Software Project
Risks
Can you give me
an example of risk management in the software industry?
Software and Risk
·
Considering the rate of failure in the
software project industry
·
You would expect risk management to be
more advanced
·
One way to reduce risk, and cost
·
Is to adopt commercial off-the-shelf
software
·
Known as COTS for short
·
However, few COTS products fit
requirements exactly
·
Some customization is necessary
·
Making risk management an essential
activity
Adopting COTS
products
·
Using COTS software
·
Decreases some risks
·
Such as will our purpose-built solution
work?
·
But increases others
·
Such as will the COTS software work for
us and in our environment?
·
As always with project risk management
·
The objective is to
·
Identify, track, manage and mitigate
those risks
Customer
Satisfaction
·
The risks must be established
·
Within the context of the customer's
organization
·
The problem with COTS software is
·
Compromises must be made
·
Which may or may not be acceptable to the
users
·
Hence, a close working relationship with
the customer and the actual users is essential
·
The following slides suggest some
technical risk issues to consider
Technical Risks -
1
The following are
both positive and negative
·
When comparing COTS versus fully
custom-built software
·
Using COTS software makes for easier and
surer project estimating
·
Depending on the ratio between COTS and
custom building
·
Rapid prototyping is easier with COTS
software
·
To test the proposed system's concept and
usability
·
It can also be done earlier in the
software development cycle
·
When alternative approaches can also be
compared
Technical Risks -
2
·
So, in general, a COTS solution is much
cheaper
·
Because a lot of the development and
testing work has been done
·
And the product should be available
sooner
·
While successful commercial software
requires less testing
·
Compared to all-custom built products
·
Integrating several such products
requires more testing
·
COTS software usually has support
available
·
But coordinating multiple sources
complicates maintenance and support
·
And may stretch beyond the support
available
Technical Risks -
3
·
Successful commercial software provides a
de facto standard
·
Reducing risk of user rejection of the
interface
·
But the customer is at the mercy of the
COTS software supplier
·
And every upgrade that comes along
·
And consequent rework and testing every
time
·
Worse, if the supplier abandons support
·
The customer is left with a legacy
application
·
Controlling the technology is also
difficult
·
Especially if proprietary protection is a
concern
Customer risk
issues - 1
Specific risk
issues for the customer to consider
·
Staff's comfort and stress level
·
Especially if the interface is unfamiliar
·
Performance evaluation and incentives
·
The new software/system may require less
qualified people
·
People's jobs and job security
·
Especially in the systems department
Customer risk
issues - 2
·
Training and education effort
·
Changing the demands on the personnel
department
·
Organizational changes
·
Leading to changes in the management
structure
·
Managerial power and influence
·
That may be lost or gained
Summary - 1
Benefits of the
COTS approach
·
More sources
·
Better quality
·
Newer technology
·
Cheaper implementations
·
Faster availability
·
Easier interconnection
Summary - 2
Disadvantages of
the COTS approach
·
Exactly the right solution may be elusive
·
The COTS product may be subject to
changes
·
Driven by other users
·
Or market forces
·
A newer and better product arrives
·
That essentially serves the same purpose
·
But requires a reworking of the custom
system
·
Shelf-life is typically limited
·
And product support is abandoned by the
supplier