This document discusses five transformations for the software industry: 1. Data innovation - Turning data into value through areas like wearable data intelligence, predictive analytics, and exploratory analytics. 2. Blending hardware - The renaissance of hardware through devices like Arduino and Raspberry Pi and combining software with hardware. 3. Embracing the API economy - Adopting an API-first mindset and business strategy to build on other platforms through simple encodings. 4. Digital valorization - Achieving hyper scalability and servitization through viral sharing and stickiness to maximize value creation. 5. Security - Moving toward "security by design" given security concerns around multi-tenancy,

1. SOFTWARE INDUSTRY
PHILIPPE THIRAN
WIM CODENIE
© 2017 SIRRIS

2. TWO ROLES FOR SOFTWARE
PRODUCT/SERVICE
INNOVATION
PROCESS INNOVATION

3. PRODUCT/SERVICE
0%
SOFTWARE
100%
SOFTWARE
HARDWARE
INDUSTRY
SOFTWARE
INDUSTRY

4. https://sirris.datascouts.eu

5. SOFTWARE ENGINEERING ANNO 2000
Delivery was key
Predictable
valorisation
The risk was quality
Time
Valorisation (€)
Transaction/delivery
Maintenance/ yearly licence

6. CHANGING CONTEXT ANNO 201X
Commoditization of
storage, bandwidth,
processing power
New distribution
channels: Internet + app
market places
Different user point of
view on “Owning
Software”
Rise of SaaS, cloud &
mobile computing

7. THE NEW REALITY
THE SOFTWARE
PARADOX
More value creation with software
but
making software is less profitable

8. THE SOFTWARE INDUSTRY
UNDERGOES A FUNDAMENTAL TRANSFORMATION

9. “SHOULD I STAY OR SHOULD I GO”
Combine software
With other value creator
DATA
INNOVATION
TRANSFORMATION 1
HW
BLENDING
TRANSFORMATION 2

10. TRANSFORMATION 1 DATA INNOVATION IS MORE THAN “BIG DATA”:
HOW TO TURN DATA INTO VALUE

11. DATA INNOVATION AREAS
WEARABLE DATA INTELLIGENCE
Making things and people smart
through data
PREDICTIVE DATAANALYTICS
Forecasting events in the future
EXPLORATORY DATAANALYTICS
Finding the needle in the data haystack

12. TRANSFORMATION 2 THE RENAISSANCE OF HARDWARE

13. ONE-BOARD COMPUTERS ARDUINO
(Italy)
ARM
(UK)
NEUL
(UK)
RASPBERRY PI
(UK)

14. HARDWARE INNOVATION LAB
1. Smart product 2. Hardware:
Electronics + WIFI
3. Services in the
Cloud

15. “SHOULD I STAY OR SHOULD I GO”
Combine software
With other value creator
Remaining 100% Software
DATA
INNOVATION
TRANSFORMATION 1
EMBRACING THE
API ECONOMY
TRANSFORMATION 3
DIGITAL
VALORISATION
TRANSFORMATION 4
HW
BLENDING
TRANSFORMATION 2

16. TRANSFORMATION 3 EMBRACING THE API ECONOMY
SAAS IS MORE THAN CLOUD, IT IS A MINDSET AND BUSINESS
STRATEGY

17. EXAMPLE
Hardware + Complex software
Architecture
over dimensioning Infrastructure
Complex software Architecture
Scalable on-demand infrastructure
5 lines of code
Encoding-as-a-service
2007 2010 2017

18. TRANSFORMATION 4
DIGITAL VALORISATION
VIRALITY ISN’T LUCK. IT’S NOT MAGIC. AND IT’S NOT RANDOM. THERE’S A SCIENCE BEHIND WHY
PEOPLE TALK AND SHARE. A RECIPE. A FORMULA, EVEN.

19. Tijd
Valorisatie (€)
expansion
stickiness
servitisatiekost
DIGITAL VALORISATION
Hyper Scalability
Hyper Servitization
Valorization (€)
Cost of servitization
Time

20. “SHOULD I STAY OR SHOULD I GO”
Combine software
With other value creator
Remaning 100% Software
Transformation 5: Security
DATA
INNOVATION
TRANSFORMATION 1
EMBRACING THE
API ECONOMY
TRANSFORMATION 3
DIGITAL
VALORISATION
TRANSFORMATION 4
HW
BLENDING
TRANSFORMATION 2

21. TRANSFORMATION 5 SECURITY
TOWARDS “SECURITY BY DESIGN”

22. Almost all Cloud-based applications collect
at least one piece of personal information
from their users
Main security concerns in Cloud-based
applications: around multi-tenancy, identity
management, access control, data usage, data
storage and location, data transmission and
flow controls
Almost all Cloud-based applications use
services and infrastructures provided by
third parties
SECURITY
CHALLENGES OF
CLOUD-BASED
APPLICATIONS

23. THANKS