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The Art of Software Innovation . Minna Pikkarainen Wim Codenie l l Nick Boucart Jose´ Antonio Heredia Alvaro l Editors The Art of Software Innovation Eight Practice Areas to Inspire your Business Editors MinnaPikkarainen WimCodenie VTTTechnicalResearchCentre NickBoucart ofFinland Sirris SoftwareBusinessGroup SoftwareEngineeringGroup Kaitova¨yla¨1,Box110 A.Reyerslaan80 90570Oulu 1030Brussels Finland Belgium minna.pikkarainen@vtt.fi [email protected] [email protected] Jose´AntonioHerediaAlvaro UniversitatJaumeI DepartamentodeIngenier´ıade SistemasI CampusdelRiuSec 12080Castello´ delaPlana Spain [email protected] ISBN978-3-642-21048-8 e-ISBN978-3-642-21049-5 DOI10.1007/978-3-642-21049-5 SpringerHeidelbergDordrechtLondonNewYork LibraryofCongressControlNumber:2011935532 # Springer-VerlagBerlinHeidelberg2011 Thisworkissubjecttocopyright.Allrightsarereserved,whetherthewholeorpartofthematerialis concerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation,broadcasting, reproductiononmicrofilmorinanyotherway,andstorageindatabanks.Duplicationofthispublication orpartsthereofispermittedonlyundertheprovisionsoftheGermanCopyrightLawofSeptember9, 1965,initscurrentversion,andpermissionforusemustalwaysbeobtainedfromSpringer.Violations areliabletoprosecutionundertheGermanCopyrightLaw. Theuseofgeneraldescriptivenames,registerednames,trademarks,etc.inthispublicationdoesnotimply, evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevantprotective lawsandregulationsandthereforefreeforgeneraluse. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Preface Haveyoueverwonderedwhatinnovationreallymeanstoyourcompany,and,more specifically,howsoftwareinfluencesyourinnovationcapacity? AtSteria,ourbusinessistodevelopsoftwareasaserviceforothercompanies– softwarethatthesecompaniesusetodrivetheirinnovation,softwarethatisdeveloped using thelatesttechnologies.Forourcompany,itisimportantto understandwhere innovationmeetsriskandwhattheinnovativeaspectsofourcustomerprojectsare. For a company like Steria, it is not enough to invest in the best software engineering practices to improve the productivity of our software engineers. We must also leverage the potential of all our employees in the local and global organization. It is important that we constantly use all the innovation potential of ourpeople,sharenewideas,andexplorenewsolutionsandtechnologies.Wemust notonlyremaincompetitiveduetoourengineeringpracticesbutalsobyadopting leading-edgetechniquesandtechnologiesandsharinginthebenefitsofinnovation throughourcustomerprojects. Together with 28 partners working in the ITEI (Information Technologies supportingtheExecutionofInnovationProjects)project,wegainedsomeinsights thatledtothefirsteditionofthisbookonsoftwareinnovation.Thisbookisnotthe result of a theoretical approach but the synthesis of many discussions and experi- ments carried out involving research institutes as well as industrial partners. This synthesis is certainly not the final point however, above all because the industrial partnersthatcontributedtothisworkonlycoverpartoftheverybroadspectrumof companiesinwhichinnovationisdrivenmainlybysoftware. Softwareinnovationismultifacetedandtheapproachesusedbycompaniescan be very different. How do you understand which aspects of software innovation maybeimportanttoyourcompany?Tofacilitatethisthinkingprocess,wepropose a high-level classification of ‘software companies’ with their specific views on software innovation. We defined eight practice areas, ‘arts’, and 47 activities that yourcompanycanmastertodrivesoftwareinnovation. As a synthesis of all the discussions, experiments, ‘arts’ and activities, we propose a software innovation canvas to describe the most important aspects of softwareinnovation–asoftwareinnovationcanvasthatmayevolvefromtheinput v vi Preface ofabroaderrangeofcompaniesthatwantstocontributetothefurtherevolutionof thisbook. For a different software company, some generic ‘“arts’” will be more relevant thantheothers.Someofthesegeneric‘“arts’”willbemorerelevantthanothers.For example,ifyouaredrivenbycustomerprojectsthentheideationpartofinnovation will play an different other role than if you develop out-of-the-box software products. This means that the ‘“the Art of Idea Harvesting’” may have another in importancetothanthe‘“theArtofFocusing’”toyourcompany. Intrigued? In this book you will find details of what your company can do to understand, implement and sustain these ‘“arts’”. Finally, I would like to end with somequotesfromofdifferentpartnersintotheITEIprojectthatresultedinthisbook. ‘Softwareinnovationisradicallychangingthewaywecommunicate,interact,and organiseourselvestoday.Whatisnow,willbedifferenttomorrow.Theeightsoftware innovationpracticeareasinthisbookwillstimulateyourcreativeassetstobetteruse.’ SuviKeina¨nen,MovialCreativeTechnologiesInc. ‘Software innovation is a major concern for IT service companies like Steria whosedailybusinessnolongeronlyconsistsofdeliveringinnovativesolutionstoits customersbutalsoofhelpingthemontheirjourneytowardsinnovation.’ PierrePaelinck,Steria ‘Metso’s aim istocreate valuecontinuously byimprovingthe quality,produc- tionandenvironmentalaspects,andthecost-efficiencyofitscustomers’processes. Innovationplaysakeyroleinimplementingtheseaims.’ AnttiVa¨lima¨ki,Metso ‘Ever-acceleratingtechnologicalchangehasmovedinnovationinthesoftware sectorpastmereopportunityintotheheartofthebusinessstrategy.Weusedtobe amazedthatyoungstart-upscouldchallengeandunseatglobalITgiantsinjusta few years. Now we measure such shifts in mere months and speculate on how the currentcropwillstanduptonextquarters’challengers.Innovationinsoftwareis aboutmorethanplanningthenextproductreleaseorservicemethodologyupdate. Weneedtoembraceperpetualagilebusinessecosystemincubationandadaptation toincreasevaluecreation.’ PeterStuer,Spikes ‘If you are a software-intensive company about to embark on the journey towardsinnovationmastery,thisbookisdefinitelythebestguideyouwillfind. This book is written by researchers and experienced practitioners who have beenexploringandmappingthecomplexinnovationlandscapeforyears.Thisbook bringsitalltogether.ItisanimpressivecollaborativeefforttowhichI’mproudto havecontributed.’ WimSoens,DirectorofInnovation,ResearchandDevelopmentatCogniStreamer DrRene´ Luyckx CEOSteriaBenelux Acknowledgements Thecriticalsourceofinformationforthisbookwasmanagersofsoftwarecompa- niesstrugglingwithsoftwareinnovation.Manyofthemareidentifiedinthelistsof authors and contributors for this book. We would like to thank all the companies thatparticipatedforsharingtheirsoftwareinnovationexperienceswithus. Withoutthesignificantcontributionoftheacademia,thisbookwouldnotexist. Wewouldliketothankallthescientificcontributorstothisbook. We would especially like to thank ITEA 2 for its support and for making it possibletocreatethisbookinaEuropeancontext. The authors from Belgium would like to thank the Institute for the encourage- mentofScientificResearchandInnovationofBrussels(Innoviris),theInstitutefor thePromotionofInnovationbyScienceandTechnologyinFlanders(IWT)andthe Brussels-CapitalRegionforthesupportitprovidedtothisresearchandpublication. The authors from Finland would like to thank the Finnish Funding Agency for TechnologyandInnovation(TEKES). TheauthorsfromSpainwouldliketothanktheMinisteriodeIndustria,Turismo yComercio(PlanAvanza). SpecialthanksalsogotoAnnukkaMa¨ntyniemiwhowasoneoftheco-creators oftheunderlyingresearchprojectthatledtothisbookandIrjaKontiowhoputso mucheffortintotheoveralllayoutofthisbook. vii . Contents 1 Introduction ................................................................ 1 1.1 InnovationinSoftwareEngineering .................................... 2 1.2 BlendingInnovationManagementandSoftwareEngineering ......... 3 1.3 RationaleofThisBook ................................................. 3 1.4 StructureofThisBook ................................................. 4 1.5 SoftwareandInnovation ................................................ 4 1.5.1 SoftwareasanInstrumentforInnovation inProductsandServices .......................................... 5 1.5.2 SoftwareasanEnablerofInnovationProcesses ................. 6 1.5.3 SoftwareasanEnablerforBusinessModelInnovation ......... 6 1.6 WhyInnovationinSoftwareIsDifferent .............................. 7 1.6.1 SoftwareIsMalleable ............................................ 7 1.6.2 SoftwareIs‘Intangible’ ........................................... 7 1.6.3 TheThresholdtoEntertheSoftwareMarketIsLow ............ 8 1.6.4 TheRoleUsersPlayinSoftwareDevelopment .................. 9 1.6.5 TheHugeImpactofExpert/CriticalResourcesinSoftware Innovation ......................................................... 9 1.7 LeavingtheComfortZoneofFeatureDevelopment .................. 9 1.7.1 IncreasedTechnologyConfrontation ........................... 10 1.7.2 IncreasedMarketConfrontation ................................ 10 1.7.3 TheSoftwareJungle:ThreatorOpportunity? .................. 10 1.7.4 TheBattleforUserAttention .................................. 11 1.7.5 LeavingtheComfortZone ..................................... 12 1.8 DifferentSoftwareCompaniesHaveDifferentInnovationNeeds .... 12 1.8.1 InnovationinProjectBasedDevelopment ..................... 14 1.8.2 InnovationinOutoftheBoxDevelopment .................... 15 1.8.3 InnovationinCustomizedProductDevelopment .............. 17 References .................................................................. 17 ix

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Imagine that you are the CEO of a software company. You know you compete in an environment that does not permit you to treat innovation as a secondary issue. But how should you manage your software innovation to get the most out of it?This book will provide you with the answer.Software innovation is
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Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.