Value-Based Software Engineering: Case Study and Value-Based ControlOutlineInitial VBSE Theory: 4+1VBSE Theory 4+1 StructureInitial VBSE Theory: 4+1 Process – With a great deal of concurrency and backtrackingNeed Incremental Approach to VBSE ProcessSlide 7Example Project: Sierra MountainbikesOrder Processing Project GoalsInitial VBSE Theory: 4+1 Process, Steps 1 and 2 – With a great deal of concurrency and backtrackingFrequent Protagonist Classes Without a pro-active protagonist, a project won’t startSlide 12Slide 13Initial VBSE Theory: 4+1 Process, Steps 3 and 4 – With a great deal of concurrency and backtrackingSlide 15There is No Universal Quality-Value MetricMajor Information System Quality StakeholdersOverview of Stakeholder/Value DependenciesElaboration of Stakeholder/Value DependenciesCost, Schedule, Quality: Pick any Two?Tradeoffs Among Cost, Schedule, and Reliability: COCOMO IISlide 22C, S, Q as Independent VariableImplications for Quality EngineeringWin-lose Generally Becomes Lose-loseKey ConceptsWinWin Negotiation ModelEasyWinWin OnLine Negotiation StepsSlide 29WikiWinWin: Identify and Resolve IssuesInitial VBSE Theory: 4+1 Process, Step 5 – With a great deal of concurrency and backtrackingProject Strategy and PartnershipsBusiness Case AnalysisOrder Processing System Schedules and BudgetsOrder Processing System: Expected Benefits and Business CaseInitial VBSE Theory: 4+1 Process, Steps 6 and 7 – With a great deal of concurrency and backtrackingA Real Earned Value SystemValue-Based Expected/Actual Outcome Tracking CapabilityConclusionsReferences - IReferences - IIUniversity of Southern CaliforniaCenter for Software Engineering C S E USCBarry Boehm, USCCS 510 Lecture Fall 2009Value-Based Software Engineering: Case Study and Value-Based ControlUniversity of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 2Outline•Value-based software engineering (VBSE) process framework•Application to case study; key practices•Conclusions and referencesUniversity of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 3Initial VBSE Theory: 4+1•Engine: Theory W (stakeholder win-win): What values are important?–Enterprise Success Theorem–Theory of Justice–Win-Win Equilibrium and Negotiation•Four Supporting Theories–Dependency Theory: How do dependencies affect value realization?–Results chains; value chains; cost/schedule/performance tradeoffs–Utility Theory: How important are the values?–Multi-attribute utility; Maslow need hierarchy–Decision Theory: How do values determine decisions?–Investment theory; game theory; statistical decision theory–Control Theory: How to monitor and control value realization–Feedback control; adaptive control; spiral risk controlUniversity of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 4VBSE Theory 4+1 StructureUtility TheoryTheory W:SCS Win-WinDecision TheoryDependency TheoryControl TheoryHow do dependencies affect value realization?How to adapt to change and control value realization?How do values determine decision choices?How important are the values?What values are important?How is success assured?University of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 5Initial VBSE Theory: 4+1 Process– With a great deal of concurrency and backtrackingUtility TheoryTheory W:SCS Win-WinDecision TheoryDependency TheoryControl Theory6a, 7c. State measurement, prediction, correction; Milestone synchronization5a. Investment analysis, Risk analysis1. Protagonist goals3a. Solution exploration7. Risk, opportunity, change management5a, 7b. Prototyping2a. Results Chains3b, 5a, 7b. Cost/schedule/performance tradeoffs2. Identify SCSs3b, 7a. Solution Analysis5a, 7b. Option, solution development & analysis4. SCS expectations management3. SCS Value Propositions(Win conditions)SCS: Success-Critical Stakeholder6, 7c. Refine, Execute, Monitor & Control Plans5. SCS Win-Win NegotiationUniversity of Southern CaliforniaCenter for Software Engineering C S E USCNeed Incremental Approach to VBSE Process •Cannot make all decisions in a single pass–Emergent technology: social networking–Emergent requirements: outdo competitors–TBD standards: information exchange; infrastructure–Evolving platforms: mobile devices–Emerging stakeholders: strategic partners, suppliers•Best to incrementally define scope, features, details–But do best-effort architecting for the future•Avoid easiest-first increments on large, critical projects•Concurrently determine requirements and solutions•Best to incrementally develop product features–Avoid obsolete deliveries–Early focus on critical infrastructure, high-value features07/09/09 ©USC-CSE 6University of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 7Outline•Value-based software engineering (VBSE) process framework•Application to case study; key practices•Conclusions and referencesUniversity of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 8Example Project: Sierra Mountainbikes–Based on what would have worked on a similar project•Quality leader in specialty area•Competitively priced•Major problems with order processing–Delivery delays and mistakes –Poor synchronization of order entry, confirmation, fulfillment –Disorganized responses to problem situations–Excess costs; low distributor satisfactionUniversity of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 9Order Processing Project GoalsGoals: Improve profits, market share, customer satisfaction via improved order processingQuestions: Current state? Root causes of problems? Keys to improvement?Metrics: Balanced Scorecard of benefits realized, proxies–Customer satisfaction ratings; key elements (ITV: in-transit visibility) –Overhead cost reduction –Actual vs. expected benefit and cost flows, ROIUniversity of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE 10Initial VBSE Theory: 4+1 Process, Steps 1 and 2– With a great deal of concurrency and backtrackingUtility TheoryTheory W:SCS Win-WinDecision TheoryDependency TheoryControl Theory1. Protagonist goals2a. Results Chains2. Identify SCSsSCS: Success-Critical StakeholderUniversity of Southern CaliforniaCenter for Software Engineering C S E USC07/09/09 ©USC-CSE