Economics of Software Engineering

--Originally published at Site Title

TI2011

Digital analytics data visualization, financial schedule, monitor screen in perspective

Is very common to see how engineers get amazed about new software, computers, gadget, tools and everything related to technology, that is what make them who they are. However, now days in the industry that is not enough to become a manager in a big company, you need to know real stuff about development of a process, like finance, efficiency, cash flow and decision-making process, otherwise your product could be the best on the market that is going to offer world peace, but if you do not know how administrate the economy of the project form the beginning to the end, the only thing that you are going to produce is going to be a huge debt.

Knowing this concepts and methodology is kind of hard because it change everything about what you see in a project like engineer, because normally you want to create a new software so you think about how many programmers you are going to need, how many computers and servers are going to required, so you make a list with the best people for the job and the best equipment without knowing that no one is going to accept the project for all the money that is going to be needed for your request, so in this point is where a good manager arrives and make you realize that at first you do not need all this people and equipment, first you can start with only 3 persons and one server, while you get more advanced you can get more computer systems and people to work, but first you have to be sure that the project is going to keep alive until the delivery and that is what engineers sometimes does not see.

For

Continue reading "Economics of Software Engineering"

Deadline, Chapters 1 and 2

--Originally published at TI2011 – Miguel’s Blog

The first chapter starts with our main character Webster Tompkins, or Mr. Tompkins, or Mr. T, sitting on the back of an auditorium. He is about to be, as they say it, released to seek opportunity elsewhere (ReSOE). Being laid off is something real that happens often, leaving many people without jobs. There are many causes for being laid off. It isn’t really explicitly said in the text why Mr. Tompkins was a ReSOE, but I assume it was to cut costs, meaning that the company isn’t doing too good. Anyway, our main character doesn’t seem to care all that much since he just goes to sleep in the back. However, this sleep was short lived since the HR people were making too much noise for him to sleep, even in the back.

Mr. T is approached by a woman named Lahksa Hoolihan. It would be safe to assume that she was just another ReSOE, but that’s wrong, as she reveals that she is actually a spy from Morovia, an industrial spy at that. I have never really thought about the possibility of industrial spies, but it doesn’t seem like something from another world. I could actually see there being industrial spies around. Stealing confidential information could really give you an advantage over your competition. It is so beneficial that Hoolihan said that she would kidnap or even kill.

After that, Hoolihan actually gives us a bit of context about the story. It happened during the 1990s. She also mentions that 3.3 million jobs have been lost in the last nine months. That number is quite big. She also mentions that often taking out the CEO won’t really damage the business. If you really want to manage a business you need to take out the managers. This goes to

Management process
Continue reading "Deadline, Chapters 1 and 2"

Administratriv…trivia

--Originally published at Site Title

TI2011

In the chapter 1 and 2 from the book: “The Deadline: A Novel about Project Management” you can read a story of an incredible manager who use to fall sleep and have livid dreams that teach you the basis of Project Management while you are enjoy a great novel that allow you to imagine every moment and create the same environment that the story is telling .

I really enjoy the way of learning important concepts of Project Management that sometimes people do not put attention because they think that this concepts and skills are not as important as the theory is and that is a HUGE problem. Due to the fact that management is about knowing how to deal with people all the time and getting the best for them and for you. For example, in the novel you find a moment where a group is taking a course about PM where the syllabus was only about charts, status reporting, a section on interfaces to the human resources department, conduct of weekly meetings, use of e-mail, filling out time cards, progress tracking, project milestone reporting; stuff that is important but only is going to help you in the office work. Nonetheless, what are you going to do when you have a problem with an employee, your team work is unmotivated, know who is the correct guy to hire, observe who is the better making a specific task and assign it directly to him to make the work more efficient, this things are the ones that makes you look like the best manager and the guy who do all the hard work, while the truth is that your team is the one that is making everything posibles because you put them in the right place.

This scene also Continue reading "Administratriv…trivia"

Economics of Software Engineering

--Originally published at TI2011 – DVant Blog

By Diego Solórzano O., 2020 The first main topic of my project management course. Economics of Software Engineering. I must say that at first, I really was not into it, and that is because I do not like economics as much as I should. I read from different sources about the secondary topics about engineering... Continue Reading →

Why you should never dissociate engineering and economics ?

--Originally published at Blog de Célia

First, what is engineering economics?

According swebowiki « Software engineering economics is about making decisions related to software engineering in a business context.” It’s looking for the balance between cost and value of a product or a project.

You can’t separate the engineer from the business side. Business is essential to sell and promote a product but as well to make the company live and be profitable.

How?

It is important to have economics measures to be able to make good decision for the organization, you can take decision without having indication (at least good ones), it helps to avoid making mistake that can lead.

When engineers do not have any knowledge in the business field, they will not really (in general) have concerns about the business part (the profitable part).

Having the both: engineering and business knowledge is a real advantage.

Which indicators?

There are many departments that should be considerate while taking a decision. I choose to develop a bit the finance part, but they are all important (life cycle of the product, risk management etc.)

Finance has an essential place in an organization. It indicates how goes the financial health of the company.

The finance field include accounting (helps to be aware of the results of the organization activity), controlling (to reach the organization objectives and plans and to know exactly how much cost any process), the cash flow (it’s when money go out, how much go out? When money go in? and how much?).

This helps to the decision-making-process in a company. Also, it helps to determine how to maximize the total value which is the most important for a company.

Other elements must be under consideration: inflation, depreciation of the asset, the taxation, the time-value of money (money now doesn’t have the same Continue reading "Why you should never dissociate engineering and economics ?"

What is project management through the two first chapters of The Deadline from Tom DeMarco?

--Originally published at Blog de Célia

When you pick a class, sometimes you do not have any idea precisely of what it will be about. You just thinking, “yes the name looks good, why not?”. I was the same, of course I had my idea of what is project management, but I do not think I had the whole concept.

When we enter in our first day of Project management class, I was surprise, we did not start by the definition of what exactly does it means. We talked about a book (everyone seemed to know it, and to be honest, I did not know at all what they were talking about): The Deadline by Tom DeMarco. That was a novel, supposed to teach us stuff about project management, I was sceptical. First, because it’s been a while that I didn’t read any fiction book (Netflix got me and I only read schoolbooks now, I know, what a shame, for an ex booklover) and second because I am French (it’s my favourite excuse when they ask why I’m pessimistic). 

Then, I read the two first chapters. I remembered why I used to love reading. It’s easy, pleasant to read and the story is catchy.

Opportunity Knocking

On the first chapter, we learn to know who this Mr. Tompkins is. An ex manager that was fired (I guess) and he is attending some out-placement lectures with other unemployed Of course, they used many other words to say dismissals. “Downsized”, “right-sized” or even “Released to Seek Opportunities Elsewhere”, I find this part funny. It looks like these persons that attend this seminary cannot face the truth or that they prefer to see the optimistic part of the situation (which is more positive, I agree). So, this Mr. Tompkins is bored as hell in this auditorium and Continue reading "What is project management through the two first chapters of The Deadline from Tom DeMarco?"

Economics of Software Engineering

--Originally published at Project Evaluation and Management Reflections

This post reflects on „Concepts of economic engineering“, more specifically on
1. General concepts of economic engineering
2. Elements of study of economic engineering
3. Money value throughout time
4. Simple and compound interest
5. Nominal and effective interest rate

General concepts of economic engineering

The concept of economic engineering describes the understanding of relating business to software engineering. Even though both areas are extremely important for companies nowadays, it is still rare for people to have an understanding of both areas at the same time. Possessing this understanding can be very valuable to companies these days and can help managers to understand and support their employees better.

Elements of study of economic engineering

While studies of economics includes mainly the study of value, costs, resources and their relationship, studies of software engineering are related to building and maintaining software, using data and constructing processes with the help of IT.
The study of economic engineering thus relates those concepts in order to take into account both feasability of software solutions as well as economic returns for the company using those.

Money value throughout time

The value of money is one of the must fundamental and commonly recognized concepts of finance and business. Even though in my personal opinion, it can be hard to grasp the idea of a changing value over time, it is indispensable for analyzing or comparing investments. The most important influences are factors such as time frames, currency developments, inflation rates, taxes or risks.

Simple and compound interest

Interest in general is used to describe the cost of borrowing or lending money, such as when taking out a bank loan.
The main difference between simple and compound interest is the way the interest is calculated:
• Simple interest is calculated on the principal (the original) amount Continue reading "Economics of Software Engineering"

The Deadline: Chapter 1 & 2

--Originally published at Hector's Blog

This book talks about Mr T. who is a systems manager, a really good one according to Lahksa, this man was talking about how important the people are on the company, how a manager must maintain the strength, vision and motivation of a team to keep them united and able to complete the challenges they […]
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