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Productization

Productization. Transforming from developing customer-specific software to product software. Peter Artz, Inge van de Weerd, Sjaak Brinkkemper & Joost Fieggen 22-06-2010. Agenda. - Research trigger - Related literature - Research question - Productization process Stages

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Productization

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  1. Productization Transforming from developing customer-specific software to product software Peter Artz, Inge van de Weerd, Sjaak Brinkkemper & Joost Fieggen 22-06-2010

  2. Agenda • - Research trigger • - Related literature • - Research question • - Productization process • Stages • - Productization approach • - Validation • Conclusion • Discussion & future research • - Questions

  3. Research trigger 1/2 • Software companies • Usually start with developing customer-specific software • Eventually they recognize a need to start creating a product for a market • Transform • - Such transformation is difficult to carry out • - Involves the change of a great number of internal processes • Requires an other approach for marketing and sales • The organization needs change from customer-driven to market-driven approach • Available literature • - Barely any literature available on how to perform such a shift • - Improving product management processes (Software Process Improvement) • - Differences between customized and standardized software development

  4. Research trigger 2/2 • Software Product Management (SPM) • Is getting more and more attention • Companies recognize the importance and benefits • Widely and extensively studied topic • Inspiring example organizations: • Microsoft • SAP

  5. Related literature - Reference framework for SPM (Weerd et al. 2006)

  6. Research background • MP Objects • - Software vendor for supply chain systems • - Located in Rotterdam and New York • - Small sized company • - 60 customers and around 1250 users • Software • One big customer • Now they want to enter a market

  7. Research question Main research question: - How can organizations transform from developing customer-specific software to product software? Focus: On software product management domain

  8. Productization Process Definition: The transformation process from customer-specific software development to a standard software product Trigger for transformation: - Internal trigger to change to a software product. 6a: Customizable product 1: Independent projects 2: Reuse across projects 3: Product recognition 4: Product basis 5: Product platform 6b: Standard product Customized software Standardized software

  9. Stage 1: Independent projects • Projects are executed independently • Projects differ in budget, technology, and functionality

  10. Stage 2: Reuse across projects • Focus on feature reuse across projects • More custom than standard features

  11. Stage 3: Product recognition • Shared features between projects • More standard than custom features • Customer specific maintenance

  12. Stage 4: Product basis • Generic product basis • Customer specific maintenance • Customer requests are handled as market requirements

  13. Stage 5: Product platform • Focus on generic product platform • Requirements gathering based on market trends • Event-based customized releases per customer

  14. Productization Process 6a and 6b Two end stages: For some software there is a need for customization in order to integrate software in a customer-specific situation “Degree of productization” (Hietala et al., 2004) - Product market - Concepts - Benefits - Positioning - Selling - Marketing Degree of standardization adopted from Hoch et al., 1999

  15. Stage 6a: Customizable product • One standard product with customized layered part • Structured releases • Customizable software product • Software business aiming at selling services

  16. Stage 6b: Standard product • One generic product for all customers and build for a specific market • Structured releases • Configurable software product • Software business aiming at selling licenses

  17. Case study – Productization approach 1/3 In which stage should we start? Should we focus on stage 6a or 6b? 6a: Customizable product 1: Independent projects 2: Reuse across projects 3: Product recognition 4: Product basis 5: Product platform 6b: Standard product Customized software Standardized software

  18. Case study – Productization approach 2/3 Determining initial position

  19. Case study – Productization approach 3/3 Gap analysis & identification of recommendations

  20. Validation approach Expert interviews - Interviewed five experts from Dutch organizations - Evaluation of acceptance and recognition Survey - Filled in by eight participants of a course on SPM - Wide variety of Dutch organizations - Examine the structure for static qualities (complexity and readability) Case study - Business case at MP Objects - Evaluation of applicability and usability of the productization process in a business environment

  21. Conclusion • Main research question: • How can organizations transform from developing customer-specific software to product software? • Productization process • Describes the from developing customer-specific software to product software • It can assist organizations in becoming a product software business • The adoption of the reference framework for SPM

  22. Discussion & future research • More validation for the productization process • - More (long term) case studies need to be carried out • - Future validation is required to determine the validity and applicability of the stages • Other areas which change during such transformation • - The change in marketing & sales • Open Source software • - Study how open source software influences the productization process adopted from Xu & Brinkkemper, 2005

  23. Questions

  24. Productization Transforming from developing customer-specific software to product software Thank you for your attention!

  25. References Hevner, A. R., March, S. T., Park, J., & Ram, S. (2004). Design science in information systems research. MIS Quarterly: Management Information Systems, 28(1), pp. 75-105. Bekkers, W., Weerd, I. v., Brinkkemper, S., & Mahieu, A. (2008). The Influence of Situational Factors in Software Product Management: An Empirical Study, Proceedings of the 2008 Second International Workshop on Software Product Management, pp. 41-48. Weerd, I. v., Brinkkemper, S., Nieuwenhuis, R., Versendaal, J., & Bijlsma, L. (2006a). On the Creation of a Reference Framework for Software Product Management: Validation and Tool Support. Proceedings of the 1st International Workshop on Product Management, Minneapolis/St. Paul, Minnesota, USA, pp. 312-315. Weerd, I. van de, Brinkkemper, S. (2007). Meta-modeling for situational analysis and design methods. To appear in the Handbook of Research on Modern Systems Analysis and Design Technologies and Applications, Idea Group Publishing, USA: Hershey. Weerd, I. v., Bekkers, W., & Brinkkemper, S. (2009). “Developing a Maturity Matrix for Software Product Management”, Technical report: UU-CS-2009-15. The Netherlands: University Utrecht. Xu, L., & Brinkkemper, S. (2005). Concepts of product software: Paving the road for urgently needed research, Proceedings of the 1st International Workshop on Philosophical Foundations of Information Systems Engineering (LNCS), Springer: Berlin, pp. 523-528. Vaishnavi, V., & Kuechler, B. (2007). Design Research in Information Systems. Retrieved May 7, 2009, from: AISWorld Net, http://home.aisnet.org/displaycommon.cfm?an=1&subarticlenbr=279

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