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]. Today’s Items. Views on types and uses for software A view on potential sources of competitive advantage - PowerPoint PPT PresentationTRANSCRIPT
Why someone needs software? --Presenting the business needs that software
is developed for
Jussi Autere, Professor
Lecture on September 15, 2009
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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
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VIEWS ON TYPES AND USES FOR SOFTWARE
Section 1
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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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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)
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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
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Usage based view, 2
Source SWOT Consulting 2009
What about software provided as a project?What about consumers and entertainment?
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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
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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
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A VIEW ON POTENTIAL SOURCES OF COMPETITIVE ADVANTAGE
Section 2
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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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One Mapping of Sources of Competitive Advantage
Technologicalexcellence
Operational efficiency
Customer intimacy
No oxygen
Channel
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ROLE OF SOFTWARE FOR COMPANIES SEARCHING COMPETITIVE ADVANTAGE
Section 2
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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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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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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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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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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
See you next week!
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