1. Technology Center VP Ari Tolonen From Technology to Product

2. Change of Environment New type of applications e.g multimedia, electronic commerce, communities New software technologies e.g CORBA, JavaBeans, DCOM, Agent technologies New dynamic market e.g shorten product life cycle, new user demands, lifestyles New development methodologies e.g Object-oriented, frameworks, design patterns, componentware New generation products and services

3. New Technologies and Markets Coverage Time + - Market launch Break even Product substitution

4. Demand: Various content through various access Terminals Access network Content Platform User profiles Billing Service Applications Authenticatio n Authorisation Accounting Service platform Content

5. Successful product development project

6. high quality product development process product innovation strategy for the business sufficient and competent R&D resources Of the three, having a high quality product development process had the strongest impact on business’s new product performance Cornerstones of successful product development according to Dr. Robert Cooper

7. Stable Processes Needed in Unstable Markets desirablenecessary possibleimpossible Stable Processes Unstable Processes Stable Market Unstable Market

8. Sonera process map = yhteistyökumppanit= Soneran yhtiöt ja yksiköt Markkina mahdollisuudet tarpeet Asiakas tarpeet Markkinaprosessi: Uusien tuotteiden tuottaminen markkinoille ja tuotteiden hallinta Kilpailu- kykyiset ratkaisut/ tuotteet Asiakasprosessi: Asiakkaan tarpeiden tyydyttäminen Laadukkaat tuotteet ja asiakas- suhteet Johtamisprosessit Tukiprosessit Hyvin kehittyvät liiketoimintatulokset Tehokas liiketoiminnan tuki

9. Conventional SW development model Installation & validation Integration & verification Implementation Design Requirement analysis

10. Example of CBSE process Analysis Requirement elicitation Business Component Evaluation Business Component Search Architecture Design Architecture Specification Architecture Evaluation Architecture Search Component Design Component Specification Component Evaluation Component Search Implement. Component Composition Integration and Verification Component adaptation Component Vendor Customer S100066U-XIII 10(14)

11. Concept development Implementation Project start Concept freeze Market introduction Concept timeResponse time Total lead time Project start Concept freeze Market introduction Concept timeResponse time Total lead time Concept development Implementation Traditional Approach Flexible Approach Specification Design Implementation Integration& Verification Stabilization / Ramp-up Sensing the Market Flexible approach is based on Flexible Development Model

12. Product and Cycle-Time Excellence - PACE Use of core teams New products Ideas Phase 0 Go / Redirect / Cancel Concept evaluation Strategic issues Marketing issues Phase 1 Go / Redirect / Cancel Specification and planning Functional Specification Evaluate development plan Phase 2 Go / Redirect / Cancel Design and development Complete product design Make sure that testing is ready to start Phase 3 Go / Redirect / Cancel Testing and evaluation Complete product testing Carry out pilot production Phase 4 Go / Redirect / Cancel Product release Check that sales support is in place Release to volume manufacturing Inexpensive and fast qualitative measures Build business case, detailed market analysis, and financial analysis Product is developed and prototype is produced Pilot production, customer field trials, test marketing Tooling and full production Launch Develop market

13. Decision Procedure Preparation of DP input data Preparation of DP input data Decision Termination Go on according to the original or revised plan Go on according to the original or revised plan Revision according to request Revision according to request

14. Definitions A decision point is a meeting at which the steering group makes a formal decision concerning the execution of the project or study. The steering group considers the status of the project or study, its use of resources, and its costs and benefits. After this analysis, a decision is made either to continue the project or study, postpone the decision point, or terminate the project or study. A milestone is an important and measurable control event in a project or study. It represents a result that must be achieved at a given point of time.

15. Sonera R&D Process Model Pre - Study Feasibility Study Release DP0DP1DP3DP4DP5 MS Design Implement. & Verification Piloting & Validation Conclusion Project Execution MS DP2 Demos Pilots Release Design Implement. Project spec. Ideas Prototypes User req. System req. ArchitectureComponent & intg. tests System tests Accept. tests

16. WORK MODELS AT SERVICE DEVELOPMENT IDEAS EXPERIMENTS VENTURESBUSINESSES BDP1BDP2BDP3BDP4BDP5BDP6 Screening the idea Experiment Venture launch Business launch Start check Demos & Prototyping DevelopmentDevelopment & Support DP1 DP2 DP3DP4

17. Business Requirement Validation by Fast Track Project (Experiment phase) Experiment scoping Customer feedback analysis Requirement capturing& analysis Proto design 1 Proto implemen- tation 1 Prototype deployment 1 4-6 week project realization Experiment scoping Requirement capturing& analysis Proto design N Proto implemen- tation N Prototype deployment N Business requirement specification

18. Project& technical planning System deployment Component Design Component Implemen- tation Component Deployment System Integration Product Development by Quality-Track Project (Venture & Business phases) System design Component Design Component Implemen- tation Component Deployment Component Design Component Implemen- tation Component Deployment 2- 3 month project realization, depending on re-usability level Experiment project & req. analysis

19. Example: R&D Process in iterative sw development DP0 DP1 DP3 DP4 DP5 DP2 Req. collection Req. analysis Prototyping Architecture design Design & Implementation Integration & component test System test Acceptance test 1 2 3 4 5 6 Iteration

20. Roles in product development PROJECT MANAGER System Analyst / Technology Specialist Business Analyst Software Architect Chief Designer Verification Engineer Documentation Specialist Patent Engineer Software Designer

21. Resource Profiles in Product Development Prestudy Feasibility Study Design Product Implement.& Verification Production Pilot Release DP0DP1DP3 DP4 DP5 MS DP2 System Analyst System Engineer Product Support and Supply MS Business Analyst Prod.mgmt

22. Project Framework Release Processes Resources Budget Quality Time schedule Goals

23. Different Process Levels General R&D process Applied R&D process Adapted R&D process Specified for Sonera Applied for a specific unit Adapted for a specific project

24. Idea process Requirement capture Feasibility study management Prestudy management System and customer documentation development Design and implementation System pilot and validation System concept Project management System capability transfer to system support DP3DP4DP5 DP2 DP1 DP0 Testing and Verification Information, document and data management Configuration management Subcontracting management TC Product Development Process RFM RFP SCR CF GA RFS RFS=Ready for sales CF=Concept fixed RFM =Ready for marketing SCR=Service concept ready RFP=Ready for piloting GA=General availability

25. Requirement capture: Activities

26. Requirement Catalogue DP 1 Collect, group, and prioritize requirements. Evaluate feasibility, add possible technical requirements. Agree the requirement set with the customer. Feature sets are frozen. Requirements can be specified after DP1 if necessary.

27. System concept Activities

28. The Design and Implementation Process: Activities

29. Testing process: Activities Defining the Test Strategy Integration and System Testing Test environment management Reporting Test case design DP3DP5 DP2 DP1DP4 DP0 Testing management Test Manager Test Designer Test Environment Expert Test Engineer

30. Project Management: Activities

31. Project Management: Planning

32. Example: Change management

33. Process Information Distribution Toimintaohjeet http://xxx.yyy.xxx.fi/

34. Process Information Distribution (cont.) tiivistelmä prosessikartta

35. Example of R & D Metrics % of work on strategic projects % of projects finished on time according to plans % of sales from new products % and # of patent applications filed and accepted / strategic area % of products based on cross organisational platforms Organisation capability: Project Management, Requirement Management, Configuration Management, Sub-contracting Management

36. Project Measurement The success of the project is measured according to the following main criteria:  The project is on time Meter: the achieved milestone dates compared with the dates on the baselined project plan.  The project works in a cost-effective manner. Meter: the actual and incurred costs compared with the budget of the project.  The project is not reserving unutilised resources. Meter: the actual amount of work done by project members compared with the planned amount.  Project outcome is verified and ready for validation in DP4. Meter: the outcome fulfils the set requirements.  The project follows the process Meter: Process audit results

37. Example / Duration and Intensity

38. Example / Amount of work

39. Example / SW Quality

40. SPICE arvioinnin tulos syksy 2000 F-taso saavutetaan tasolla yksi 69- prosenttisesti. Tämä luku on jonkin verran Suomen tilastollista keskiarvoa parempi. Ykköstason vahvuus on vahvin yksittäinen osoitin saavutetusta kyvykkyydestä. F + L- reittaukset olivat yhteensä 98 % ykköstasolla arvioituista 173 käytännöstä. Tämä osoittaa, että ammatilliset perustehtävät tunnetaan ja tehdään hyvin. Kakkostason F + L on yhteensä noin 80 % arvioiduista 206 käytännöstä. Tilanne on hyvä, mutta kuitenkin jonkinlainen osoitus prosessien käyttöönotto-ongelmista ja laatukäytäntöjen ohuudesta joissakin projekteissa. Kolmostason F + L on hieman yli puolet arvioiduista 231 käytännöstä. Mittarien puutteellisuus on selkein tasoa heikentävä seikka.