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The Complete Developer Luke Hohmann Founder & CEO Enthiosys, Inc. Copyright © 2006 by Luke Hohmann
Hiring The Complete Developer Imagine that developers came in boxes and were sold at Fry’s. What would be on the box that describes your “ideal” developer – the developer you would buy? Product Box Innovation Game sm
The Results?
They Want A Lot, Don’t They?
Developer Dan (Danella) Technical Competence Customer Driven Business Acumen
Technical Competence The Responsibility is Yours
Skills and Responsibilities
Technical Depth Ignorant Never heard about it Aware I’ve heard about it but not used it Apprentice I’ve used it and can do basic things Practitioner I’m competent in the technology Master My peers seek my advice Expert I’m recognized by my prof. community
Technical Breadth
Managing Your Growth Through Competency Frameworks Write a broad topic  area in this space. Write specific goals in this space organized by how much depth of knowledge required to achieve your goals. Depth of Knowledge Apprentice to Expert Breadth
Creating Your  Competency Framework
Business Acumen How do you  help your company make  more money than they pay you?
Profit Engine Framework A unique set of models that enable you to create software-related offerings with maximum value. Pricing Model How Much Money You Make Customer ROI Model Quantifies Value Enforcement Model Protection of Rights Licensing Model Terms and Conditions of Use Business Models The Event That Makes Money Profit Engine Causes More Money Making Events Customer Value Model Identifies and Captures Value
Business Models The event that makes money / causes money to change hands  Multiple business models can co-exist in the same product e.g., txn fees and “optional modules” Why should you care?
Six Core SW Business Models Time-based access Transaction Meter Hardware Service Percentage of revenue gained / costs saved Charity?
Time-Based Access Grant “right to use” for a defined period of time (even if you don’t actually use) Perpetual (like Microsoft Windows 2000) Annual (like many ERP) Rental Subscription Pay After Use...
Effects of  Time-Based  Access on Tarchitecture Today? Generally, minimal (honor system) Future? Disallow use Microsoft and others pioneering model Rentals / other models require both protection and backend systems to support
Transaction Defined and measurable units of work Exchange of money is always tied to the transaction but customer value (and therefore price) is often associated with an attribute of the transaction Duration  of a phone call Time of day  call is made To whom  the call is made
Effects of  Transactions on Tarchitecture Do legal and technical definitions match? Uniquely identify & understand entire life Capturing the necessary data (schema) Direct: System captures and manages all data necessary to support the business model Indirect: System must be integrated with other systems to capture/manage necessary data Reporting/Remittance requirements  Format? Security? Auditability?
Meter Something that is counted Constraining a well-defined,  identifiable resource HW: You can only have four CPUs running or only these terminals can access the program Named user: Only Amit, Bill, and Weng Li can use the software Consuming a well-defined resource Concurrent (e.g., concurrent user) Absolute value (e.g., you have 100 hours)
Effects of Metering on Tarchitecture Varying degrees of enforceability When dealing with users/sessions... How will you authenticate users? How many will you allow? Under what circumstances? Will you allow grace users? How do you distinguish between lack of use vs dead or broken connection?
Hardware Associate the amount charged  for the software with some  element of hardware Software anti-piracy dongles – you pay for both the dongle and the license SDK/run-time Huge challenge: software becomes “free”, especially in embedded software Home appliances – microwave ovens Information appliances – router/VPN server Consumer electronics
Effects of  Hardware on Tarchitecture How do you upgrade? Will you network? Can you diagnose & repair problems or will you do a wholesale component replacement? Is there a cracker aftermarket?
Service The exchange of money is tied to a service; software is required to provide the service or is intimately related to the service Symantec: Virus updates AOL: email  Red Hat: Linux-related  services   such as support or upgrades Often associated with  subscription pricing
Effects of  Service on Tarchitecture What are data retention policies? Who owns what data?  Who can use it? What are SLAs? Is your system capable of meeting these SLAs?
Revenue Obtained / Cost Saved Charge based on revenue obtained or costs saved, often in terms of percentages Retail yield management ServiceSource, with annual revenue between $25M - $50M, says it receives compensation  based on the revenue it generates for its  clients and charges no consulting, training or implementation fees, or ongoing  management costs.  - June 29, 2005, San Jose Mercury News
Effects of  Revenue /Costs on Tarchitecture Closely related to Transactions What is the baseline? How do you track improvements?  Audit and remittance?
Let’s Try It… Adobe Acrobat  Intuit QuickBooks On-Line salesforce.com Google adwords
What Is (or Are)  Your Business Model(s)
Customer (Market) Driven Are you creating what they want? How do you know?
What’s a Requirement?
Are You Sure? How Do You Know That’s What Your Customers Really Want?
The Agile Manifesto (2001) We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value:  Individuals and interactions  over processes and tools Working software  over comprehensive documentation  Customer collaboration  over contract negotiation Responding to change  over following a plan  That is, while there is value in the items on the right, we value the items on the left more.     www.agilemanifesto.org
Let’s Find Out Who You Talk With Write your name in the center of the circle. Write the names of people you collaborate with at work around the circle. Draw the web of these relationships as you see it. Use different line weights and colors to represent good/bad communication. Spider Web
Let’s Do It Again Write your name in the center of the circle. Using your first diagram as a guide, replace the names of the people with their organizational roles (marketing, sales, etc.). Use different line weights and colors to represent good/bad communication. Spider Web
Developer One
Developer Two
Manager One
If We’re So Agile,  Where Are the Customers? Do you have the tools to talk with  customers?
Techniques To Foster Understanding
Getting Access To Customers Ask to be included when customers will be present (e.g., conferences, user groups, etc.) Be a good Observer Don’t make any promises on priorities Don’t make any commitments Don’t talk negatively about your product or company Don’t talk negatively about your competitor’s products Don’t say “That should be easy”  Don’t say “That is too hard”  Listen nonjudgementally Be forewarned: It isn’t always a fun experience
Developer Dan (Danella) Technical Competence: The Responsibility  Is Yours Customer Driven Learn to Work  With Customers Business Acumen Understand How Your Company Makes  $$$$
And A Postscript…
In Greater Detail…
Thank You !!! I’d love to hear from you! Contact me at: Innovation Through Understanding Luke Hohmann Founder & CEO Enthiosys, Inc. cell: (408) 529-0319 www.enthiosys.com [email_address]

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Better Software Keynote The Complete Developer 07

  • 1. The Complete Developer Luke Hohmann Founder & CEO Enthiosys, Inc. Copyright © 2006 by Luke Hohmann
  • 2. Hiring The Complete Developer Imagine that developers came in boxes and were sold at Fry’s. What would be on the box that describes your “ideal” developer – the developer you would buy? Product Box Innovation Game sm
  • 4. They Want A Lot, Don’t They?
  • 5. Developer Dan (Danella) Technical Competence Customer Driven Business Acumen
  • 6. Technical Competence The Responsibility is Yours
  • 8. Technical Depth Ignorant Never heard about it Aware I’ve heard about it but not used it Apprentice I’ve used it and can do basic things Practitioner I’m competent in the technology Master My peers seek my advice Expert I’m recognized by my prof. community
  • 10. Managing Your Growth Through Competency Frameworks Write a broad topic area in this space. Write specific goals in this space organized by how much depth of knowledge required to achieve your goals. Depth of Knowledge Apprentice to Expert Breadth
  • 11. Creating Your Competency Framework
  • 12. Business Acumen How do you help your company make more money than they pay you?
  • 13. Profit Engine Framework A unique set of models that enable you to create software-related offerings with maximum value. Pricing Model How Much Money You Make Customer ROI Model Quantifies Value Enforcement Model Protection of Rights Licensing Model Terms and Conditions of Use Business Models The Event That Makes Money Profit Engine Causes More Money Making Events Customer Value Model Identifies and Captures Value
  • 14. Business Models The event that makes money / causes money to change hands Multiple business models can co-exist in the same product e.g., txn fees and “optional modules” Why should you care?
  • 15. Six Core SW Business Models Time-based access Transaction Meter Hardware Service Percentage of revenue gained / costs saved Charity?
  • 16. Time-Based Access Grant “right to use” for a defined period of time (even if you don’t actually use) Perpetual (like Microsoft Windows 2000) Annual (like many ERP) Rental Subscription Pay After Use...
  • 17. Effects of Time-Based Access on Tarchitecture Today? Generally, minimal (honor system) Future? Disallow use Microsoft and others pioneering model Rentals / other models require both protection and backend systems to support
  • 18. Transaction Defined and measurable units of work Exchange of money is always tied to the transaction but customer value (and therefore price) is often associated with an attribute of the transaction Duration of a phone call Time of day call is made To whom the call is made
  • 19. Effects of Transactions on Tarchitecture Do legal and technical definitions match? Uniquely identify & understand entire life Capturing the necessary data (schema) Direct: System captures and manages all data necessary to support the business model Indirect: System must be integrated with other systems to capture/manage necessary data Reporting/Remittance requirements Format? Security? Auditability?
  • 20. Meter Something that is counted Constraining a well-defined, identifiable resource HW: You can only have four CPUs running or only these terminals can access the program Named user: Only Amit, Bill, and Weng Li can use the software Consuming a well-defined resource Concurrent (e.g., concurrent user) Absolute value (e.g., you have 100 hours)
  • 21. Effects of Metering on Tarchitecture Varying degrees of enforceability When dealing with users/sessions... How will you authenticate users? How many will you allow? Under what circumstances? Will you allow grace users? How do you distinguish between lack of use vs dead or broken connection?
  • 22. Hardware Associate the amount charged for the software with some element of hardware Software anti-piracy dongles – you pay for both the dongle and the license SDK/run-time Huge challenge: software becomes “free”, especially in embedded software Home appliances – microwave ovens Information appliances – router/VPN server Consumer electronics
  • 23. Effects of Hardware on Tarchitecture How do you upgrade? Will you network? Can you diagnose & repair problems or will you do a wholesale component replacement? Is there a cracker aftermarket?
  • 24. Service The exchange of money is tied to a service; software is required to provide the service or is intimately related to the service Symantec: Virus updates AOL: email Red Hat: Linux-related services such as support or upgrades Often associated with subscription pricing
  • 25. Effects of Service on Tarchitecture What are data retention policies? Who owns what data? Who can use it? What are SLAs? Is your system capable of meeting these SLAs?
  • 26. Revenue Obtained / Cost Saved Charge based on revenue obtained or costs saved, often in terms of percentages Retail yield management ServiceSource, with annual revenue between $25M - $50M, says it receives compensation based on the revenue it generates for its clients and charges no consulting, training or implementation fees, or ongoing management costs. - June 29, 2005, San Jose Mercury News
  • 27. Effects of Revenue /Costs on Tarchitecture Closely related to Transactions What is the baseline? How do you track improvements? Audit and remittance?
  • 28. Let’s Try It… Adobe Acrobat Intuit QuickBooks On-Line salesforce.com Google adwords
  • 29. What Is (or Are) Your Business Model(s)
  • 30. Customer (Market) Driven Are you creating what they want? How do you know?
  • 32. Are You Sure? How Do You Know That’s What Your Customers Really Want?
  • 33. The Agile Manifesto (2001) We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more. www.agilemanifesto.org
  • 34. Let’s Find Out Who You Talk With Write your name in the center of the circle. Write the names of people you collaborate with at work around the circle. Draw the web of these relationships as you see it. Use different line weights and colors to represent good/bad communication. Spider Web
  • 35. Let’s Do It Again Write your name in the center of the circle. Using your first diagram as a guide, replace the names of the people with their organizational roles (marketing, sales, etc.). Use different line weights and colors to represent good/bad communication. Spider Web
  • 39. If We’re So Agile, Where Are the Customers? Do you have the tools to talk with customers?
  • 40. Techniques To Foster Understanding
  • 41. Getting Access To Customers Ask to be included when customers will be present (e.g., conferences, user groups, etc.) Be a good Observer Don’t make any promises on priorities Don’t make any commitments Don’t talk negatively about your product or company Don’t talk negatively about your competitor’s products Don’t say “That should be easy” Don’t say “That is too hard” Listen nonjudgementally Be forewarned: It isn’t always a fun experience
  • 42. Developer Dan (Danella) Technical Competence: The Responsibility Is Yours Customer Driven Learn to Work With Customers Business Acumen Understand How Your Company Makes $$$$
  • 45. Thank You !!! I’d love to hear from you! Contact me at: Innovation Through Understanding Luke Hohmann Founder & CEO Enthiosys, Inc. cell: (408) 529-0319 www.enthiosys.com [email_address]