Phase 2: Collaboration The collaboration phase of Web services adoption will drive process and operational improvements in many business areas, provided that the inte- gration hurdles can be overcome and that the tools and technologies are mature  enough  to  enable  true  collaborative  behavior.  Maturation  in  the collaboration  phase  of  Web  services  adoption  will  prepare  organizations for the next phase, innovation. This phase of Web services adoption will spur  a  new  wave  of  rapid  business  change,  which  will  largely  shape  the next wave of Internet expansion worldwide. Phase 3: Innovation During the innovation phase of Web services adoption, organizations will devise completely new ways of doing business based around Web services. These firms will leverage what has been learned from internal integration projects and from collaboration projects with outside customers, partners, and suppliers. These organizations will be able to turn these lessons into new  business  processes  and  new  sources  of  competitive  advantage.  They will use Web services as an innovation platform to drive new levels of busi- ness performance along multiple dimensions of their value chains. The innovation phase will spur a wave of new ideas for how business processes can be distributed, organized, and executed across corporate and industry  boundaries.  With  Web  services,  the  notion  of  industry  conver- gence  has  a  higher  probability  of  realization  because  of  the  widespread agreement  that  it  is  the  right  way  to  conduct  business.  The  innovation phase  of  Web  services  adoption  will  eliminate  major  roadblocks  to  the widespread use of Web services to drive new business process innovation and, ultimately, dramatic levels of business execution and performance. Phase 4: Domination The domination phase of Web services adoption will be the culmination of the previous three phases: integration, collaboration, and innovation. The domination phase is where the winners are separated from the also-rans, based on their ability to drive superior business value through the use of Web services in Distributed Business Process Execution (DBPE). The  domination  phase  will  be  based  on  superior  performance  in business  as  well  as  in  the  use  of  and  innovation  in  Web  services. Dominance will be established by a few organizations in each industry that realized the potential of Web services, both in changing internally the  ways  in  which  organizations  can  operate  and  outperform  their competition using their information technology capabilities. 20 EXECUTIVE’S GUIDE TO WEB SERVICES 74188_WY_Marks_01  2/5/2003  4:08 PM  Page 20