Studying Customer-Supplier Relationships in Global Software Development

1. Studying Customer-Supplier Relationships in Global Software Development Jayakanth ‘JK’ Srinivasan1,2 Committee: Kristina Lundqvist1,2, Christer Norstrom1 Mälardalen University1Massachusetts Institute of Technology2 Jayakanth Srinivasan

2. Overview • Overarching Context for the Study • Research Approach and Methods • Tales from the Field Jayakanth Srinivasan

3. Lean Software Organizations Here is Edward Bear, coming downstairs now, bump, bump, bump, on the back of his head, behind Christopher Robin. It is, as far as he knows, the only way of coming downstairs, but sometimes he feels that there really is another way, if only he could stop bumping for a moment and think of it. - Winnie-the-Pooh, A.A. Milne, 1926 How do we create a software organization that can create new products and services while at the same time sustaining existing products and services?

4. “When we write software to demo something, it is a wadded ball of graduate student duct tape. From the perspective of software engineering, it is a mess, but from an innovation standpoint it is beautiful” The birth of an Idea - 2005 “If you write code to demo something, it is not really software” “Often, we have demoed code, and had the customer want to incorporateit into the product, however, when they are informed of the cost ofengineering the software, i.e., make it robust for operation conditions,they go – isn’t what you just showed us software? And the product goes into the next contract or project bid” “Essentially, the demo code gets legs and has to be engineered into a product” Jayakanth Srinivasan

5. Research Philosophy Research Design Develop variance or process model to study theory Involve methods experts & people providing access & information Theory Building Create, elaborate & justify a theory by abduction, deduction & induction Involve knowledge experts in relevant disciplines & functions • Engaged Scholarship as a paradigm has not been applied to studying the problem, but it is the most applicable Model Research Design Theory Building Theory Solution Iterate & Fit Problem Formulation Problem Solving Problem Solving Communicate, interpret & negotiate findings with intended audience. Involve intended audience to interpret meanings & uses Problem Formulation Situate, ground, diagnose & infer the problem up close and from afar Involve those who experience & know the problem Reality Jayakanth Srinivasan / Kristina Lundqvist Source: Andrew H. Van de Ven, Engaged Scholarship, OUP, 2007

6. Context Context Context Case Case Case Context Context Case Case Context Context Context Case Case Case U1 U2 U1 U2 Embedded Unit of Analysis 1 Embedded Unit of Analysis 2 Context Context Case Case U1 U2 U1 U2 Selection of Case Design Single-case Designs Multiple-case Designs Holistic (single unit of analysis) Embedded (multiple units of analysis) Jayakanth Srinivasan Source: Robert K.Yin, Case Study Research, Sage, 2003

7. 3 Sources of Enterprise Agility • Improve transition between R&D and Development • Adopt Agile Processes • Leverage Global Competence Jayakanth Srinivasan

8. Research Approach • Senior Leadership support fundamental to establishing the ‘open kimono relationship’ • Discussions led to the third source of enterprise agility Leverage Global Competence Jayakanth Srinivasan

9. Introducing the Actors Customers EuroTel Applications Business Unit R&D Platforms Business Unit IndiaCo Telecom Business Unit Jayakanth Srinivasan

10. EuroTel’s Internal Challenges • ‘Right now, we are struggling as an organization to determine whether or not PBU should exist. From a corporate standpoint, we feel that our competitive advantage lies in being a systems integrator, and not in the development of the core technology. Either we turn this business unit around or it is going to be split up and merged with ABU’ – Senior PBU Leader • ‘We initially agreed to deliver the platform to ABU in July. Even though the requirements have changed dramatically, my team has been working round the clock to deliver the system on schedule. I just got a call from the project manager from ABU, telling me that they want the system delivered two months earlier – there is just no way, that we can deliver a quality product’ – PBU Project Manager Jayakanth Srinivasan

11. Key Questions • How has the relationship between EuroTel and IndiaCo evolved over the last seven years? • How is the organization turbulence within EuroTel reflected in its relationship with IndiaCo? • What are the factors that make IndiaCo successful? Jayakanth Srinivasan

12. EuroTel-IndiaCo Relationship - Birth • Initiated as a cost-cutting measure, but are now trying to evolve it into a true partnership ‘A lot of managers now would rather not take a decision, and wait for instructions from higher levels – this is killing the innovation that was the core of the company. Yes, they are able to execute effectively when given orders, but they are not creating new value’ – Senior PBU Leader Jayakanth Srinivasan

13. EuroTel-IndiaCo Relationship - Growth • Battling Skepticisim and Delivery on Quality ‘We show the customers all the metrics they want to see, but most of them are only interested in the current state progress.’ - TBU Project Manager ‘We have better documentation on the product than PBU does. More importantly, our understanding of the product allows us to identify existing bugs in the system as well as product enhancements’ – TBU Project Manager Jayakanth Srinivasan

14. EuroTel-IndiaCo Relationship - Maturity • ‘We want to see more innovation coming out of TBU. In addition to meeting and exceeding our standards, we want to see TBU challenge us through open and honest communications – give us the naked truth’ • The Top 5! • communication • win-win, trust, cooperation • metrics and goals • shared product ownership • competencies and innovation management Jayakanth Srinivasan

15. Capturing the Perception-Reality Gap requirements generation process is timely and there are few changes we communicate long term plans

16. Revisiting the Methods Debate • The approach we adopted was inherently mixed • Used Engaged Scholarship as the overarching guiding philosophy • Case Studies and Interviews for research design and data collection • Grounded theory and case analysis for data analysis Jayakanth Srinivasan

17. Tensions and Lessons Learned (1) • Get the senior leadership engaged to facilitate access • Bring something to the table • I gave talks • Provided draft case write ups • The fine line between consulting and research • Grad students use your advisor as a shield • Revisit the data • The first pass is both the best and the worst Jayakanth Srinivasan

18. Tensions and Lessons Learned (2) • Validate in the field • Set up a session at the end of the day with your champion to talk about what you learnt • Walk around and observe people – coffee conversations provide valuable insights into organization dynamics • Ask questions • You are there to learn • Follow up on feedback! • It’s hard, but its fun! – ALWAYS Thank your Sponsors! Jayakanth Srinivasan

19. Questions? • Contact Jayakanth ‘JK’ Srinivasan jayakanth.srinivasan@mdh.se or jksrini@mit.edu +46 (0)21 495 00 65 or +1-617-253-0672 Kristina Lundqvist kristina.lundqvist@mdh.se +46 (0)21 10 14 28 Jayakanth Srinivasan

20. Backup Slides Jayakanth Srinivasan

21. EuroTel Internal Challenges • Risk Averse Culture • 2001 Home Market Recession • Managers went into ‘save my job mode’ • Two Contrasting Views ‘A lot of managers now would rather not take a decision, and wait for instructions from higher levels – this is killing the innovation that was the core of the company. Yes, they are able to execute effectively when given orders, but they are not creating new value’ ‘In our company, you could always start something new, if you had the drive and could make the case for why your idea was important, management supported it. Now, we still have people that have the ideas and the drive, but do not necessarily have the support’ Jayakanth Srinivasan

22. Jayakanth Srinivasan