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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?”
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Economies of Scale in Software
Software Product Line Successes
Planning for Success
IDI’s Offerings
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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
Success Stories forSoftware Product Line Methods
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Success Stories forSoftware 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
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Success Stories forSoftware 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
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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.
Success Stories forSoftware Product Line Methods
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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”.
Success Stories forSoftware Product Line Methods
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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
Example: Buying a computer ...
Vs.
Success Stories forSoftware Product Line Methods
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Success Stories forSoftware 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
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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
Success Stories forSoftware Product Line Methods
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Software Product Line Successes
Planning for Success IDI’s Offerings
Economies of Scale in Software
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“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
Planning for Success
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1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization 50x
4 - Automation of Integrity 20x
3 - Shared Architecture 5x
2 - Shared Assets 2x
1 - Shared Process 1x
Pro
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SEI's Process Maturity (CMMI) Potential Productivity
Gains1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively
Managed5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
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SEI's Process Maturity (CMMI)
What process is best for your definition of Success?
Planning for Success
More Mature
Answers: “How precisely is your process managed?”Answers: “How well does your process handle growth?”
More“Scalable”
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1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
Pro
ce
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Sc
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bil
ity
SEI's Process Maturity (CMMI)
What process is best for your definition of Success?
Planning for Success
Development Costper Product
-Time to Market
-Product Defects
New Product Launches orCustomizations
“Unscalable” process
X
“Highly Scalable” process
X
If success for you is Mass Production,lowest possible cost, low number of
product variants...
If success for you is Mass Customization,an infinite number of product variations...
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Planning for Success
Product Line: IT dept. in Insurance companyNumber of Products: 4 in-house applicationsImmediate Need: Reduce costBusiness Case for Change: Reduce cost, improve Quality
Product Line: Music Synthesizer KeyboardsNumber of Products: 3 models, 10 optionsImmediate Need: Reign in spiraling costsBusiness Case for Change: Fast Time to Market
Product Line: Enterprise Asset ManagementNumber of Products: 1 suite, 20 modules, 500 optionsImmediate Need: Avoid preventable defectsBusiness Case for Change: Customer Relationship
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Planning for Success - Alice
Product Line: IT dept. in Insurance companyNumber of Products: 4 in-house applicationsImmediate Need: Reduce costBusiness Case for Change: Reduce cost, improve Quality
1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
Pro
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SEI's Process Maturity (CMMI)
2005
2010
2006
X X
Alice’s Plan for Success:Recommendation:• Use method for conventional projects,
such as RUP, XP, MSF, etc.
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Planning for Success - Bob
Product Line: Music Synthesizer KeyboardsNumber of Products: 3 models, 10 optionsImmediate Need: Reign in spiraling costsBusiness Case for Change: Time to Market
1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
Pro
ce
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Sc
ala
bil
ity
SEI's Process Maturity (CMMI)
2005 2010
2006
X
X
Bob’s Plan for Success: Recommendation:• Use Software Product Line approach• Use tool & process with upgrade path to
at least Level 4
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Planning for Success - Charles
Product Line: Enterprise Asset ManagementNumber of Products: 1 suite, 20 modules, 500 optionsImmediate Need: Avoid preventable defectsBusiness Case for Change: Customer Relationship
1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
Pro
ce
ss
Sc
ala
bil
ity
SEI's Process Maturity (CMMI)
2005
2010
2006XX
Charles’ Plan for Success:
Recommendation:• Use Software Product Line approach• Employ tools to manage variability• Employ tools to automate checks & balances• Tools must be adaptable to current systems
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Conclusions
Software Product Line Successes
Planning for Success
IDI’s Offerings
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Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
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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Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
IDI’s Offerings
Management Consulting Process Scalability Assessment
Step 1: Assess current software engineering processes
1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
Pro
ce
ss
Sc
ala
bil
ity
SEI's Process Maturity (CMMI)
X?
Plan for Success:
2006
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Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
IDI’s Offerings
Management Consulting Process Scalability Assessment
Step 1: Assess current processes Step 2: Participate in corporate strategic planning
Today’sPosition PEOPLE
TEAMWORKPLAN FOR IMPROVEMENT
VISION& GOALS
MATERIAL EQUIPMENT
METHODS &PROCEDURES ENVIRONMENT
MEASUREMENT & FEEDBACK
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Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
IDI’s Offerings
1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
Pro
ce
ss
Sc
ala
bil
ity
SEI's Process Maturity (CMMI)
X
Plan for Success:
Management Consulting Process Scalability Assessment
Step 1: Assess current processes Step 2: Participate in corporate strategic planning Step 3: Determine ideal process scalability & maturity
?2006
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Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
IDI’s Offerings
1 - Initial 2 -Managed 3 -Defined 4 - Quantitatively Managed
5 - Optimizing
5 - Mass Customization
4 - Automation of Integrity
3 - Shared Architecture
2 - Shared Assets
1 - Shared Process
Pro
ce
ss
Sc
ala
bil
ity
SEI's Process Maturity (CMMI)
Plan for Success:
Management Consulting Process Scalability Assessment Developing a Software Product Line strategy
X
2007
2006
2010
X?
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Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
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
http://www.idi-software.com 26
Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
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
http://www.idi-software.com 27
Process Scalability Assessment
Software Product Line Strategy
Product Line StudioTM
Solutions
Deployment
Training
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