Pragmatic Dictator

Let’s say you sell pottery. Your core business is about making that pottery, perhaps to order but there’s a whole load of additional work you must do around accounting and the like. Perhaps you also ship your pottery via surface carrier, this introduces further work tracking customer details (watch our for pesky privacy regulations), working with couriers etc.

Almost from the get go these days you’ll automate as much of this drudgery as possible using computers, essentially creating a one person IT department that supports your business processes. Obviously the bigger the business gets the more automation you will require, perhaps developing custom software to support the execution of your business processes (all that drudge you have to do but isn’t core). Your IT department will have to grow accordingly, hiring developers, project managers etc.

This standard tale of the relationship between business and technology plays out in many an enterprise every day. IT and in particular software development is a necessary evil, an undesirable cost to be carefully managed.

However for a certain class of enterprise, software is the product. Maybe it’s a shrink wrap product or a set of services provided to customers via the web. There will still be a need to have an IT department to support the business processes and it might well develop software of it’s own. There’s a fundamental difference between these two types of software because one of them is the business’ money generator. This software must be nurtured and tended to carefully, one can’t just add features, one must care about stability, performance, availability, scalability and so on. Money put into this effort is not a cost it’s an investment. Fundamentally, this software is not enterprise IT as most know it.

This key difference is oft-missed by management, vendors and analysts leading to confusion and unnecessary mistakes. I’ll cover one such mistake (related to SOA) in a follow-up post.

Technorati Tags: business, engineering, software

This entry was posted on Saturday, November 24th, 2007 at 10:20 pm and is filed under Business, Software. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.