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Climbing the Stairway to Heaven Towards Continuous Deployment of Innovations
Jan Bosch
Director Software Center www.software-center.se
Professor of Software Engineering Chalmers University of Technology
Gothenburg, Sweden. www.janbosch.com
Innovation Bazaar, Lindholmen Science Park, September 2015
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Learning and innovation go hand in hand.
The arrogance of success is to think that what you did yesterday
will be sufficient for tomorrow.
William G. Pollard
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Three Key Take-Aways
• Innovating new systems, solutions and services at unprecedented rates is critical for survival – this requires speed in systems engineering
• Focusing on data-driven (instead of opinion-based) decision making decision making accelerates innovation
• Continuous Deployment is key in realizing unprecedented innovation speeds
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Overview
• Vem är jag? Wie ben ik? Who am I?
• Trends in Software: Need for Speed
• Speed of Innovation
• Stairway to Heaven
• Conclusion
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Entrepreneur
Consultancy
Software Center
Academic Research
Industry Innovation
Industry Operations
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Mission: Improve the software engineering
capability of the Nordic Software-Intensive
industry with an order of magnitude
Theme: Fast, continuous deployment of customer
value
Success: Academic excellence
Success: Industrial impact
Software Center
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Overview
• Vem är jag? Wie ben ik? Who am I?
• Trends in Software: Need for Speed
• Speed of Innovation
• Stairway to Heaven
• Conclusion
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Nature of Product Innovation is Shifting
• More than 80% of R&D is related to software according to Ericsson
– The world’s 5th largest software company
• 70% of all innovation is related to software according to AB Volvo
• 80-90% of all innovation in a car is related to electronics (HW & SW) according to Volvo Cars
https://hbr.org/2015/06/does-hardware-even-matter-anymore
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10x every ~7 years
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Volvo XC 90
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Emerging companies highlight importance of user contribution and social connectedness
Value Creation Shifts
Level of User Contribution
Trend: Need for Speed
Founded 1984 1995 2004
1M users ~6 years 30 months 10 months
50M users N/A ~80 months ~44 months
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Need for Speed in R&D – An Example
• Company X: R&D is 10% of revenue, e.g. 100M$ for a 1B$ product
• New product development cycle: 12 months
• Alternative 1: improve efficiency of development with 10%
• 10 M$ reduction in development cost
• Alternative 2: reduce development cycle with 10%
• 100M$ add to top line revenue (product starts to sell 1.2 months earlier)
No efficiency improvement will outperform cycle time reduction
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Overview
• Vem är jag? Wie ben ik? Who am I?
• Trends in Software: Need for Speed
• Speed of Innovation
• Stairway to Heaven
• Conclusion
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The Cycle of Innovation
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Length of Innovation Cycle
Car Platform: 10-15 years
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Length of Innovation Cycle
Car : 3-4 years
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Length of Innovation Cycle
Car Software: 1-5 days
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Overview
• Vem är jag? Wie ben ik? Who am I?
• Trends in Software: Need for Speed
• Speed of Innovation
• Stairway to Heaven
• Conclusion
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Stairway to Heaven
Ericsson
20
12
VC
C 2
01
2
Ericsson
20
15
VC
C 2
01
5
Vo
lvo 2
01
2
Vo
lvo 2
01
5
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Overview
• Vem är jag? Wie ben ik? Who am I?
• Trends in Software: Need for Speed
• Speed of Innovation
• Stairway to Heaven
• Conclusion
![Page 21: Climbing the Stairway to Heaven - Lindholmen Science Park · PDF fileClimbing the Stairway to Heaven Towards Continuous Deployment of Innovations Jan Bosch Director Software Center](https://reader036.vdocuments.us/reader036/viewer/2022062907/5aa481087f8b9a185d8c1bae/html5/thumbnails/21.jpg)
Conclusion
• Innovating new systems, solutions and services at unprecedented rates is critical for survival – this requires speed in systems engineering
• Focusing on data-driven (instead of opinion-based) decision making decision making accelerates innovation
• Continuous Deployment is key in realizing unprecedented innovation speeds
![Page 22: Climbing the Stairway to Heaven - Lindholmen Science Park · PDF fileClimbing the Stairway to Heaven Towards Continuous Deployment of Innovations Jan Bosch Director Software Center](https://reader036.vdocuments.us/reader036/viewer/2022062907/5aa481087f8b9a185d8c1bae/html5/thumbnails/22.jpg)
Not My Job?!
Strong LEADERSHIP needed from YOU
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www.software-center.se
Chalmers University of Technology