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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?”



Software Product Line Successes

Planning for Success

IDI’s Offerings


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



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



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


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.



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”.



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.




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


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




Planning for Success IDI’s Offerings



“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



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

ce

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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

Pro

ce

ss

Sc

ala

bil

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SEI's Process Maturity (CMMI)

What process is best for your definition of Success?


More Mature

Answers: “How precisely is your process managed?”Answers: “How well does your process handle growth?”

More“Scalable”



5 - Optimizing




2 - Shared Assets

1 - Shared Process

Pro

ce

ss

Sc

ala

bil

ity


What process is best for your definition of 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...



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


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


5 - Optimizing




2 - Shared Assets

1 - Shared Process

Pro

ce

ss

Sc

ala

bil

ity


2005

2010

2006

X X

Alice’s Plan for Success:Recommendation:• Use method for conventional projects,

such as RUP, XP, MSF, etc.


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


5 - Optimizing




2 - Shared Assets

1 - Shared Process

Pro

ce

ss

Sc

ala

bil

ity


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


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


5 - Optimizing




2 - Shared Assets

1 - Shared Process

Pro

ce

ss

Sc

ala

bil

ity


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


Conclusions



IDI’s Offerings


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





Solutions

Deployment

Training

IDI’s Offerings

Management Consulting Process Scalability Assessment

Step 1: Assess current software engineering processes


5 - Optimizing




2 - Shared Assets

1 - Shared Process

Pro

ce

ss

Sc

ala

bil

ity


X?

Plan for Success:

2006





Solutions

Deployment

Training

IDI’s Offerings


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





Solutions

Deployment

Training

IDI’s Offerings


5 - Optimizing




2 - Shared Assets

1 - Shared Process

Pro

ce

ss

Sc

ala

bil

ity


X

Plan for Success:


Step 1: Assess current processes Step 2: Participate in corporate strategic planning Step 3: Determine ideal process scalability & maturity

?2006





Solutions

Deployment

Training

IDI’s Offerings


5 - Optimizing




2 - Shared Assets

1 - Shared Process

Pro

ce

ss

Sc

ala

bil

ity


Plan for Success:


X

2007

2006

2010

X?





Solutions

Deployment

Training

IDI’s Offerings







Solutions

Deployment

Training

IDI’s Offerings




Training

http:// economies of scale in software economies of scale: “the increase in efficiency of...

Documents

current processes step

managed3 defined4