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If premium costs lead to better service, insurance helps and
if combined with savvy benchmarking
http://hbsworkingknowledge.hbs.edu/item.jhtml?id=5158&t=strategy
could steer the evolution of the processes and services.
Note the emphasis on commoditization of
services which implies transparent costs.
I note an article at CNet the describes the problems
of 'green' legislation with regards to oursourcing
and transparency and provability. The legislation is
compared to Sarbanes-Oxley where the main value proposition
of the supporting processes is staying out of jail
Note: SOX doesn't create transparency; it results in
less information being published. See Elliot Spitzer.
Note also that which of the definitions one chooses
is related to the value proposition for the definition.
SOA is easy to sell when related to sharable processes.
As soon as it is related to implementation, fights break out.
I spent a part of last week and the weekend trying to
describe why Google and a "Google for Law Enforcement"
is a problematic comparison and it is much like the
Wal-Mart vs Armani comparison. It is a very different value
proposition. The outputs may look the same in terms of
the GUI, but the business objects underneath are very
different. It would be fun to chat with Google about that
but I'm not smart enough.
So one turns to differentiated services to improve processes
and one works very hard to determine if the processes are
truly comparable or commodities, or if they have a higher
value proposition.
len
From: Chiusano Joseph [mailto:chiusano_joseph@bah.com]
> When accepting business
> processes as sharable, that is a very dangerous assumption,
> so sharing services is inherently less dangerous than sharing
> processes. On the other hand, in a system built up over
> outsourced components, services and processes, the legal
> principles are such that he who offers the process assumes
> the duty and then, the opaqueness of the service makes it
> difficult to manage the risk. It will be interesting to see
> the outcome of negligence torts based on *respondeat
> superior* where the system is SOA-conforming.
That's where service insurance comes in:
http://lists.xml.org/archives/xml-dev/200410/msg00010.html
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