The Product Flow Model.
Gio C. M. Wiederhold · 2003
We observed a new approach being adopted in the software industry that combines a business model with a specific structure of technical support. This Product Flow Model (PFM) combines aspects of the Product Line model with workflow concepts for virtual enterprises. To sustain software in an enterprise requires several categories of maintenance. Today enterprises acquire most general purpose software from outside suppliers, rather than writing such software in-house, reducing total software acquisition costs. This paper considers how maintenance of acquired software should be provided. When the enterprise assigns maintenance of acquired software to its internal information technology (IT) operations for software then little overall long-term cost reduction is been achieved, since over its lifetime the maintenance of software consumes 70 to 90% of total software costs. An alternative is that the software supplier also provides the ongoing maintenance to the customer. The PFM defines in more detail such a business model that is beneficial to the supplier as well as to the customer. For the product flow model to be effective there must be an effective information flow expressing the needs of the customer to the software supplier. We perceive three classes of needs, leading to corrective, adaptive, and perfective maintenance, each requiring distinct feedback mechanisms. These mechanisms represent control loops inducing system stability. Software suppliers that operate within the PFM can be assured of substantial continuing income and great customer loyalty. We will elaborate both on the information flow and on technologies needed to be successful in PFM services.