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Lean production and open source innovation are the two forces that drive business success today. However, some aspects of lean production may adversely affect a company's capability to be successful with open source innovations. This study aims to examine open source adoption in the government and private sectors, and to identify the factors and challenges involved in its adoption. Lean production and open source innovation are related because their application can be integrated, considering the similarity in their operational purposes such as cost reduction and expediting processes. With good communication levels, lean production and open source innovation can achieve and encourage innovation capabilities (continuous improvement) in the organization. Although more than 50% of the respondents agreed that open source provides several benefits to their organization, they do not deny the challenges that come with service adoption. Finally, this study discusses the transitional effect of open source innovation.
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International Symposium on Research in Innovation and Sustainability 2014 (ISoRIS ’14) 15-16 October 2014, Malacca, Malaysia
Special Issue
Sci.Int.(Lahore),26(5),1697-1702,2014 ISSN 1013-5316; CODEN: SINTE 8 1697
Puvanasvaran A. Perumal, Al Amin Mohamed Sultan, Mohd Syaiful Rizal, N. Norazlin
Lean Intergrated System and Standardization Research Team, Faculty of Manufacturing Engineering, Universiti Teknikal Malaysia
Melaka Hang Tuah Jaya, 76100 Durian Tunggal, Melaka, Malaysia
ABSTRACT Lean production and open source innovation are the two forces that drive business success today. However,
some aspects of lean production may adversely affect a company’s capability to be successful with open source innovations.
This study aims to examine open source adoption in the government and private sectors, and to identify the factors and
challenges involved in its adoption. Lean production and open source innovation are related because their application can
be integrated, considering the similarity in their operational purposes such as cost reduction and expediting processes. With
good communication levels, lean production and open source innovation can achieve and encourage innovation capabilities
(continuous improvement) in the organization. Although more than 50% of the respondents agreed that open source provides
several benefits to their organization, they do not deny the challenges that come with service adoption. Finally, this study
discusses the transitional effect of open source innovation.
KEYWORDS: customer relationship, innovation, knowledge sharing, open source
Innovation pertains to the commercialization of newly
designed and implemented products or processes [1]. In
developing an innovative culture in an organization,
preserving uncertainty, encouraging risk-taking
experimentations on new ideas, and allowing enough
freedom to promote creativity among individuals are
important [2]. An open source refers to a virtual network in
which information and resources can be shared, with the aim
of creating breakthrough innovations or introducing
incremental improvements to an existing innovation [3].
Creativity is often crushed unintentionally in work
environments that have been established to maximize
business imperatives, such as coordination, productivity, and
control [4]. Numerous management practices reinforce
certain mechanisms that increase productivity and control
costs at the price of organizational creativity. Such practice
can be observed when the lean philosophy is the only
management approach followed by an organization.
Open source allows for versatility in innovation and
knowledge creation, as well as knowledge management. The
existing technologies promote the further development of
open sources, as well as the development of new
technologies that do not become a barrier [3]. In addition,
the community is a key to success where open source allows
for knowledge sharing, knowledge creation, and new
innovations to occur in various existing social networks [3].
For this reason, manufacturers or producers prioritize the use
of open source to maintain customer relationships because it
allows for convenient service delivery, particularly when
software applications are involved. The increase in open
source adoption has been influenced by technological
advancements, such as virtualization, storage, and high-
speed network access, as well as the growing comfort on
Internet security and reliability [5].
Aside from software adoption, community is another
important factor in an open source structure. However, the
creation of a sense of community and a culture of learning
can be challenging. In [3], the importance of a sense of
community and culture of learning was discussed from the
author’s perspective to create the design solution. By sharing
the design in an open source community, the design
community could determine an effective design that can lead
toward the development of another innovation. Thus, the
feasibility of the plan for new innovations and growth
opportunities can be easily determined. By emphasizing the
open source in every stage of product development, the
green-metric as zero environmental footprints for innovation
component and growth strategy is indirectly embedded.
2.1 Lean in Open Source
Introduced by Poppendick in the late 1990s, lean in open
source can be explained as lean software development. By
adapting lean software into the new manufacturing paradigm
of cloud manufacturing, the term open source is more
applicable, given that cloud manufacturing provides a direct
connection between manufacturer and customer-supplier
either through an open or closed cloud pool. The present
study is a novel approach into lean management, particularly
on how such influences and manages knowledge sharing and
innovation capabilities among individuals in the cloud pool.
Lean principles in software development have been
discussed in [6,7]. The lean principles in software
development that the researchers reported are listed in Table
1. Poppendiecks’ principles are consistent with Liker’s
principles, but not as concretely expressed [8]. Nevertheless,
Liker’s and Poppendiecks’ principles had significant
differences: [9] emphasizes the importance of the
standardization of working methods, whereas Poppendiecks
focused more on self-determination. Furthermore,
Poppendiecks’ principles do not describe how work should
be documented and when issues should be discussed.
One of the founders of the Lean Software and Systems
Consortium promoted lean in different domains, including
software [10]. Their current preliminary principles are as
Follow a systems thinking and design approach
i. Influence emergent outcomes by designing the context of
a complex adaptive system
ii. Respect people (as part of the system)
iii. Use the scientific method (to drive improvements)
iv. Encourage leadership (in contrast to management)
International Symposium on Research in Innovation and Sustainability 2014 (ISoRIS ’14) 15-16 October 2014, Malacca, Malaysia
Special Issue
1698 ISSN 1013-5316; CODEN: SINTE 8 Sci.Int.(Lahore),26(5),1697-1702,2014
v. Generate visibility (into work, workflow, and system
vi. Reduce flow time
vii. Reduce waste to improve efficiency
Andersson’s principles are more practice-oriented, and more
focused on issues in project management. Liker’s principle
dictates that only reliable, thoroughly tested technology that
serves one’s people and processes should be used. Such a
perspective differs from both Poppendieck and Andersson,
who come from agile environments where technology turn-
around times are very fast. For safety-critical applications,
such principles are relevant [8].
Furthermore, [6, 7] identified wastes in software
development, as shown in Table 2. The primary wastes in
software development include the rapid response to
customer demand. Lean software development requires agile
steps toward customer value and efficiency of the lean
enterprise. Agility is mainly a response against document-
heavy, plan-driven approaches for software development
that are often unsuccessful [11]. Therefore, a lean software
process can provide the following benefits:
i. The statistical process control in lean software can allow
for the quantification of the software development
process, which may enable them to achieve Capability
Maturity Model Integrated certification.
ii. Employing lean for both manufacturing and software
development processes would provide a common
approach for speech communication, thus simplifying
operations management.
iii. If lean easily allows for an intrinsically lower risk and a
more generative approach to software training, earnings
can be increased.
2.2 Open source
Typically, open source is created for open sharing, with the
purpose of developing, debugging, and improving software
[3]. Open source is a high-priority subject in the research
agenda for the implementation of eGovernment services
under the eEurope 2005 programme [12]. Open source can
be defined in terms of its characteristics: free of cost, and
free to read and modify the software code [13].
Owing to the philosophy behind it, open source software has
gained popularity. Open source welcomed knowledge
sharing in a community. Thus, knowledge sharing has
influenced the development of open source innovation. Open
source innovation is a virtual network composed of the
product developer, customer, supplier, and the user, among
others. Such a virtual network allows for the sharing of
information and data resources in order to attain innovation
development and improve existing innovations [3]. This
study explores the effect of the transition from lean
production to open source, with focus on
the effects on customer relationship, knowledge sharing, and
innovation capability. These three elements are the critical
factors for the success of lean implementation.
An open source community primarily aims to build and
exchange knowledge resources. In online discussions, some
community members cannot guarantee that others would
respond to their question, or if the information provided will
be useful. Their intention is either the problem was solved or
not. Some of the community exhibit conversation protocols
that are similar to social interactions in a community.
Through knowledge exchange, the community can be
involved in activities that differ from the other users, as well
as perceive other benefits [14].
Open source development requires an understanding of the
problem, the computer application that is attempting to work
out, and the maintainer must assimilate patches with
diligence [15]. Open source development enables companies
to implement innovations and collaborate with other
members of the community. Companies using open-source
software benefit from many advanced technology solutions
that they otherwise could not afford to develop. Such
companies still deliver the alternative to steer development if
they prefer.
2.3 Open Source Innovation
Open source allows knowledge sharing among the
community. Knowledge sharing leads to innovations on new
products and product improvement. Innovations, including
concepts, studies, design, engineering, testing, and mass
production, should be closely guarded to create value for the
organization involved in the invention process [16]. Open
innovation is defined as a paradigm that assumes that firms
can and should use external ideas as easily as internal ideas,
as well as internal and external paths to market, in order for
firms to upgrade their technology [17].
The purpose of user and developer communities is to build
and exchange knowledge. The involvement of successful
communities helps with self-selection, together with passion,
commitment, and identification with group’s expertise [3].
Such elements indicate community competence and qualities
of innovation communities. According to [16], the
collaboration between smart people inside and outside the
company is important for building a better business model,
as the utilization of internal and external ideas will make
them succeed in the market. Furthermore, profits can be
gained from the other uses of manufacturer internet
properties (IP) and can be used to buy another IP whenever
it advances the business model. The external research and
development (R&D) can create significant value, whereas
the internal R&D is needed to claim a portion of that value.
The success of a company’s innovation effort can be
measured by the total number of ideas generated. Innovation
requires collaboration among people and processes in order
to develop an innovative product [18]. People or employees
thus become the source of innovation, while process is a
method for innovation. However, innovation can only occur
in a conducive environment where its focus on internal
culture and behavioural culture. Innovation is not a part-time
activity and not only for small or new companies; it is
merely the myth of innovation. Innovation may occur when
there is a strong relationship among leaders and workers,
and all levels contribute to the development of innovative
ideas for product and service.
2.4 Transitional Effect in Open Source
This study investigates the transitional impact from lean
production into open source. Generally, an open source
product requires the contribution from every manufacturing
and management angle to make it successful. The study on
International Symposium on Research in Innovation and Sustainability 2014 (ISoRIS ’14) 15-16 October 2014, Malacca, Malaysia
Special Issue
Sci.Int.(Lahore),26(5),2014 ISSN 1013-5316; CODEN: SINTE 8 1699
the transitional impact is broadly discussed because of the
characteristic, agility. However, the focus on the transition is
narrowed down to knowledge sharing, innovation, and
customer service in a secure environment in a particular
community. Figure 1 shows the relationship among the three
factors, namely, knowledge sharing, innovation, and
customer service, with community in an open source.
Compared with innovation, customer service and
community, knowledge sharing have a larger circle or
network because of the increased possibilities of providing
beneficial effects on open source.
Figure 1: The relationship between transitional effect and
community with open source.
Knowledge sharing occurs when the community pool is
occupied from management and manufacturing person.
Furthermore, the community can likewise be filled by
customer and supplier person to make knowledge sharing
worthwhile. Knowledge sharing also promotes the capacity
to generate an idea for innovation. Based on customer
complaint or prototype reviewer, product improvement
occurs with minimum cost of investment. Thus, knowledge
sharing is significant in open source applications, similar to
lean principles.
Knowledge sharing in every company is very important in
optimizing production activities. Knowledge sharing is not
restricted to training sessions, but should be welcomed in
every production activity. By cultivating an environment
that encourages knowledge sharing, the employee
development program can be reduced or eliminated slowly,
thus leading to cost reduction. Results showed that both
sectors exhibited a learning environment to support
knowledge sharing occurred in both sectors. Nevertheless,
the government showed that they have a good relationship
when they know each other very well and also tend to wish
for the success of their member. By contrast, in the private
sector, there is a boundary between employees;
communication is limited in order to control the secrecy
from outside and the bottom level of employee. Although
such companies use open source products, only certain types
of data and information can be shared with others.
Customer service is an important factor in the success of a
business. Good customer service delivery contributes to
sustained business and profits for the manufacturer. In open
sources, customer service should likewise be emphasized.
Figure 2 shows how customer service and pull production
are emphasized. Every customer needs to agree with the
terms and conditions for every order that they place in order
to prevent any losses during data and manufacturing process.
Likewise, customers can provide feedback or complaints in a
convenient environment. As such, customers can constantly
engage marketing or service personnel, and every customer
feedback or complaint can be addressed in a timely manner.
Open source quality depends on the quality of the
community and the ideas that are discussed in it. The entities
involved in the community can include anybody whom the
provider (open source organizer) wants to, or it cannot be
controlled. However, to avoid any risk and issues in the
future, many providers choose to control every data transfer
or introduce limits and boundaries. One method to help such
companies to control every data transfer is by allowing only
authorized person access to the community. The community
may include the supplier, manufacturer, engineer, designer,
executive, customer, and end user, among others. The larger
the community, the more valuable idea is created.
2.5 Open Source Adoption
This study also reviewed the existing approaches to open
source adoption in both sectors. The criteria include cost
reduction, speed to adoption, new market entry, business
process transformation, and improved alignment/interaction
with customers. As shown in Figure 3, the current approach
to open source adoption in the private sector is better than
that in the government sector. However, the government is
better prepared for business process transformations, owing
to the global demand for expediting all processes. The global
demand has forced the government to hasten the rate of
adoption in order to maintain its competitiveness in the
international setting. Moreover, this survey showed that the
private sector is always ready for new entry to the market,
which is slightly higher that the government sector.
Capturing the end usage patterns is important in achieving
optimal pull production. Through several open source
products such as Mozilla, WikiHow, and Facebook, online
surveys can be conducted to determine the current demand.
Lean production emphasizes manufacturing speed, market
entry speed, and the rate of adopting an open source
environment. Considering these criteria, the private sector
may optimize its cost savings, attain low manufacturing
costs and high profit, as well as the other benefits of having
an open source environment.
International Symposium on Research in Innovation and Sustainability 2014 (ISoRIS ’14) 15-16 October 2014, Malacca, Malaysia
Special Issue
1700 ISSN 1013-5316; CODEN: SINTE 8 Sci.Int.(Lahore),26(5),1697-1702,2014
Figure 2. Customer service and pull production in open source
Figure 3. Current approach to open source adoption
Figure 4. Function/process for customers migrating to open source today
International Symposium on Research in Innovation and Sustainability 2014 (ISoRIS ’14) 15-16 October 2014, Malacca, Malaysia
Special Issue
Sci.Int.(Lahore),26(5),2014 ISSN 1013-5316; CODEN: SINTE 8 1701
Table 3. Challenges for open source adoption by customers and innovation capabilities
Adopting the service by customer
Innovation Capabilities
Transparency of operational controls and data
Financial constraints
Data loss and privacy risks
The urgency of day-to-day business demands
Risk of intellectual property theft
Lack of skill within an organization
Legal and regulatory compliance
Inadequate understanding of market demands
2.6 Customer Relationship as influencing factors
Customer relationship is studied to identify the influencing
factors on open source adoption. Some organizations have
been influenced by their customers to facilitate the
management and manufacturing process. World-class
customers require fast action and fast results of decision
making. In this regard, it is parallel to lean manufacturing,
which emphasize management and manufacturing speeds.
Such a perspective was affirmed by the private sector, which
found that customers have migrated from conventional
management and manufacturing to open source management
and manufacturing, as shown in Figure 4. Furthermore,
customers use email and collaboration software and sale and
marketing in their operations. However, the government
observed that their customers adopt email, collaboration, and
human resource operations as an open source medium.
2.7 Key Challenges and Influencing Factors
Key challenges and influencing factors should be studied to
determine the degree of adoption. The key challenge has
been focused on customer relationship and innovation
capability. More than 50% of the respondents believe that
their organization has a successful innovation rate and
prioritizes strategic innovation properties. Therefore,
innovation capabilities can be always observed in their
organization to achieve internal and external satisfaction.
Influencing factors for open source adoption are determined
based on customer relationship. Over 25% of the
respondents agreed that the customer influenced them to
adopt open sources into their operation. The primary reasons
for such adoption are to enhance the communication levels
and to expedite the operations.
Table 3 lists the challenges for open source adoption as
perceived by customers, and innovation capabilities that
agreed by both sectors. The challenges faced by the
customer are mostly related to the lack of an open source
system that would not overwhelm an expert. The primary
challenges in open source adoption are the transparency of
operational controls and data, data loss and privacy risks,
risk of intellectual property theft, and legal and regulatory
compliance. However, these factors do not impede an
organization from using the product at the minimum level to
improve their operations. Meanwhile, the challenges include
financial constraints, the urgency of day-to-day business
demands, the lack of skill within the organization, and
inadequate understanding of market demands.
The current study found that open source can be adopted
even at the initial stage. Some organizations were not aware
that they actually use open source, realizing it only after the
survey had been conducted. Such organizations agreed that
open source considerably benefited their operations and
expedited the evolution process. Through this study, we
found that the transitional impact resulted in knowledge
sharing, improvement of customer service, and occurrence
of innovation in a control community. Those factors have
helped perfect their operation and management.
Furthermore, open source allowed for the virtual
management to be able to encourage the application of the
lean principle, which resulted in savings and efficient
utilization of all assets and equipment in the operations.
By identifying the key challenges and influencing factors in
open source adoption, we conclude that customers have a
wide exposure in technology invention, as some respondents
agreed that they have been influenced by their customer to
use open source products. However, the lack of skills for
using open source products prevents them from using it.
Furthermore, the lack of skill within the organization
contributes to their inadequate understanding of market
demands. Finally, the biggest obstacle for innovation
capabilities through open source is financial constraint, as
organizations need to invest in training employees and
buying the open source product and equipment for better
In addition, we found that the respondents used open source
products, such as email, Facebook, Mozilla, and Yahoo as
their medium of communication. The open source product is
generally used for a variety of meetings, cross-functional
meetings, board meetings, annual conferences, special
interest groups, management meetings, and networking
technology. Such communication media were equivalent to
the lean concept, which reduced the time required for
delivering meeting notifications and increased the rate of
knowledge sharing with the employee.
The researchers would like to acknowledge the Universiti
Teknikal Malaysia Melaka (UTeM) for the project granted
for this study. PROJECT NO: PJP/2013/FKP(7C)/S01185
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Special Issue
1702 ISSN 1013-5316; CODEN: SINTE 8 Sci.Int.(Lahore),26(5),1697-1702,2014
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The paper while giving the introduction of the concept, describes the Open Source Softwares (OSS) and explains the meaning of the term OSS, giving some of the definitions, the typical terms used to explain it and also elaborates some of the important issues with reference to the explanation of the OSS. It discusses as why the Librarians and the Libraries need the OSS model in current scenario, highlighting the basic idea behind the same. It further discusses in details, the important issues of OSS development and librarianship and Open-Source and Usability. The paper enumerates the important characteristics of the OSS and the criterion for selection of correct OSS as per the individual requirements. It describes important OSS, presently used worldwide with special reference to the popular OSS used in Indian library environment, highlighting important characteristics/features, merits, etc. of the softwares. Critical issues and Challenges in OSS environment are discussed in detail. The papers further highlight the future of the OSS and conclude with remarks in favour of some of the widely used OSS.
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This document is the compendium for the course INF 5780: Open source, open collaboration and innovation at the Department of Informatics, University of Oslo, written for the autumn semester of 2012. This multi-disciplinary compendium presents aspects of commons-based peer production, free and open source software, open licenses, open standards, and how to extract value from these phenomena in open innovation and business models.
In this paper a set of successful Enterprise Application Integration projects are analyzed andcommon characteristics are identified. These characteristics are then distilled into a set of keysucces ...
Open source has gained popularity due to its versatility. Its roots stem from the computer industry where programmers openly shared code in order to develop, de- bug, and improve software. The Linux operating system and the Firefox web browser were born from this movement, becoming formidable challengers to the products of the industry leader, Microsoft. While technology enables open source to flourish, open source is not limited to the development of new technology. The philosophy behind open source is that it is a combination of community building and competency building. The creation of knowledge—and thus the development of new innovations—resides within the variety of social networks that exist around us. Open source innovation might be a virtual network or a literal network of product de- velopers, customers, users, etc. that share information and resources to create break- through innovations or to make incremental improvements to existing innovations. University of Chicago sociologist Ron Burt1 has written about networks with "struc- tural holes" that have enough inroads from individuals to allow for the sharing of new ideas. Open source innovation is essentially a network relationship among individuals in which the network environment remains open enough (i.e. it contains structural holes) to allow for new ideas to take root, which might yield new inno- vations. Managing knowledge in open source innovation communities starts with maintaining the networks themselves and keeping track of the flow of knowledge and ideas within them. In open source innovation communities, value chains are not represented by 'hand- offs' among mutually exclusive parties, but rather by overlapping communities of users and developers. Known as communities of practice, these are groups of people informally bound together by shared enthusiasm for a joint enterprise. Their pur- pose is to build and exchange knowledge. Involvement is self-selected and is held together by passion, commitment, and identification with the group' s expertise.2 Another and more adaptive model is further defining the qualities of these innova- tion communities. Communities of competence3 satisfy the desires for community in a workplace, but they are designed to incorporate and strengthen peoples' compe- tencies, self-confidence, and performance in the increasingly boundary-free orga- nizations that require a great deal of self-authorizing and ambidextrous behavior. Members of such communities are shown to be more skilled at meeting demands for increased productivity and innovation. The strengthening of both community and competency drives innovation. Yet many companies are challenged in their abilities to develop these critical areas. The fail- ure to develop both community and competency is, at its heart, a failure to nurture a culture of learning. Maintaining innovation networks and managing the flow of
Almost a decade ago, researchers in information systems and analysts of the information technology (IT) industry were predicting a bright future for open source software (OSS). Recent examples appear to lend support to this, but there exist many detractors of OSS and resistance to the transformation it creates. Thus, it is relevant to take a closer look at the institutionalization of OSS. This paper evaluates the extent of OSS institutionalization in organizations. A practice or innovation is said to be institutionalized when it is taken-for-granted and its use becomes the norm. Drawing on institutional theory, the underlying concept of organizing vision and the rhetorical theory of diffusion of innovations, we analyze OSS institutionalization through the observation of the evolution of the public discourse about OSS and, simultaneously, the observation of the rate of adoption or diffusion of OSS in organizations. We find that OSS has become institutionalized for many back-end applications and is gradually becoming institutionalized for some front-end applications, mainly in small and medium enterprises but also in organizations in the financial, publishing, education, government and public sectors. Using the rhetorical theory of diffusion of innovations in tandem with the concept of organizing vision, we provide a deep understanding of the institutionalization of OSS by showing that it has not only diffused among organizations, but is also taken-for-granted in thought and social action. The positive tone and prominence of the public discourse on OSS have an important role to play in its institutionalization. Future research efforts should be pursued and directed toward the institutionalization of particular OSS applications in a variety of industries and geographic regions.
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"This remarkable book combines practical advice, ready-to-use techniques, anda deep understanding of why this is the right way to develop software. I haveseen software teams transformed by the ideas in this book."--Mike Cohn, author of Agile Estimating and Planning"As a lean practitioner myself, I have loved and used their first book for years.When this second book came out, I was delighted that it was even better. If youare interested in how lean principles can be useful for software developmentorganizations, this is the book you are looking for. The Poppendiecks offer abeautiful blend of history, theory, and practice."--Alan Shalloway, coauthor of Design Patterns Explained"I've enjoyed reading the book very much. I feel it might even be better than thefirst lean book by Tom and Mary, while that one was already exceptionallygood! Mary especially has a lot of knowledge related to lean techniques inproduct development and manufacturing. It's rare that these techniques areactually translated to software. This is something no other book does well(except their first book)."--Bas Vodde"The new book by Mary and Tom Poppendieck provides a well-written andcomprehensive introduction to lean principles and selected practices for softwaremanagers and engineers. It illustrates the application of the values andpractices with well-suited success stories. I enjoyed reading it."--Roman Pichler"In Implementing Lean Software Development, the Poppendiecks explore moredeeply the themes they introduced in Lean Software Development. They beginwith a compelling history of lean thinking, then move to key areas such asvalue, waste, and people. Each chapter includes exercises to help you apply keypoints. If you want a better understanding of how lean ideas can work withsoftware, this book is for you."--Bill Wake, independent consultantIn 2003, Mary and Tom Poppendieck's Lean Software Development introduced breakthrough development techniques that leverage Lean principles to deliver unprecedented agility and value. Now their widely anticipated sequel and companion guide shows exactly how to implement Lean software development, hands-on.This new book draws on the Poppendiecks' unparalleled experience helping development organizations optimize the entire software value stream. You'll discover the right questions to ask, the key issues to focus on, and techniques proven to work. The authors present case studies from leading-edge software organizations, and offer practical exercises for jumpstarting your own Lean initiatives. Managing to extend, nourish, and leverage agile practices Building true development teams, not just groups Driving quality through rapid feedback and detailed discipline Making decisions Just-in-Time, but no later Delivering fast: How PatientKeeper delivers 45 rock-solid releases per year Making tradeoffs that really satisfy customersImplementing Lean Software Developmentis indispensable to anyone who wants more effective development processes--managers, project leaders, senior developers, and architects in enterprise IT and software companies alike.
Cloud computing is changing the way industries and enterprises do their businesses in that dynamically scalable and virtualized resources are provided as a service over the Internet. This model creates a brand new opportunity for enterprises. In this paper, some of the essential features of cloud computing are briefly discussed with regard to the end-users, enterprises that use the cloud as a platform, and cloud providers themselves. Cloud computing is emerging as one of the major enablers for the manufacturing industry; it can transform the traditional manufacturing business model, help it to align product innovation with business strategy, and create intelligent factory networks that encourage effective collaboration. Two types of cloud computing adoptions in the manufacturing sector have been suggested, manufacturing with direct adoption of cloud computing technologies and cloud manufacturing—the manufacturing version of cloud computing. Cloud computing has been in some of key areas of manufacturing such as IT, pay-as-you-go business models, production scaling up and down per demand, and flexibility in deploying and customizing solutions. In cloud manufacturing, distributed resources are encapsulated into cloud services and managed in a centralized way. Clients can use cloud services according to their requirements. Cloud users can request services ranging from product design, manufacturing, testing, management, and all other stages of a product life cycle.Highlights► Cloud computing is emerging as a major enabler for the manufacturing industry. ► Cloud computing technologies can be adopted in manufacturing. ► Cloud manufacturing is a pay-as-you-go business model. ► Distributed resources are encapsulated into cloud services and managed centrally.