Global Demand For Human Productivity Impacts Software Companies

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Dorcas Katherine Sims
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1 International Software & Productivity Engineering Institute Global Demand For Human Productivity Impacts Software Companies Vladimir L Pavlov, INTSPEI Chairman and Chief Strategy Officer

2 Let s Benchmark Your Company Average in Global 500 Revenue BUSD Profit M USD Employees K Impact K USD Productivity K USD 2

3 Agenda Global demand for productivity How does it impact your strategy? INTSPEI services How can INTSPEI help you implement your strategy? 3

4 G500 Rank Company Name Revenue (USD B) Profit (USD B) Employees (K) Impact (K) Productivity (K) 1 Wal Mart Exxon Mobil General Motors Toyota General Electric Ford Citigroup Verizon HP IBM Boeing Vodafone CNP Assurances Nokia Microsoft Motorola Intel PepsiCo Cisco Systems Coca Cola EnCana

5 Global 500 Companies Average Impact, USD Average Productivity, USD

6 Ideally People should focus on three key things: Making decisions Innovating Expressing themselves emotionally and artistically All the rest should be "outsourced" to computers 6

7 Let s Benchmark Your Company Average in Global 500 Revenue BUSD Profit M USD Employees K Impact K USD Productivity K USD

8 Let s Benchmark: Year Over Year Productivity Growth 8

9 Productivity Strategies for a Software Company Decrease Spending Partner Ecosystem s Productivity Clients Productivity Increase Outcome Employees Productivity 9

10 In The Software World. Productivity is Not About Software OpenUP SDLC

11 Three Types of SDLCs Formal SSADM RUP MSF CMMi Agile XP SCRUM MSF Agile Semantics focused P Modeling Framework 11

12 How Can INTSPEI Help You Grow Productivity of Your Employees? SDLC Fine Tuning: Increase Outcome We will help you optimize your existing software development process SDLC = Software Development Life Cycle SDC In A Box: Decrease Spending We will help you create your new software development subsidiary in Eastern Europe SDC = Software Development Center 12

SDLC Fine-Tuning Cost to correct a defect greatly depends on how early it was introduced and revealed

Cost to Correct Detailed Design Maintenance Construction Phase That a Defect is Corrected The most important

control is minimal and then grows as development moves forward.

13 SDLC Fine-Tuning Cost to correct a defect greatly depends on how early it was introduced and revealed Requirements Architecture Detailed Design Construction Phase That a Defect is Created Architecture Requirements Cost to Correct Detailed Design Maintenance Construction Phase That a Defect is Corrected The most important decisions (and most expensive mistakes) are done at the beginning of the project The initial amount of quality control is minimal and then grows as development moves forward. This results in a costly rework (often hidden) on the late stages of the project INTSPEI SDLC Fine-Tuning addresses this problem. We enable our clients to reduce delays between bug insertions and bug fixes After SDLC Fine-Tuning, your engineers will start discovering and fixing critical mistakes virtually immediately - when introduced - not at the late phases where they are the most expensive to resolve 13

14 SDC In-A-Box: INTSPEI Creates a Software Development Subsidiary for You Armenia, Belarus, Russia, Ukraine and other countries Hiring, facility, logistics, infrastructure, local legal requirements, business-processes, etc. The development center is launched as client s subsidiary, or we ll manage it until you are ready 14

15 International Software & Productivity Engineering Institute 10% Discount for Participants of the Software Business 2007 Available for a period of 6 months after the conference Money-Back Guarantee Available for a period of 30 days after our services are completed

Next Steps Assess your company s productivity i strategy: Employees

Productivity within your partner ecosystem?

16 Next Steps Assess your company s productivity i strategy: Employees productivity? Productivity of your customers? Productivity within your partner ecosystem? Contact INTSPEI Talk to me at a coffee break Stop by our booth Mail me at vlpavlov@intspei.com Order INTSPEI services: SDLC Fine Tuning to increase outcome of your engineering process SDC In A Box to bring down the costs of your engineering process 16

17 International Software & Productivity Engineering Institute

18 International Software & Productivity Engineering Institute Backup Slides

19 Country GDP (B USD) Population, M Labor Force M GDP Per Capita, K USD Impact, K USD Armenia Australia Austria Belarus Belgium Brazil Canada China Denmark Finland France Germany India Ireland Japan Netherlands Poland Portugal Romania Russia Sweden Ukraine UK USA

20 IBM Rational Unified Process Phases Disciplines Inception Elaboration Construction Transition Business Modeling Requirements Analysis & Design Implementation Test Deployment Configuration Mgmt Management Environment Preliminary Iteration(s) Iter. #1 Iter. #2 Iter. #n Iter. #n+1 Iter. #n+2 Iter. #m Iter. #m+1 Iterations

21 Microsoft Solutions Framework

22 extreme Programming

23 Iterative Development

24 Traceability Management

25 SDLC Fine Tuning: The Process Defining Scope Of Work Client and INTSPEI agree on the scope of service 2 4 hours, pre audit interviews with the key stakeholder(s) Process Assessment Thee strengths and weaknesses of the current client s SDLC will be evaluated 2 7 or more days, 1:1 audit meetings with the key people Improvement Design We design improvement proposals for client s SDLC to make it more efficient 1 +day(s), individual work Improvement Implementation We teach client s staff how to eliminate bottlenecks identified on the first stage 2 7 or more days, training/coaching for the key people 25

26 SDC In-A-Box: Two Ownership Options Client Software Development Center is owned by the client from the very beginning INTSPEI Initially INTSPEI owns the Software Development Center As soon as the client feels comfortable, the ownership is transferred to the client 26

27 SDC In-A-Box: The Process Defining Scope Of Work Client and INTSPEI agree on the list of people to hire, office space requirements, business processes, budget, etc days Launchingthe Software Development Center INTSPEI sets up an office for the client, deploys the infrastructure, hires people, performs the paperwork to meet local legal requirements, etc. 2 5 months Managing Current Operations (optional) INTSPEI manages outsourcing office As many months as the client needs 27

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