Secure Quorum: The Hidden Costs of Software

The Hidden Costs of Software

Gerard Ibarra, PhD

Secure Quorum

Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 1

The Effects of Choosing a SaaS solution without Thinking about the System as a Whole

Preface


Five things that we will cover Systems Thinking System Life Cycle Learning Curve Bathtub Curve Using a Checklist


We need some background information in order to help us

understand some of the hidden costs found in software



1st

Think about a system view


“A system is an assemblage or combination of elements or parts forming a complex or unitary whole such as a river system or transportation system;…”


(Stein, J., ed., Random House Dictionary of the English Language, New York: Random House Inc., 1966, cited Blanchard, B. S. & Fabrycky, W. J. 1990, p.1.)


sub system


system

And you can have even larger and

more complex Systems



larger system


HR Company system

s

Look at an Emergency Communication System (ECS)


ECS: Is defined herein as any system that is organized for the primary purpose of supporting one way and two way communication of emergency messages between both individuals and groups of Individuals (http://en.wikipedia.org/wiki/ Emergency_communication_system).


2nd


System Life Cycle


The life cycle of a system consists of many

phases that are different from system to system. The basis of the total life cycle cost of a system is to recognize the various phases in the system life cycle and to sum them across all phases to obtain the total cost.


Hazelrigg, G.A. (1996). Systems Engineering: An Approach to Information-Based Design (New Jersey: Prentice Hall), 270.


Need

Selection

Acquisition

Deployment

Support

Upgrades

Retirement

Replacement


3rd


Consider the learning curve

“The time required to produce a unit of output is reduced by a constant factor when the number of units produces is doubled.” “This applies only to when the sequence of activities is continuous.”


Babcock, D. L. (1996). Managing Engineering and Technology: An Introduction to Management for Engineers (New Jersey: Prentice Hall), 228 and 230.


Lear

nin

g

Experience

Lear

nin

g

Experience


Now is NOT the time to figure out how to use your emergency communication System (ECS)


Lear

nin

g

Experience


4th


Do not forget the bathtub curve


Failu

re R

ate

Time

l

Burn In Useful Life Wear Out


5th


Finance & Accounting will be impressed


True costs of software


“Too often we become fixated on the technical performance to meet the customer’s expectations without worrying about the downstream costs that contribute to the total LCCs of a system.”

((Farr, J.V. (2012). Life Cycle Cost Considerations for Complex Systems. Systems Engineering – Practice and Theory, Prof. Boris Cogan (Ed.), pp. 127-128, ISBN: 978-953-51-0322-6, InTech).


Given is the Purchase Price


Not so clear Product Research Request for Information (RFI) Request for Proposal (RFP) Legal Review: MSA, SOW and SLA Integration


More hidden costs

Training Learning Implementation

Support Maintenance Re-Certification

Litigation Down-time



And there is more… Reliability Changing Requirements Subcontracting Software & Hardware Updates


Getting it right


1. Systems Thinking 2. Life Cycle 3. Learning Curve 4. Bathtub Curve

5. Checklist

Purchase Price

Research

RFI and RFP

MSA, SOW & SLA

Integration

Training

Learning

Implementation

Support

Maintenance


Re-Certification

Litigation

Downtime

Closed/Lost

Business

Reliability

Changing

Requirements

Subcontracting

Software &

Hardware Updates


You can see a video of this presentation at: http://bit.ly/135sKFc.

http://bit.ly/135sKFc




To learn more about our other webinars on Systems Thinking or How to Choose the Right Software, visit our contact page at www.securequorum.com.

http://bit.ly/1aeQ3mz

Thank You

Gerard Ibarra, PhD

Secure Quorum


www.securequorum.com

http://bit.ly/1dnYGuM