Using Product Box to Build the Complete Developer

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The Complete Developer

Luke Hohmann

Founder & CEO

Enthiosys, Inc.Copyright © 2006

by Luke Hohmann

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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 BoxInnovation Gamesm

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The Results?

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They Want A Lot, Don’t They?

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Developer Dan (Danella)

Technical Competence

Customer Driven

Business Acumen

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Technical Competence

The Responsibility is Yours

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Skills and Responsibilities

R e s p o n s i b i l i t i e s

U s e r I n t e r f a c e

D a t a b a s e M o d e l

T r a n s a c t i o n M o d e l

D o m a i n M o d e l

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S k i l l s

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Technical Depth

Ignorant Never heard about it

Aware I’ve heard about it but not used it

ApprenticeI’ve used it and can do basic things

PractitionerI’m competent in the technology

Master My peers seek my advice

ExpertI’m recognized by my prof. community

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Technical Breadth

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1. Write a broad topic area in this space.

2. Write specific goalsin this space organizedby how much depthof knowledge requiredto achieve your goals.

Managing Your GrowthThrough Competency Frameworks

Depth of Knowledge

Apprenticeto

Expert

Breadth

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Creating Your Competency Framework

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Business AcumenHow do you

help your company make

more money than they pay you?

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Profit Engine Framework

A unique set of models that enable you to create software-related offerings with maximum value.

Pricing ModelHow Much Money You Make

Customer ROI ModelQuantifies Value

Enforcement ModelProtection of Rights

Licensing ModelTerms and Conditions of Use

Business ModelsThe Event That Makes

Money

Prof it EngineCauses More

Money Making Events

Customer Value ModelIdentifies and Captures Value

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Business Models

• The event that makes money / causes money to change hands

• Multiple business models can co-exist in the same producte.g., txn fees and “optional modules”

• Why should you care?

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Six Core SW Business Models

• Time-based access

• Transaction

• Meter

• Hardware

• Service

• Percentage of revenue gained / costs saved

Charity?

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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...

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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

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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

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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?

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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)

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Effects of Meteringon 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?

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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

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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?

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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

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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?

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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, trainingor implementation fees, or ongoing management costs. - June 29, 2005, San Jose Mercury News

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Effects of Revenue /Costs on Tarchitecture• Closely related to Transactions

• What is the baseline?

• How do you track improvements?

• Audit and remittance?

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Let’s Try It…

• Adobe Acrobat

• Intuit QuickBooks On-Line

• salesforce.com

• Google adwords

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What Is (or Are) Your Business Model(s)

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Customer (Market) DrivenAre you creating what they want?

How do you know?

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What’s a Requirement?

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Are You Sure?

How Do You Know That’s What Your Customers Really

Want?

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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

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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

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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

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Developer One

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Developer Two

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Manager One

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If We’re So Agile, Where Are the Customers?

Do you have the tools to talk with customers?

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Techniques To Foster Understanding

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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

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Developer Dan (Danella)

Technical Competence:The Responsibility

Is Yours

Customer DrivenLearn to Work

With Customers

Business AcumenUnderstand How YourCompany Makes $$$$

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And A Postscript…

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In Greater Detail…

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Thank You !!!

I’d love to hear from you! Contact me at:

Luke HohmannFounder & CEOEnthiosys, Inc.cell: (408) [email protected]

Innovation Through Understanding