Introduction to Product Software

Transcription

1 Introduction to Product Software Session 1 Product Software Dr. Slinger Jansen Dr. Rik Bos Prof.dr. Sjaak Brinkkemper

2 Contents Productsoftware Economic context Definition Organizational Structures Organizational Variability Netherware

3 GX Now: 125 employees Offices in Boston and Sillicon Valley Started by 6 university of Nijmegen students

4 Societal context ICT innovations create new products, services, companies, jobs, economic value, social value International: YouTube Google SAP Twitter Skype Microsoft Salesforce.com Amazon National: TomTom Bibit Hyves Centric Exact Planon Unit4 Afas

5 What is Product Software? Differentiate from: Tailor-made software (large ICT service companies such as CMG, ATOS-Origin, CGEY, ) Embedded software (consumer electronics, office machinery: Philips, Oce, AMSL, ) Open Source software is also a software product In this course the creation, production and organization of product software will be discussed and elaborated in depth

6 What is product software? What is being sold? Device Microprogram Embedded software Software Tailor-made software Product software One Multiple Number of copies

7 Terms related to Product Software

8 What is Product Software? A Software Product is defined as a packaged configuration of software components, or a software-based service with auxiliary materials, which is released for and traded in a specific market Examples: ERP software Bookkeeping package Operating systems Search-engine Computer-aided-design Software development environments Hospital information system Essentially all software you are using in daily life and work

9 Key differences 1. Market introduction requires precise synchronization of dependable software engineering activities 2. The same product requires installation and usage in different organizations, with different hardware and software platforms 3. The vendor company stays owner of the software and auxiliary materials, while the usage is licensed to the customers

10 Research Framework

11 Economic context World Global software market 2008: 240 B ; growth 6.5% (1 B = 10 9) 2013 forecast: $360 B ; growth 50.5% since % total ICT expenses: 2650 B NL: 12%; highest of the world Americas 42.6% of global software market's value. OECD (2002): The product software sector is among the most rapidly growing sectors in OECD countries, with strong increases in value added, employment and R&D investment. NL Import 2,1 B, Export 0,6 B US vendors: 78% market share! NL: employees in NL companies 8,5 % of total ICT employment

12 The worldwide market

13 Market in 1999 System Infrastructure Software System level: Operating systems [12.9%] / [9%] System level: other software [3.4%] / [9%] Middleware [3.5%] / [32.9%] System management [9.1%] / [11%] 32% 19% Software Development Tools Security [3.1] / [21%] Database management systems [9.4%] / [11.2%] [share] / [CAGR] Development environments [5.6%] / [16.3%] Development life-cycle management [3.4%] / [11.9%] Internet tools [0.3%] / [34.1%] 49% CAGR: Compound Annual Growth Rate all CAGR > 9% Source: OECD Application Software Cross-industry business: ERP [14.2%] / [18.5%] Other cross-industry business [8.7] / [18.5%] Vertical industry business: CAD/CAM/CAE [6.2%] / 11.8%] Other vertical industry business [16.2%] / [11.8%] Consumer and home [3.9%] / [13%]

14 Share of total ICT expenses Product software as part of all ICT expenses (Source: OECD)

15 Intermezzo Professor: Did you know that Bill Gates sold MS-DOS before it was finished? Student: He still does!

16 Contents Productsoftware Economic context Definition Organizational Structures Organizational Variability Netherware

17 Organizational Structure Specific questions: How is the Twitter company organized? How many people are working at Hyves? What is the ratio of developers and testers at Microsoft? What is more profitable: license selling or services Generic questions: What is the optimal structure for a Product Software Company? Can generic structures be recognized? What are benchmarks figures for function ratios?

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19 Departments at PSw company Department 1. Board: management 2. Development: product creation and maintenance 3. Marketing: market presence 4. Sales: product selling 5. Services: implementation, consultancy and training 6. Support: help-desk Percentage

20 Organisational structures Organisational structures because of Growing organisations need functional specialists Management has limits in delegation Categories: F: Functional HRM, Development, Sales, Marketing, P: Product ERP, Middleware, BIS, Localizations, M: Market Large accounts, SME, Public, Banking and Insurers, G: Geografic Benelux, Nordic, UK, France,

21 Structuring a company

22 Baan Development (1998) Finance/Legal HRM Common Architecture Chief Technology Officer Product Management Release Management Processes Acquisitions Common Technologies BackOffice Applications Emerging Applications Product Delivery Research BaanTech ERP Service& Project Financials CRM Configuration Management Product Testing Workflow E-ERP Supply Chain Multi-Byte Business Intelligence Localizations Application Integration Product Assembly Documentation and Training The organizational structure of Baan Development in 1998; 1500 employees

23 Standard F-structure Board R&D Marketing Sales Services Support

24 Investment and profits Board R&D Marketing Sales Services Support Profit: Σ + Σ -

25 Substructures Board R&D Marketing Sales Services Support P-structure Generic, P-structure P-structure P-structure P-structure G-structure M-structure

26 P-type for R&D R&D mgr Product Management Architecture Board Product 1 Product 2 Product 3 Quality & Delivery R&D departments are responsible for a product line Product Management: Functional responsibility Liaison with Marketing Quality and Delivery: Generic configuration management Architecture Board Technical responsibility Interfacing of products Testing and quality management Documentation and translation

27 Ownership R&D Development mgr Product Mgr Architect Team1 Team2 Team3 Team has all roles for development of a product: Design Realisation Testing Configuration Management Documentation Architecture ~ Organisational structure (Conway s law)

28 M-type for Sales Sales mgr CRM Contracts Large Accounts SME Banking & Insurance Centralized customer relationship management Relationship with Support Contracts require legal support Large international companies have first a G-type for Sales

29 Other departments Marketing Always for the whole company Uniform market presentation Market launches Customer reference stories Services Implementation, Technical installation, Training, Customizations, Organizational improvement Pool of consultants F-, G-, M-type Support 1st line (questions): Generic for all products 2nd line (simpel defects): P-type 3rd line (complex defects): performed by R&D on standard product; or by Services on customizations

30 Contents Productsoftware Economic context Definition Organizational Structures Organizational Variability Netherware

31 Software product management Market market trends Sales Board strategy Development Scope changes feature requests technology drivers R&D Partners contracts, partner requests bugs, change requests Customers

32 Product management Responsible for Requirements Management Release Plan Roadmap Portfolio Management Positioning Product Management Within Marketing Within R&D As overall function Inside product development teams The positioning of Product Management determines Responsibilities Activities External and internal communications

33 Organizational Variability Board Product Management R&D Marketing Sales Services Support Product Management Marketing Communication Product Management Product 1 Product 2 Product 3 Quality & Delivery Product Management Product Management Product Management

34 Contents Productsoftware Economic context Definition Organizational Structures Organizational Variability Netherware

35 Incubator role Netherware is the ICT incubator of Utrecht University for students that provides facilities and knowledge infrastructure to develop an ICT product or service and to continue as an independent start-up company.

36 Netherware

37 Netherware ICT incubator for students It is a course incubator coaching facility network The students develop their own product or service ideas in team Students play a horizontal role in a staff dept: Finance, Marketing, HRM, Project Office, Technology We play as if there is one year in the company End review for external Board of Governors: Which products will be nominated for external financing

38 Netherware Examples 1. Hours accounting and invoicing for law firms 2. Warehousing for the retail industry 3. Utility and website to quit smoking 4. Website to send SMS messages to groups 5. Dancing lessons in a browser 6. Internet pinging for heavy gamers 7. Camera placement for movie directors 30 start-ups with 60 students (1 3 stud s) Permanent software incubator with coaching and network access Run by students Start-up offices in department

39 About Qash and Yunoo and Afas Personal Product Yunoo budget overviews on internet banking plus social network for spending advice History students participation ICT-E 2008 Qash start in Utrecht-Inc 2009 director; investment name change 2010 own office 12 employees 2011 Takeover by Afas Sold in different phases

40 Discussion