1. http://www.idi-software.com1 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?”

2. http://www.idi-software.com2 Economies of Scale in Software  Software Product Line Successes  Planning for Success  IDI’s Offerings

3. http://www.idi-software.com3  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

4. http://www.idi-software.com4 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

5. http://www.idi-software.com5 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

6. http://www.idi-software.com6  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

7. http://www.idi-software.com7  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

8. http://www.idi-software.com8  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

9. http://www.idi-software.com9 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  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

10. http://www.idi-software.com10  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

11. http://www.idi-software.com11  Software Product Line Successes  Planning for Success  IDI’s Offerings Economies of Scale in Software

12. http://www.idi-software.com12 “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

13. http://www.idi-software.com13  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”

14. http://www.idi-software.com14  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...

15. http://www.idi-software.com15 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

16. http://www.idi-software.com16 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 2005 2010 2006 XX Alice’s Plan for Success: Recommendation: Use method for conventional projects, such as RUP, XP, MSF, etc.

17. http://www.idi-software.com17 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 20052010 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

18. http://www.idi-software.com18 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 2005 2010 2006 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

19. http://www.idi-software.com19 Conclusions  Software Product Line Successes  Planning for Success  IDI’s Offerings

20. http://www.idi-software.com20 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

21. http://www.idi-software.com21 IDI’s Offerings  Management Consulting  Process Scalability Assessment  Step 1: Assess current software engineering processes X? Plan for Success: 2006

22. http://www.idi-software.com22 IDI’s Offerings  Management Consulting  Process Scalability Assessment  Step 1: Assess current processes  Step 2: Participate in corporate strategic planning

23. http://www.idi-software.com23 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

24. http://www.idi-software.com24 IDI’s Offerings Plan for Success:  Management Consulting  Process Scalability Assessment  Developing a Software Product Line strategy X 2007 2006 2010 X ?

25. http://www.idi-software.com25 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

26. http://www.idi-software.com26 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

27. http://www.idi-software.com27 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