Business Value Assessment of Software Re-use


Seminar Paper, 2013

21 Pages, Grade: 1


Excerpt

Table of content

ILLUSTRATION REGISTER

ABBREVIATION REGISTER

ABSTRACT

1. INTRODUCTION

2. BACKGROUND
2.1. SERVICE ORIENTED ARCHITECTURE (SOA)
2.2. SOFTWARE RE-USE
2.3. BUSINESS VALUE ASSESSMENT OF SOFTWARE RE-USE IN GENERAL

3. MEASURING BUSINESS VALUE OF SOFTWARE RE-USE: METRICS AND MODELS
3.1. COST-BENEFIT ANALYSIS
3.2. MATURITY ASSESSMENT
3.3. AMOUNT OF RE-USE
3.4. FAILURE MODES ANALYSIS
3.5. REUSABILITY ASSESSMENT
3.6. RE-USE LIBRARY METRICS
3.7. BREAK-EVEN-POINT ANALYSIS

4. EMPIRICAL STUDIES OF RE-USE BUSINESS VALUE ASSESSMENT

5. CONCLUSION

LIST OF BOOK REFERENCES

LIST OF ARTICLE REFERENCES

LIST OF INTERNET REFERENCES

Illustration register

FIGURE 1: INFORMATION SYSTEMS WITH AND WITHOUT THE IMPLEMENTATION OF SOA

FIGURE 2: SOFTWARE RE-USE METRICS AND MODELS

FIGURE 3: STEPS OF SUCCESSFUL RE-USE

FIGURE 4: BREAK-EVEN POINT FOR SOA SERVICES RE-USE

Abbreviation register

Abbildung in dieser Leseprobe nicht enthalten

Abstract

Software re-use has been gaining on importance during the recent years, as it offers companies a range of advantages and helps to retain a competitive advantage. This seminar paper focuses at the software re-use in particular, which is also a part of the service oriented architecture. After implementing software re-use, companies have to measure their success in the first place and monitor later if the desired company goals have been met. Metrics and models that are able to capture the business value of service re-use are the central part of this seminar paper. It concludes with presenting empirical studies that are focusing on software re-use measurement aspects, such as customer satisfaction, defect-density and stability of re-use and the intension to re-use from the software developers’ point of view.

1. Introduction

In order to be successful in the field of electronic business in the long run, companies have understood that one of the crucial aspects is to exploit, implement and adapt to new technologies and solutions. As an example, many companies are aware of the possibility to reduce a significant amount of costs implementing service re-use. Moreover service re-use can also contribute to the electronic business with more simplicity and business agility1, i.e. to quickly and effectively respond to customer and market needs and to be able to change the business easily. It does not only aim at improving software quality and productivity, but also most importantly at gaining a competitive advantage.2

Service re-use as a core benefit can be found in a service-oriented architecture (hereafter SOA), which has a strong technical background that is combined with the needs of a company.3 Companies that implemented SOA successfully can benefit from higher competitiveness as well as services needed to be implemented once only and later applied in the whole enterprise via a registry.4

After the application of service re-use it is for the companies of a key importance to measure its success and impact on the companies’ performance indicators. This can be achieved through using various metrics and models that will be described as a central part of this seminar paper. In chapter 3 the overview about the cost-benefit analysis, maturity assessment, amount of re-use, failure model, reusability assessment, re-use library5 and break-even point analysis6, that are suitable for measuring the success of service re-use, will be provided.

The last part of this seminar paper focuses at several studies that have been conducted on software re-use measurement aspects and are thus able to deliver an empirical view on the topic and also to help with proper understanding of software re-use.

2. Background

2.1. Service Oriented Architecture (SOA)

The SOA approach became more and more recommended during the last years, mostly because of its numerous benefits like re-use, business agility and rapid development possibilities.7 Bieberstein et al. defines SOA as an implementation of a services platform, whereas one can subdivide these services into many other services and combine or eventually recombine them into different solutions in order to fulfil the companies’ needs and maximize its benefits. This results in a greater flexibility as well as a deeper connection between business and IT.8 Ordanini divides SOA into two main views, business and technological. The business view of SOA improves conducting the business of a company together with its connections towards suppliers and customers. The technological view describes SOA as a new project philosophy describable by a number of characteristics.9 Nay, the core of SOA lies in the opportunity to deliver business services in a flexible, reusable and easily composed way on a customer, partner or internal level. But it is also necessary to understand, that the implementation, various processes and finally also the benefits are different among the companies. Besides, the subdivided services are all independent, which means that they can be used from any device and any operation system.10 The SOA approach addresses on the one hand the design and development technology and on the other hand business problems. This demonstrates its both, technical and business, aspects.11

A demonstration of a traditional and SOA information system is shown in figure 1. The traditional information system on the left site consists of clearly structured activities and clearly stated supporting modules. On the one hand it is of a great benefit to implement this know how in the processes of the corporation, but on the other hand changing these processes is a very complex task. SOA implementation into the information systems helps to change the processes quickly when needed, as can be seen on the right side of figure 1. In this case various services can be structured according to the needs and used for the corresponding activities.12

Figure 1: Information systems with and without the implementation of SOA13

illustration not visible in this excerpt

Generally speaking the right implementation of SOA can contribute to the company’s success and help to achieve a competitive advantage. A company can benefit from SOA only when carrying out an appropriate business-case evaluation and planning, designing and implementing it properly. Furthermore a skilled IT personnel who is able to manage all aspects is of crucial importance.14

The overall benefits of a successful SOA implementation can be summarized as follows: flexibility concerning the technical execution and creating new interfaces and services15, standardization, computerization of software development steps instead of carrying it out manually, human recourse, integration16, enabling business agility17, exploiting prior investments in technology and services re-use. Human recourse is characterised by the efficiency of IT personnel and standardized employee skill and the integration refers to the reduced complexity due to standardisation.18 Enabling business agility can be described as the possibility to change quickly and effectively and to respond to customer and market needs. As markets are dynamic, this benefit contributes to a successful market presence and customer satisfaction. The company can profit from a quick respond to customer demand e.g. in the form of launching new products or services. Exploiting prior investments in technology is only possible due to SOA’s interoperability, which means that SOA can use to some extent previously developed applications or software. As they are mostly causing high investments, the interoperability contributes in this aspect to cost savings.19 Finally one of the most important benefits includes the possibility of services re-use, which will be analysed in the following chapter in more detail.

The enterprises need to be also aware of possible risk factors before deciding to implement SOA. The first problem area occurs when corporations are trying to split it into several parts rather than applying and implementing it for the whole company because of its complexity and uncertainty.20 But it’s necessary to point out that this approach might cause problems. SOA influences the interaction between IT and business, which could be disrupted in the case of splitting it.21 Mazumder summarises the risks of SOA projects in various levels. Improper implementation can happen due to inflexibility of other IT policies. Another risk source is the business process inefficiency due to quality of service expectation mismatch. This is caused by the fact that sometimes the individual business process requirements are not sufficiently taken into account and instead of them just the overall business process is considered. This mistake can later lead to disappointments concerning the desired quality of services. The lack of not defining business services properly can be managed through involving a central partner instead of involving many of them. Improper implementation of business services can also occur.22 To conclude, enterprises need to count with a negative ROI during the implementation period or as far as reusable services are being developed and applied.23

2.2. Software re-use

Software re-use can be defined as “… the use of existing software artifacts or knowledge to create new software.24 According to this definition the term reusability refers to the degree of re-use. Re-use can contribute to higher quality, productivity, it can reduce maintenance time and time-to-market, but also come up with substantial investment returns.25 Dinsoreanu and Ignat see the predictability as one of the central benefits of service re-use. The higher the degree of re-use the higher becomes also the predictability reaching the peak after systematic re-use has been implemented.26

As it was shown it the previous chapter, implementing software re-use e.g. in the form of a SOA is a risky, but an important task to gain a competitive advantage. Therefore it’s necessary to look at the factors a company needs to be aware of when aiming at the success of software re-use. Due to the fact that most of the companies aren’t equal, but on the contrary have different needs and are expecting different benefits from the software re-use, the recommendations need to be tailor-made for every company. Despite of this they can be summarized into several points. In the first line management support is necessary as the pay-off of software re-use may take a long period of time and it also comes together with organisational changes. In a consequence management has to take care about the education and motivation of the employees and proper leading. Then it has to monitor the right design of reusable components as well. Furthermore there is of a great importance to manage legal issues, that may occur e.g. when the provider of reusable software doesn’t fulfil his obligations properly. Once the components are being developed, every company needs to store them in a proper way, e.g. in re-use libraries. Nevertheless the software re-use needs to be monitored and measured in order to collect information about the re-use benefits.27

However software re-use implementation is not always a smooth process. There exist several barriers that make the process complicated. Most of them come from the top management and the software developers, but also technical and organisational barriers are present. Due to high investments prior to delivering benefits, the top management may not be willing to support it. In advance nor the exact costs nor the benefits are identifiable. Software developers may also act against service re-use implementation due to the loss of their future creativity. They could also negatively evaluate the necessary documentation or proper designing that often causes a prolongation of the implementation time. Furthermore technical barriers due to complexity, such as problems with the development methodology, assets and supporting tools may arise. Finally a company may cope with organisational barriers, such as the lack of a group responsible for software re-use or performance evaluation in the form of incentives as an encouragement to invest in service re-use implementation.28

2.3. Business value assessment of software re-use in general

Generally speaking every company needs to use various methodologies in order to successfully introduce different kinds of business strategies. Some of them are based on understanding the customers or business partners, another aim at creating or delivering business value. These methodologies are individual and mostly focus on a special business strategy or business targets. That’s why they often vary among different companies.29

[...]


1 Vgl. Kryvinska et al. (2010), p. 491

2 Vgl. Frakes and Isoda (1994), p. 15

3 Vgl. Bean (2010), p. 1

4 Vgl. Kryvinska et al. (2010), p. 491-492

5 Vgl. Frakes and Terry (1996), p. 415

6 Vgl. Kryvinska et al. (2010), p. 496

7 Vgl. Bean (2010), p. 1

8 Vgl. Bieberstein et al. (2005), p. 28

9 Vgl. Ordanini and Pasini (2008), p. 290-291

10 Vgl. Bieberstein et al. (2005), p. 28

11 Vgl. Kryvinska et al. (2010), p. 491-492

12 Vgl. Vom Brocke et al. (2009), p. 262-264

13 Vgl. Vom Brocke et al. (2009), p. 264

14 Vgl. Bieberstein et al. (2005), p. 28-33

15 Vgl. Haines and Rothenberger (2010), p. 136

16 Vgl. Kryvinska et al. (2010), p. 494

17 Vgl. Bean (2010), p. 23

18 Vgl. Kryvinska et al. (2010), p. 494

19 Vgl. Bean (2010), p. 23

20 Vgl. Schlimm (2009), p. 289

21 Vgl. Bieberstein et al. (2005), p. 26

22 Vgl. Mazumder (2006)

23 Vgl. Kryvinska et al. (2010), p. 491

24 Vgl. Frakes and Terry (1996), p. 415

25 Vgl. Garcia et al. (2008), p. 295

26 Vgl. Dinsoreanu and Ignat (2009), p. 846

27 Vgl. Frakes and Isoda (1994), p. 15-19

28 Vgl. Sherif and Vinze (2003), p. 160-161

29 Vgl. Kryvinska et al. (2010), p. 494

Excerpt out of 21 pages

Details

Title
Business Value Assessment of Software Re-use
College
University of Vienna  (Institut für Betriebswirtschaftslehre)
Course
Neuere Entwicklungen in eBusiness & eLogistics
Grade
1
Author
Year
2013
Pages
21
Catalog Number
V340148
ISBN (eBook)
9783668299603
ISBN (Book)
9783668299610
File size
649 KB
Language
English
Tags
software, re-use, business value assessment
Quote paper
Alexandra Barokova (Author), 2013, Business Value Assessment of Software Re-use, Munich, GRIN Verlag, https://www.grin.com/document/340148

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