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2. Service Vitality Index
The Service Vitality Index is the amount of revenue from new services over the last 12 months as a proportion of total service revenue. You can't simply throw more money at service orientation and expect a proportional return on the investment. But the problem is there are no standardized metrics for measuring the investment value of SOA. And the three most commonly used means for measuring development cost and impact - 1) percent of sales, 2) R&D headcount, and 3) number of patents acquired - are flawed. None of these measures are owned by R&D. The percent of sales and headcount are cost-driven, and the number of patents does not give you an indication of future value.
A better way to track the service impact on the business is to track the revenue and return on investment directly related to innovation. For example, to do this, Symphony Services combines a Service Vitality Index with Service-oriented ROI measurements.
The Service-oriented Vitality Index, or SoVI, is the ratio of revenue generated from a service (or services) over the last 12 months as compared with all other existing SOA revenue. This is a revenue view of service orientation (as is the case with revenue per service) verses a spend view. For example, assume a company has four SOA product lines that have a combined return of $100 million in total revenue. Three of these four products have been earning revenue for more than a year. And the fourth SOA product was released just under a year ago and contributed $5 million to annual revenues. This company's SoVI would be 5/100 or 5%. Healthy organizations should strive for a SoVI of 10%-20%, which compounded over time, will result in a 100% turnover in revenue from new products every five years.
The second and supporting metric is called the Service-oriented ROI. SoROI accounts for the money invested in service-oriented development. The SoROI is the cumulative before tax profits over "N" number of years from SOA-driven products divided by the cumulative product expenditures for that same period. This can be further enhanced by discounting both revenue and cost as a function of prevailing and forecasted interest rates. The SoROI allows you to compare overall SOA values independent of their size.
Combining both the Service-oriented Vitality Index and the SoROI provides a much clearer picture of a company's SOA health. Using these direct measures of service-orientation, companies can foresee the revenue implications of unfocused R&D years earlier than with traditional measures. To foresee is to be forewarned, a metaphor realized through the Service-oriented Vitality Index.
Management Metrics
3. Number of New Services Generated and Used as a Percentage of Total Services
Organizations with non-existent or poor SOA governance often see out-of-control service proliferation (high ratio of new services as a percentage of total services). Uncontrolled development teams often look to create new service after new service, not thinking about re-choreographing existing implementations to achieve the desired business value. Not only does this drive the total cost of service development up, but it also reduces the average revenue per service, indicating poor service development productivity.
4. Mean Time to Service Development (MTTSD)
If one of the benefits of SOA is business agility, then how do you measure that? MTTSD provides a statistical measure, along with a range of certainty, of the average time to stand up a service. Organizations new to SOA development (those with a low SOA maturity level) can see development time 10 times longer than those that have a managed or optimized SOA organizations (high SOA maturity level). Reducing MTTSD is a key benefit of SOA governance; that is, those activities related to the control of services in a SOA environment.
5. Mean Time to Service Change (MTTSC)
Just as with MTTSD, it is equally important to understand how long it takes to change a service. Business agility is measured both by creation and change. Services that are created quickly often lack the commercial rigor that stands the test of time. MTTSC can point out those services that have been poorly created and costing the organization in terms of effort and lost opportunity costs.
6. Service Availability
Service availability is the percentage of time a service is usable by the end user. It is a measure of the total delivery system from having defect-free services to operable data centers. Low serviceability (less than 99.9%) need to be dealt with immediately since they impact customer satisfaction. Triaging service orchestration and choreography, service discovery through registries, as well as service load balancing and failure, are three activities performed by organizations when service availability is unacceptable.
Project Metrics
7. Service Reuse
Development organizations have a tendency to rebuild what has already been built, a continuance of the "not invented here" syndrome. If business agility is based on the ability to stand up services quickly, then creating services quickly is based on reusing what you have. As part of an overall SOA governance process, measuring the degree to which you reuse services is critical for keeping development costs low and business agility high.
8. Cost of Not Using or Stopping a Service
One of the least understood business costs in a SOA environment is the cost of not using or stopping an existing service. Not only are there obvious lost opportunity costs that can be measured in terms of revenue, but development costs as well. The end value delivered to users is often composed of many choreographed services, each delivering unique value. A well-designed SOA implementation has low shutdown or switching costs.
Service Development Metrics
9. Service Complexity as Measured Through Cyclomatic Complexity
The cyclomatic complexity of a service is the single measure that will determine if your service is testable and maintainable. Studies have shown that services with cyclomatic complexity greater than 50 are not testable and often result in 10%-20% more maintenance efforts than those services whose cyclomatic complexity is less than 10.
10. Service Quality Assurance
Service Quality Assurance is based on systems-level tests that examine the behavior of service-oriented use cases across possible choreographies [derived through service code coverage]. As in the case of code coverage, we look to determine how much of the code was executed during the course of testing (which is still important for developers), but here we look to address how much of the service use case was executed. In this case we look to develop systems-level tests that execute all service use cases across all possible choreographies. In the case of code coverage, we know that the cyclomatic complexity number tells us how many test cases are needed (e.g., a CC of 10 implies a minimum of 10 test cases). However, this is not necessarily the case with service coverage, because of the emergent behavior implications. In this case, we need to apply specific design of experiment processes and tests to statistical outcomes (e.g., we are 95% confident that the system behaves within the specified requirements parameters).
Conclusion
Several of the industry's most well-known SOA pundits, like David Linthicum and Joe McKendrick, have debated SOA metrics - which ones work, which ones don't, and why SOA needs to be measured in the first place. That debate will continue to take place as SOA adoption matures, and executive management grapples for some tangible evidence that SOA is "working." While perhaps the 10 measure outlined here are not the traditional measures companies think about when discussing SOA implementations, they do provide some level of transparency into operational issues that impact SOA agility and therefore serve as effective starting points to translate SOA into a successful - and measurable - endeavor.
Published August 5, 2008 Reads 1,863
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More Stories By Jerry Smith
Dr. Jerry Smith, CTO at Symphony Services (www.symphonyservices.com), is a technology innovator and IT strategist focused on helping the company and its clients derive business value from the successful adoption and use of critical technologies. Previously, he was CTO, vice president of engineering and acting CIO for IPR International, a technology services company specializing in the protection and preservation of electronic information.
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