Solution Supply Chains Jack Greenfield

Overview Learning from Other Industries Mass Customization in Software Development Implementing Supply Chains

Learning from Other Industries The role of independent software vendors and systems integrators in bridging the gap between generic platforms and custom solutions Benefits of mass customization in other industries Issues that make it difficult to integrate products and components from different suppliers using current software development practices The problems of development by assembly in software compared to other industries

The Customer Dilemma GAP 1 Market of 1 Million A few platform vendors build rich but generic platforms Hundreds of ISVs build industry and/or segment specific products Thousands of SIs customize and integrate products from multiple platforms and ISVs 1 Million Markets of 1 Millions of customers want individualized solutions Bridging the gap

Other Industries Employ Mass Customization Copyright © 2003, Automotive News The BMW factory produces 800 cars and 1250 engines a day – each one built to order The number of possible variants of is approximately 10 to the 13 On average, no more than a handful of cars are produced with exactly the same features in a year Why Can’t We Do This With Software?

The Alignment Problem Different suppliers take different approaches to development Different ways of defining requirements Different ways of partitioning systems into components Different ways of using platform technologies Different ways of deploying system components onto platform technologies Different ways of testing system components Different ways of customizing system features

The Alignment Problem Different approaches make it hard to integrate their products to create solutions Hard to verify solutions assembled across multiple suppliers Hard to determine impact of changes in requirements Hard to determine what customizations were made for a given customer Hard to migrate customizations to new versions of the solution Hard to coordinate activities to deliver custom features

Mass Customization in Software Development Evolution from ad-hoc development to globally optimized supply chains Ad-hoc vs. industrialized software development The importance of standardized metadata in building a supply chain Vertical partitioning in a supply chain Horizontal partitioning in a supply chain Local vs. global optimization

The Road to Mass Customization Globally Optimized Supply Chains Aligned Suppliers Suppliers as Services Software Factories Ad Hoc Development Industrialize Development Publish Factory Metadata Form Supply Chains Mass Customize

Industrialize Development Development is labor intensive Mistakes are repeated and lessons are relearned Every project starts from scratch Requirements are poorly defined Model key work products, processes and assets Accelerate development with model driven tools and other resources Develop solutions by assembly and customization Ad Hoc DevelopmentSoftware Factories

Publish Factory Metadata Different suppliers use different factories No easy way to share factory metadata Standardize externally facing processes and artifacts Publish factory metadata using web services Opaque SuppliersSuppliers As Services

Form Supply Chains Different suppliers use different products and technologies Products from multiple suppliers require ad hoc integration Aligned suppliers use the same products and technologies Products from those suppliers integrate in known ways Misaligned SuppliersAligned Suppliers

creates From Factories To Supply Chains Tools, Process, Content creates uses Requirements, Defects uses creates Product Development Factory Development BusinessBusiness createsuses ProductsProducts Requirements, Defects Factory Development VerticalPartitionVerticalPartition HorizontalPartition

Horizontal Partitioning Separate factory and product development Outsource product development using factories developed in-house Example: a factory built by Big Vendor is used by an offshore services company Use factories supplied by a third party to develop products in-house Example: Financial Services Firm uses a factory built by Big Vendor

Vertical Partitioning Partition factory development Purchase assets from upstream suppliers Example: Financial Services Firm uses assets from CRM Vendor Sell assets to downstream suppliers Example: Financial Services Firm supplies assets to be used by Systems Integration Corp. Creates B2B relationships when assets are service based Suppliers deliver stubs to hosted services not embedded components

Mass Customize Local optimization creates bottlenecks Suppliers respond individually as changes propagate Optimize globally to eliminate bottlenecks Suppliers respond collectively to changes based on market conditions Locally optimized supply chains Globally optimized supply chains

Implementing Supply Chains Groups of software factories you might find in a solution supply chain and understand their roles Examples of specific types of software factories you would find in each group Product Lifecycle Management as an example industry domain Prerequisites to building solution supply chains

Finite Element AnalysisFactory Solution Supply Chains Software Factory Platform ArchitecturalFactories 2D Engine Factory 3D Engine Factory StorageFactory ViewingEngineFactory WorkflowFactoryCollaborationFactory PortalFactory specialize use An architectural factory defines architectural style and deployment topology for a family Software factory platform is used to build architectural factories use create

Solution Supply Chains DiscretePLMFactoryDiscretePLMFactoryAerospacePLMFactoryAerospacePLMFactory Finite Element AnalysisFactory Software Factory Infrastructure CADFactoryCADFactory EDMFactoryEDMFactory PDMFactoryPDMFactory ArchitecturalFactories CAMFactoryCAMFactory 2D Engine Factory 3D Engine Factory PLMSolutionFactoryPLMSolutionFactory AutomotivePLMFactoryAutomotivePLMFactory Functional Factories Industry Factories StorageFactory ViewingEngineFactory WorkflowFactoryCollaborationFactory PortalFactory CIMFactoryCIMFactory ProcessPLMFactoryProcessPLMFactory specialize use talks use ERPFactory SCMFactory CRMFactory Manufacturing PLM Factory use specialize use use create use Functional factories begin to appear as supply chain matures ERP, SCM, CRM are functional factories that interact closely with industry factories Industry factories are used to deliver end customer solutions

Supply Chain Prerequisites Feature based requirements engineering Required for reasoning about variability and inter-dependencies among requirements Unambiguous architecture specification Required for systematic development by assembly with adaptation Maturation of service oriented technologies Required for reasoning about operational qualities of component assemblies and for assembly by orchestration and generative adaptation

Next Level Mass Customization: The New Frontier in Business Competition Joseph Pine; Harvard Business School Press; ISBN: Build-to-Order & Mass Customization David Anderson; CIM Press; ISBN: Software Factories: Assembling Applications with Patterns, Models, Frameworks, and Tools us/dnbda/html/softfact3.asp us/dnbda/html/softfact3.asp Jack Greenfield, Keith Short, Steve Cook, Stuart Kent; Wiley; ISBN:

Summary Supply chains and mass customization work well in other mature industries Misalignment between software suppliers and consumers precludes this in contemporary software development Software factories provide a step on the road to supply chains and mass customization in software Publishing key life cycle metadata using standard formats is a prerequisite to supply chain formation Supply chains can be partitioned horizontally or vertically

Homework Are you a supplier, consumer or both? Do you form part of a supply chain? How easy or difficult is it for you to integrate 3 rd party software into your product......or have your software integrated by others? What would make it easier, why, and what changes would be needed to make it happen?