international software & productivity engineering institute global demand for human productivity...

International Software & Productivity Engineering Institute

Global Demand For Human Productivity Impacts Software Companies

Vladimir L Pavlov, INTSPEI Chairman and Chief Strategy Officer

http://www.intspei.com

2http://www.intspei.com

Let’s Benchmark

Your Company Average in Global 500

Revenue B USD

Profit M USD

Employees K

Impact K USD

Productivity K USD


Agenda

Global demand for productivity

• How does it impact your strategy?

INTSPEI services

• How can INTSPEI help you implement your strategy?

G500 Rank Company Name Revenue (USD B) Profit (USD B) Employees (K) Impact (K) Productivity (K)

1 Wal-Mart 351 11 1900 185 6

2 Exxon Mobil 347 40 106 3264 371

5 General Motors 207 -2 280 741 -7

6 Toyota 205 14 299 684 47

11 General Electric 168 21 319 528 65

12 Ford 160 -13 283 566 -45

14 Citigroup 147 22 332 442 65

39 Verizon 93 6 242 385 26

41 HP 92 6 156 588 40

42 IBM 91 9 356 257 27

87 Boeing 62 2 154 400 14

95 Vodafone 60 -10 66 906 -155

108 CNP Assurances 56 1 3 17118 443

119 Nokia 52 5 68 753 79

139 Microsoft 44 13 71 624 177

143 Motorola 44 4 66 663 55

183 Intel 35 5 94 376 54

184 PepsiCo 35 6 168 209 34

232 Cisco Systems 28 6 50 571 112

285 Coca-Cola 24 5 71 339 72

431 EnCana 17 6 5 3651 1208


Global 500 Companies

2005 2006 20070

200000

400000

600000

800000

1000000

1200000

Average Impact, USD

2005 2006 20070

10000

20000

30000

40000

50000

60000

Average Productivity, USD

29%21%


Ideally …

People should focus on three key things:Making decisions

Innovating

Expressing themselves emotionally and artistically

All the rest should be "outsourced" to computers


Let’s Benchmark

Your Company Average in Global 500

Revenue B USD 41.8

Profit M USD 700

Employees K 104

Impact K USD 1160

Productivity K USD 59


Let’s Benchmark: Year Over Year Productivity Growth

29%


Productivity Strategies for a Software Company

Partner Ecosystem’s Productivity

Clients’ Productivity

Employees’ Productivity

9

Decrease Spending

Increase Outcome

In T

he S

oftw

are

Wor

ld …

.P

rodu

ctiv

ity is

Not

Abo

ut S

oftw

are OpenUP SDLC


Three Types of SDLCs

Agile• XP• SCRUM• MSF-Agile

Semantics-focused• P-Modeling

Framework

Formal• SSADM• RUP• MSF-CMMi

11


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


SDLC Fine-Tuning

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

Requirements

Requirements

Architecture

Architecture Detailed Design

Detailed Design

• Construction

Construction

Maintenance

Phase That a Defect is Corrected

Phase That a Defect is Created

Cost to Correct

Cost to correct a defect greatly depends on how early it was introduced and revealed


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


Money-Back GuaranteeAvailable for a period of 30 days after our services are completed


10% Discount for Participants of the Software Business 2007Available for a period of 6 months after the conference


Next Steps

Assess your company’s productivity 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

[email protected]

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



29%Thank You


Backup Slides


Country GDP (B USD) Population, M Labor Force M GDP Per Capita, K USD Impact, K USDArmenia 7 3.0 1.2 5.7 5.5Australia 645 20.4 10.7 33.3 60.5Austria 310 8.2 3.9 34.6 79.9Belarus 29 9.7 4.3 8.1 6.7Belgium 370 10.4 4.9 33.0 75.6

Brazil 967 190.0 96.3 8.8 10.0Canada 1088 33.4 17.6 35.6 61.9China 2518 1321.9 798.0 7.7 3.2

Denmark 257 5.5 2.9 37.0 88.4Finland 199 5.2 2.6 33.7 76.0France 2149 63.7 27.9 31.1 77.1

Germany 2872 82.4 43.7 31.9 65.8India 804 1129.9 509.3 3.8 1.6

Ireland 204 4.1 2.1 44.0 96.4Japan 4883 127.4 66.4 33.1 73.5

Netherlands 613 16.6 7.6 32.1 80.6Poland 337 38.5 17.3 14.3 19.5

Portugal 177 10.6 5.6 19.8 31.7Romania 80 22.3 9.3 9.1 8.6

Russia 734 141.4 73.9 12.2 9.9Sweden 373 9.0 4.6 32.2 81.3Ukraine 82 46.3 22.3 7.8 3.7

UK 2346 60.8 31.1 31.8 75.4USA 13210 301.1 151.4 44.0 87.3

IBM Rational Unified ProcessPhases

ManagementEnvironment

Business Modeling

Implementation

Test

Analysis & Design

Preliminary Iteration(s)

Iter.#1

Disciplines

Iterations

Iter.#2

Iter.#n

Iter.#n+1

Iter.#n+2

Iter.#m

Iter.#m+1

Deployment

Configuration Mgmt

Requirements

Elaboration TransitionInception Construction

Microsoft Solutions Framework

eXtreme Programming

Itera

tive

Dev

elop

men

t

Tra

ceab

ility

Man

agem

ent


SDLC Fine Tuning: The Process

Defining Scope Of Work Client and INTSPEI agree on the scope of service2-4 hours, pre-audit interviews with the key stakeholder(s)

Improvement Design We design improvement proposals for client’s SDLC to make it more efficient1 +day(s), individual work

Improvement Implementation• W

e teach client’s staff how to eliminate bottlenecks identified on the first stage

• 2-7 or more days, training/coaching for the key people


SDC In-A-Box: Two Ownership Options

•Software Development Center is owned by the client from the very beginning

Client

•Initially INTSPEI owns the Software Development Center•As soon as the client feels comfortable, the ownership is transferred to the client

INTSPEI


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.5-30 days

Launching the 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)• I

NTSPEI manages outsourcing office

• As many months as the client needs

international software & productivity engineering institute global demand for human productivity...

Documents

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software company9http

software world

productivity strategies

year productivity growth8http

global demand

intspei chairman

development center