Summary
IT acquisitions are common, and there's an easy-to-use model for predicting when the optimal value exists.
Analysis
Oracle’s aquisition of GoldenGate is valuable in adding real-time data integration to the database giant, yet it’s important to keep the value of real time capabilities in perspective. Javelin’s Customer Driven Architecture (CDA) model postulates that the value of specific system capabilties (such as the ability to render data in real-time) is dependent on providing the particular capability at the optimal time. CIO’s have an endless number of capabilities they can invest in to optimize customer experience and profits, and the point of the CDA is twofold: 1) particular technology capabilities are most vital (of which ‘real time’ is the second of seven) to optimize the customer relationship and 2) the sequence of deployment for these capabilities determines optimal IT return on investment. The CDA model says that real-time capabilities build on always-on connections, and then brings about increased demand for integrated status information. It’s good to see Oracle investing in real-time capabilties, yet the right roadmap steps and sequence will be required to convert technology deployment into customer ROI for financial services relationships.
James Van Dyke consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
