Pace-Layered Application Strategy: A Look at Systems of Record

First and foremost - If you are at Oracle Open World this week be sure to stop by AVIO's booth in Moscone South Booth 624.

Gartner’s Pace-Layered Application Strategy helps IT better manage application portfolios. Rather than categorizing applications by acronyms like CRM or ERP, applications are divided into three layers (system of record, system of differentiation, system of innovation) based upon their specific functions and processes.

By considering the core characteristics of each layer, IT is in a better position to develop more appropriate strategies for each. Let’s take a closer look at the first layer.

Systems of record

The system of record layer is the foundation the other layers rely on. Without a healthy system of record layer, the business’s innovation and differentiation goals simply cannot be met. More specifically, a system of record includes packaged applications or homegrown systems that support essential transaction processing, and manage vital master data and common business processes.

As the system of record layer contains processes that are usually well-established and highly-regulated, there is a low rate of change. Organizations should look within the layer for areas of differentiation and innovation though—activities within a system of record may still offer the opportunity for both. 

Managing systems of record

A good rule of thumb is to manage systems of record on at least a 7-year planning horizon—which means organizations should maintain a clearly outlined long-term capital funding plan that includes planned upgrades. Just because systems of record often involve standard, everyday processes does not mean they do not require regular upgrades and funding.

It all goes back to the foundation. Systems of record are vital assets and should be maintained as such. On a faulty foundation, applications and processes in the differentiation and innovation layers will suffer.  

Using connective technologies

While systems of record make up common processes, they should not be utilized as the sole repository for processes. The unnatural extension of a system of record will cause significant challenges as time goes by as more and more critical business logic is embedded in the system of record. And because logic would then be in the system of record, they become extremely hard to maintain and even more difficult to change and respond in a timely manner to new business objectives. Therefore, organizations should establish new data and process requirements specific to the system of record layer. Using a Business Process Management (BPM) or Service-Oriented Architecture (SOA) solution will help. BPM technology helps manage rapid business process changes, making it especially useful for developing more flexible systems of record.

Getting started

Read our blog to learn more about BPM and the system of record layer.

Consider leveraging a partner with experience implementing the connective technologies that support systems of record. As the first Specialized Partner in North America for Oracle’s unified BPM and SOA solutions, AVIO Consulting has proven expertise. Contact us at (972) 608-4777 or info@avioconsulting.com for more information.

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About AVIO Consulting
AVIO Consulting is an IT strategy and consulting firm focused on helping businesses realize the value of their Oracle Fusion Middleware and WebCenter Content investments. Our ability to define visions and engineer solutions has established AVIO as a premier Oracle partner. Founded in 2007, AVIO has been recognized as one of the fastest growing, privately held companies by the Dallas Business Journal. For more information visit www.avioconsulting.com

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