Workshop - Estimating Packaged Software - Nesma - Eric van der Vliet - Frank Vogelezang v1.0

Eric van der Vliet / Frank Vogelezang

Agenda

1. Packaged software estimation

2. Cost estimation model

3. Cost Drivers

4. EPS Framework

5. Sizing methods

6. Summary

|IWSM2016 – Estimating Packaged Software

Trends

Trend towards less custom made software

Increasing use of packaged software

Vendors and implementation partners use their own proprietary

techniques for estimation

No generic framework for estimating the effort and cost of packaged

software

Hard to compare estimates from different sources

Hard to build up benchmark data for public reference


Differences packaged vs bespoke software

Aspect Packaged software Bespoke software

Functionality overdose exact fit

creation of functionality configuration (bulk) and tailor

made (missing parts)

completely bespoke

lifecycle cost usually cheaper mostly more expensive

size ability poor: a few aspect methods

(RICEF, CEMLI)

good: detailed and global

(FP’s, Cosmic, UCP, LOC)

estimate ability vague (supplier standards, no

common methods)

good: market shared

productivity rates

Benchmarking poor: due to size ability good: tooling; benchmark

data available

cost engineering more complex due to different

element types

mostly straightforward

popularity CxO fast growing only when necessary


Packaged software

Standard functionality

Functionality prepared for specific markets

E.g. HRM, CRM, Logistics, Finance, …

Strong interaction between business and IT

Understand business process

Understand IT

Make the translation

Packaged software

Packaged software consists of readymade core modules with standard functionality that

requires configuration to offer ready to run functionality for the intended business.

Packaged software can be enhanced with custom built functionality and interfaces with

internal or external systems


Structure packaged software

1. Configuration

2. Custom built functionality

3. Core module(s) / standard

functionality

4. External interfaces

5. Internal interfaces

6. Data

|IWSM 2016 - Estimating Packaged Software

Solution breakdown packaged software

Packaged Software

Implementation

Configuration

Finance config

Order config

Custom built functionality

Internal Clearing

Order Routing

Core modules

Finance

Order

External interfaces

Payments

Mail

Fleet

Internal interfaces

Finance Order

Data

Converted Ledger

Converted Catalog

Converted Stock


Solution breakdown packaged software

Packaged Software

Implementation

Configuration

Finance config

Order config

Custom built functionality

Internal Clearing

Order Routing

Core modules

Finance

Order

External interfaces

Payments

Mail

Fleet

Internal interfaces

Finance Order

Data

Converted Ledger

Converted Catalog

Converted Stock

$ $ $ $ $ $

$ $ $ $ $ $

$ $ $ $

$

$

$


Packaged software cost estimation model Size Driver XSize dependent

Cost:

Size Effort= Delivery Rate1

Size Driver XSize Effort= Delivery Raten

. . .

Productivity

Drivers

Combined

EffortX

Total Effort

Size

independent

Cost:

CostSize dependent

CostSize independent

Total Cost


Packaged software elements are created in phases

Blue-print Realization Deployment


Packaged software elements are created in phases


Run Event-driven maintenance

Planned maintenance


Packaged software cost drivers


Run Event-driven maintenance

Planned maintenance


Size dependent cost drivers - 1 Size Drivers

Blue-print

• Processes

• Workshops

• Key users

• (external) interfaces

Realization

• Standard functionality

• Configuration

• Custom build functionality

• Interfaces (ext, int)

• Data

Deployment

• # Users (per category)

• # Trainings

• # Modules

• Data conversion

Run

• #Named users

• #Key users

• #(Sub) modules implemented

Event-driven maintenance

• # named users

• # key users

• # (sub) modules implemented

Planned maintenance

• Size tailor made software / customizations

• Size configuration


Size dependent cost drivers - 2 Productivity Drivers

Blue-print

• # of organizational units

• # of end users

• # of modules

• Non Functional Requirements (NFR)

Realization

• Number of concurrent users

• Maturity of the packaged software technology

• Supplier of the packaged software

• Percentage of reusable components

• Available knowledge

• Process

• Required system reliability

• Performance constraints

Deployment

• Maturity demand organization

• Governance

Run

• Maturity technology

• Maturity Demand organisation

• Governance

• Service level reporting

• Data center costs


• Age application

• # external interfaces

Planned maintenance

• Volatility (# changes / period)

• Version / update (relative to latest)

• # external interfaces


Implementation realization Package Implementation Cost Drivers Example

Deliverable Elements Typical cost drivers (realization) Parameter examples

Configuration Solution complexity #Config parameters

Organization complexity #Stakeholder workshops

Custom built functionality Functional size #Use cases, FPs

Implementation technology

API calls,

Programming language

Core module(s) /

standard functionality

Vendor IP pricing Modules, options

#Users, #Transactions…

External interfaces Interface complexity I/F protocol, technology

Non-functional reqs

Internal interfaces Interface complexity I/F protocol, technology

Non-functional reqs

Data Data size #TB, #tables, #records

Data quality Pollution, redundancy

Data compatibility (ETL) tooling availability


Size independent cost drivers Productivity Drivers

Blue-print

• None

Realization

• Licenses for development

• Workplace cost

• Travel expenses

• Training cost (for domain knowledge)

Deployment

• Infrastructure

Run

• Infrastructure


• Support desk

Planned maintenance

• Support desk


Estimating Packaged Software

EPS-Framework

Generic cost estimation framework for packaged software

Two types of cost drivers

Size dependent cost drivers

Size drivers

Productivity drivers

Size independent cost drivers

Cost drivers are specific for each lifecycle stage


Size dependent cost drivers

Since...

where: size = almost linear dependent

productivity = logarithmic dependent due to complexity expression

...our model exists of two size dependent cost drivers: size drivers, and

productivity drivers

(*) effort = effort to realise functionality

effort(*) = size x productivity


Size drivers

Size drivers measure the size of the package architecture elements

Each size driver can have its own size measure

Each size driver has a delivery rate

Package architecture elements: 1. Configuration

2. Custom built functionality

3. Implemented modules

4. External interfaces

5. Internal interfaces

6. Data


Size drivers - continued

Size drivers measure the size of the package architecture elements

Size dep. driver Size x Delivery rate = Effort

This adds up to

a combined

effort



Cost-drivers that influence the effort are called productivity drivers

Productivity drivers are different for each stage

The stages for implementation are blueprint, realization and deployment

Examples of productivity drivers for the realisation stage are:

Number of concurrent users

Maturity of the packaged software technology

Supplier of the packaged software

Percentage of reusable components

Available knowledge

Process

Required system reliability

Performance constraints

© NESMA 2012; IWSM 2012 22

In formula:

Size dep. driver productivity driver x combined effort = total effort


Size independent drivers

Cost-drivers that are independent of any type of sizing are called size independent drivers

Examples are:

Licenses

Hardware

Data center floor space


Packaged software cost estimation model Size Driver XSize dependent

Cost:

Size Effort= Delivery Rate1

Size Driver XSize Effort= Delivery Raten

. . .

Productivity

Drivers

Combined

EffortX

Total Effort

Size

independent

Cost:

CostSize dependent

CostSize independent

Total Cost


Estimating packaged software

Sizing methods

RICEF Reports, Interfaces, Conversions, Enhancements and Forms

CEMLI Configurations/Customization, Extensions, Modification, Localization and

Integration

Configuration Points A Gartner proprietary technique to measure the configuration activities in

existing packaged software to realize new functionalities

COSMIC An ISO standardized functional sizing method

Function Point Analysis An ISO standardized functional size measurement method


Applicability Method Configuration Custom Interfaces Data Modules

RICEF Yes, if the

elements are

defined

Yes, if the

functionality is

defined

Yes, if the

elements are

defined

Yes, if the

elements are

defined

No

CEMLI Yes, if the

elements are

defined

Yes, if the

functionality is

defined

Yes, if the

elements are

defined

Yes, if the

elements are

defined

No

Configuration

points

Yes No Yes Yes No

COSMIC Yes, if the

functionality is

defined

Yes, if the

functionality is

defined

Yes, if the

interface

specifications

are defined

Yes, if a data

model is

available

No

FPA Yes, if the

functionality is

defined

Yes, if the

functionality is

defined

Yes, only

external

interfaces

Yes, if a data

model is

available

No


Estimating Packaged Software - Framework

Summary

A first release of the EPS-framework published by Nesma

Model based on cost drivers

Size drivers


Size independent cost drivers

Basis for Packaged Software Costing models

Use of internal data

Use of benchmark data


Working group members

Frank Vogelezang

Ordina – Application Management & Outsourcing | Pricing Office

[email protected]

Eric van der Vliet

CGI – Global Estimation Centre

[email protected]

René Nijland

Capgemini – Application outsourcing

[email protected]


More information

Website: www.nesma.org

Twitter: @nesma_org

SlideShare: NESMA-NL


Workshop - Estimating Packaged Software - Nesma - Eric van der Vliet - Frank Vogelezang v1.0

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Transcript of Workshop - Estimating Packaged Software - Nesma - Eric van der Vliet - Frank Vogelezang v1.0