1. Improving Software Economics

2. Software & the Internet: Business Drivers Surveyed 100 Software Industry Experts 1.Growth of complexity 2.Continuously-evolving systems 3.Software Development 1.Growth of complexity 2.Continuously-evolving systems 3.Software Development

3. HighHigh MediumMedium LowLow TimeTime  Distributed  Concurrent  Connected  Real-time/ embedded  Fault tolerant  Customized Stock Trading 1. Growth of Complexity: e-business

4. 2. Continuously-evolving Systems Conventional  Yearly + Conventional  Yearly + Modern  < Yearly Modern  < Yearly Near Future  Monthly  Weekly  Daily Near Future  Monthly  Weekly  Daily The New Economy Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 24x7x365 Globa l 24x7x365 Globa l

5. 3. Software Development: Today’s Business Driver Software Development Software Development Bandwidth Accessibility & Usage Accessibility & Usage Power

6. Simplified Software Economics Where:  Project Performance = Effort or time  Complexity = Volume of human-generated code  Process = Methods, notations, maturity  Team = Skill set, experience, motivation  Tools = Software process automation Project Performance Project Performance = ( Complexity ) (Process) * ( Team ) * ( Tools )

7. Software Elements Components Reduce the Proportion of Hand Written Code Hardware Elements Chips System Cards Higher Complexity Lower Complexity Subsystems Statements Use higher level software components to enable economically significant reuse Use higher level software components to enable economically significant reuse Application Gates Racks Instructions If a = b then c=1 Else c=2 While n> c Decrement_count end If a = b then c=1 Else c=2 While n> c Decrement_count end

8. Time Results of An Architecture-First Process Risk Risk Resolution Period Risk Exploration Period Controlled Risk Management Period Iterative Waterfall Risk Reduction

9. Improve Team Proficiency  Smaller, more capable teams are key to success  Consistent, simple communication paths  Empowered and self-managed  Ownership in the plan and accountable  Smaller, more capable teams are key to success  Consistent, simple communication paths  Empowered and self-managed  Ownership in the plan and accountable

10. Instrument Through an Integrated Environment Automated Testing Requirements Management Project Management Programming Environment Visual Modeling Project Artifacts Project Artifacts Change Management Change Management Round-trip Engineering