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  Planning for Success  IDI’s Offerings

 Bell Labs / AT&T / Lucent  Product Line: 5ESS TM 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 for Software Product Line Methods

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

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

 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 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”. 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 Example: Buying a computer... Vs. Success Stories for Software Product Line Methods

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  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 Success Stories for Software Product Line Methods

 Software Product Line Successes  Planning for Success  IDI’s Offerings Economies of Scale in Software

“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

 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”

 What process is best for your definition of Success? Planning for Success Development Cost per Product - Time to Market - Product Defects New Product Launches or Customizations “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...

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

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 XX 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 Keyboards Number of Products:3 models, 10 options Immediate Need:Reign in spiraling costs Business Case for Change:Time to Market 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 Management Number of Products:1 suite, 20 modules, 500 options Immediate Need:Avoid preventable defects Business Case for Change:Customer Relationship X X 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  Software Product Line Successes  Planning for Success  IDI’s Offerings

IDI’s Offerings  Management Consulting  Process Scalability Assessment  Developing a Software Product Line strategy  Product Line Studio TM 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

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

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

IDI’s Offerings 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

IDI’s Offerings Plan for Success:  Management Consulting  Process Scalability Assessment  Developing a Software Product Line strategy X X ?

IDI’s Offerings  Management Consulting  Process Scalability Assessment  Developing a Software Product Line strategy  Product Line Studio TM 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

IDI’s Offerings  Management Consulting  Process Scalability Assessment  Developing a Software Product Line strategy  Product Line Studio TM 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

IDI’s Offerings  Management Consulting  Process Scalability Assessment  Developing a Software Product Line strategy  Product Line Studio TM 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