Introduction to
Product Software
Session 1 Product Software
Dr. Slinger Jansen Dr. Rik Bos
Contents
Productsoftware
– Economic context
– Definition
Organizational Structures
Organizational Variability
Netherware
GX
Now:
125 employees Offices in Boston and Sillicon Valley Started by 6
university of Nijmegen students
Societal context
ICT innovations create
new products, services,
companies, jobs, economic value, social value
International
:
YouTube
SAP
Skype
Microsoft
Salesforce.com
Amazon
…
National
:
TomTom
Bibit
Hyves
Centric
Exact
Planon
Unit4
Afas
…
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
What is product software?
Product
software
Tailor-made
software
Number of
copies
What is being
sold?
Device Software One MultipleEmbedded
software
Microprogram
Terms related to Product
Software
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
…
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
Economic context
World Global software market 2008: 240 B€;
growth 6.5% (1 B = 109)
2013 forecast: $360 B€;
growth 50.5% since 2008.
9% 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: 15.000 employees in NL companies 8,5 % of 175.000 total ICT employment
Market in 1999
System level: Operating systems [12.9%] / [9%]
System level: other software [3.4%] / [9%]
Middleware [3.5%] / [32.9%]
System management [9.1%] / [11%]
Security [3.1] / [21%]
Database management systems [9.4%] / [11.2%]
Development environments [5.6%] / [16.3%]
Development life-cycle management [3.4%] / [11.9%]
Internet tools [0.3%] / [34.1%]
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%]
CAGR:
Compound Annual Growth Rate all CAGR > 9% Source: OECD 19% 49% 32% Application Software Software Development Tools System Infrastructure Software [share] / [CAGR]
Share of total ICT expenses
Product software as part of all ICT expenses (Source: OECD)
Intermezzo
Professor: Did you
know that Bill Gates
sold MS-DOS before
it was finished?
Student: He
still does!
Contents
Productsoftware
– Economic context
– Definition
Organizational Structures
Organizational Variability
Netherware
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
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
5
30
10
20
30
5
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
Baan Development (1998)
Product Management Release Management Processes Finance/Legal HRM Common Architecture Research BaanTech Workflow Common Technologies ERP Service& Project E-ERP BackOffice Applications Financials CRM Supply Chain Application Integration Emerging Applications Configuration Management Product Testing Multi-Byte Product Assembly Documentation and Training Business Intelligence Localizations Product Delivery Chief Technology OfficerThe organizational structure of Baan Development in 1998; 1500 employees
Standard F-structure
Board
Investment and profits
Board
R&D
Marketing
Sales
Services
Support
- - + + +
Σ
-Σ
+Substructures
Board
R&D
Marketing
Sales
Services
Support
P-structure Generic, P-structure P-structure P-structure P-structure G-structure
P-type for R&D
R&D mgr
Product 1 Product 2 Product 3 Quality
& Delivery
Architecture Board Product
Management
• R&D departments are responsible for a product line • Product Management:
• Functional responsibility • Liaison with Marketing
• Architecture Board
• Technical responsibility • Interfacing of products
• Quality and Delivery:
• Generic configuration management • Testing and quality management • Documentation and translation
Ownership R&D
Development mgr
Team1 Team2 Team3 …
Architect Product
Mgr
• Team has all roles for development of a product:
• Design • Realisation • Testing
• Configuration Management • Documentation
M-type for Sales
Sales mgr Large Accounts SME Banking & Insurance … Contracts CRM• Centralized customer relationship management • Relationship with Support
• Contracts require legal support
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
Contents
Productsoftware
– Economic context
– Definition
Organizational Structures
Organizational Variability
Netherware
Software product management
Sales R&D Customers Board Development Partners strategy Market market trends feature requests technology drivers bugs, change requests contracts, partner requests Scope changesProduct 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
Organizational Variability
Board
R&D Marketing Sales Services Support
Product 1 Product 2 Product 3 & Delivery Quality
Product Management Product Management Marketing Communication Product Management Product Management Product Management Product Management
Contents
Productsoftware
– Economic context
– Definition
Organizational Structures
Organizational Variability
Netherware
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.
Netherware
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:
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
Product Yunoo
budget overviews on internet banking plus social network for spending advice
History
2007 4 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
