Case Study 1

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Feb 20, 2024

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ENM5200: Project Engineering Case Study 1 - IBM: The Iterative Software Development Method Farah Shaaban Florida Institute of Technology, Melbourne, FL, 32901, USA September 28, 2023 Peter Zappala

1. Include a paragraph or two summarizing the key points of the case. Rakan Khalid's case investigates two large and lucrative divisions within International Business Machines (IBM): Rational Product Development (RAD) and WebSphere Product Development (WAS). RAD and WAS are distinct business units. The former provides customers with application development and lifecycle management tools, while the latter focuses on application deployment and business process management software. Moreover, they exhibit a notable degree of interdependence. In this instance, WAS requested that an additional feature be integrated into RAD's product. Its integration would enable WAS to offer specific functionality in response to a customer's request. The potential financial outcome of this collaboration is $30 million in revenue for WAS and $10 million for RAD, contingent upon the compatibility of their respective features. It is important to note that this request was made just six weeks before the strict release deadline for both products. WAS deemed it feasible due to their Agile Iterative Software Development approach. A crucial decision now lies ahead of RAD's head, John Lalonde: whether to include this additional feature in their product during the final six weeks of an 18-month project. Both RAD and WAS share a common priority of delivering high-quality products punctually and within budget. It is imperative to factor in IBM's long-term goals, which include investing in rapidly growing software ventures and expanding revenue streams in emerging markets. Moreover, from a financial perspective, it is essential to weigh the potential $40 million in revenue against IBM's substantial $22.5 billion in software revenue in fiscal year 2010.

Questions for the Case Study 2. Can the Rational Product Development team meet the WebSphere request? The RAD team of software developers has the capability to fulfill the WAS team's request due to the adaptable nature of the Agile Iterative Software Development approach. The latter permits adjustments and modifications during the development process. RAD taking on this request exemplifies the merits of the iterative software development approach, as it was purposefully designed to facilitate developers' responsiveness to evolving and shifting customer demands. Each iteration cycle within the product's development, spanning six weeks, is dedicated to crafting a specific subset of features of high quality. In this final cycle, it is plausible to incorporate the additional feature, although there may need to be more time for accommodating feedback on the functional software. During the last two weeks of each cycle, comprehensive testing occurs, and any identified defects are rectified. If, however, a defect cannot be resolved within this timeframe, the entire feature is removed, and the necessary fixes are postponed to the subsequent iteration cycle. While there is no assurance that integrating this feature will not impact product quality or delay the release date, it can still be eliminated from the product prior to the release date if it is not cleared.

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3. Should it undertake the changes to accommodate the new requirements? If not, why not, explain in terms of why it shouldn't or can't be done. If so, can the team deliver the functionality without delaying the product release? I advise against the RAD team proceeding with the modifications needed to accommodate the new product requirements made by the customer. The primary concern arises from the fast-approaching release date. It allows only a six-week window for RAD to design, implement, and validate an entirely new feature before the release. The Agile Iterative Software Development method does mitigate the risk of delays if the feature is not fully functional by the code freeze deadline. RAD would have the option to omit the feature from the system completely. However, there is still a risk of premature release even if the feature is operational. Rushing development to meet the deadline might lead to overlooking software bugs that may surface only after feedback from the stakeholders, thereby compromising the quality of the IBM brand. Not incorporating the requested feature still presents multiple drawbacks, including losing an additional $40 million in revenue and potentially even the customer. When put into perspective, the requesting customer had only been a client for two years and had a diverse software ecosystem from various IBM competitors. Furthermore, the monetary gain from this feature is a relatively small fraction of IBM's $22.5 billion revenue in fiscal 2010. It is my opinion that the $40 million or the business from this single customer is not worth jeopardizing the product's integrity and IBM's brand through a premature release. The risks associated with this proposal outweigh the benefits of complying with the request. Although this feature could certainly enhance RAD's software plethora, it would be more advantageous for IBM to contemplate its inclusion in the upcoming product release instead of rushing its development for the December 22, 2010, scheduled release.

4. Describe how the methodology could be set up to meet the needs of the customer. To address the customer's needs, RAD could create a prototype of the requested feature, offering a subset of its functionality as proposed in the case. Both financial and reputational losses associated with not fulfilling the request will be mitigated if the customer approves this proposal. Furthermore, a prototype would eliminate the risk of delaying the product release or introducing software defects, allowing the planning and design team time to assess the resources needed for any potential defects in future upgrades. The customer, however, may not agree to invest the initially proposed $40 million for a prototype. Any revenue gained from them constitutes an additional benefit, aligning with IBM's long-term profit objectives with the potential for future revenue as the feature is refined and released later. Although the customer might decline the prototype offer, and may not wait until the next release, the feature could attract interest from other loyal IBM customers as well as customers of competing companies. Hence, it is crucial to ensure it is fully prepared for release. Ultimately, even though RAD and WAS employ the Iterative Software Development method, IBM's dedication to quality renders this late request unsuitable for the December release.

References Khalid, Rakan, “IBM: The Iterative Software Development Method’” Richard Ivey School of Business Foundation, 2013, accessed February 12, 2023, https://hbsp.harvard.edu/download?url=%2Fcourses%2F1016246%2Fitems %2FW20918-PDF-ENG%2Fcontent&metadata=e30%3D .

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