TY - JOUR U1 - Wissenschaftlicher Artikel A1 - MacCormack, Alan A1 - Lagerstrom, Robert A1 - Mocker, Martin A1 - Baldwin, Carliss T1 - Designing an agile software portfolio architecture: the impact of coupling on performance JF - Working papers / Harvard Business School, Division of Research N2 - The modern industrial corporation encompasses a myriad of different software applications, each of which must work in concert to deliver functionality to end-users. However, the increasingly complex and dynamic nature of competition in today’s product-markets dictates that this software portfolio be continually evolved and adapted, in order to meet new business challenges. This ability – to rapidly update, improve, remove, replace, and reimagine the software applications that underpin a firm’s competitive position – is at the heart of what has been called IT agility. Unfortunately, little work has examined the antecedents of IT agility, with respect to the choices a firm makes when designing its “Software Portfolio Architecture.” We address this gap in the literature by exploring the relationship between software portfolio architecture and IT agility at the level of the individual applications in the architecture. In particular, we draw from modular systems theory to develop a series of hypotheses about how different types of coupling impact the ability to update, remove or replace the software applications in a firm’s portfolio. We test our hypotheses using longitudinal data from a large financial services firm, comprising over 1,000 applications and over 3,000 dependencies between them. Our methods allow us to disentangle the effects of different types and levels of coupling. Our analysis reveals that applications with higher levels of coupling cost more to update, are harder to remove, and are harder to replace, than those with lower coupling. The measures of coupling that best explain differences in IT agility include all indirect dependencies between software applications (i.e., they include coupling and dependency relationships that are not easily visible to the system architect). Our results reveal the critical importance of software portfolio design decisions, in developing a portfolio of applications that can evolve and adapt over time. KW - information systems KW - software KW - architecture KW - modularity KW - agility KW - coupling Y1 - 2017 U6 - https://nbn-resolving.org/urn:nbn:de:bsz:rt2-opus4-14058 UN - https://nbn-resolving.org/urn:nbn:de:bsz:rt2-opus4-14058 UR - http://www.hbs.edu/faculty/Pages/item.aspx?num=52707 SN - 0749-4610 SS - 0749-4610 VL - 17 IS - 105 SP - 1 EP - 40 S1 - 40 PB - Harvard Business School CY - Boston, Mass. ER -