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Vakgroep Informatietechnologie – IBCN
Software ArchitectureProf.Dr.ir. F. Gielen
Introduction
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 2
Software Architecture
Software Architecture Software Economics Software Architecture Business Cycle What is Software Architecture ?
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 3
What is a business model ?
It is a description of how your company intends to create value in the market place.
It includes : the unique combination of products, services and
distribution. the organisation and the operational infrastructure. ….
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 4
Why make a business model ?
The business model unlocks the value of the technology
and justifies the capital requirements to implement it ..
Measured in technical domain Measured in economic domain
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 5
Functions of the business model
1. Articulate the value proposition, that is, the value created for users by the offering based on the technology;
2. Identify a market segment, that is, the users to whom the technology is useful and for what purpose;
3. Define the structure of the value chain within the firm required to create and distribute the offering;
4. Estimate the cost structure and profit potential of the offering
5. Describe the position of the firm within the value network linking suppliers and customers, including identification of potential complementors and competitors;
6. Formulate the competitive strategy by which the innovating firm will gain and hold advantage over rivals.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 6
Value Chain : Mobile entertainment
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 7
Software business models
Web-based applications sold using the ASP (application service provider) model: Initial service to setup and
customize the application. Priced on a one-time custom basis.
Support bundled with subscription fee.
Delivered as a hosted web application. Priced as a subscription based on number of users.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 8
Software cost economics
Manufacturing cost is close to zero. Product development cost vary dramatically
upon the type of product & the company’s competitive position. Microsoft R&D cost < 10% of revenue Majority of software businesses have R&D costs
between 10%-30%.
Marketing is typically the largest cost. One has to rise above the noise of thousands of new
software product.
Capital requirements (GIMV)
Target of 25 mio EUR revenue or more in year N+5
Local market can be a test market but overall insignificant given revenue target
Average VC spending in ICT in Europe over last 5 years was 2.9 bio EUR (VentureOne)
International management recruitment Challenged by tough international competition
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 9
Business model framework.
Customer Interface
Fulfillment & support
Info & insightRelationship
dynamicsPricing
Structure
Core Strategy
Business MissionProduct Market
scopeBasis for
differentiation
Strategic Resources
Core competencies
Strategic assets
Core processes
Value Network
SuppliersPartners
Coalitions
Efficiency – Uniqueness – Fit – Profit Boosters
Customer Benefits
ConfigurationCompany
Boundaries
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 11
Customer interface
The customer interface element has four aspects: Fulfillment and support describes the way the
firm reaches its customers, Information & insight, which describes the
customer information collection, and use, Relationship dynamics refers to the nature of
interaction between the customer and the firm Pricing structure describes the used
combination of different pricing methods.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 12
Strategy
The core strategy element includes three topics: Business mission describes the objective of the
strategy, Product/market scope of the business model refers
to the competition environment including customers, geographies, and product/market mix
Basis for differentiation describes how the company competes differently from its competitors.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 13
Resources
The strategic resources element consists of three topics: Core competences are skills and capabilities of the
firm, i.e. what the firm knows, Strategic assets are what the firm owns, like brands
patents, infrastructures, etc., Core processes are activities which are used in
creating value to customers from resources and assets.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 14
Value network
The value network element includes suppliers, partners and coalitions. Supplier topic describes the nature of relations
between producer and supplier. Partners are more integrated in the producer’s
business than suppliers.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 15
Business Model
The basic elements are linked together with three links. Customer benefits describe the actual offerings to
customers and how the firm’s core strategy fills the customer’s needs.
Configuration describes the unique way in which competencies, assets and processes are combined and interrelated in support of a particular strategy”.
Company boundaries describes the linkage of the firm to its surrounding environment that is the value network.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 16
GFF – a mobile multiplayer game
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 17
GFF 2/2
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 18
What’s unique about software ?
It is intangible. It has high intellectual content. The development process is labour intensive and
project based. Software does not exhibit a clear separation between
R&D and production. Software can change infinitely.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 19
In the real world this becomes ...
Only 26% of projects finish on time and within budget
28 % of projects are cancelled before delivery The remaining projects (late, over budget) only
delivered a fraction of the planned functionality.Standish Group CHAOS 2000 report
Software is increasing in :• complexity, size and functionality.• contribution to the balance sheet and profit and loss statements
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 20
Impact on the P&L : Game industry
Game development can take vast amounts of schedule. (Sony, Nintendo, …)
Teams can be very large : 20 to 30 people from a variety of disciplines:
Analysts, designers, programmers, testers Writers, artists, musicians Project Managers
Schedule must be managed very carefully to meet the holiday sales season.
If a game release misses its marketing window it will be a commercial failure (non-linear loss of revenue)
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 21
Budget allocation
Requirements [2%]Specification [5%]Design [6%]Module coding [5%]Module testing [7%]Integration [8%]Maintenance [67%]
€
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 22
The cost of faults:
1 3 4 1052
368
050
100150200250300350400
Req
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Relative cost to fix faults
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 23
Software Architecture Business Cycle
Software Architecture Software Economics Software Architecture Business Cycle What is Software Architecture ?
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 24
Take 5 minutes to:
Write down your own definition of Software Architecture.
Write 5 tasks in the daily life of an architect.
When done , tell the others ...
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 25
StakeholdersDevelopment
Manager
Marketing
ManagerEnd user Maintenance
ManagerCustomer
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 26
The ABC: Architecture Business Cycle
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 27
GFF part 2: initial software architecture
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 28
Information & Monetary flows
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 29
The GFF value network
Publisher
Game Developer
Players
Service Provider
SW architecture
Platform technology
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 30
Extended architecture
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 31
Business models evolution
Operator Centric: develop services buy content
Service Centric: Service provisioning Provide interfaces billing
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 32
Mapping Business models to SW architecture
Create the initial architectures for each stakeholder using reference architecture.
Align business models and the value networks integrating stakeholder architectures
Map business models to non-functional properties of deployed architecture.
Handle evolution of business models and architecture.
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 33
Skills of a software architect .
Handle ( conflicting ) requirements from: business organisation customer finance people
Be a technical guru.Be a diplomat…with great communication skills
Do you still want the job …. ?
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 34
RUP: Software Architect
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 35
Influence of the architect ...
Organisation Subsystems = teams & skills Budget & schedule Build up the skill base for the company
Business impact Development & maintenance cost Time to market Relax customer requirements (trade-offs)
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 36
Take your mobile phone and …
Write down what a feature is.
Give some examples of features (in a mobile phone).
How do these features interact ?
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 37
Feature Interaction = Complexity
A feature is a capability of a system which provides value to the final user.
Features interact: Feature A invokes feature B Feature B interrupts feature A Feature B modifies the behaviour of feature A
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 38
Architect a Doghouse
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 39
Architecting a High rise
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 40
Dimensions of complexityHigher technical complexity - Embedded, real-time, distributed, fault-tolerant - Custom, unprecedented, architecture reengineering - High performance
Lower technical complexity - Mostly 4GL, or component-based - Application reengineering - Interactive performance
Highermanagement complexity - Large scale - Contractual - Many stake holders - “Projects”
Lowermanagement complexity - Small scale - Informal - Single stakeholder - “Products”
Defense MIS System
Defense Weapon SystemTelecom
Switch
CASE Tool
National Air TrafficControl System
Enterprise IS(Family of ISApplications)
CommercialCompiler
BusinessSpreadsheet
IS ApplicationDistributed Objects
(Order Entry)
Small ScientificSimulation
Large-ScaleOrganization/Entity
Simulation
An average software project: - 5-10 people - 10-15 month duration - 3-5 external interfaces - Some unknowns & risks
EmbeddedAutomotive
Software
IS ApplicationGUI/RDB
(Order Entry)
Walker Royce, Rational
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 41
Software Process for ABC
Create the business case .. Is more then assessing the market needs ! Think about future requirements and time to market.
Understand requirements Look at similar systems Build prototypes Conflicting requirements
Create the architecture Communicate the architecture to all stakeholders Analyze the architecture
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 42
Software Architecture
Software Architecture Software Economics Software Architecture Business Cycle What is Software Architecture ?
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 43
Software Architecture Definition
The Software Architecture of a program or computing system is the structure or
structures of the system, which comprises software elements, the external visible properties of those elements and the
relationships among them.
Requirements DesignSoftware
Architecture
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 44
Qualities in Software Architecture
SystemQualities
Functionality
BusinessQualities
ArchitecturalQualities
Software
Architecture
Have an architecture that makes sense before you write 3.5 millionlines of code. - Patrick Naugton
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 45
The Role of Software Architecture (1/2)
Communication among stakeholders Understanding, vocabulary for structure , system and
constraints. Making architectural choices. Make early design decisions (incontournable) Resource allocation Organisation and work breakdown
Inhibit and enables quality attributes High performance -> time budgets Scalable -> high capacity requirements Re-usable -> coupling
Change Management local and non-local changes architectural changes
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 46
The Role of Software Architecture (2/2)
Analysis System level analysis , verify structural constraints,
consistency checking.Construction
Partial blueprint, construction instructionsEvolution
Allowable envelope of change, change impact analysis.Reuse
of components, and patterns for the organisationManagement
evaluation of milestones, identification of risksBasis for evolutionary prototyping
Skeletal construction - vertical strip. Blow-up often and early
Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 47
Architecture , Variability and Reuse
How many different models does an average mobile phone manufacturer in Finland produce ?
List the 5 differences & variations they must support across all models.
Write down the problems an organisation may face in achieving this.