ArchOptions: A Real Options-Based Model for Predicting the Stability of Software Architectures

Architectural stability refers to the extent an architecture is flexible to endure evolutionary changes in stakeholders\' requirements and the environment. We assume that the primary goal of software architecture is to guide the system\'s evolution. We contribute to a novel model that exploits options theory to predict architectural stability. The model is predictive: it provides \"insights\" on the evolution of the software system based on valuing the extent an architecture can endure a set of likely evolutionary changes. The model builds on Black and Scholes financial options theory (Noble Prize wining) to value such extent. We show how we have derived the model: the analogy and assumptions made to reach the model, its formulation, and possible interpretations. We refer to this model as ArchOptions

Using real options to select stable Middleware-induced software architectures

The requirements that force decisions towards building distributed system architectures are usually of a non-functional nature. Scalability, openness, heterogeneity, and fault-tolerance are examples of such non-functional requirements. The current trend is to build distributed systems with middleware, which provide the application developer with primitives for managing the complexity of distribution, system resources, and for realising many of the non-functional requirements. As non-functional requirements evolve, the `coupling' between the middleware and architecture becomes the focal point for understanding the stability of the distributed software system architecture in the face of change. It is hypothesised that the choice of a stable distributed software architecture depends on the choice of the underlying middleware and its flexibility in responding to future changes in non-functional requirements. Drawing on a case study that adequately represents a medium-size component-based distributed architecture, it is reported how a likely future change in scalability could impact the architectural structure of two versions, each induced with a distinct middleware: one with CORBA and the other with J2EE. An option-based model is derived to value the flexibility of the induced-architectures and to guide the selection. The hypothesis is verified to be true for the given change. The paper concludes with some observations that could stimulate future research in the area of relating requirements to software architectures

An Architectural Approach to Managing Knowledge Stocks and Flows: Implications for Reinventing the HR Function

Sustainable competitive advantage is increasingly dependent upon a firm’s ability to manage both its knowledge stocks and flows. We examine how different employees’ knowledge stocks are managed within a firm and how—through their recombination and renewal—those stocks can create sustainable competitive advantage. To do this, we first establish an architectural framework for managing human resources and review how the framework provides a foundation for studying alternative employment arrangements used by firms in allocating knowledge stocks. Next, we extend the architecture by examining how knowledge stocks (human capital) can be both recombined and renewed through cooperative and entrepreneurial archetypes. We then position two HR configurations to focus on facilitating these two archetypes. By identifying and managing different forms of social capital across employee groups within the architecture, HR practices can facilitate the flow of knowledge within the firm, which ultimately leads to sustainable competitive advantage

Human Resources Strategy: The Era of Our Ways

The purpose of this chapter is to discuss some of the main features and trends in human resources (HR) strategy. Inasmuch as people are among the most important resources available to firms, one could argue that HR strategy should be central to any debate about how firms achieve competitive advantage. But this “people are our most important asset” argument is actually fairly hollow in light of the evidence. Far too many articles on HR start with this premise, but the reality is that organizations have historically not rested their fortunes on human resources. The HR function remains among the least influential in most organizations, and competitive strategies have not typically been based on the skills, capabilities, and behaviors of employees. In fact, as Snell, Youndt and Wright (1996:62) noted, in the past executives have typically tried to “take human resources out of the strategy equation--i.e., by substituting capital for labor where possible, and by designing hierarchical organizations that separate those who think from those who actually do the work.

Applying ArchOptions to value the payoff of refactoring

ArchOptions is a real-options based model that we have pro-posed to value the flexibility of software architectures in response to future changes in requirements. In this paper, we build on ArchOptions to devise an options-based model, which values the architectural flexibility that results from a refactoring exercise. This value assists in understanding the payoff of investing in refactoring: if the refactored system results in an architecture that is more flexible, such that the expected added value (in the form of options) due to the en-hanced flexibility outweighs the cost of investing in this exer-cise, then refactoring is said to payoff. We apply our model to a refactoring case study from the literature

The Role of IT/Business Alignment for Achieving SOA Business Value - Proposing a Research Model

What is the interplay between IT/Business alignment and Service-oriented Architecture (SOA) regarding the achievement of business value in terms of business flexibility? This paper introduces a conceptual model that derives propositions about how IT/Business alignment, IT flexibility, and business flexibility are interrelated and how SOA and alignment interact in order to increase business flexibility. We apply and integrate well-known multi-dimensional concepts of both IT/Business alignment (in terms of strategic alignment, structural alignment, and social alignment) and IT flexibility (technical and non-technical IT flexibility) and map the conceptual components of SOA (architectural and the governance dimension) to this resulting model. This conceptualization will allow for more profoundly structured research on how SOA contributes to business value

Evaluating Software Architectures: Development Stability and Evolution

We survey seminal work on software architecture evaluationmethods. We then look at an emerging class of methodsthat explicates evaluating software architectures forstability and evolution. We define architectural stabilityand formulate the problem of evaluating software architecturesfor stability and evolution. We draw the attention onthe use of Architectures Description Languages (ADLs) forsupporting the evaluation of software architectures in generaland for architectural stability in specific

Intellectual Capital Architectures and Bilateral Learning: A Framework For Human Resource Management

Both researchers and managers are increasingly interested in how firms can pursue bilateral learning; that is, simultaneously exploring new knowledge domains while exploiting current ones (cf., March, 1991). To address this issue, this paper introduces a framework of intellectual capital architectures that combine unique configurations of human, social, and organizational capital. These architectures support bilateral learning by helping to create supplementary alignment between human and social capital as well as complementary alignment between people-embodied knowledge (human and social capital) and organization-embodied knowledge (organizational capital). In order to establish the context for bilateral learning, the framework also identifies unique sets of HR practices that may influence the combinations of human, social, and organizational capital