras of IT Business Value Add: From Automation to Pattern-Based Strategy
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There are five unique IT value-added models: automating business processes,
augmenting people's capabilities (productivity enhancement), e-commerce,
externalizing the enterprise and acting on novel signal patterns. -
Externalizing the enterprise, in particular embedding the enterprise into the
markets it serves via Web 2.0 marketing, product strategy, "crowdsourcing,"
external community involvement and similar techniques, is a new, mandatory
competency - 1 more annotations...
A Business-Oriented Foundation for Service Orientation
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To deliver against these objectives, we propose conceiving the business as a
network of capabilities. A capability models what a business function
does—its externally visible behavior (versus how it does it, its
internal behavior)—and the expected level of performance
Burton Group Related Research Summary: Identifying and Enabling Business Capabilities
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A business capability is identified by focusing on what the business
does as opposed to how the business does it -
A business capability is identified by focusing on what the business
does as opposed to how the business does it - 7 more annotations...
The Time Has Come To Eliminate Paper Statements by Emmett Higdon, Elizabeth Davis - Forrester Research
What's the state of eStatement adoption in the US? It appears to have leveled out a bit, according to data from Forrester's North American Technographics® Online Banking Survey, Q1 2009 (US). An average of 55% of online checking, savings, and credit card customers today receive an eStatement, roughly the same rate as in our Q2 2008 study. What's holding back wider adoption of eStatements? Across product types, almost 50% of consumers continue to blame it on needing a paper statement for their records. The time has come to show users how they can find last year's statement and then save or print a copy.
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What's the state of eStatement adoption in the US? It appears to have leveled
out a bit, according to data from Forrester's North American Technographics®
Online Banking Survey, Q1 2009 (US). An average of 55% of online checking,
savings, and credit card customers today receive an eStatement, roughly the same
rate as in our Q2 2008 study. What's holding back wider adoption of eStatements?
Across product types, almost 50% of consumers continue to blame it on needing a
paper statement for their records. The time has come to show users how they can
find last year's statement and then save or print a copy -

- 1 more annotations...
SOA Security 2009: Requirements And Design by Randy Heffner - Forrester Research
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tech industry is making slow progress maturing a comprehensive set of
standards-based architectures and design patterns for SOA security. -
those organizations with the most-complex SOA security requirements will find
that they must do a fair degree of custom development in their SOA security
solutions and that they are among a small group of users with experience using
advanced SOA security specifications. - 4 more annotations...
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