Exploring determinants influencing a service-oriented enterprise strategy

Abstract

Due to the convergence of rapid business developments and digitization challenges firms need to become more agile. A service-oriented enterprise (SOE) strategy is an approach that decomposes an enterprise into business services that are modular, accessible, and interoperable, in which parts can be provided in-house, or outsourced to the market. The SOE concept has mainly been approached from a technological view and little is known about what type of strategic SOE determinants are relevant. A firm’s strategy to implement an SOE requires top management support. Therefore, insights at executive level are a prerequisite to identify strategic business directions. We conducted a literature review and a qualitative case study amongst eleven firms at executive level in various industries. Business services, business processes, and enabling technology were found in the literature as key determinants influencing a firm’s SOE strategy. Subsequently, the interviews at executive level identified that organizational readiness, knowledge and skills, and governance also affect the SOE strategy of firms. We suggest that a holistic view is required to study the complexity of an SOE. By using an executive view we contribute to IS and business literature as strategic SOE determinants become more explicit.