Secure Quorum: The Hidden Costs of Software

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When purchasing a software solution for your business, sometimes we tend to stay heavily fixated on the price and everything else is a far second. Many decisions have been made focusing on price and as a result have cost the company more money in the long run. To reduce the risk of paying more, think “Systems” when choosing your software solution.

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Secure Quorum: The Hidden Costs of Software

  1. 1. The Hidden Costs of Software Gerard Ibarra, PhD Secure Quorum Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 1 The Effects of Choosing a SaaS solution without Thinking about the System as a Whole
  2. 2. Preface Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 2
  3. 3. Five things that we will cover Systems Thinking System Life Cycle Learning Curve Bathtub Curve Using a Checklist Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 3
  4. 4. We need some background information in order to help us understand some of the hidden costs found in software Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 4
  5. 5. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 5 1st
  6. 6. Think about a system view Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 6
  7. 7. “A system is an assemblage or combination of elements or parts forming a complex or unitary whole such as a river system or transportation system;…” Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 7 (Stein, J., ed., Random House Dictionary of the English Language, New York: Random House Inc., 1966, cited Blanchard, B. S. & Fabrycky, W. J. 1990, p.1.)
  8. 8. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 8 sub system
  9. 9. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 9 system
  10. 10. And you can have even larger and more complex Systems Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 10
  11. 11. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 11 larger system
  12. 12. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 12 HR Company system s
  13. 13. Look at an Emergency Communication System (ECS) Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 13
  14. 14. ECS: Is defined herein as any system that is organized for the primary purpose of supporting one way and two way communication of emergency messages between both individuals and groups of Individuals (http://en.wikipedia.org/wiki/ Emergency_communication_system). Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 14
  15. 15. 2nd Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 15
  16. 16. System Life Cycle Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 16
  17. 17. The life cycle of a system consists of many phases that are different from system to system. The basis of the total life cycle cost of a system is to recognize the various phases in the system life cycle and to sum them across all phases to obtain the total cost. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 17 Hazelrigg, G.A. (1996). Systems Engineering: An Approach to Information-Based Design (New Jersey: Prentice Hall), 270.
  18. 18. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 18 Need Selection Acquisition Deployment Support Upgrades Retirement Replacement
  19. 19. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 19 3rd
  20. 20. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 20 Consider the learning curve
  21. 21. “The time required to produce a unit of output is reduced by a constant factor when the number of units produces is doubled.” “This applies only to when the sequence of activities is continuous.” Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 21 Babcock, D. L. (1996). Managing Engineering and Technology: An Introduction to Management for Engineers (New Jersey: Prentice Hall), 228 and 230.
  22. 22. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 22 Learning Experience Learning Experience
  23. 23. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 23 Now is NOT the time to figure out how to use your emergency communication System (ECS)
  24. 24. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 24 Learning Experience
  25. 25. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 25 4th
  26. 26. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 26 Do not forget the bathtub curve
  27. 27. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 27 FailureRate Time l Burn In Useful Life Wear Out
  28. 28. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 28 5th
  29. 29. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 29 Finance & Accounting will be impressed
  30. 30. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 30 True costs of software
  31. 31. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 31 “Too often we become fixated on the technical performance to meet the customer’s expectations without worrying about the downstream costs that contribute to the total LCCs of a system.” ((Farr, J.V. (2012). Life Cycle Cost Considerations for Complex Systems. Systems Engineering – Practice and Theory, Prof. Boris Cogan (Ed.), pp. 127-128, ISBN: 978-953-51-0322-6, InTech).
  32. 32. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 32 Given is the Purchase Price
  33. 33. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 33 Not so clear Product Research Request for Information (RFI) Request for Proposal (RFP) Legal Review: MSA, SOW and SLA Integration
  34. 34. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 34 More hidden costs
  35. 35. Training Learning Implementation Support Maintenance Re-Certification Litigation Down-time Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 35
  36. 36. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 36 And there is more… Reliability Changing Requirements Subcontracting Software & Hardware Updates
  37. 37. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 37 Getting it right
  38. 38. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 38 1. Systems Thinking 2. Life Cycle 3. Learning Curve 4. Bathtub Curve
  39. 39. 5. Checklist  Purchase Price  Research  RFI and RFP  MSA, SOW & SLA  Integration  Training  Learning  Implementation  Support  Maintenance Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 39  Re-Certification  Litigation  Downtime  Closed/Lost Business  Reliability  Changing Requirements  Subcontracting  Software & Hardware Updates
  40. 40. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 40 You can see a video of this presentation at: http://bit.ly/135sKFc.
  41. 41. Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 41 To learn more about our other webinars on Systems Thinking or How to Choose the Right Software, visit our contact page at www.securequorum.com.
  42. 42. Thank You Gerard Ibarra, PhD Secure Quorum Copyright © 2013 Newton Insight Corporation. All Rights Reserved. 42 www.securequorum.com

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