Survey of ISO 9001 Implementation in Greek Software Companies
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1 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P- 81 Survey of ISO 9001 Implementation in Greek Software Companies Theodore Amygdalas Computer Lab Assistant at the Department of Agricultural Development and Agribusiness Management, Alexander Technological Educational Institute, Sindos, Thessaloniki, Greece theodore@farm.teithe.gr Dr. Fotis Vouzas Asst. Professor at the Department Of Business Administration, University of Macedonia Thessaloniki, Greece vouzas@uom.gr Prof. Dimosthenis Mpoutakidis Department of Agricultural Development and Agribusiness Management, Alexander Technological Educational Institute, Sindos, Thessaloniki, Greece dboutak@farm.teithe.gr ABSTRACT The software is a product that, by nature, in comparison with other products and services, has some peculiarities and differences. These peculiarities have led eventually to the so called "software crisis" creating the need for the adoption of Quality Management Systems to create software with greater reliability and reduce development costs and maintenance, which can be exorbitant, especially in large projects. The ISO 9001 is one of the most established quality management standards throughout the world, and lays the foundation for an environment of continuous improvement in companies that use it. In recent years, many Greek software companies implement Quality Management Systems certified with ISO9001. The research is about Greek software companies that have been certified with ISO9001 in the fields of design, development and maintenance of software systems. The purpose of this paper is to explore the motivations, the benefits and the quality improvement areas and finally the difficulties encountered in implementing the iso9001 standard. It is also a very good opportunity to study the behavior of Greek software companies and generally of the Greek software market. Keywords: Software Quality Management, Greek Software companies, ISO 9001 survey, Questionnaire ISO Introduction In Greece, the area of ICT (information and communications technology) essentially began in the late 80's. Until then, there has not been great activity and the percentage of the businesses in this area, did not exceed 2.1% of the total. However, the majority of companies that make up the domestic ICT sector have been opened in the last fifteen years (approximately the 88.3% of them). One in three businesses around ICT has even set up the most recent period (from 2001 onwards), indicating the increasingly dynamic IT firms active in recent years in Greece (Observatory for the Greek Information Society, 2008). Taking into account the latest statistics from the SEPE (Federation of Hellenic ICT Enterprises) and dividing the ICT sector in the two main branches, the IT and Telecommunications, a relationship then becomes 86% - 14% in favor of Informatics (Federation of Hellenic ICT Enterprises, 2011). The recipients of the ICT services is Business(65%), consumers (25%) and the public sector (10%), as shown in Fig.1.
2 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P- 82 Figure 1. Customers of ICT services Depending on the category of activity of the ICT, most companies (43%) are operating in the IT services (Internet service providers, maintenance, support, etc.), while trade of ICT products is 31%. The smallest percentage (7%) has to do with companies with the aim of creating and supplying software (see Fig.2). Figure 2. Distribution of ICT activities By all companies dealing with software, 85.6% are based in Athens(capital of Greece), 10.3% are based in Thessaloniki(second biggest city of Greece) and the remaining 4.1% are located in various regions of Greece (Observatory for the Greek Information Society, 2008). In recent years, many of these software companies have implemented quality management system with ISO9001 certification. These firms are the subject of this survey. 2.0 Methods and Materials Based on the list of Greek ICT business by SEPE (Federation of Hellenic Information Technology & Communications Enterprises, and internet research, 62 software companies were found certified with ISO9001 in the fields of design, development and maintenance of software systems. These companies were invited via and phone to answer an online questionnaire. The questionnaire included 19 closed type questions. This type of question is easy to encode and comprises the analysis of data easier. The 19 questions were additionally divided in three groups. The first group of questions concerned the basic information of the companies (base, business type, size, customers). The second group of questions concerned the use of software development models and tools of evaluation of software quality. The last group of questions was focused on the use of ISO9001 standard combined with factors such as cost, business incentives, benefits and difficulties of implementation. The data gathered by the questionnaire, were statistically analyzed using the statistical package of MS Excel Quantitative analysis was performed. The research for the collection of the data was performed between November 2011 and March We received 40 valid responses giving us at about 64, 5% response rate.
3 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P- 83 The aim of the questionnaire was to be answered by quality managers or managers of businesses involved in a direct way in the production process. 3.0 Results 3.1 Basic information of business The majority of software companies was based mainly in Athens (75%) and a 15% of them in Thessaloniki, as shown in Fig.3. Figure 3. Geographical distribution of companies The number of staff of an enterprise is a guide for its size. According to data obtained (see Fig.4), in most companies (76%) the number of staff did not exceed 30. The companies with over 90 people that were 13% of the total observed that they usually had a wide range of activities (hardware, software, and telecommunications) and subsidiaries abroad. Figure 4. Number of Employees Regarding the Base of major business customers, the majority of firms (77%) work with domestic customers, while 15% of companies work with foreign customers mainly. The lowest percentage (8%) of business software (8%) had equally important clients in Greece and abroad as shown in Fig. 5.
4 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P- 84 Figure 5. Based of major clients 3.2 Use of software development models and tools of evaluation When the companies asked if they used tools or techniques to assess software quality, the majority of companies (80%) responded positively as shown in Fig. 6. The use of these tools included statistical methods (number of errors per task, customer complaints) and user questionnaires. 3.3 The Use of ISO9001 Figure 6. Use of software assessment tools Certification Requirement Regarding the request for certification ISO9001from costumers, 57.5% of companies said that customers who require certification were few, 22.5% of companies responded that most customers required a certification while 10% of companies claimed that no customer required certification of any kind Cost benefit The majority of software companies (57%) believed that there was a balance between costs of implementing a QMS based on the ISO9001 standard and the profit resulting from the application. 30% of companies considered that the profits realized from the implementation of ISO9001 were multiples of the cost, while 13% of companies considered the cost of the standard prohibitive in relation to the profits reaped from this Fig.7. Figure 7. Cost Profit
5 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P History of ISO 9001 Certification Most enterprises have been holding ISO9001 certification for no more than 10 years. Specifically, the percentage of companies that have been holding the certificate up to five years is 42.5%, while the percentage of companies have been holding the certificate for 5-10 years is 45.5%. The remainder of the business (12.1%) has held ISO9001 certification for more than 10 years with a maximum 16 years. About 25% of companies, in addition to the certification ISO9001, certified to other standards such as ISO27000 (information security), the BS25999 (business continuity) and EFQM (European Foundation for Quality Management). About the Contribution of ISO 9001 to business success, the largest proportion (57%) responded that the model has helped significantly, 35% responded that the model has helped a little, while in a small percentage of the companies (3%) the model did not help (see Fig.8) Figure 8. Contribution of ISO 9001 in business success 3.4 Incentives for Implementation and Certification The software companies were regarded as an important incentive to improve their image and to gain a competitive advantage. Quite important was the incentive to increase productivity and improve quality, while less important was the incentive that they were motivated by customer s pressure, as shown in Fig. 9. Figure 9. Importance of motivation 4.0 Staff training on Quality Issues The 21% of the companies responded that training in quality was provided to all departments of the business. The remaining companies shed the burden of education in design / development department (29%), in the quality control department at a rate of 20%, in marketing departments at 16%, in Support department at 14%, in sales department at 12% and in management at 9 %.
6 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P Important Factors of Successful Implementation of ISO 9001 The most important factors of successful implementation of ISO9001 were the application of preventive / corrective measures, audits, management commitment, workers commitment, Training, Documentation (Strict compliance documents, records, manuals, etc.), customer focus, reviews, quality Policy and Resources (funds, facilities, personnel). The table below shows the relationship between significance and effort for each of these factors. The results are shown below on TABLE 1. TABLE 1. Importance and implementation effort management commitment workers commitment Significance Very important factor Very important factor Implementation Effort little effort much effort Documentation Very important factor much effort customer focus Very important factor little effort quality Policy Very important factor much effort preventive / corrective measures Several important factor much effort periodic inspections Several important factor much effort Training Several important factor much effort reviews Several important factor little effort Resources Several important factor much effort 6.0 Benefits of implementing ISO 9001 The respondents indicated that enjoyed substantial benefits in terms of improved internal procedures and improved corporate image and moderated benefits in terms of customer satisfaction and software quality. Minor benefits were presented in profits, cost reductions, market share and productivity (see Fig. 10). Figure 10. Overall Benefits of implementing ISO Reasons for Not Applying the Standard ISO % of the companies said that certification was not required by customers
7 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P % of companies believed that staff and especially the developers found it difficult to adapt to the requirements of the standard 15% of companies, believed that the standard was vague and very general (did not describe techniques and methods of application at any stage). 15% of companies consider excessive requirements for documentation of the model, thus ends up being a bureaucratic system About 10% of companies considered that the process of implementing ISO9001 was a long term process. 9% of companies believed that productivity was not affected The 7% felt that the implementation costs were too high The remainder of the companies, i.e. 8%, believed that: Were satisfied with their own QMS (3%) It was Impossible to find a parallel implementation of the ISO9001 quality with other models that use (3%) Did not trust external inspections of certification (2%) 8.0 Conclusion Most software companies have a small number of employees with up to 30 people. The fact that 38% of businesses have fewer than 10 employees is one element that proves that the implementation of ISO9001 is not just for big companies with large numbers of workers and a wide range of activities. The findings showed that there were few customers who require a certified QMS as a condition of cooperation. This can be proved as a deterrent to certification or renewal of certification by the software companies. In the other hand, this attitude shows a general ignorance of Greek users and customers on software quality. Very important for companies is to evaluate the software and most of them apply some kind of tool or assessment techniques, including questionnaires in order to understand better the level of customer satisfaction. The results showed a balanced performance between the standard implementation costs and profit. This seemed reasonable considering that the implementation of a certified QMS was generally an investment with long term benefits and that almost half of the research companies have been certified in the last 5 years. Also the vast majority of companies agreed that the ISO9001 certification could be a helpful step for certification to other standards of quality and many have begun to additional certifications (mostly for ISO27000). The main reasons leading software companies to certification were primarily to improve their image and gain a competitive advantage in the market. The priority of incentives indicated that companies saw certification as an advertising medium or mark under which they would gain extra prestige in market. The software companies considered that the most important factors for the implementation of the model were the commitment of management and staff, system documentation, customer focus and quality policy. For management commitment and focus on customer needs, the companies did not take any special effort, but a greater effort was needed for the personnel commitment, for documentation and quality policy. Since the implementation of ISO9001, software companies have greatly been satisfied by the improvement of internal processes and their image improvement. The companies were not satisfied in terms of productivity, staff satisfaction and the financial data were not shown the improvement that they would aspect.
8 16-ICIT & 8-C&C: 11-13/7/12 in Sweden ST-2: ISO 9000 / / 50001, etc. Paper #: 2-3 P- 88 The reasons why software companies would not proceed with the implementation of a certified QMS have to do firstly with the little demand for certification from the software market, secondly with the general nature of the model, which should be adapted in most cases by using other supporting standards and finally with the high level of documentation required, which produced a large amount of documents and files. These findings demonstrated that implementing a QMS which seeks certification to ISO9001,was certainly not an easy process. The Greek software companies have adopted widely certified QMS and the results showed that the acceptance was great and have helped significantly in many areas. On the other hand, there was a wrong attitude of the companies considered certification as a main reason for the brand recognition and image. This attitude of enterprises was probably due to the high expectations created by the international reputation of ISO9001. Another factor that Greek software companies were not happy enough about the costs, was the short period of application of QMS. For the majority of them did not exceed 5 years. A very important factor also for a successful implementation of certified QMS proved to be the acceptance of the customers. The Greek software users seem that is not satisfactorily combine the concept of quality and how it is incorporated into the software. References Observatory for the Greek Information Society (2008), Study of the ICT sector for the 2008 and the use of ICT in key sectors of economic activity in Greece: Status and Prospects [Internet], Athens, Available from: < [Accessed 20 December 2011] Federation of Hellenic ICT Enterprises, 2011, Analysis of the ICT sector in Greece [Internet], Athens, Available from: < [Accessed 30 December 2011] Authors Backgrounds Mr. Theodore Amygdalas is a computer Lab associate in the Department of Agricultural Development and Management of Agricultural Enterprises of Alexander Technology Educational Institute of Thessaloniki(ATEITH) and provides support in teaching courses such as "Computer Science», «Multimedia» and computer applications in agriculture. He studied Agricultural Technology (ATEITH), Applied Informatics (University of Macedonia) and Quality Management (Hellenic Open University). His research interests concern implementing ICT (Information and Communication Technologies) in Agriculture (E-Commerce, Social media and their applications in agriculture and Agricultural business development), applied Quality Management systems in agricultural business and software quality. Dr. Fotis Vouzas is Assistant Professor in the Department of Business Administration of University of Macedonia. He teaches: Introduction to management, introduction to business administration, quality systems and human resources utilization, organizational development and logistics. His research interests concern Total Quality Management and HR Utilization, Managerial Effectiveness and the role of Middle Managers, Strategic HRM and Quality and SME's and Logistics. Prof. Dimosthenis Mpoutakidis is an application professor in the Department of Agricultural Development and Mgt. of Agricultural Enterprises of Alexander Technology Educational Institute of Thessaloniki (ATEITH). He teaches computer applications in agriculture and multimedia. His research interests are the use of computer applications and multimedia in agricultural education, GIS in Rural Development and environmental mgt. issues related to Agriculture. He is also a verified instructor for continuous education on ICT (Information and Communication Technologies) by the Greek national authority for continuous education and has been involved in several programs and projects. He has participated in many EU exchange programs for continuous education.
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