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Economies of Scale in Software

Economies of Scale in Software. Economies of Scale: “The increase in efficiency of production as the number of goods being produced increases.” Question to Consider: “Can we increase the efficiency of software production?”. Economies of Scale in Software. Software Product Line Successes

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Economies of Scale in Software

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  1. Economies of Scale in Software Economies of Scale: “The increase in efficiency of production as the number of goods being produced increases.” Question to Consider: “Can we increase the efficiency of software production?”

  2. Economies of Scale in Software • Software Product Line Successes • Planning for Success • IDI’s Offerings

  3. Success Stories for Software Product Line Methods • Bell Labs / AT&T / Lucent • Product Line: 5ESSTM switching system (many flavors) • Virtually every phone call goes through a 5ESS • 10 Million lines of software source code • In 1990’s, certain aspects of software redesigned • Used “software product line” methods • Software Engineering Productivity improved 3x to 5x

  4. Success Stories for Software Product Line Methods • Owen Firmware Cooperative - Hewlett Packard • Product Line: printers / copiers / scanners / fax devices • Cooperation of engineering teams across U.S. • Teams contribute to Owen and receive from Owen • Productivity: 1/4 of the staff • Time to Market: 1/3 of the time • Quality: 1/25th the number of bugs

  5. Success Stories for Software Product Line Methods • Cummins, Inc. (diesel engines) • Product Line: electronically controlled engines • 9 engine platforms, 4-18 cylinders, 10 fuel systems • In 1993, needed 20 new systems, had staff for 6 • Embraced “software product line” methods • Cycle times reduced to 1/10th • Productivity improvement of 3.6x • ROI of 10:1

  6. Success Stories for Software Product Line Methods • Other Product Line success stories… • Nokia - mobile phones • A-7E Operational Flight Program, U.S. Naval Research Laboratory • MARKET MAKER Software AG • Boeing - the “Bold Stroke” avionics software family • Philips - the “PKI Telecommunications Switching System” • Philips - televisions sets • Salion, Inc. - enterprise software for handling RFQs • Ericsson AXE family of telecommunication switches • General Motors Powertrain • etc.

  7. Success Stories for Software Product Line Methods • Universal elements in these Success Stories • Achieved Economies of Scale in Software Development • Built an Infrastructure we now call Software Product Lines • Change was led at Executive level • Experienced dramatic improvements in Productivity, Quality, and Time to Market • Differences between the Success Stories • Incremental change vs. Re-engineering • 1-generation vs. 2-generations of change • Created new methods vs. Pre-existing best practices* • Some radically modified their Business Model as a result. *Their successes became what we now call “best practices”.

  8. Example: Buying a computer ... Vs. Success Stories for Software Product Line Methods • How can the “Software Product Line” process change Business Model? • Software Product Line enables “Mass Customization” • Gives customer more choice • Customer becomes co-creator of product • Reinvents the purchasing experience • Strengthens the vendor - customer relationship

  9. Success Stories for Software Product Line Methods • CelsiusTech Systems AB (now part of SAAB Group) • Product Line: Naval command & control systems • Originally developed to contract • 1985 - awarded 2 contracts simultaneously • Only staff for 1 contract at a time • Response - Designed 1 system with flexibility • Called “Ship System 2000” • Have now produced over 50 variants • Surface ships & submarines • Navies around the world

  10. Success Stories for Software Product Line Methods • Deming Taught Us: • Process drives Quality • Software Product Lines Teach Us: • Process drives Quality, Productivity, and Time to Market • Ultimately, process can enable a new Business Model

  11. Economies of Scale in Software • Software Product Line Successes • Planning for Success • IDI’s Offerings

  12. Planning for Success “Plan for Success” • Your measure of Success depends on where you want to go. • Build infrastructure for tomorrow’s Success. • For Hewlett Packard ... • Vision = Cost containment • Strategy = Software Reuse • Action = Infrastructure for Reuse • Result = cost savings; quality improvement • For DELL ... • Vision = Customer Relationship • Strategy = Mass Customization • Action = Infrastructure for Customization • Result = DELL is a household name

  13. More Mature More “Scalable” Answers: “How precisely is your process managed?” Answers: “How well does your process handle growth?” Planning for Success • What process is best for your definition of Success?

  14. If success for you is Mass Customization, an infinite number of product variations... X If success for you is Mass Production, lowest possible cost, low number of product variants... X “Unscalable” process “Highly Scalable” process Planning for Success • What process is best for your definition of Success? Development Cost per Product - Time to Market - Product Defects New Product Launches or Customizations

  15. Planning for Success Product Line: IT dept. in Insurance company Number of Products: 4 in-house applications Immediate Need: Reduce cost Business Case for Change: Reduce cost, improve Quality Product Line: Music Synthesizer Keyboards Number of Products: 3 models, 10 options Immediate Need: Reign in spiraling costs Business Case for Change: Fast Time to Market Product Line: Enterprise Asset Management Number of Products: 1 suite, 20 modules, 500 options Immediate Need: Avoid preventable defects Business Case for Change: Customer Relationship

  16. Alice’s Plan for Success: 2010 2005 2006 X X Planning for Success - Alice Product Line: IT dept. in Insurance company Number of Products: 4 in-house applications Immediate Need: Reduce cost Business Case for Change: Reduce cost, improve Quality • Recommendation: • Use method for conventional projects, such as RUP, XP, MSF, etc.

  17. Bob’s Plan for Success: 2006 2005 X 2010 X Planning for Success - Bob Product Line: Music Synthesizer Keyboards Number of Products: 3 models, 10 options Immediate Need: Reign in spiraling costs Business Case for Change: Time to Market • Recommendation: • Use Software Product Lineapproach • Use tool & process with upgrade path to at least Level 4

  18. Charles’ Plan for Success: 2010 2006 X 2005 X Planning for Success - Charles Product Line: Enterprise Asset Management Number of Products: 1 suite, 20 modules, 500 options Immediate Need: Avoid preventable defects Business Case for Change: Customer Relationship • Recommendation: • Use Software Product Line approach • Employ tools to manage variability • Employ tools to automate checks & balances • Tools must be adaptable to current systems

  19. Conclusions • Software Product Line Successes • Planning for Success • IDI’s Offerings

  20. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Developing a Software Product Line strategy • Product Line StudioTM solutions • Collaborative Asset Management • Technical Documentation System • Basic Requirements Traceability • Basic Software Architecture Management • Customization of Software • Customization of Documentation • Customization of Requirements • Highly Scalable Software Product Lines • Deployment Technical Consulting • Training

  21. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Step 1: Assess current software engineering processes Plan for Success: 2006 X?

  22. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Step 1: Assess current processes • Step 2: Participate in corporate strategic planning

  23. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Step 1: Assess current processes • Step 2: Participate in corporate strategic planning • Step 3: Determine ideal process scalability & maturity Plan for Success: ? 2006 X

  24. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Developing a Software Product Line strategy Plan for Success: 2010 2007 2006 X ? X

  25. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Developing a Software Product Line strategy • Product Line StudioTM solutions • Collaborative Asset Management • Technical Documentation System • Basic Requirements Traceability • Basic Software Architecture Management • Customization of Software • Customization of Documentation • Customization of Requirements • Highly Scalable Software Product Lines

  26. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Developing a Software Product Line strategy • Product Line StudioTM solutions • Collaborative Asset Management • Technical Documentation System • Basic Requirements Traceability • Basic Software Architecture Management • Customization of Software • Customization of Documentation • Customization of Requirements • Highly Scalable Software Product Lines • Deployment Technical Consulting

  27. IDI’s Offerings • Management Consulting • Process Scalability Assessment • Developing a Software Product Line strategy • Product Line StudioTM solutions • Collaborative Asset Management • Technical Documentation System • Basic Requirements Traceability • Basic Software Architecture Management • Customization of Software • Customization of Documentation • Customization of Requirements • Highly Scalable Software Product Lines • Deployment Technical Consulting • Training

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