Web based verses Web enabled solutions - Answering the question of 'Dot Com' versus 'Not Com'

When comparing the advantages of web-based applications versus non web-based or web-enabled applications, TCO issues are frequently referenced. Maintainability, configurability, and scalability all contribute to the cost of implementing and supporting applications. Web-based applications provide unique advantages with regard to these qualities. Maintainability is addressed through the ability to maintain and update software (if any) that exists on mobile or remote devices. Web-based solutions can accomplish this task through “pushing” software updates to the client as the user signs on. The software self-installs and this process is typically unseen by the user and allows the company to eliminate the complications of coordinating updates of software throughout a disparate user environment. Overall version standardization and support is accomplished through this process.

User configurability usually presents an opposing force to standardization of software solutions. Usually a tradeoff exists when systems become more configurable at the user level; the more customized, the more difficult they are to maintain. Web-based solutions provide users the ability to configure their view of the solution and to maintain those profiles in a centrally stored, user configuration table. Users are able to tailor their desktop views usually without the assistance of an information technology professional or software vendor and more important, these changes do not compromise the system’s integrity. User profiles established at this level are available whenever and wherever a user establishes a connection to the system. Therefore, if a user establishes a configuration at work and then accesses the system from a computer at home via Internet connection, their personalized configuration “follows them”. This type of flexibility increases user acceptance of the solution while keeping cost of ownership low.

Scalability is accomplished in a number of ways. First, most web-based solution performance is based on the computing power deployed behind it. From one to thousands of users, web-based applications provide companies access to applications at a fraction of the cost of traditional solutions. Now, solutions traditionally reserved for Fortune 1000 (tier one) companies are available to mid- and lower-tiered companies. The reemergence of application solutions providers (ASP) and application service management (ASM) providers enables users to effectively share the cost of the computing solution with users from across many entities. The impact of leveling the field with regard to access to powerful, automated tools will increase competition in the market and potentially fuel movement in the competitive position of players in various service markets.

The next issue surrounding web-based applications is the communication of data in the form of business objects. In web-based applications the common format is contained in XML (Extensible Markup Language) documents. This method of communication is superior to its predecessors in that XML documents are self-describing transactions. For example, a purchase order contains the information necessary to identify it and its contents as a P.O. The benefit XML provides is effectively exchanging information between business objects. Organizations like RosettaNet have made tremendous strides in defining industry specific standards for many business transactions. Creating standards and making them available to all participants in the market opens the world of eCommerce to many players creating competition and fueling gains in business efficiency. One weakness of the XML strategy and organizations like RosettaNet is that they have focused primarily on commerce based transactions (P.O., ASN, invoices) that support inter-company commerce. However, intra-company transactions such as work orders, inventory issues, and employee update transactions have been largely ignored. Companies that establish standards for these transaction sets and impose them on the marketplace stand to gain significant competitive advantage in the near term and potentially establish a market leadership position in the longer term.