The Video Game
Industry
Appendix F:
Development of
S ft
Software
and
d Vid
Video
Games
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Video Game Developers
Video Game Developers
1. Third-party developers
2. In-house developers
3. Independents
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
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pic1 Soccer Center
http://www.nwsoccercenters.com/html/or/images/videogames.jpg
pic2&3 Video games http://www.allcoolgames.com/X-box_opt.jpg
239
• Developers employ a staff of
programmers, game designers,
artists, sound engineers,
producers, and testers.
• Video game publishers have
large in-house development
teams.
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
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1
Third-Party Developers
Video Games
Usually called upon by a video
game publisher to develop a title
f one or more systems
for
Eli M. Noam, Production
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
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Video Game Development
Independents are typically
small software developers
p that
self-publish their games, often
relying on the Internet and word
of mouth for publicity
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Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
242
Video Games
• 2004: Video game titles have a
20% success rate. A game costs
$10 million to produce on
average, -- another $10 million
to market (3 mil in 1998)
• Game publishers
subject to 5 year
hardware cycle
cycle, forces
them to essentially
reinvent their software
every five years
Source: The New York Times, August Eli
22,
2004 pBU5(L) col 01 (30 col in)
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•
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2
Large Failure Rate
•
Activision: 40% of game
revenue in 2003 came from 2
ggames,, ''Tony
y Hawk's
Underground'' and ''True Crime:
Streets of L.A
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Investment Rising
•
Atari spent $20 million on its
''Enter the Matrix'' game in
2003 about 1/3 of a Hollywood
2003,
feature film.
Source: The New York Times, August 22, 2004 pBU5(L) col 01 (30 col in)
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246
Video Game Publishing
Industry
Investment Rising
• Game publishers are therefore,
less willing to take creative
chances
–Movie tie-ins
–Hit-driven industry
•
Source: The New York Times,
August 22, 2004 pBU5(L) col 01 (30 col in)
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Industry shakeout. Market
leaders: Electronic Arts,
Activision,
i ii
THQ
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3
Video Game Publishing
Industry
Movie Tie-ins
• Harder for small games
publishers to hedge risks.
–Harder to have non-game and
secondary revenues
–Short shelf-life (3-6 months
after release)
249
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• Video games based on movies:
–Batman Forever-Spiderman
–E.T.
–Finding Nemo
–The
The Goonies 2
–The Hulk
–Jurassic Park II
–The Flintstones
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• Movie-based games,
Hollywood-quality
Hollywood
quality special
effects, professionally composed
soundtracks, celebrity voices
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Source: The New York Times, August
22, 2004 pBU5(L) col 01 (30 col in)250
Video Games
• Examples of movies based on
video games:
–Alone in the Dark
–Final Fantasy:
y The Spirits
p
Within
–Lara Croft films
–Mortal Combat films
–Resident Evil films
–Street Fighter
251
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Source: Wikipedia,Eli https://en.wikipedia.org/wiki/Video_game
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4
Secondary Revenues
• Subscriptions to interactive Internet
games
• Advertising
• But numbers not large.
• Electronic
El
i Arts:
A
subscription-based
b i i b d
Web sites contributed just $50 million
of its $3 billion in revenue in 2003.
• Advertising, licensing and
programming revenue came to $33
million.
253
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Source: The New York Times, August 22, 2004 pBU5(L) col 01 (30 col in)
Video Game Genres
• Adventure
• Educational
• Fighting
• First-person
shooter
• Fixed shooters
• Platform
• Puzzle
• Racing
• Retro
• Rhythm
• Role-playing
Eli M. Noam, Production
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
254
Top Video Games 2004
• 1. Fight Night 2004, Electronic
Arts, PS2
• 2.
2 NBA Ballers,
Ballers Midway,
Midway PS2
• 3. Fight Night 2004, Electronic
Arts, Xbox
• Serious
• Survival
• Shoot ‘em up horror
• Third
hi d person
• Simulation
shooters
• Sports
• Traditional
• Strategy
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
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Video Game Genres
255
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5
Top Video Games 2004
Top Video Games 2004
• 7. Splinter Cell: Pandora
Tomorrow, Ubisoft, Xbox
• 8. NBA Ballers, Midway, Xbox
• 9. Halo, Microsoft/Bungie, Xbox
• 10. Hitman: Contracts, Eidos
Interactive, PS2
• 4. MVP Baseball 2004,
Electronic Arts, PS2
• 5. Pokemon
k
Colosseum,
l
Nintendo, GameCube
• 6. Resident Evil: Outbreak,
Capcom, PS2
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Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
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Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
258
Video Game – Media Merger?
Video Game Profit Margins
• Speculation that various media
giants are considering to acquire
video game company such as
Activision or Electronic Arts.
• The 25% profit margin of video
games has interested companies,
such as Disney.
– Average film profit margin:
8%
Holson, Laura M. “Movie Studios Get Serious About Making Video Games,” The New
York Times. February 7, 2005.
Holson, Laura M. “Movie Studios Get Serious About Making Video Games,” The New
York Times. February 7, 2005.
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6
Failed Crossover Attempts
Video Game Entrepreneurial Flair
• In the 1970s and 1980s, many
studios acquired book publishers.
• Combine book publishing with
movie making
• Both attempts failed.
• Videogame industry still has
entrepreneurial flair, unlike more
mature industries like movie and
television
• No diva qualities and corrupting
influence of star power common in
Hollywood.
Holson, Laura M. “Movie Studios Get Serious About Making Video Games,” The New
York Times. February 7, 2005.
Holson, Laura M. “Movie Studios Get Serious About Making Video Games,” The New
York Times. February 7, 2005.
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Media companies cautious
• No crossover attempts like in
the past
- Disney is publishing own
game on “Chronicles of
g
Narnia”
- NewsCorp. Licenses their
film and television shows for
videogames.
Holson, Laura M. “Movie Studios Get Serious About Making Video Games,” The New
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Benefits Not to Merge
• If a game is a success, the studio
does not need to share profits.
• Studios may become rivals of
existing video game companies
http://imageseu.amazon.com/images/P/B000A
432H4.02.MZZZZZZZ.jpg
York Times. February 7, 2005.
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7
Video Games
• Console games outsold
computer games in the US by
about 4:1 in 2003
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
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Video Game
Production
265
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Video Game Production Tools
Video Game Production Tools
• The following tools are used by
the video game industry:
–Budget
Budget
–Capacity Planning
–Scheduling
• Budget
–Creators decide how much they
are willing to spend in order to
design their game, estimates are
determined
267
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
268
Publishing, Inc., 2003, p. 19-95.
8
Video Game Production Tools
Video Game Production Tools
• Capacity Planning
–Video games are designed to
lure the potential customer
away from their competitors by
creating an elite product.
• Scheduling
–Designate a necessary time
frame to complete each stage of
the video game project without
exceeding the original time
limit.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
269
Publishing, Inc., 2003, p. 19-95.
Video Game Production
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
270
Publishing, Inc., 2003, p. 19-95.
Video Game Production
• Three variable are essential to the
goals of video game production
– On Budget
d
– On Time
– High-Quality/Rich Feature
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
271
Publishing, Inc., 2003, p. 19-95.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
272
Publishing, Inc., 2003, p. 19-95.
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Video Game Production
• Software development projects
are capable of achieving only
two of the three essential goals
as a result there are three
possible outcomes.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
273
Publishing, Inc., 2003, p. 19-95.
Video Game Production
• High quality and on budget
accepting a late production date.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
275
Publishing, Inc., 2003, p. 19-95.
Video Game Production
•On budget and on time while
sacrificing quality.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
274
Publishing, Inc., 2003, p. 19-95.
Video Game Production
• High quality and on time while
accepting extra spending.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
276
Publishing, Inc., 2003, p. 19-95.
10
Project Triangle and
Video Games
Rank
Video Game
Project Triangle and
Video Games
Essential Aspects
1
The SIMS series
High Quality
2
Diablo series
High Quality and On Budget
3
Quake series
High Quality and On Budget
4
Ultima online series
High Quality
5
Starfleet Command series
On Budget and On Time
6
Baldur's Gate
High Quality and On Budget
7
Klingon Academy
No Goals Achieved
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
277
Publishing, Inc., 2003, p. 19-95.
Video Game Budget
• The video game industry
identifies three different types of
budgets for production, which
include the following:
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
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Publishing, Inc., 2003, p. 19-95.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
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Publishing, Inc., 2003, p. 19-95.
Video Game Budget
1. Ultra-low budget projects
2. Fixed budget
g - fixed deadline
projects
3. High-profile/high-quality
projects
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
280
Publishing, Inc., 2003, p. 19-95.
11
Ultra-Low Budget Projects
• In this case there is very little
funding and the goals for the
pproject
j are veryy low.
• Consists of no more than 500 to
1,000 hours of work per person.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
281
Publishing, Inc., 2003, p. 19-95.
Fixed Budget Fixed Deadline Projects
• 15% - 30% of total development
time is strictly devoted to
preproduction.
preproduction
• Identify core features which
include primary, secondary, and
tertiary.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
283
Publishing, Inc., 2003, p. 19-95.
Ultra-Low Budget Projects
• Focus primarily on allowing
volunteers to help such as
family, friend, and internet
users.
• The end result is that the game
produced is in a simple format.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
282
Publishing, Inc., 2003, p. 19-95.
High-Profile/High-Quality
Projects
• Primary goal is to develop the
best features that will make their
competitors struggle to match.
This will create barriers of entry
for other creators.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
284
Publishing, Inc., 2003, p. 19-95.
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Video Game Production
• Steps To Make A Game
– Establish a plan (requirements
capture)
p
)
– Organize game team
effectively through task
visibility
Video Game Production
285
Video Game Production Parts
1.
2.
3.
4.
Lead Designers/Visionary
Game Mechanics
Level/Mission Design
Story and Dialogue Writers
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
287
Publishing, Inc., 2003, p. 19-95.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
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Publishing, Inc., 2003, p. 19-95.
Video Game Production Parts
1. Lead Designers/Visionary
• Responsible
p
for suggesting
gg
g
the game concept and
maintaining timely design
deadlines.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
288
Publishing, Inc., 2003, p. 19-95.
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Video Game Production Parts
2. Game Mechanics
• Designated for an individual
with a game programming
background. Determines the
single and multiplayer
mechanics.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
289
Publishing, Inc., 2003, p. 19-95.
Video Game Production Parts
Video Game Production Parts
3. Level/Mission Design
• Every game is broken down
into a series, level, or mission
for a player to complete.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
290
Publishing, Inc., 2003, p. 19-95.
Video Game Production Parts
4. Story and Dialogue Writers
• Spends time with lead designer
to direct the storyy and decide
what is and what is not possible
in scripting language.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
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Publishing, Inc., 2003, p. 19-95.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
292
Publishing, Inc., 2003, p. 19-95.
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Questions Faced By
Game Producers
Questions Faced By
Game Producers
• What are you trying to
accomplish with this game?
• How much money do you have
to produce it?
• When must you complete this
project?
• Who do you have to get the job
done?
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
293
Publishing, Inc., 2003, p. 19-95.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
294
Publishing, Inc., 2003, p. 19-95.
Video Game Production
• Video Game Design Document
– Outlines in detail all of the
characters, the levels, the game
mechanics, the views, the
menus, etc.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
295
Publishing, Inc., 2003, p. 19-95.
Video Game Production
•
1.
2.
3.
The production plan includes:
Concept/visual/proposal
p
p p
Game design document
Art design document
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
296
Publishing, Inc., 2003, p. 19-95.
15
Video Game Production
Video Game Production
4. Technical design document
5. Project
j schedule
6. Software testing plan
7. Risk mitigation plan
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
297
Publishing, Inc., 2003, p. 19-95.
Video Game Production
• Quality assurance plays a key
role in video game development.
– QA departments report defects
in content and quality to the
developer prior to commercial
release.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
299
Publishing, Inc., 2003, p. 19-95.
•Source: Bethke, Erik. Game Development and Production. Plano: Woodware
298
Publishing, Inc., 2003, p. 19-95.
Video Games
• Midway Games, ( hits in its
''Mortal Kombat'' and
''SpyHunter'‘) had 18
consecutive quarters of losses
losses.
• Acclaim Entertainment, maker
of (''Shadow Man'‘) near
bankruptcy.
Source: The New York Times,
August 22, 2004 pBU5(L) col 01 (30 col in)
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16
Video Games
•
Video Games - Film
Eidos, ''Lara Croft Tomb
Raider'' series, put itself up for
sale.
• Film and games are both rivals,
(for time) and engaged in major
pollination and synergy.
Source: The New York Times, August 22, 2004 pBU5(L) col 01 (30 col in)
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Video Games
•
Video Games
Steven Spielberg's Saving
Private Ryan set off a flurry of
World War II-themed films,
which seem to have in turn
spawned a flurry of World War
II-themed games.
•
Source: Game Developer, August 2004 v11 i7 p2(1)
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-- and even Hollywood-style
economic problems, including
ballooning budgets and a greater
reliance on monster hits.
Source: The New York Times, August 22, 2004 pBU5(L) col 01 (30 col in)
303
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17
Video Games
Video Games
• 'The entire industry is looking
more and more like filmed
entertainment. 'Soon a handful
of hits will drive the entire
industry.''
Eli M. Noam, Production
Source: The New York Times, August
22, 2004 pBU5(L) col 01 (30 col in)
•
•
305
Video Games
•
$11 billion industry – embrace
of Hollywood-style production
values.
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Video Games
To combat the problem,
publishers are -- in Hollywood
fashion -- scrambling to develop
secondary revenue streams.
• Electronic Arts: In-game
advertising as an alternative to
television commercials.
Source: The New York Times, August 22, 2004 pBU5(L) col 01 (30 col in)
Source: The New York Times, August 22, 2004 pBU5(L) col 01 (30 col in)
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18
Video Games
Video Games
• Clients include Burger King,
Dodge and Procter & Gamble.
• Activision is working with the
Nielsen ratings company to
develop an advertising rate card
like that used in television.
Eli M. Noam, Production
•
Source: The New York Times, August 22, 2004 pBU5(L) col 01 (30 col in)
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Video Games
•
310
Media Integration
•
Industry is headed for a
consolidation that leaves,
according to some, just five or
six survivors.
Source: The New York Times, August 22,Eli 2004
pBU5(L) col 01 (30 col in)
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Games with film potential:
''movieable franchises''
311
Time Warner, bought the
game developer Monolith
Productions in 2002.
2002 Viacom's
Viacom s
chairman, Sumner M. Redstone,
has a controlling interest in
Midway.
Eli M. Noam, Production
Source: The New York Times, August 22,
2004 pBU5(L) col 01 (30 col in)
312
19
Top Video Games (2004)
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Top Video Games (2004)
313
314
Video Game Development
Structure
Video Games
• Management and Design
–Game designer
–Level designer
–Software planner
–Lead architect
–Producer (Project manager)
• Videogame development roles
and divisions
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Source: Newman, James, “Videogames”, 2004
316
20
Video Games
Video Games
• Programming
–Lead pprogrammer
g
–Programmer
• Art
–Lead artist
–Artist
Source: Newman, James, “Videogames”, 2004
Eli M. Noam, Production
Source: Newman, James, “Videogames”, 2004
317
Video Games
318
Video Games
• Music and Miscellaneous
–Musician
–Sound effects Technician
–Motion picture technician
• Quality Assurance
–QA
Q lead
–QA technician
–Playtester
Source: Newman, James, “Videogames”, 2004
Source: Newman, James, “Videogames”, 2004
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Video Game Development
Video Game Development
• Most video game console
development teams number 20 50 people, some teams exceed
100
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
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Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
322
Video Games
Video Game Market
• Video game hardware, software,
and accessories sold about $10.3
billion in 2002.
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
Eli M. Noam, Production
• Team size and development
time of a game grew with the
size of the industry and the
game technology.
323
• Video game market changes as
new video game consoles are
introduced, in cycles of about 5
years or so.
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
Eli M. Noam, Production
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22
Video Game Programmers
Video Games
–Game physics programmer
–AI pprogrammer
g
–Graphics programmer
Eli M. Noam, Production
Source: Wikipedia, https://en.wikipedia.org/wiki/Video game
• Sound programmer
• Gameplay
p y pprogrammer
g
• Scripter
• UI (user interface) programmer
325
Eli M. Noam, Production
Source: Wikipedia, https://en.wikipedia.org/wiki/Video game
Video Games
Software Production Tools
• Input programmer
• Network pprogrammer
g
• Game tools programmer
• Lead game programmer
• Budget
–Primarilyy based on the
information obtained through
the capability maturity model.
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
Eli M. Noam, Production
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326
•Source: Slaughter A, Sandra. Effects of Process Maturity on Quality, Cycle Time, and
Effort in Software Product Development. Pittsburgh: Informs, 2000, p.451 – 466.328
23
Software Production Tools
Software Production Tools
• Capacity Planning
–Quality
Q
y assurance enables the
software firm to avoid product
discrepancies in order to meet
market demand.
• Scheduling
–Software firms evaluate when
they should release their
product to the market.
329
•Source: Slaughter A, Sandra. Effects of Process Maturity on Quality, Cycle Time, and
Effort in Software Product Development. Pittsburgh: Informs, 2000, p.451 – 466.330
Software Production Phases
• Project Initiation Phase
–A validated systems
architecture founded on a
design study with basic
hardware and software.
Quality Assurance For Software
Production Phases
331
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
332
Training.” The Statistician 36. (1987): 493-498.
24
Software Production Phases
• Requirements Specification
Phase
–Validated specification
p
of the
required functions interfaces
and performance for the
software product
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
333
Training.” The Statistician 36. (1987): 493-498.
Software Production Phases
• Detailed Design Phase
–Verified specification of the
control structure, data structure,
interface relations, sizing, key
algorithms and assumption for
each program component
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
335
Training.” The Statistician 36. (1987): 493-498.
Software Production Phases
• Structural Design Phase
–Verified specification of the
overall hardware software
architecture, control and data
structures for the software
product
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
334
Training.” The Statistician 36. (1987): 493-498.
Software Production Phases
• Code and Unit Test Phase
–A complete
p
verified set of
program components
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
336
Training.” The Statistician 36. (1987): 493-498.
25
Software Production Phases
• Integration and Test Phase
–A pproperly
p y functioningg
software product
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
337
Training.” The Statistician 36. (1987): 493-498.
Software Production Phases
• Maintenance Phase
–Fullyy functioning
g update
p
of the
software product
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
339
Training.” The Statistician 36. (1987): 493-498.
Software Production Phases
• Software Acceptance Test Phase
–An accepted
p software pproduct
handed over to the customer
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
338
Training.” The Statistician 36. (1987): 493-498.
Software Production Phases
• Project Termination Phase
–A complete project history
document
–Emphasizes the application of
the quality cycle to the software
development project
•Source: Coleman, M.J.; Manns, T.S. “An Approach to Software Quality Assurance
340
Training.” The Statistician 36. (1987): 493-498.
26
Software Development Tools
• Capability Maturity Model
–Aimed at improving
p
g the
quality of software while
reducing cycle time and cost.
Software Development Tools
•
Each module within the
software product undergoes
t ti to
testing
t detect
d t t andd remove
syntactical errors.
•Source: Slaughter A, Sandra. Effects of Process Maturity on Quality, Cycle Time, and
Effort in Software Product Development. Pittsburgh: Informs, 2000, p.451 – 466.341
•Source: Slaughter A, Sandra. Effects of Process Maturity on Quality, Cycle Time, and
Effort in Software Product Development. Pittsburgh: Informs, 2000, p.451 – 466.342
Software Development Tools
Software Production
Life-Cycle Phases
•
Customers perform
acceptance testing to
determine whether or not the
software meets their
specifications.
•Source: Slaughter A, Sandra. Effects of Process Maturity on Quality, Cycle Time, and
Effort in Software Product Development. Pittsburgh: Informs, 2000, p.451 – 466.343
• Analysis and Design
• Construction and Testing
• Maintenance and Revision
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
344
567-579.
27
Software-Factory Process
Evolution
• Phase 1: Basic Organization and
Management Structure (mid1960s to early
l 1970s))
–Factory objective established
–Product focus determined
Software-Factory Process
Evolution
• Phase 1 cont’d
–Process data
d collection
ll i andd
analysis begun
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
345
567-579.
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
346
567-579.
Software-Factory Process
Evolution
Software-Factory Process
Evolution
• Phase 2: Technology Tailoring
and Standardization (early 1970s
to early
l 1980s))
–Control systems and objective
established
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
347
567-579.
• Phase 2 cont’d
–Standard methods adopted
p for
design, coding, testing,
documentation, and
maintenance
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
348
567-579.
28
Software-Factory Process
Evolution
• Phase 2 cont’d
–Online development
p
through
g
terminals
–Employee training program to
standardize skills
Software-Factory Process
Evolution
• Phase 2 cont’d
–Program
g
libraries introduced
–Integrated methodologies and
tool development begun
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
349
567-579.
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
350
567-579.
Software-Factory Process
Evolution
Software-Factory Process
Evolution
• Phase 3: Process Mechanization
and Support (late 1970s to
present)
–Introduction of tools
supporting project control
• Phase 3 cont’d
–Introduction of tools to
generate code, test cases, and
documentation
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
351
567-579.
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
352
567-579.
29
Software-Factory Process
Evolution
• Phase 3 cont’d
–Integration
g
of tools with online
databases and engineering
workbenches begun
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
353
567-579.
Software-Factory Process
Evolution
Software-Factory Process
Evolution
• Phase 4: Process Refinement
and Extension
–Revision of Standards
–Introduction of New Methods
and Tools
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
354
567-579.
Software-Factory Process
Evolution
• Phase 4 cont’d
–Establishment of qqualityy
control and quality circle
programs
• Phase 4 cont’d
–Transfer of methods and tools
to subsidiaries, subcontractors,
and hardware customers
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
355
567-579.
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
356
567-579.
30
Software-Factory Process
Evolution
• Phase 5: Flexible Automation
–Increase of capabilities
p
of
existing tools
–Introduction of re-use support
tools
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
357
567-579.
Software-Factory Process
Evolution
Software-Factory Process
Evolution
• Phase 5 cont’d
–Introduction of design
g
automation tools
–Introduction of requirementanalysis tools
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
358
567-579.
Software Production
• Phase 5 cont’d
–Further integration
g
of tools
through engineering
workbenches
•Source: Swanson, Kent; McComb, Dave; Smith, Jill; Mcubbrey, Don. Applying Total
Quality Techniques to System Development. Denver: University of Minnesota, 1991, p.
359
567-579.
•Source: “Offshore Software Product Development.” Nintec. 2005. Columbia
University. Last accessed on 24 July 2007 at
http://www.nintec.com/en/consulting/offshore_product_dev_overview.asp.
360
31
Top Fortune 500 Software
Companies For 2007
Software Industry Tools
• Variables for planning software
projects include:
•Cost
•Quality
•Time
•Scope
Rank
361
Company
Industry
Revenues
1
Microsoft
Computer Software
44 282 00
44,282.00
2
Oracle
Computer Software
14,380.00
3
Symantec
Computer Software
4,143.40
4
CA
Computer Software
3,805.00
5
Electronic Arts
Computer Software
2,951.00
•Source: “Fortune 500: 2007.” 23 July 2007. Columbia University. Last accessed on 23
July 2007 at http://cgi.money.cnn.com/tools/fortune/custom_ranking.jsp. 362
Software Engineering
• The application of a systematic,
disciplined, quantifiable
approach to the development,
operation and maintenance of
operation,
software; that is, the application
of engineering to software
Software
Engineering
Eli M. Noam, Production
363
Source: “Guide to the Software Engineering
Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
364
IEEE Computer Society, September 1998
32
The Software Pyramid
• At the bottom are basic
programmers
–Write code for applications,
update and test
Architects
Researchers
Consultants
Project Managers
Business Analysts
Basic Programmers
Baker, Stephen. “Programming jobs are heading overseas by the thousands. Is there a way for
Eli M. Noam, Production
the U.S. to stay on top?” BusinessWeekOnline.March 1, 2004.
365
• Next are the business analysts
–Are go-betweens, figure out
what business needs and turn
p sheet for
it into a spec
programmers
Baker, Stephen. “Programming jobs are heading overseas by the thousands. Is there a way for
Eli M.
Production
the U.S. to stay on top?” BusinessWeekOnline.March
1,Noam,
2004.
Baker, Stephen. “Programming jobs are heading overseas by the thousands. Is there a way for
Eli M. Noam, Production
the U.S. to stay on top?” BusinessWeekOnline.March 1, 2004.
366
• Next are project managers
–Coordinate work of teams
in different time zones,,
provide dependable
products on schedule
Baker, Stephen. “Programming jobs are heading overseas by the thousands. Is there a way for
the U.S. to stay on top?” BusinessWeekOnline.March 1, 2004.
367
Eli M. Noam, Production
368
33
• Next are consultants
–Advise corporations
p
about
their technology needs, help
install software, create new
applications
Baker, Stephen. “Programming jobs are heading overseas by the thousands. Is there a way for
Eli M. Noam, Production
the U.S. to stay on top?” BusinessWeekOnline.March 1, 2004.
• Next are researchers
–Keyy to innovation,, but there
are actually more in academia
than in the software business
369
Baker, Stephen. “Programming jobs are heading overseas by the thousands. Is there a way for
Eli M. Noam, Production
the U.S. to stay on top?” BusinessWeekOnline.March 1, 2004.
370
Software Production
•
• At top are architects
–Tech visionaries who sketch
out entire systems to handle
complex jobs
Baker, Stephen. “Programming jobs are heading overseas by the thousands. Is there a way for
the U.S. to stay on top?” BusinessWeekOnline.March 1, 2004.
Eli M. Noam, Production
371
The product development
group’s costs should be actual
expenditures
dit
captured
t d bby th
the
effort tracking system.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project
Eli M. Noam, Production
372
management systems”, Wellesley, Mass. : QED Information Sciences, c1990.
34
Software Production
Software Production
• If significant costs are incurred
to purchase commercial-off-theshelf software components,
components these
too should be included with the
product development
expenditures.
• The simple formulation for
determining the amount of core
asset cost to be allocated to
product development projects:
• Allocated Cost = Annual Asset
Development Cost
Source: Zells, L., “Managing software projects
: selecting and using pc-based project
Eli M. Noam, Production
373
management systems”, Wellesley, Mass. : QED Information Sciences, c1990.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project
Eli M. Noam, Production
374
management systems”, Wellesley, Mass. : QED Information Sciences, c1990.
Total product development
cost
Total Product Development
Cost
• Should also decrease as the product
line matures. Initially, it may be
g
than traditional pproduct
higher
development costs since the costs to
establish the core asset
infrastructure will be sspread over a
relatively small number of projects.
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, Eli
c1990.
M. Noam, Production
375
• Over time, relatively less effort
would go into the infrastructure and
that the assets produced would be
highly leveraged by product
development projects. As a result,
the total cost to an organization for
new products should be reduced.
Eli M. Noam, Production
Source: Zells, L., “Managing software projects
: selecting and using pc-based project
376
management systems”
35
Software Production
• Schedule
• The product line manager is
responsible for the delivery of all
prod ct line related products,
product-line-related
prod cts those
produced by asset development and
product development.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences, c1990.
377
• Schedule deviation for the product line
manager is the sum of variance of all
prod ct schedules.
product
sched les It reflects both on
the accuracy of the planning and the
ability of the project execute the plan.
Eli M. Noam, Production
378
Software Production
Software Production
• This measure is based on the
duration or calendar time of
completed projects and the
functionality they deliver. To
measure the
h duration
d
i off the
h project,
j
an organization must establish
operational definitions of when
projects begin and end.
• Time to Market
• Time to market captures
p
an
organization’s capability to
deliver products and features
faster.
Source: Zells, L., “Managing software projects : selecting
and using pc-based project management systems”,
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences, c1990.
Software Production
379
Eli M. Noam, Production
380
36
Software Production
Software Production
• Number of Products
• It characterizes the scope of the
product line as well as its
accomplishments to date.
• At a gross level, the number of
products produced gives an
i di ti off the
indication
th return
t
on
investment..
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, c1990.
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, c1990.
Eli M. Noam, Production
381
Software Production
• Trends in Defect Density
• Defects in delivered products reflect
their quality. As defects are
removed from core assets,
assets the
quality of product developed using
the product line approach should
increase.
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, c1990. Eli M. Noam, Production
383
Eli M. Noam, Production
382
Software Production
• Mission Focus
• Mission focus measures evaluate
the degree to which products
produced by the product line
organization fit within its
defined scope.
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, c1990. Eli M. Noam, Production
384
37
Software Production
Architectural Conformance
• These measures attempt to ensure
that the product line maintains a
coherent focus consistent with the
strategic objectives delegated to
the product line organization by
higher management.
• Measures of software
architecture could be used to
compare product designs with
the product line architecture to
assess conformance.
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, c1990.
Eli M. Noam, Production
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, c1990.
385
Architectural Conformance
386
Process Compliance
• They also may be used to
determine whether a particular
product should be developed as
part of the product line or as a
custom-developed project.
• Establishing a product line
approach to software
development will yield few
results if it is not followed and
implemented.
Source: Zells, L., “Managing software projects : selecting and using pc-based project management systems”,
Wellesley, Mass. : QED Information Sciences, c1990.
Eli M. Noam, Production
Eli M. Noam, Production
387
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
388
Wellesley, Mass. : QED Information Sciences, c1990.
38
Process Compliance
• Process compliance captures the
degree to which products are
produced using the product line
process. The data for this measure
p
could come from process audits
conducted by an organization’s
software quality assurance function.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
389
Wellesley, Mass. : QED Information Sciences, c1990.
Return of Investment
• By estimating ROI for
various alternatives for
improvement, the alternatives
can be compared and ranked
in terms of likely economic
benefit to an organization.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
391
Wellesley, Mass. : QED Information Sciences, c1990.
Return of Investment
• Estimates of the return of
investment (ROI) are often made
up to support a change in business
practices. ROI is computed as the
ratio of estimated savings (or
returns) for each dollar invested.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Wellesley, Mass. : QED Information Sciences,
Eli M. Noam,c1990.
Production
390
Software Production
• ROI = Σ Costt – Costp
•
Costi
• Costt is the traditional software
development
• Costp is the cost associated with
using the product line approach
Source: Zells, L., “Managing software projects : selecting and using pc-based project ma
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences, c1990.
392
39
Market Satisfaction
• Costi is the cost of establishing
the product line
• The differences in development
costs are summed across the
expected number of projects
Source: Zells, L., “Managing software projects : selecting and using pc-based project ma
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences, c1990.
393
Market Satisfaction
• The product development
manager should measure
consumer satisfaction when
purchasing products.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
394
Wellesley, Mass. : QED Information Sciences, c1990.
Market Feature Coverage
• In addition to general
satisfaction, the survey should
address reliability, functionality,
usability, and value (the relation
of these attributes to price)
• Market feature coverage
captures the extent to which the
features currently available in
the product line cover those
related to the target markets.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
395
Wellesley, Mass. : QED Information Sciences, c1990.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
396
Wellesley, Mass. : QED Information Sciences, c1990.
40
Market Feature Coverage
Core Assets Cost-of-Use
• The key toward assessing the
product line’s progress, and
hence the utility of the measure,
is the identification of features
that are relevant to the market.
• Core asset management needs to
be cognizant of the costs
incurred by product
development projects in order to
use core assets effectively.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
397
Wellesley, Mass. : QED Information Sciences, c1990.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Wellesley, Mass. : QED Information Sciences,
c1990.
Eli M. Noam, Production
398
Measures for the Product
Development Management
Core Assets Cost-of-Use
• If the costs become too large,
product development projects
may seek other ways of
satisfying product requirements
• These measures are to be used to
characterize the performance of
product development projects to
produce products.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Wellesley, Mass. : QED Information Sciences,
c1990.
Eli M. Noam, Production
399
Source: Zells, L., “Managing software projects
: selecting and using pc-based project ma
Eli M. Noam, Production
400
Wellesley, Mass. : QED Information Sciences, c1990.
41
Measures for the Product
Development Management
• There must be a measurement
system that provides for the
collection of the needed data:
Source: Zells, L., “Managing software projects
: selecting and using pc-based project ma
Eli M. Noam, Production
401
Wellesley, Mass. : QED Information Sciences, c1990.
Direct Product Costs
• Application development
management should monitor
p
of
the relative pproportion
project costs going to produce
application-specific code.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
403
Wellesley, Mass. : QED Information Sciences, c1990.
•
Direct Product Costs
These costs resemble typical
software project costs, and
should include all direct labor
costs incurred while producing
(i requirements
(i.e.
i
analysis,
l i
design, construction, and
testing) the product.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
402
Wellesley, Mass. : QED Information Sciences, c1990.
Direct Product Costs
• The remaining cost can be
interpreted as the cost to
integrate core assets into the
product
product.
Source: Zells, L., “Managing software projects
: selecting and using pc-based project man
Eli M. Noam, Production
404
Wellesley, Mass. : QED Information Sciences, c1990.
42
2) Defect Density of
Application Specific Code
•
2) Defect Density of
Application Specific Code
The product development
management role needs to
understand the quality of the
code it is producing as well as
quality of assets it is utilizing.
•
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Wellesley, Mass. : QED Information Sciences,
Eli M. Noam,c1990.
Production
405
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Wellesley, Mass. : QED Information Sciences,
Eli M. Noam,c1990.
Production
406
3) Process Compliance
•
The product development
manager needs to monitor
compliance with processes
associated with the operation of
the product line.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences,
c1990.
407
To compute this measure,
defects reported by customers
are divided by the size of the
application-specific code in the
product.
4) Percent Reuse
•
Planned reuse plays an
important role in estimating the
costt andd schedule
h d l for
f product
d t andd
development projects.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences,
c1990.
408
43
4) Percent Reuse
4) Percent Reuse
• Product development
management should track which
core assets
t are usedd in
i the
th
product and the extent to which
each is used.
• Knowledge as to which core
assets are used should be
available
il bl from
f
the
th configuration
fi
ti
management system.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences,
c1990.
409
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Eli M. Noam, Production
Wellesley, Mass. : QED Information Sciences,
c1990.
410
Software Production
5) Customer satisfaction
• Percent reuse can be computed
as follows:
Size of Core Assets Used
(Size of Core Assets Used + Size
of New and Modified
Application Artifacts)
•
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Wellesley, Mass. : QED Information Sciences, c1990.
Eli M. Noam, Production
411
Product development
managers need insight into how
well the products produced by
their projects satisfy their
intended customers.
Source: Zells, L., “Managing software projects : selecting and using pc-based project man
Wellesley, Mass. : QED Information Sciences,
Eli M. Noam,c1990.
Production
412
44
Software Production
• As products are delivered to
customers, the product development
manager can ask for feedback via a
y These
customer satisfaction survey.
data should be retained and analyzed
cumulatively as more products are
produced.
ce: Zells, L., “Managing software projects : selecting and using pc-based project managem
esley, Mass. : QED Information Sciences, c1990.
Eli M. Noam, Production
413
Software Production
• Life Cycle Processes and
Activities:
Software Production
• Given the pervasive presence of
software in our society and the
increased concerns over the
necessityy for certification and
licensing, consensus on a Guide
to the Software Engineering
Body of Knowledge is a must.
Source: “Guide to the Software Engineering
Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
414
IEEE Computer Society, September 1998
Software Production
• Software Acquisition
• Software Supply
pp y
• PRIMARY
Source: “Guide to the Software Engineering Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
IEEE Computer Society, September 1998
415
Source: “Guide to the Software Engineering Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
IEEE Computer Society, September 1998
416
45
Software Production
• Development Process
(Requirement Analysis,
Architectural Design, Detailed
Description, Coding,
Integration, Testing, Installation,
Acceptance Support)
Source: “Guide to the Software Engineering Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
IEEE Computer Society, September 1998
417
Software Production
Software Production
• Operation Process (System
Operation, User Support)
• Maintenance Process
Source: “Guide to the Software Engineering Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
IEEE Computer Society, September 1998
418
Software Production
• SUPPORTING
• - Documentation
• Configuration Management
• Quality Assurance
•V & V
• Joint Review
• Audits
• Problem Resolution Processes
Source: “Guide to the Software Engineering Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
IEEE Computer Society, September 1998
419
Source: “Guide to the Software Engineering Body of Knowledge – A Straw Man Version”
Eli M. Noam, Production
IEEE Computer Society, September 1998
420
46
Software Production
Software Production
• Program management tasks in
software development include:
• 1.Design
• 2.Obtaining requirements
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea
to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
• 3.Writing specs
• 4.Implementation
p
• 5.Coding coordination
421
Software Production
• Coding Coordination:
• Program managers do not write
code, but, with engineering
managers, they coordinate the
efforts to track release schedules
and bug fixes
Source: Condon, Dan at al., “Software Product Management:
Eli M. Noam, Production
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books 2002
423
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
422
Software Production
• 6. Documentation management
(user education)
• 7. Betas
• 8. Finding and coordinating a
Beta test release
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
424
47
Software Production
• 9. Releasing the product
• 10. Creatingg the final deliverable
sent to manufacturing
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea
to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
425
Software Production
•
•
Software Production
What is different about
software, compared to selling
g
pproducts
PCs or other high-tech
– or even standard products,
such as housewares, cosmetics,
or cars?
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
426
Software Production
Software is not a mature
product area yet. The market
needs, demand and technology
requirements are still influx.
• Software comes in many
different forms:
• A desk productivity tool
• A graphic design tool
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
427
428
48
Software Production
•
• An entertainment product
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
429
Software Production
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
430
Software Production
• Lots of engineers are resentful
of last-minute requests because
they disturb the tight design of
the software program, and also
engineers want to work on the
next cool thing
• How engineers
g
react to rapid
p
requests from customers?
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
Software Production
There is always plenty of
feedback from the field, and
effectively addressing those
needs
d provides
id a greatt way to
t
increase the chances of success
in the marketplace
431
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea
to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
432
49
Software Production
Software Production
•
• Software production:
collaboration with focus
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
433
Software Production
•
434
Software Production
Some engineering
departments, however,
recognized that good
collaboration may be an
effective way to work during all
phases of a project
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea
to Product
to Marketing to Sales”,
Eli M. Noam,
Production
Aspatore Books, 2002
In general, engineers work in
collegial environment; most of
them are not too ego-driven,
ego-driven so
they are happy to see the best
idea win, even if it’s not theirs
435
•
The advocates of XP state that
it is an intense way of
developing software, but one
that is also efficient and highly
effective in delivering projects
on time and on target
Source: Condon, Dan at al., “Software Product
Management:
Eli M. Noam, Production
Managing Software Development from Idea to Product to Marketing to Sales”,
436
50
Software Production
Software Production
• The benefits of XP come from
the interaction between product
managers and engineers. There
are two principal ways XP
affects product management in
direct sales software:
• An effective and efficient
manner to create prototypes may
allow for quicker tests from the
field to validate customer
requirements
Source: Condon, Dan at al., “Software Product Management:
M. Noam, Production
Managing Software Development fromEli Idea
to Product to Marketing to Sales”,
Aspatore Books 2002
Source: Condon, Dan at al., “Software
Product Management:
Eli M. Noam, Production
437
Managing Software Development from Idea to Product to Marketing to Sales”
Software Production
•
• Closer interactions between
product managers and engineers
may make the transfer of
requirements to technical
specifications clearer
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development fromEli Idea
to Product to Marketing to Sales”,
M. Noam, Production
Aspatore Books, 2002
439
438
Software Production
Even in packaged software, there
is always a role for direct sales. In
many packaged-software firms,
there’s a direct sales team that
makes big deals. Example: large
enterprises may purchase copies of
products such as Adobe Acrobat in
large volumes.
Source: Condon, Dan at al., “Software Product
Management:
Eli M. Noam, Production
Managing Software Development from Idea to Product to Marketing to Sales”,
440
51
Software Production
Software Production
•
• Cost considerations cannot be
ignored.
Business department wants to
lower the cost of development
and production.
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
441
Eli M. Noam, Production
442
Software Production
•
Product effectiveness,
marketing, pricing and network
effects are more important.
• Packaged
g Software
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
443
Eli M. Noam, Production
444
52
Software Production
•
Software Production
• The product development tasks
can be performed in a more
disciplined manner, because a
fixed product-release schedule
allows for better planning.
Engineering: packaged
software tends to be released in
a more predictable manner than
direct sales software
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from
Idea
to Product to Marketing to Sales”,
Eli M.
Noam, Production
Aspatore Books, 2002
445
Software Production
• Engineers are normally not
pulled in at the last moment to
make changes and fixes for one
customer.
Source: Condon, Dan at al., “Software Product Management:
Eli M. Noam, Production
Managing Software Development from
Idea to Product to Marketing to Sales”, 447
Aspatore Books 2002
Source: Condon, Dan at al., “Software Product Management:
Eli M. Noam, Production
Managing Software Development from
Idea to Product to Marketing to Sales”,446
Aspatore Books 2002
Software Production
• Marketing: plays a more important
role than in direct sales software.
The bulk of the pproduct’s
awareness building, brand building,
and therefore demand generation is
built up through marketing
programs
M. Noam, Production
Source: Condon, Dan at al., “SoftwareEliProduct
Management:
Managing Software Development from Idea to Product to Marketing to Sales”
448
53
Software Production
Software Production
• Schedules
• Working together with engineering,
support,
t andd the
th technical
t h i l writers,
it
the product manager drives the
creation of the schedule that
includes the following:
Source: Condon, Dan at al., “Software Product Management:
Eli M. Noam, Production
Managing Software Development from Idea to Product to Marketing to Sales”, 449
A
B k 2002
Software Production
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to ProductElitoM.Marketing
to Sales”,
Noam, Production
Aspatore Books, 2002
•
• 6. Planning for end-of-life of
previous product versions, if any
• 7. Managing the release process
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
• Engineering development
• Documentation delivery
• Beta tests
• Support
• Post-release patch release, if
appropriate
451
450
Software Production
In reality, software is a
complex product to manage, and
it resists complete control via
software
ft
product
d t managementt
tools. Software is too complex
and unpredictable to deal in this
manner.
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product
to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
452
54
Software Production
Software Production
•
• Software Localization
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
453
Software Production
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
454
Software Production
• The actual language of the text
(with its character sets and
character encoding)
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
Development of products for
the international market requires
th i localization
their
l li ti to
t different
diff
t
national languages. There are
several things that must be
considered:
455
• The use of culturally specific
examples that might not
translate well from one language
or culture to the next (such as
sports analogies)
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
456
55
Software Production
•
Software Production
One of the biggest mistakes
that companies make when they
attempt to localize the a product
is that they either completely
ignore the issue and focus
mainly on the United States …
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
457
Software Production
• … or they fall on the opposite
end of the spectrum and assume
their product will be completely
localized from the beginning,
even though their market
demand may not be there.
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from
Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
458
Aspatore Books, 2002
Software Production
• Cost of support and sales must
be addressed
• Software Viabilityy in the
International Market
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
459
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development fromEliIdea
Product to Marketing to Sales”,
M. Noam,to
Production
Aspatore Books, 2002
460
56
Worldwide Software Market
• In 2004, the worldwide market
for software packages was $250
billion, with OECD countries
representing 95%
Eli M. Noam, Production
Worldwide Software Market
• Ireland and U.S. are the main
exporters
• UK, Germany, Japan, Canada
and U.S. are the main software
importers
Source: ADI – Agencia de Desarrollo de Inversiones Republica Argentina,
www.inversiones.gov.ar
Eli M. Noam, Production
461
Worldwide Software Market
• The absence of a strong
European computer hardware
industry impeded the European
software industry.
Source: Mowery, David C., ed.,The International
Computer Software Industry,
Eli M. Noam, Production
463
Oxford University Press, 1996
462
Worldwide Software Market
•
Most European firms sell
primarily in their domestic
markets.
Source: Mowery, David C., ed.,The International
Eli M. Noam, Production Computer Software Industry,
Oxford University Press, 1996
464
57
Worldwide Software Market
• Leadership requires several
factors: domestic demand, strong
domestic suppliers, a university
research base, availability of
skilled scientists and engineers,
government procurement, and
government investment in basic
research
Worldwide Software Market
• … the industry’s focus at home
on the key functions of research,
design and development, and
marketing
Source: McKendrick,
D., “From Silicon Valley to Singapore”,
Eli M. Noam, Production
465
Stanford University Press, 2000
Source: McKendrick, D., “From Silicon Valley to Singapore”,
Stanford University Press, 2000Eli M. Noam, Production
466
Worldwide Software Market
Worldwide Software Market
• The Indian software industry has
been an export success based on
exploiting the labor cost for low
value-added software services.
• Needs to move up the value
chain to enhance its competitive
position
Eli M. Noam, Production
Source: D’Costa, A., India in the Global Software Industry, 2004
467
Source: D’Costa, A., India in the Global Software
Industry, 2004
Eli M. Noam, Production
468
58
Worldwide Software Market
• Indian IT Policy was historically
focused on import-substitution
in hardware production to build
local manufacturing and
technological capabilities
Source: D’Costa, A., India in the Global Software Industry, 2004
Eli M. Noam, Production
469
Worldwide Software Market
• Indian software firms have
significant domestic penetration
in three domains: finance,
communications and media, and
manufacturing
Source: D’Costa, A., India in the Global Software Industry, 2004
Eli M. Noam, Production
471
Worldwide Software Market
• This contrasted with the wider
microelectronics-based
consumer electronics in
developing East Asia which
were export-oriented from the
beginning
Eli M. Noam, Production
Source: D’Costa, A., India in the Global Software Industry, 2004
470
Worldwide Software Market
• In 2001-02, Indian software
exports were $7.7 billion, and
domestic sales $2.11 billion,
grossing $9.8 billion
Source: D’Costa, A., India in the Global
Software Industry, 2004
Eli M. Noam, Production
472
59
Worldwide Software Market
Worldwide Software Market
• In 2001-2, the market share of
Indian software exports in
global IT spending rose to 1.9%
from 1.5% the previous year
• 68% of software exports went to
North America, 21% to Europe,
2% to Japan, and 10% to the rest
of the world
Source: D’Costa, A., India in the GlobalEli Software
M. Noam, ProductionIndustry, 2004
473
Source: D’Costa, A., India in the Global
Industry, 2004
Eli M. Noam,Software
Production
474
Worldwide Software Market
Worldwide Software Market
• CAGR for software exports over
1995-2000 was 61%.
• McKinsey projects the Indian
software industry to grow to $25
billion IT exports by 2008.
Source: D’Costa, A., India in the Global Software Industry, 2004
Source: D’Costa, A., India in the Global Software Industry, 2004
Eli M. Noam, Production
475
Eli M. Noam, Production
476
60
The Structure of Indian
Software Industry
Worldwide Software Market
• The Tier 1 (top 5, over $200 million
sales in 2000-1): Tata (TCS), Wipro,
Infosys, Satyam and HCL
Technologies, andare primarily USoriented, offer a comprehensive
professional services portfolio, and
have a large number of Fortune 500
clients Source: D’Costa, A., India in the Global Software Industry, 2004
Eli M. Noam, Production
477
Worldwide Software Market
• Strong presence in custom
applications development and
g y application
pp
management
g
legacy
and migrations, and in certain
domains like finance,
communications and media.
Source: D’Costa, A., India in the Global Software Industry, 2004
Eli M. Noam, Production
479
• “However, there has been very
little software product
innovation, and still less in
integrating hardware and
software.”
Source: D’Costa, A., India in the GlobalEliSoftware
Industry, 2004
M. Noam, Production
478
Software Production
• Development Process
• Configuration Management
• Requirement Analysis
• Quality Assurance
• Detailed Design
• Verification and Validation
Source: “Guide to the Software Engineering
Body of Knowledge – A Straw Man Vers
Eli M. Noam, Production
480
IEEE Computer Society, September 1998
61
Software Production
Software Production
•
• Coding
• Improvement Process
• Testing
• Maintenance Process
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Source: “Guide to the Software Engineering
Body of Knowledge – A Straw Man Vers
Eli M. Noam, Production
481
IEEE Computer Society, September 1998
482
• 2) Direct sales software, whose
price and support terms clients to
negotiate with the sales reps who
will call on them
• Rapid feedback and requests for
change are a hallmark of direct
sales software
But development costs are
high, and demand is uncertain.
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
Eli M. Noam, Production
Software Production
Software Production
•
Cost of manufacturing
software is negligible. Supply
chain or manufacturingg cost
issues are therefore secondary
consideration.
483
Source: Condon, Dan at al., “Software Product Management:
Noam, Production
Managing Software Development from Idea to ProductElitoM.Marketing
to Sales”,
Aspatore Books, 2002
484
62
Software Production
Software Production
• After the idea is developed, it’s
time to write the program – to
code
“code”
• Generally accepted as solitary
work, compared to design work
which is collaborative
Source: Condon, Dan at al., “Software Product Management:
Eli M. Noam, Production
Managing Software Development from Idea
to Product to Marketing to Sales”,
Aspatore Books 2002
• “Extreme Programming”,
g
g , or XP
485
Software Production
486
Software Production
• Several programmers and
business analysts (who are
g ) sit
effective pproduct managers)
together as the programmers,
sharing a screen, write code
together
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
• Software designers, engineers,
and others are more likely to
resist being treated as buildingblocks in a mechanical plan.
487
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
488
63
Software Production
•
• Some consider themselves
artists and resist allowing their
schedules to be predicted and
planned months ahead of time.
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
489
Software Production
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Aspatore Books, 2002
Eli M. Noam, Production
490
Choose a project team
• Documentation, Code
Comments, etc.
• The time of the hacker is over
• Any
A programmer could
ld take
t k
over any other programmer’s
work just by looking at
documentation and comments
• Support and post-release
engineering costs will vary by
the number of units sold.
Source: Condon, Dan at al., “Software Product Management:
Managing Software Development from Idea to Product to Marketing to Sales”,
Eli M. Noam, Production
Aspatore Books, 2002
Yet, since software has such
high incremental margins,
incremental savings do not
contribute
ib greatly
l to overall
ll
margins.
Source: Starr Long, Online Product Development Management
491
Eli M. Noam, Production
492
64
Play Your Game
• Create actual game environment as
early as possible
• Fixing bugs always higher priority
than new features
• Always have a working version
• Automated Daily Builds
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
493
Structure
• Establish a clear hierarchy from
the beginning—make sure
everyone knows who to go to for
decisions
• Organize by department with
leaders of each (art,
programming, design)
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
494
Structure
• Strike Teams for special problems
• Strike teams are temporary based
on needs
• Once basic structure of game is
complete move to strike teams
• Cross-discipline – at least one
member from each department.
• Goal oriented-oriented weekly
demonstrable goals, one large
goal
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
Structure
495
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
496
65
QA & Support: Test Early,
Test Often
• Involve QA & Support from
beginning
• Have QA test every milestone
deliverable, even if you are
developing internally
• Require sign off for all deliverables
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
497
Software Categories
• System software
–Often bundled with device
• Application software
–To accomplish specific tasks, like
video
id games. Often
Of purchased
h d
separately
• User software
–To meet users specific needs
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
Eli M. Noam, Production
QA & Support: Test Early,
Test Often
• Make details like code comments
and documentation required for
deliverable sign-off
• Have QA test each daily build
• Give QA promotion control for
builds
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
498
Software
• System software
• Includes the basic input-output
p
p
system, device drivers, an
operating system, and a
graphical user interface.
499
Eli M. Noam, Production
500
Source: Wikipedia https://en wikipedia org/wiki/Video game
66
Software Engineering
Software Testing
• 630,000 practitioners and
educators in the U.S.,
• 1,400,000 elsewhere
• 60% the size of traditional
engineering
Eli M. Noam, Production
Source: Wikipedia, https://en.wikipedia.org/wiki/Video_game
- Functional Testing: tests of user
functions of the software
- Coverage Testing: tests of
various paths through the
software
501
Software Testing
502
Software Testing
• Partition Testing: the software’s
input domain is divided
according to homogenous
classes, and tests are performed
for each class
Source: Kenett, R., “SoftwareEli M.Process
Quality”, 1999
Noam, Production
Eli M. Noam, Production
Source: Kenett, R., “Software Process Quality”, 1999
503
• - Statistical testing: uses a
formal experimental paradigm
for random testing according to
usage model of the software
Source: Kenett, R., “Software
Process Quality”, 1999
Eli M. Noam, Production
504
67
Software Testing
Software Testing
• BETA has a variety of
meanings:
–Program is ready to send to
beta testers, (people who don’t
work for the company), who
will use the product
• Pre-Beta Testing
• Conducted 2-3 weeks before
beta on verification tasks.
Source: Kaner, S., “Testing Computer Software”,
1993
Eli M. Noam, Production
Source: Kaner, S., “Testing Computer Software”,
1993
Eli M. Noam, Production
505
Software Testing
•
Software
At beta, all features are
completed and tested, there are
no fatal errors and few serious
ones, device data files are
almost complete, the design and
specifications are complete
Source: Kaner, S., “Testing Computer Software”, 1993
Eli M. Noam, Production
506
507
•
At beta, the core product is
complete, all essential features
for the minimally acceptable
product are present and fully
tested
Source: Kaner, S., “Testing Computer Software”,
1993
Eli M. Noam, Production
508
68
Choose a project team
Software
•
• Game priorities in order:
–Stable
–Fast
Fast
–Fun
Programming activities after
beta: fixing bugs, finishing any
data files, writing installation
software and adding any final
device support
Source: Starr Long, Online Product Development Management:
Eli M. Noam, Production
Source: Kaner, S., “Testing Computer Software”,
1993
509
• Step 1: Create a concise basic
feature list
• —list of features with a short
pphrase describingg it
• Example: Basic Al: attack,
defend, retreat, flock
510
• 1. Giant, extremely detailed,
design documents done during
preproduction are a waste of time
• 2. Pre-production
p
on the ggame
design should last to build an
overall schedule.
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
Eli M. Noam, Production
511
Source: Starr Long, Online Product Development Management:
Eli M. Noam, Production
http://www.gdconf.com/archives/2004/long_starr.ppt
512
69
• Step 4: Build Design and Art
schedules based on engineering
schedule
• Create milestones and
deliverables that have clear
overall goals
• Step 2: Build out engineering
schedule
• —Based on the feature list
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
513
Choose a project team
• Keep to a reasonable Team size:
• More than 25-30 on a team is very
risky; Large teams have trouble
communicating and staying in
synch; With larger teams Managers
spend too much managing people
vs. managing the project
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
515
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
514
Choose a project team
• Throwing more bodies at a
problem rarely solves it. Balance
regular full time with
contract/temp resources to better
match production spikes
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
516
70
Choose a project team
Choose a project team
• Don’t expect managers to
contribute content.
• Managers will be scheduling,
developing technology, directing
the team; leaders lead, production
resources produce
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
517
• Core working hours
• Everyone available for
discussions & meetings at a set
time each day
• Weekly Play sessions to provide
feedback
Source: Starr Long, Online Product Development Management
Eli M. Noam, Production
518
71