The Necessary Link Between Business Goals and Technology Choices

Transcription

1 The Necessary Link Between Business Goals and Technology Choices Linda Northrop Director, Product Line Systems Program Software Engineering Institute Carnegie Mellon University Pittsburgh, PA by Carnegie Mellon University 1 Linda Northrop - AOSD 2002

2 Beginning of the 21st Century Software has become the bottom line for many organizations who never envisioned themselves in the software business by Carnegie Mellon University 2 Linda Northrop - AOSD 2002

3 Typical Business Goals High quality Quick time ( or first ) to market Increased market share Effective use of limited resources Product alignment Low cost production Low cost maintenance Mass customization Mind share 2002 by Carnegie Mellon University 3 Linda Northrop - AOSD 2002

4 The Ultimate Universal Goal Substantial Quick Sustainable PROFIT 2002 by Carnegie Mellon University 4 Linda Northrop - AOSD 2002

5 Software (System) Strategies Process Improvement Technology Innovation Reuse 2002 by Carnegie Mellon University 5 Linda Northrop - AOSD 2002

6 Technology Innovation Flavors New Products New Approaches 2002 by Carnegie Mellon University 6 Linda Northrop - AOSD 2002

7 Technology Innovation Types Continuous innovation (sustaining technologies) improve performance of established products fit in current contexts Discontinuous innovation (disruptive technologies) new and effective products force a new context and approach are difficult to incorporate into legacy systems Some innovations are a little of both and some differ based upon the consumer by Carnegie Mellon University 7 Linda Northrop - AOSD 2002

8 The Internet: A Sustaining Technology to Dell Research Customer Market Order Staff Supplier Manufacture Delivery Training Accounting Enterprise 2002 by Carnegie Mellon University 8 Linda Northrop - AOSD 2002

9 The Internet: A Disruptive Technology to Compaq??????? 2002 by Carnegie Mellon University 9 Linda Northrop - AOSD 2002?

10 Technology Innovation Roots Sometimes from commercial practice Most often from software research pure applied reapplied 2002 by Carnegie Mellon University 10 Linda Northrop - AOSD 2002

11 The Landscape Software Research Commercial Practice 2002 by Carnegie Mellon University 11 Linda Northrop - AOSD 2002

12 The Landscape technology innovations Software Research Commercial Practice 2002 by Carnegie Mellon University 12 Linda Northrop - AOSD 2002

13 The Landscape transition technology innovations Software Research Commercial Practice 2002 by Carnegie Mellon University 13 Linda Northrop - AOSD 2002

14 The Landscape transition technology innovations adopt Software Research Commercial Practice 2002 by Carnegie Mellon University 14 Linda Northrop - AOSD 2002

15 Why Do Organizations Choose to Adopt a Technology Innovation? It depends. for no good reason because it is new and neat (rare) because they can align its potential value with business goals because it has a proven track record to achieve business goals because they are forced into it 2002 by Carnegie Mellon University 15 Linda Northrop - AOSD 2002

16 FoxMeyer Drug Co. In the early 1990s, bet its future on a massive enterprise software and warehouse automation system Expected to: save $40 million annually serve a rapidly expanding customer base get information about customer buying patterns Result: Missed product schedules Lost more than $34 million Filed for protection under Chapt 11 of federal bankruptcy code 2002 by Carnegie Mellon University 16 Linda Northrop - AOSD 2002

17 FoxMeyer Drug Co. In the early 1990s, bet its future on a massive enterprise software and warehouse automation system Expected to: save $40 million annually serve a rapidly expanding customer base get information about customer buying patterns Result: Missed product schedules Lost more than $34 million Filed for protection under Chapt 11 of federal bankruptcy code Adoption Failure 2002 by Carnegie Mellon University 17 Linda Northrop - AOSD 2002

18 Adoption Failures slow maturation process MISMATCH need for quick results Software Research Commercial Practice 2002 by Carnegie Mellon University 18 Linda Northrop - AOSD 2002

19 Cummins Inc.: Diesel Engine Control Systems Chose to adopt a software product line approach to Improve time-to-market maintain high quality broaden market portfolio The result: built over 20 product groups with over 1000 separate engine applications slashed product cycle time from 250 person-months to a few person-months reduced build and integration from one year to one week exceeded quality goals met product schedules Enjoyed high customer satisfaction 2002 by Carnegie Mellon University 19 Linda Northrop - AOSD 2002

20 Cummins Inc.: Diesel Engine Control Systems Chose to adopt a software product line approach to Improve time-to-market maintain high quality broaden market portfolio The result: built over 20 product groups with over 1000 separate engine applications slashed product cycle time from 250 person-months to a few person-months reduced build and integration from one year to one week exceeded quality goals met product schedules enjoyed high customer satisfaction Adoption Success 2002 by Carnegie Mellon University 20 Linda Northrop - AOSD 2002

21 Transition Failures technology innovations that do not become mainstream practice Software Research Commercial Practice 2002 by Carnegie Mellon University 21 Linda Northrop - AOSD 2002

22 Artificial Intelligence The cover story of the 1980s Did not live up to its hype 2002 by Carnegie Mellon University 22 Linda Northrop - AOSD 2002

23 Artificial Intelligence The cover story of the 1980s Did not live up to its hype transition failure 2002 by Carnegie Mellon University 23 Linda Northrop - AOSD 2002

24 Transition Success technology innovations that do become mainstream practice Software Research Commercial Practice 2002 by Carnegie Mellon University 24 Linda Northrop - AOSD 2002

25 Influences (Adoption Factors) on Object-Oriented Development structured languages database languages structured analysis and design data driven analysis and design Object-Oriented Development advances in programming methodology object-oriented programming advances in cognitive science Increasing scale, complexity, diversity of systems advances in computer architecture 2002 by Carnegie Mellon University 25 Linda Northrop - AOSD 2002

26 Object-Oriented Transition Strengths Rapidly growing research and practitioner communities that provided Languages Design methods Analysis methods Conferences Training Consultants Books Tools Supporting approaches and products Measures of impact (after while) 2002 by Carnegie Mellon University 26 Linda Northrop - AOSD 2002

27 Object-Oriented Transition Strengths Rapidly growing research and practitioner communities that provided Languages Design methods Analysis methods Conferences Training Consultants Books Tools Supporting approaches and products Measures of impact (after while) transition success 2002 by Carnegie Mellon University 27 Linda Northrop - AOSD 2002

28 And Yet Even though objects were invented several decades ago, they are entering the commercial IS market place slowly. Certain things are still missing; typical examples are money and transaction classes and version management of the modeling and programming tools. Alistair Cockburn, 1997 Surviving Object-Oriented Projects 2002 by Carnegie Mellon University 28 Linda Northrop - AOSD 2002

29 And Yet Even though objects were invented several decades ago, they are entering the commercial IS market place slowly. Certain things are still missing; typical examples are money and transaction classes and version management of the modeling and programming tools. Alistair Cockburn, 1997 Surviving Object-Oriented Projects Technology transition takes a long time by Carnegie Mellon University 29 Linda Northrop - AOSD 2002

30 Making the Link: Transition Path Software Research Commercial Practice 2002 by Carnegie Mellon University 30 Linda Northrop - AOSD 2002

31 Transition: the Job of the Technologist transition technology innovations adopt Software Research Commercial Practice 2002 by Carnegie Mellon University 31 Linda Northrop - AOSD 2002

32 Transition 101 If the goal is mainstream, commercial practice, technologists need to market in order to effect transition What is marketing? Taking actions to create, grow, maintain, or defend markets What are markets? a set of actual or potential customers for a given set of products or services who have a common set of needs or wants and who reference each other when making a buying decision 2002 by Carnegie Mellon University 32 Linda Northrop - AOSD 2002

33 A Helpful Model Technology Adoption Life Cycle Geoffrey A. Moore Crossing the Chasm Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 33 Linda Northrop - AOSD 2002

34 A Helpful Model enthusiasts Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 34 Linda Northrop - AOSD 2002

35 A Helpful Model visionaries enthusiasts Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 35 Linda Northrop - AOSD 2002

36 A Helpful Model pragmatists visionaries enthusiasts Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 36 Linda Northrop - AOSD 2002

37 A Helpful Model pragmatists conservatives visionaries enthusiasts Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 37 Linda Northrop - AOSD 2002

38 A Helpful Model pragmatists conservatives visionaries enthusiasts skeptics Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 38 Linda Northrop - AOSD 2002

39 Transition Examples Artificial Intelligence Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 39 Linda Northrop - AOSD 2002

40 Transition Examples Artificial Intelligence Object-oriented Technology Innovators Early Majority Laggards Early Adopters Late Majority 2002 by Carnegie Mellon University 40 Linda Northrop - AOSD 2002

41 Transition Challenge: the Chasm There is a gap between each group. Each gap must be bridged. The most significant gap is the one that separates the early adopters from the early majority. The real challenge is crossing the chasm. the chasm 2002 by Carnegie Mellon University 41 Linda Northrop - AOSD 2002

42 Crossing the Chasm Technology Innovations Adopters Technologists Raise Technology Acceptability Lower Organizational Barriers 2002 by Carnegie Mellon University 42 Linda Northrop - AOSD 2002

43 Often a Bumpy Road If you don t know where you are going, any road will take you there. Lewis Carroll 2002 by Carnegie Mellon University 43 Linda Northrop - AOSD 2002

44 Transition Musts Plan your attack Establish the need Use open experimentation Develop the whole product Ensure tool support Address management fit Collect data and amass ROI figures Develop and implement a communication (advocacy/marketing) plan Form tactical alliances Find leaders and potential champions at all levels Focus on constraints of transition environment Plan to support the whole life cycle Timing is everything 2002 by Carnegie Mellon University 44 Linda Northrop - AOSD 2002

45 The Ultimate Transition Pledge Our new product radically improves productivity on an already well-understood critical success factor specific to your business, and there is no existing means by which you can achieve a comparable results. Geoffrey A. Moore 2002 by Carnegie Mellon University 45 Linda Northrop - AOSD 2002

46 SEI Transition Examples Capability Maturity Model Rate Monotonic Analysis Ada Adoption Ada Adoption Handbook 2002 by Carnegie Mellon University 46 Linda Northrop - AOSD 2002

47 SEI Transition Examples Capability Maturity Model Succeeded Rate Monotonic Analysis Ada Adoption Ada Adoption Handbook 2002 by Carnegie Mellon University 47 Linda Northrop - AOSD 2002

48 SEI Transition Examples Capability Maturity Model Succeeded Rate Monotonic Analysis Partially succeeded Ada Adoption Ada Adoption Handbook 2002 by Carnegie Mellon University 48 Linda Northrop - AOSD 2002

49 SEI Transition Examples Capability Maturity Model Succeeded Rate Monotonic Analysis Partially succeeded Ada Adoption Ada Adoption Handbook Failed 2002 by Carnegie Mellon University 49 Linda Northrop - AOSD 2002

50 SEI Transition Examples Capability Maturity Model Succeeded Rate Monotonic Analysis Partially succeeded Ada Adoption Ada Adoption Handbook Failed Software Product Lines and Software Architecture Still in process 2002 by Carnegie Mellon University 50 Linda Northrop - AOSD 2002

51 The Architecture Business Cycle Architect s Influences Customer and End User Developing Organization Technical Environment Requirements (Qualities) Architect(s) Architecture System Architect s Experience 2002 by Carnegie Mellon University 51 Linda Northrop - AOSD 2002

52 Making Architecture Tradeoff Analysis a Practice Starting Points Mature Transition Quality attribute/ performance engineering Software Architecture Analysis Method (SAAM) Security analysis Reliability analysis Software Architecture Evaluation Best Practices Report Software architecture evaluations Architecture tradeoff analysis attribute-specific patterns attribute tradeoff analysis techniques Architecture reconstruction Architecture documentation Architecture Evaluations Sample Architecture Descriptions Architecture Reconstructions Coaching Workshops Technical reports Presentations Web site Books Courses Tutorials 2002 by Carnegie Mellon University 52 Linda Northrop - AOSD 2002

53 ATAM Transition Artifacts ATAM Reference Guide (ARG) ATAM TRAINING ATAM Presentation Process Model Templates Architecture Evaluation Best Practices ATAM ATA Foundations ARID SAAM ATAM Case Study NASA Soft re Architecture Evaluation in Practice Quality Attribute Workshops DoD Guidelines DoD Evaluation Case Studies 2002 by Carnegie Mellon University 53 Linda Northrop - AOSD 2002

54 Making Software Product Lines Happen Essential Activities Practice Areas Software Engineering Technical Management Organizational Management Probe Patterns Case Studies 2002 by Carnegie Mellon University 54 Linda Northrop - AOSD 2002

55 29 Software Product Line Practice Areas Software Engineering Architecture Definition Architecture Evaluation Component Development COTS Utilization Mining Existing Assets Requirements Engineering Software System Integration Testing Understanding Relevant Domains Technical Management Configuration Management Data Collection, Metrics, and Tracking Make/Buy/Mine/ Commission Analysis Process Definition Scoping Technical Planning Technical Risk Management Tool Support Organizational Management Building a Business Case Customer Interface Management Developing an Acquisition Strategy Funding Launching and Institutionalizing Market Analysis Operations Organizational Planning Organizational Risk Management Structuring the Organization Technology Forecasting Training 2002 by Carnegie Mellon University 55 Linda Northrop - AOSD 2002

56 Our Assumption So Far Software research (the technologists) are separate from the commercial organizations whose practice they wish to influence. What if the research is internal to a company? Is all this transition activity still necessary? 2002 by Carnegie Mellon University 56 Linda Northrop - AOSD 2002

57 The Myth Corporate Research Corporate Practice 2002 by Carnegie Mellon University 57 Linda Northrop - AOSD 2002

58 Xerox PARC PARC had the goods, and they had them early. Xerox couldn t transcend the copier business. Xerox never fully understood the potential of PARC s technology. BYTE August by Carnegie Mellon University 58 Linda Northrop - AOSD 2002

59 Xerox PARC PARC had the goods, and they had them early. Xerox couldn t transcend the copier business. Xerox never fully understood the potential of PARC s technology. both a transition and an adoption failure BYTE August by Carnegie Mellon University 59 Linda Northrop - AOSD 2002

60 Of Course, There is a Silver Lining Others made the maturation and transition efforts and the innovations from PARC have found their way into mainstream products and approaches by Carnegie Mellon University 60 Linda Northrop - AOSD 2002

61 The Reality Corporate Research Corporate Practice A transition effort is needed no matter where the innovation comes from by Carnegie Mellon University 61 Linda Northrop - AOSD 2002

62 Making the Link: the Adoption Path Software Research Commercial Practice 2002 by Carnegie Mellon University 62 Linda Northrop - AOSD 2002

63 Adoption: the Job of Business Units transition technology innovations adopt Software Research Commercial Practice 2002 by Carnegie Mellon University 63 Linda Northrop - AOSD 2002

64 On the Receiving End Executive Management Technical Management Software Research Developers 2002 by Carnegie Mellon University 64 Linda Northrop - AOSD 2002

65 Adoption Musts Developers Need to be informed, current, and well-connected Training, training, training, and communication Technical Management Management processes Data and metrics to be able to estimate, schedule, and budget Tool support Methodology Executive Management $Investment Business Case Adoption Plan Champion(s) 2002 by Carnegie Mellon University 65 Linda Northrop - AOSD 2002

66 What s in a Business Case? Business goals and the rationale Strategy indicating a match with technology choice The cost of adoption the direct full cost indirect costs The forecasted ROI The feasibility of an adoption plan Risks Measures to collect and track A business case requires data that can be trusted by Carnegie Mellon University 66 Linda Northrop - AOSD 2002

67 The Truth about Marketing and Hype 1(7 1(7 1(7 Make sure that the data you use in your business case is proven and relevant by Carnegie Mellon University 67 Linda Northrop - AOSD 2002

68 Can t Make a Business Case? If there is no business case to be made, the temptation is to resist the innovation. However, beware of disruptive technologies! To deal with disruptive technologies, there are more executive management musts Technology forecasting Organizational risk management Barrier analysis (usually culture) Market analysis (Beware of creating a vacuum at the low market end.) 2002 by Carnegie Mellon University 68 Linda Northrop - AOSD 2002

69 . Adoption Planning Current State Gap Analysis Desired State Adoption Plan Goals Strategies Objectives Activities 2002 by Carnegie Mellon University 69 Linda Northrop - AOSD 2002

70 Managing Technology Change VISION SKILLS INCENTIVES RESOURCES ACTION PLAN CHANGE SKILLS INCENTIVES RESOURCES ACTION PLAN CONFUSION VISION INCENTIVES RESOURCES ACTION PLAN ANXIETY VISION SKILLS RESOURCES ACTION PLAN CHANGE POCKETS VISION SKILLS INCENTIVES ACTION PLAN FRUS- TRATION VISION SKILLS INCENTIVES RESOURCES FALSE STARTS Managing Technological Change Carnegie Mellon University Software Engineering Institute 2002 by Carnegie Mellon University 70 Linda Northrop - AOSD 2002

71 Making the Link aka the Contest Software Research traffic and sporting Commercial Practice 2002 by Carnegie Mellon University 71 Linda Northrop - AOSD 2002

72 Making the Link aka the Contest Software Research traffic and sporting Commercial Practice Business goals are often ephemeral. Businesses are impatient. There are fits and starts by Carnegie Mellon University 72 Linda Northrop - AOSD 2002

73 Making the Link aka the Contest traffic and Software sporting Research Be aggressive AND supportive. Create scenarios for business case support. Be flexible. Commercial Practice Business goals are often ephemeral. Businesses are impatient. There are fits and starts by Carnegie Mellon University 73 Linda Northrop - AOSD 2002

74 Some think.. Technology transition is a contact sport requires discipline requires training requires interaction follows a plan is orderly 2002 by Carnegie Mellon University 74 Linda Northrop - AOSD 2002

75 The Truth: Technology Transition is a Collision Sport Placeholder text block by Carnegie Mellon University 75 Linda Northrop - AOSD 2002

76 Conclusion To bridge technology innovation into mainstream commercial practice requires innovation of intrinsic value aggressive, proactive transition proactive adoption timing just a bit o luck Software Research Commercial Practice 2002 by Carnegie Mellon University 76 Linda Northrop - AOSD 2002

77 Attribution Crossing the Chasm, Geoffrey A. Moore The Innovator s Dilemma - When New Technologies Cause Great Firms to Fail, Clayton M. Christensen Software Runaways - Lessons Learned from Massive Software Project Failures, Robert L. Glass Fumbling the Future - How Xerox Invented, Then Ignored, the First Personal Computer, Douglas K. Smith and Robert C. Alexander Dealers of Lightening, Michael Hiltzik Great Expectations - Why Technology Predictions Go Awry, Herb Brody (Technology Review, July 1991) Jim Mitchell, Sun Research John Maher, formerly SEI Priscilla Fowler, formerly SEI 2002 by Carnegie Mellon University 77 Linda Northrop - AOSD 2002

78 Questions Now or Later Linda Northrop Director Product Line Systems Program Telephone: U.S. mail: Software Engineering Institute Carnegie Mellon University Pittsburgh, PA World Wide Web: SEI Fax: by Carnegie Mellon University 78 Linda Northrop - AOSD 2002