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    StarSmart A framework

    for Distributed

    Outsourced ProductDevelopment

    Abstract

    In recent years, market forces and changing business models have

    created new pressures on product engineering teams of technology

    companies. Product teams need to continue product innovation, sustain

    current product lines, support existing customers, but with lower R&Dbudgets. The emergence of the flat world has made technology

    companies adopt product manufacturing techniques long practiced by

    discrete manufacturing companies basically, adopting the principle of

    do it where makes best business sense. Blue Star Infotech, a leading

    provider of Outsourced Product Development and support services, has

    developed a distributed software product manufacturing model,

    StarSmart, that enables ISVs to adopt this principle easily and rapidly. .

    This paper dwells into the Distributed Outsourced Product Development

    model and demonstrates how an independent software vendor (ISV), by

    leveraging Blue Star Infotechs StarSmart- a framework for Distributed

    Product Development can become better equipped to cope withenvironmental pressures.

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    Introduction

    In the current economic scenario, with shrinking revenues and R&D budgets, there is a great need

    for ISVs to reduce their cost of development. It is critical for them to shorten the development life

    cycle and to have frequent releases, which accommodate features based on the changing industry

    trends. Additionally, product solutions need to leverage technology innovations to enrich the

    customer experience. More importantly, globalization has resulted in an increasing trend is to have

    distributed teams spread across global centres and leverage follow-the-sun relay development

    models

    Distributed Product Development enables the ISVs to reduce their cost of development as well as tohave access to a global talent/resource pool. Time to Market, a primary KPI for technology

    companies, is significantly shortened with the Follow the Sun model. It provides the ISVs with the

    flexibility to quickly ramp up or scale down the size of the distributed teams based on the prevailing

    scenario. This model allows the ISV to focus on Product Management as opposed to the nuances of

    managing a team. Also the ISV can re-direct their focus to critical aspects such as market analysis

    and marketing. In this model, the ISV can allocate work based on the expertise of the distributed

    teams and thereby get higher ROI.

    Apart from product development, maintenance activities (defects & enhancements) for an existing

    & mature product line can be handled by a distributed team while the core team focuses on helping

    sales in customer acquisition activities or on product enrichment.

    Challenges in a Distributed Development Model

    Like other development models, distributed product development model also comes with a set of

    challenges. If not handled properly, these challenges can diminish the value that ISVs expect to gain

    out of a distributed product development initiative. Below listed are some of key challenges faced in

    such a scenario:

    Cultural Differences The differences in background and culture of the distributed teammembers tend to negatively affect relationships within the team

    Communication Challenges The lack of face to face interactions and the dependence on

    emails & documents as the only mode of communication, presents a challenge to effectivecommunication

    Requirements understanding As typically the Business Analyst or Product Owner is partof the core team, the distributed team members do not have a mechanism to immediatelyaddress their doubts related to the specifications. This results in loss of time in waiting for theresponses and thereby hampering productivity

    Code Integration In a situation, where distributed teams are working on separate coderepositories, integration of code tends to be a challenge, especially if there are multiple(common modules) integration points

    IPR related Concerns For a product development company, the Intellectual Property of theproduct is an invaluable asset, and there is a concern of IP violations in a Distributed ProductDevelopment model.

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    Overcoming the Challenges

    Many of the barriers associated with distributed product development activities, as mentioned

    above, can be overcome by selecting an experienced and reliable R&D partner with requisite

    product engineering expertise, quality orientation, structured processes, proven credentials, and an

    impeccable record on protecting its customers IP. This will ensure that product engineering

    principles are in use and best practices are consistently applied. Cost advantages are achieved

    through various means such as optimization of the R&D process, usage of innovative & reliable

    frameworks, tools usage, and leveraging low-cost test centers. Keeping this in mind BSI has built a

    framework StarSmart that uses agile software development methodologies to deliver distributed

    product development services.

    StarSmart An overview

    StarSmart is built on the principle of power of 2 Processes & People, two most critical ingredients

    required for any successful product development methodology. Over a period of 15 years, BSI is

    partnering with multiple ISVs, from start-ups to Tier-1 ISVs, in their product journey. This journey,

    through different phases of product engineering evolution, has created wealth of experience inside

    BSI. This framework is the result of the best practices that we have practiced, and processes that we

    have followed in many successful strategic distributed product development initiatives. To achieve

    the best result, BSI has created a framework, which is:

    Simple:

    This framework follows the principle of simplicity to ensure that usage of this framework does not

    bring any overhead. This framework is an easily customizable one, and can be used in any kind of

    product engineering engagement. This framework, being a collection of best practices from different

    product development initiatives, also ensures that it can be adapted quickly and easily to any

    product development scenario.

    Metric based

    At BSI, we understand that in a product development initiative, product features, cost of

    development, time-to-market, and product quality are most important parameters to be measured

    for success. Keeping this in mind we have built a metric based framework that helps us to collect

    and analyze the above said matrices, and use the result for achieving engagement goals. This helps

    our customers to get higher productivity, efficiency, and improvement in product quality

    Agile:

    This framework is based on the following principles of agile software development methodology:

    Deliver customer value early and often

    Working software is the primary measure of progress Deliver working software frequently

    Welcome requirements changes, even late in development. Agile processes harness

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    changes for the products's competitive advantage

    Continuous attention to technical excellence and good design

    At regular intervals, the team reflects on how to become more effective, then tunes andadjusts its behavior accordingly

    Processes that promote sustainable development

    StarSmart is built on the SCRUM methodology, because we see more and more product companies

    are adapting SCRUM for product development. BSI is one of the pioneers in using SCRUM in

    distributed product development scenario. This has helped BSI to use SCRUM as the centerpiece of

    this framework. Though it is built on the concept of SCRUM, it can be used with any other agile

    methodologies.

    This focus on agile model enables us to deliver subset of features at frequent and regular intervals.

    This approach also enables the ISV to give feedback on working features at the end of each iteration.

    The development team can work on new features or make improvements to the existing ones in the

    subsequent iteration based on priority to deliver higher business value.

    Unlike waterfall model, this framework also enables us to manage requirements changes

    throughout product development lifecycle more effectively. Because of this flexibility of managing

    changes and shorter iteration periods (typically 2 to 4 weeks), ISV can add new features in thesubsequent sprint, which are driven by the changing marketplace or technology advancements. This

    flexibility provides the ISV a competitive advantage.

    This framework places a great deal of importance on collaboration. A customer/biz representative is

    part of the highly collaborative development team, which facilitates the developers to be

    knowledgeable about the product, hence deliver suitable solutions. As agile teams are self-

    organizing, an environment of team work, ownership, and trust is present. Also, the team

    collectively reviews their performance at the end of each iteration, and identifies corrective actions.

    These practices facilitate higher productivity.

    Like other agile models, in StarSmart also, working software is considered as the primary measure of

    progress. This framework facilitates transparency; hence it enables early identification of risks.

    Additionally, the daily smart meetings and smart reporting by the team helps in identifying any

    impediments and provide better visibility and control.

    This framework is designed to adapt to different agile practices such as Test Driven Development,

    Coding Standards, Pair Programming, Continuous Integration and Refactoring. These

    practices, along with frequent releases, result in early detection & correction of defects as well as an

    optimal & maintainable codebase. StarSmart enables the ISV to achieve the goal of a high quality

    product and thereby results in higher customer satisfaction.

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    Reliable

    BSI understands that reliability is the key theme for any product development initiative. Like the

    product, the process and methodologies followed for product development also need to be reliable

    ones. StarSmart is built on experience of delivering more than 1600 product releases over last 15

    years for more than 80 ISVs, by using more than 3500 man years of cumulative effort. Most of these

    product releases have been delivered within 95% of budgeted time and cost, and with very high

    quality.

    Tool DrivenWith the focus on productivity, efficiency, smooth communication, and easy manageability, BSI has

    designed this framework in such a way that it leverages many proprietary and open source tools in

    the area of requirements management, design, code review & reporting, integrated build &

    deployment, test automation & reporting, knowledge management, and project management.

    Usages of tools bring standardization and result in consistent deliverables. These tools also help to

    tailor the product development process to suit requirements of different ISV.

    Best Practices followed in StarSmart

    Creating Bonding among team members

    A few approaches followed are:

    Core members of the proposed distributed team work along with the core team on

    the initial iterations (around 6 to 8 weeks).

    Team members from a distributed team travel to the customer/core team locationon a rotational basis and work along with them on a few iterations.

    Team leads meet at critical junctures like release planning.

    These approaches facilitate better interactions (as they are face to face), fosters trust, and agood sense of customer context. Also there is a alignment to practices and standards

    followed by core team.

    Use of common tools for collaboration and process

    In a distributed agile development model, it is important to leverage common tools, reports,

    and formats for effective communication across teams. Use of a common Wiki, Instant

    Messengers, and Video Conferencing has proved successful in communicating across teams.

    Online tools are used for the processes followed as it enables all stakeholders across teams

    to have access to the status at any given point of time.

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    Smart Reporting

    Daily status meetings (which follow a defined format) among the team leads accomplishes

    the following:

    Communication of work done by the team in a day.

    Communication of any roadblocks (if any) faced by a team.

    Communication of the work to be carried out on the following day.

    These meetings and reports are called smart meeting and smart reports as they also have

    the basic characteristics of StarSmart, and are simple to interpret, based on product feature,

    effort, timeline & defect metrics, agile as offer flexibility in conduct, content, and

    representation, reliable as represents true picture of the engagement with complete

    transparency & tool based.

    Configuration ManagementDefining the right configuration management processes & practices is critical in a distributed

    development model. The following processes are following as part of StarSmart

    configuration management:

    Use Continuous Integration Centralized Build Server

    Common Build Environment.

    Use of a Unit Test framework.

    Integrated development environment

    Automated builds

    Protecting IPR

    BSI is aware that IP is a core to any product, and is most valuable asset for an ISV. BSI takesdifferent administrative, physical, and cultural measure to ensure that that customers IPR is

    not compromised. As part of StarSmart engagement framework, BSI ensures that NDA issigned with each individual member of the distributed team to safeguard IP, provide separateand secured working enclosure if required, even provide a separate physical & networkaccess system dedicated to the team.

    Requirements Management

    In StarSmart framework, a business analyst in the distributed team can represent the

    customer/business and clarify doubts raised by developers of the distributed team , if

    required. The analyst communicates with the customer regularly to clearly understand the

    modules being worked on by the distributed team.

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    Benefits of StarSmart

    Cost savings, though a major result, is not the only benefit of distributed product development

    initiative. ISVs can get a tremendous competitive advantage by leveraging benefits from BSIs

    innovative distributed product development framework. Following are the benefits that come out as

    a result of a successful implementation of StarSmart framework.

    Higher return on R&D investment

    StarSmart framework can not only reduce development cost, but it also can enhance productivity of

    the engineering team by leveraging improved product development processes, technologies,

    improve program management, and best practices form different successful product development

    initiatives. Because StarSmart offers lower development cost, ISVs can stretch their R&D budget

    further which enables packing more power to their product in the form of enhanced feature list.

    Shorter Revenue Realization Cycle

    StarSmart can help reduce time to market with the usage of additional skilled resources and ready

    to use accelerators. This helps the ISV to reach market faster and protect/create competitive

    advantage. Hence, StarSmart helps companies shorten their revenue realization cycle, which means

    they can achieve more with less capital or invest the free resources in growth related initiatives.

    Flexible Scale

    The product development is characterized by staffing peaks and troughs. Managing this variation of

    utilization becomes a challenge for in-house R&D departments. This always results in either lower

    utilization (higher cost) or non availability of skilled resourced when required most. But in a

    distributed product development scenario, managing the ebb and flow of resources becomes the

    responsibility of BSI. Hence, StarSmart provides a much needed degree of flexibility to the client

    Organization, and allows them to focus on product management & marketing.

    Conclusion

    BSI believes that ISVs are the growth engine of the IT industry. With the innovation they bring in,

    ISVs change the face of the technology adoption in every few years. The current recessionary

    situation is opening up new strategic opportunities for ISV industry for next round of consolidation

    and growth. The ability to adopt new conditions, effectively handle new challenges, and levering

    new opportunities will make an ISV a market leader. Distributed product engineering model will

    become a part of core strategy for any ISV going forward. At this juncture, BSI, with its long

    experience as Product Engineering Service provider and with the help of its innovative StarSmart

    framework, is well suited for helping ISVs in achieving their strategic goal and bringing a competitive

    advantage.

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    About Blue Star Infotech

    Blue Star Infotech (BSI) helps global mid market enterprises derive measurable business outcomes through theuse of IT. BSI partners with its clients to understand the business pain points, arrive at the appropriate IT ledinterventions and manage successful implementation. Using its deep understanding of the mid marketsegment, and drawing upon its long standing track record in creating IT solutions, BSI is able to deliveraffordable and relevant solutions through client-friendly flexible engagement models.

    Blue Star Infotechs dual expertise in building software products for industry-leading Independent Software

    Vendors and IT solutions for enterprises provides it with an unique advantage to cross-leverage experiencesin creating solutions for enterprises- both custom and products across domains and technology platforms.

    Blue Star Infotech has been ranked 12th amongst the top fifteen global R&D Service

    providers by Zinnov Management Consulting Pvt. Ltd, in a first-of-its-kind ranking of the Top

    Global Outsourced Product Development service providers across geographies such as India,

    China and Eastern Europe.

    Blue Star Infotech has ongoing partnerships with more than 80 technology companies in different product vertical markets

    that include Travel & Hospitality, Healthcare, Mobility, and Enterprise ISVs. Over the last 15 years, Blue Star Infotech has

    served more than 200 technology companies by helping them to gain momentum in their product journey and has helped

    them make over 1,600 software product releases to its customers.

    BSI, an ISO & CMMi certified company, also has technology partnerships with companies like Microsoft,Oracle, Hewlett Packard, SAS, Kentico, Sitecore, Platform Lab, and member of HTNG.

    In addition, BSI is backed by the reputed Blue Star Group, ranked among Asias best sub billion businesses byForbes.

    Contact Us

    USA2350 Mission College Blvd,Suite 475, Santa Clara,CA 95054Tel: (408) 727-3701Fax: (408) 727-3707

    UKVista, 50 Salisbury Road,Heathrow TW4 6JH,United Kingdom.Tel: +44-20-8538 2710Fax: +44-20-8538 2709

    IndiaBand Box House, 4th Floor,Dr. Annie Besant Road,Worli, Mumbai 400 030Tel: +91 22 2490 1870Fax: +91 22 2490 1353

    For more information: visit us at www.bsil.com or contact: [email protected]


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