Vakgroep Informatietechnologie – IBCN Software Architecture Prof.Dr.ir. F. Gielen Introduction

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 2 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 domainMeasured 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

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 10 GFF – a mobile multiplayer game

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 11 GFF 2/2

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 12 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. 13 In the real world this becomes... Only 28% of projects finish on time and within budget 23 % 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

Real World update Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 14

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 15 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. 16 Budget allocation Requirements [2%] Specification [5%] Design [6%] Module coding [5%] Module testing [7%] Integration [8%] Maintenance [67%] €

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 17 The cost of faults: Requirements Specification Design Implementation Integration Maintenance Relative cost to fix faults

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 18 Software Architecture Business Cycle Software Architecture Software Economics Software Architecture Business Cycle What is Software Architecture ?

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 19 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. 20 Stakeholders Development Manager Marketing Manager End userMaintenance Manager Customer

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 21 The ABC: Architecture Business Cycle

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 22 GFF part 2: initial software architecture

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 23 Information & Monetary flows

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 24 The GFF value network Publisher Game Developer Players Service Provider SW architecture Platform technology

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 25 Extended architecture

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 26 Business models evolution Operator Centric: develop services buy content Service Centric: Service provisioning Provide interfaces billing

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 27 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. 28 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. 29 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. 30 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. 31 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. 32 Architect a Doghouse

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 33 Architecting a High rise

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 34 Dimensions of complexity Higher 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 Higher management complexity - Large scale - Contractual - Many stake holders - “Projects” Lower management complexity - Small scale - Informal - Single stakeholder - “Products” Defense MIS System Defense Weapon System Telecom Switch CASE Tool National Air Traffic Control System Enterprise IS (Family of IS Applications) Commercial Compiler Business Spreadsheet IS Application Distributed Objects (Order Entry) Small Scientific Simulation Large-Scale Organization/Entity Simulation An average software project: people month duration external interfaces - Some unknowns & risks Embedded Automotive Software IS Application GUI/RDB (Order Entry) Walker Royce, Rational

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 35 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. 36 Software Architecture Software Economics Software Architecture Business Cycle What is Software Architecture ?

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 37 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 Design Software Architecture

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 38 Qualities in Software Architecture System Qualities Functionality Business Qualities Architectural Qualities Software Architecture Have an architecture that makes sense before you write 3.5 million lines of code. - Patrick Naugton

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 39 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. 40 The Role of Software Architecture (2/2) Analysis System level analysis, verify structural constraints, consistency checking. Construction Partial blueprint, construction instructions Evolution Allowable envelope of change, change impact analysis. Reuse of components, and patterns for the organisation Management evaluation of milestones, identification of risks Basis for evolutionary prototyping Skeletal construction - vertical strip. Blow-up often and early

Vakgroep Informatietechnologie – Onderzoeksgroep IBCN p. 41 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.