why someone needs software? -- presenting the business needs that software is developed for

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Why someone needs software? --Presenting the business needs that software is developed for Jussi Autere, Professor Lecture on September 15, 2009 [email protected]

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Why someone needs software? -- Presenting the business needs that software is developed for. Jussi Autere, Professor. Lecture on September 15, 2009 [email protected]. Today’s Items. Views on types and uses for software A view on potential sources of competitive advantage - PowerPoint PPT Presentation

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Page 1: Why someone needs software? -- Presenting the business needs that software is developed for

Why someone needs software? --Presenting the business needs that software

is developed for

Jussi Autere, Professor

Lecture on September 15, 2009

[email protected]

Page 2: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 2 |

Today’s Items

1. Views on types and uses for software

2. A view on potential sources of competitive advantage

3. Role of software for companies searching competitive advantage

Page 3: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 3 |

VIEWS ON TYPES AND USES FOR SOFTWARE

Section 1

Page 4: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 4 |

What software is?

Computer software, or just software is a general term used to describe the role that computer programs, procedures and documentation play in a computer system (Wordreference.com: WordNet 2.0, 2007).

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| Date: September 2009 | © SBL | Page: 5 |

Systems architecture based view

Wikipedia (2009) includes in the term Application software – Users use directly Firmware – Makes electronic devices work Middleware – Makes distriubted systems work Operating systems – Connects application software to

hardware and middleware Software testing – Ensure that software works before it

is taken into production use Testware – Utilities and application to test a software

package

"Software" is sometimes used in a broader context to mean anything which is not hardware but which is used with hardware, such as film, tapes and records (dictionary.com, 2007)

Page 6: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 6 |

Usage based view, 1

Source Rönkkö et al. 2009

Number of standardized copiesVis

ibili

ty o

f so

ftw

are

to c

ust

om

er

SoftwareProducts

EmbeddedSoftware

Software Developedfor a Customer

SoftwareDeveloped for Internal use

Page 7: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 7 |

Usage based view, 2

Source SWOT Consulting 2009

What about software provided as a project?What about consumers and entertainment?

Page 8: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 8 |

Content Producer Based View

SIM

HLR+VLR

MPLS

Streaming networks

Edge routers

IP met net

Access control

Content services

Hosting

Security

Messaging

VoIP

Frequences

Copper/Fiber

POPs

Text content

On-demand content

Broadcast content

Technicalapplications

Managementof mobility

and servicelevels

IP and DVB-traffic

transfer

Transfernetwork

Last mileinfra

Connectivity subscription

Monthly bill based on connecation capacity

Carriers Network Services Providers

Network services subscription

Monthly bill based on services

Application Services Providers

Content or application servicessubscription

Between services providers

Carrier subcontracting

MGw

Flat rate, usage based rate or other business model

Source: Teosto, 2007

Page 9: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 9 |

Codification Tool Based View

Software is the tool to codify (document and automate repetition) the logic of

Tasks needed to provide the functionality of products or services

Tasks needed to provide value added features of products and services (”whole product features”)

Processes that are needed to produce products or services

Person to person communications

Software has replaced mechanical engineering as the most popular codufication method

Change occured in the 1980s

In Finland, software developed for other industries’ R&D is at least as big as independent software business

Page 10: Why someone needs software? -- Presenting the business needs that software is developed for

| Date: September 2009 | © SBL | Page: 10 |

A VIEW ON POTENTIAL SOURCES OF COMPETITIVE ADVANTAGE

Section 2

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| Date: September 2009 | © SBL | Page: 11 |

Why understanding of sources of competitive advantage is important? Variable costs of producing modern products

and services are usually low Main value added from technology, brand, etc. E .g. reproduction costs of software almost zero Standard production part of creating the offering is not

usually the main source of competitive advantage

Main focus in new business is usually about producing something new

Software is the main tool in producing something new Investment in new ideas is based on the search of

competitive advantage When a company is searching new competitive

advanteage, it is always in a hurry

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| Date: September 2009 | © SBL | Page: 12 |

One Mapping of Sources of Competitive Advantage

Technologicalexcellence

Operational efficiency

Customer intimacy

No oxygen

Channel

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| Date: September 2009 | © SBL | Page: 13 |

ROLE OF SOFTWARE FOR COMPANIES SEARCHING COMPETITIVE ADVANTAGE

Section 2

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| Date: September 2009 | © SBL | Page: 14 |

How Companies Use Software, Operational Excellence, Main focus in these companies is making processes efficient Software to automate

Automating production lines and product design(CAD, CIM, FMS, etc.). 1980s were the colden era

Automating customer contact, helpdesks, Web based services tools, etc. (re-engineering) Late 1990s and early 2000s were the golden era

Software to reduce planning work, warehouses, transport costs, and manual communications

Accounting and payroll software. These are the source of corporate IT Enterprise resources planning (ERP). Early 1990s were the colden era Customer Relationship Management (CRM). 2000s were the golden era

Software to reduce routine manual management (”Excel replacement”)

Reporting and Business Intelligence Management of different portfolios (quality defects, ideas, innovations,

projects)

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| Date: September 2009 | © SBL | Page: 15 |

How Companies Use Software, Customer Intimacy

Main focus in these companies is meeting the needs of individual customers

Software to adapt the offering Intelligent products that can be configured to the needs of individual

customers, e.g. BMW’s iDrive Customer self service tools, e.g. Online banking Bid management, product configurators, and project management

Software to understand the needs of a customer or customer segments

Market research and analysis software, currently the hot area Marketing targeting tools (Google, etc.)

Software to by-pass the channel One of the drivers of the Web

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| Date: September 2009 | © SBL | Page: 16 |

How Companies Use Software, Technological Excellence, Main focus in these companies is producing new value

added The core competitive advange is usually in own technology,

not generic software applications Sofware used to fast codify technological understanding

Tools to develop embedded code CAE, PDM and CAD based tools Software development tools and architectures. Especially tools that

integrate fast the ”trivial” part of the product or service (many times 80-90% of the work

Tools that enable fast communications Inside the company and between the company and leading customers Graphics design, aeasthetical design, market mesages design Tools to collect feedback from customer behavior (Google Analytics,

etc.). Currently hot

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| Date: September 2009 | © SBL | Page: 17 |

Still, Large Part of SW is Developed for Technology’s Sake

Open and standardized software servicesOpen and standardized software services

Generic datacenters running the servicesGeneric datacenters running the services

End-user devices (PC, Mac, Cellular, Car ..)End-user devices (PC, Mac, Cellular, Car ..)

End-user customized user interfacesEnd-user customized user interfaces

”In the middle” Technologies (Da Interweb, middleware)

”In the middle” Technologies (Da Interweb, middleware)

Special applications, such as B2B vertical software

Special applications, such as B2B vertical software

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| Date: September 2009 | © SBL | Page: 18 |

Current Hots for Competitive Advantage

SuperiorUser Experience

Technologies in theCloud

Business in theCloud

LeanEnterpriseSustainable

Development

Integrated Security

ResearchCoordination

andDissemination

WP8

Program Coordination

& Project Management

Key Business Driven Initiatives

Strategic Research Themes and

Research Coordination

Program Coordination and

Project Management

Source: Tivit’s CS Project, 2009

Page 19: Why someone needs software? -- Presenting the business needs that software is developed for

See you next week!

”All you need is good engineering.”

One of the 10 golden VC rules