Presentation
Financial Models for
Architectural Flexibility
Changing an enterprise landscape to a flexible and adoptable architecture generates
cost; and building systems in a more flexible, reusable way tends to increase
budgets.
In this context, an enterprise architecture function has
to justify the expenditure. This not only mandates measuring
its achievements; it also demands for models which value
architectural options on a predictive basis.
Real Options are an approach to structure and assess architectural
approaches and patterns from a financial perspective. They
allow to construct a quantitative model supporting the decision
making process. Traditionally, however, this model has fallen
short of providing acceptable volatilities.
Infosys is using a model built on implied volatilities
derived from real-world architectural decisions. We find
a correlation between the technology adoption profile of
companies and the volatilities attributed to flexibility.
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