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Accelerating Application Development

                            Gary Flores


August 30, 2006
Outline
    Challenges facing Application Development

    Business costs associated with Business Application

    OLIVANOVA Solution

    Successful Applications

    Business benefits using OLIVANOVA

    OLIVANOVA Market Opportunity

    Account Strategy

    Next Steps




                                   Gary Flores, Account Executive, Integranova
2
Problem: Escalating Costs, Complexity, Risks & Lack of Time




                       Gary Flores, Account Executive, Integranova
 3
Did you know that?
                                                          Software project failures have likely cost
In 2000 Kmart launched a $1.4 billion IT
                                                          the U.S. economy at least $25 billion and
modernization project.
                                                          maybe as much as $75 billion from 2000 -
                                                          2004.
18-months later, it wrote off $130M of the
project.                                                  Robert N. Charette, IEEE Spectrum, 2005

4-months later, it declared bankruptcy.
Forbes 2003

                                                           51% of software projects ended up
                                                           with cost overruns or less
                                                           capabilities than promised.
                                                           Standish Group 2002
    Software cost overruns were
    over 15%.
    Standish Group 2002




                                    Gary Flores, Account Executive, Integranova
4
Challenges for Application Development
    Business downtime due to application failure
    Managing costs
    Outsourcing risks
    Misalignment of IT and business goals
    Poor communication among analysts,
    developers, customers, and users
    Inaccurate resource estimates
    Poorly defined requirements
    Inadequate development technology
    Lack of Model-Driven Architecture practices
    Inability to manage complex projects
    Excessive code rework
    Business pressures

                                       Gary Flores, Account Executive, Integranova
5
Costs due to application failures
                                                                                              $244 revenue per
                                                                                               employee hour

                                   $1,400,000
                                                                       $143 revenue
                                                                       per employee
         Lost Revenue per hour $




                                   $1,200,000                                                   $1,107,274
                                                                           hour

                                   $1,000,000
                                                $38 revenue per
                                                employee hour
                                    $800,000
                                                                         $636,000
                                    $600,000
                                                   $330,654
                                    $400,000

                                    $200,000

                                          $0
                                                Hospitality/Travel       Healthcare                 Retail

    Source: IT Performance Engineering & Measurement Strategies: Quantifying Performance Loss, The Meta Group


                                                                  Gary Flores, Account Executive, Integranova
6
Approach to minimize risk and cost
      Use of Model-Driven Architecture (MDA)
       – Accelerates software code development and improves quality in
         complex systems.
       – Combines computer-aided verification and machine intelligence
         during modeling to discover and remove design errors before
         reviews and testing.




       – Saves significant production time and costs
       – Improves business agility


                               Gary Flores, Account Executive, Integranova
7
Would you consider?
      A solution that minimizes risk, lowers costs, improves productivity
      and accelerates your business.




                            Gary Flores, Account Executive, Integranova
8
Introducing OLIVANOVA
    First commercially available software system
    that generates complete applications from
    software models. OLIVANOVA takes class
    models, functional models, and
    presentation models and creates a
    completely functional and executable software
    application – in minutes.




                              Gary Flores, Account Executive, Integranova
9
How OLIVANOVA benefits companies

     Accelerates time-to-market
     Increases productivity
     Enhances quality control
     Reduce development costs
     Lower application maintenance costs




                              Gary Flores, Account Executive, Integranova
10
Examples of Successful Business Applications
     Warehouse Management


     Utilities Management and Billing System


     Apartment Rental and Time-Sharing


     Building Promotion, Construction and Sales


     Construction Management System


     Sports Facility Management


                                   Gary Flores, Account Executive, Integranova
11
How OLIVANOVA works
     OLIVANOVA Modeler

     OLIVANOVA Transformation Engine




                             Gary Flores, Account Executive, Integranova
12
OLIVANOVA Modeler

     Allows analysts and developers to define
     business logic, rules and restrictions of the
     system without the need of programming.
     Features

       –   Business/Object Modeling
       –   Data Modeling
       –   Model Integrator
       –   Legacy System Modeling
       –   Rules/Constraints Definition
       –   Conceptual GUI Definition
       –   UML
       –   XML




                                          Gary Flores, Account Executive, Integranova
13
OLIVANOVA Transformation Engine



     OLIVANOVA Transformation
     Engine automatically creates
     the complete application
     code, database scripts, and
     full documentation based on
     the model definitions.




                                    Gary Flores, Account Executive, Integranova
14
OLIVANOVA Supports:

     Platform               Architecture                     Language


     Windows NT             Web                              Visual Basic 6.0


     Windows 2000           Client/Server                    JAVA/EJB

     Windows 2003           Integration c/Mainframes JSP

     UNIX (the majority)    Web Services                     Cold Fusion

     Linux (the majority)   Windows Service                  .NET




                                     Gary Flores, Account Executive, Integranova
15
Accelerating time-to-market

             Daily Productivity Increase
                                                                           Provides business competitive
     35

                                                                           advantage
                28.4
     30
                                                                           Eliminate or minimize development
                                                                           delays
     25
                                                                           Become first to market
                                                                           Rapidly develop applications
     20

                                                                           Provide quick development of
     15
                                                                           upgrades, revisions, new features
                                                                           Lower costs and complexity
     10

                                            4.9
     5


     0

                                                                                                6x increase in
          OLIVANOVA Average            Peer Average

              FP (Function Points) per project day
                                                                                                time-to-market
                       Source: Gartner




                                                  Gary Flores, Account Executive, Integranova
16
Increases developer productivity


                                                                         Lower operating costs for
80

                                                                         development
            70
70
                                                                         Reduce the need to outsource
                                                                         strategic or sensitive development
60

                                                                         Manage development cycle better
50
                                                                         More efficient use of resources
                                                                         Remove dependence on specific
40
                                                                         developers
30
                                                                         Lower business risks
20


10
                                       3
 0
     OLIVANOVA Average           Peer Average

                                                                            23x increase in productivity
           FP (Function Points) per person

                  Source: Gartner




                                             Gary Flores, Account Executive, Integranova
17
Enhances quality control

160

                                                                         Development costs are controlled
140
                                                                         Dramatically lower rework on
120
                                                                         development
                                          107

                                                                         Lowers needed testing resources
100


 80


 60

 40


 20
                7
     0
         OLIVANOVA Average           Peer Average

            Defects per 1000 FP (Function Points)
                                                                                   15x reduction in defects
                      Source: Gartner




                                                Gary Flores, Account Executive, Integranova
18
Lower application maintenance costs

     As a result of:

       – Full documentation produced
       automatically

       – Elimination of resources to
       generate documentation

       – Upgrades and modifications are
       easier to implement

       – Lowered risk of long downtime




                                   Gary Flores, Account Executive, Integranova
19
OLIVANOVA Potential in North America
      $100B (US$) of custom-built software designed each year
     (Forrester Research)
       – >93,000 companies, average employees = 500
       (100 – 999 employees reference IDC)

       – Estimated OLIVANOVA Revenue
       (500 employee company) = $7,000




     Bottom-line: $7,000 x 93,000 = $0.651B potential opportunity



                                  Gary Flores, Account Executive, Integranova
20
Account Strategy: Northern California
                                                                                         Activity and focus
 1) In-house corporate and business applications
                                                                                            Highest
        CIO, CTO, CFO

 2) Consulting businesses that develop custom applications and
    outsourcing providers
       Business Development, CIO

 3) Business within existing portfolio of successful OLIVANOVA
    applications
      CIO, CTO, CFO

 4) Businesses that develop custom applications
      Sr. Management for Product Development

 5) Academic relationships
 6) Relationships with market research, i.e. Gartner, IDC
       Analysts

 7) Partnerships, application developer communities, Model Driven
    Application communities, JAVA, ColdFusion, .NET


                                           Gary Flores, Account Executive, Integranova
21
Account Strategy: Northern California
     1) In-house corporate and business applications
      – Goal
           Generate Proof-of-Concept (POC) by winning a minimum 5 accounts in
           mid-sized to Fortune 5000 market in Northern California
           Timeframe: 6 months

      – Approach
           Target strategic key accounts
           Work business relationships, prospect into accounts
           Establish contact and develop relationships with CIO, CTO, SVP
           Qualify opportunities: do they use Model Driven Architecture?
           Identify their business challenge (consultative selling)
           Request POC demonstration
           Perform POC, present results
                business benefits & return on investment




                                  Gary Flores, Account Executive, Integranova
22
Next Steps

     Review Account Strategy


     Finalize Account Strategy, agree on contract and terms


     Drive and Implement Account Strategy


     Work opportunities, adjust Account Strategy as needed


     Generate POC wins




                               Gary Flores, Account Executive, Integranova
23

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Accelerating Software Development

  • 1. Accelerating Application Development Gary Flores August 30, 2006
  • 2. Outline Challenges facing Application Development Business costs associated with Business Application OLIVANOVA Solution Successful Applications Business benefits using OLIVANOVA OLIVANOVA Market Opportunity Account Strategy Next Steps Gary Flores, Account Executive, Integranova 2
  • 3. Problem: Escalating Costs, Complexity, Risks & Lack of Time Gary Flores, Account Executive, Integranova 3
  • 4. Did you know that? Software project failures have likely cost In 2000 Kmart launched a $1.4 billion IT the U.S. economy at least $25 billion and modernization project. maybe as much as $75 billion from 2000 - 2004. 18-months later, it wrote off $130M of the project. Robert N. Charette, IEEE Spectrum, 2005 4-months later, it declared bankruptcy. Forbes 2003 51% of software projects ended up with cost overruns or less capabilities than promised. Standish Group 2002 Software cost overruns were over 15%. Standish Group 2002 Gary Flores, Account Executive, Integranova 4
  • 5. Challenges for Application Development Business downtime due to application failure Managing costs Outsourcing risks Misalignment of IT and business goals Poor communication among analysts, developers, customers, and users Inaccurate resource estimates Poorly defined requirements Inadequate development technology Lack of Model-Driven Architecture practices Inability to manage complex projects Excessive code rework Business pressures Gary Flores, Account Executive, Integranova 5
  • 6. Costs due to application failures $244 revenue per employee hour $1,400,000 $143 revenue per employee Lost Revenue per hour $ $1,200,000 $1,107,274 hour $1,000,000 $38 revenue per employee hour $800,000 $636,000 $600,000 $330,654 $400,000 $200,000 $0 Hospitality/Travel Healthcare Retail Source: IT Performance Engineering & Measurement Strategies: Quantifying Performance Loss, The Meta Group Gary Flores, Account Executive, Integranova 6
  • 7. Approach to minimize risk and cost Use of Model-Driven Architecture (MDA) – Accelerates software code development and improves quality in complex systems. – Combines computer-aided verification and machine intelligence during modeling to discover and remove design errors before reviews and testing. – Saves significant production time and costs – Improves business agility Gary Flores, Account Executive, Integranova 7
  • 8. Would you consider? A solution that minimizes risk, lowers costs, improves productivity and accelerates your business. Gary Flores, Account Executive, Integranova 8
  • 9. Introducing OLIVANOVA First commercially available software system that generates complete applications from software models. OLIVANOVA takes class models, functional models, and presentation models and creates a completely functional and executable software application – in minutes. Gary Flores, Account Executive, Integranova 9
  • 10. How OLIVANOVA benefits companies Accelerates time-to-market Increases productivity Enhances quality control Reduce development costs Lower application maintenance costs Gary Flores, Account Executive, Integranova 10
  • 11. Examples of Successful Business Applications Warehouse Management Utilities Management and Billing System Apartment Rental and Time-Sharing Building Promotion, Construction and Sales Construction Management System Sports Facility Management Gary Flores, Account Executive, Integranova 11
  • 12. How OLIVANOVA works OLIVANOVA Modeler OLIVANOVA Transformation Engine Gary Flores, Account Executive, Integranova 12
  • 13. OLIVANOVA Modeler Allows analysts and developers to define business logic, rules and restrictions of the system without the need of programming. Features – Business/Object Modeling – Data Modeling – Model Integrator – Legacy System Modeling – Rules/Constraints Definition – Conceptual GUI Definition – UML – XML Gary Flores, Account Executive, Integranova 13
  • 14. OLIVANOVA Transformation Engine OLIVANOVA Transformation Engine automatically creates the complete application code, database scripts, and full documentation based on the model definitions. Gary Flores, Account Executive, Integranova 14
  • 15. OLIVANOVA Supports: Platform Architecture Language Windows NT Web Visual Basic 6.0 Windows 2000 Client/Server JAVA/EJB Windows 2003 Integration c/Mainframes JSP UNIX (the majority) Web Services Cold Fusion Linux (the majority) Windows Service .NET Gary Flores, Account Executive, Integranova 15
  • 16. Accelerating time-to-market Daily Productivity Increase Provides business competitive 35 advantage 28.4 30 Eliminate or minimize development delays 25 Become first to market Rapidly develop applications 20 Provide quick development of 15 upgrades, revisions, new features Lower costs and complexity 10 4.9 5 0 6x increase in OLIVANOVA Average Peer Average FP (Function Points) per project day time-to-market Source: Gartner Gary Flores, Account Executive, Integranova 16
  • 17. Increases developer productivity Lower operating costs for 80 development 70 70 Reduce the need to outsource strategic or sensitive development 60 Manage development cycle better 50 More efficient use of resources Remove dependence on specific 40 developers 30 Lower business risks 20 10 3 0 OLIVANOVA Average Peer Average 23x increase in productivity FP (Function Points) per person Source: Gartner Gary Flores, Account Executive, Integranova 17
  • 18. Enhances quality control 160 Development costs are controlled 140 Dramatically lower rework on 120 development 107 Lowers needed testing resources 100 80 60 40 20 7 0 OLIVANOVA Average Peer Average Defects per 1000 FP (Function Points) 15x reduction in defects Source: Gartner Gary Flores, Account Executive, Integranova 18
  • 19. Lower application maintenance costs As a result of: – Full documentation produced automatically – Elimination of resources to generate documentation – Upgrades and modifications are easier to implement – Lowered risk of long downtime Gary Flores, Account Executive, Integranova 19
  • 20. OLIVANOVA Potential in North America $100B (US$) of custom-built software designed each year (Forrester Research) – >93,000 companies, average employees = 500 (100 – 999 employees reference IDC) – Estimated OLIVANOVA Revenue (500 employee company) = $7,000 Bottom-line: $7,000 x 93,000 = $0.651B potential opportunity Gary Flores, Account Executive, Integranova 20
  • 21. Account Strategy: Northern California Activity and focus 1) In-house corporate and business applications Highest CIO, CTO, CFO 2) Consulting businesses that develop custom applications and outsourcing providers Business Development, CIO 3) Business within existing portfolio of successful OLIVANOVA applications CIO, CTO, CFO 4) Businesses that develop custom applications Sr. Management for Product Development 5) Academic relationships 6) Relationships with market research, i.e. Gartner, IDC Analysts 7) Partnerships, application developer communities, Model Driven Application communities, JAVA, ColdFusion, .NET Gary Flores, Account Executive, Integranova 21
  • 22. Account Strategy: Northern California 1) In-house corporate and business applications – Goal Generate Proof-of-Concept (POC) by winning a minimum 5 accounts in mid-sized to Fortune 5000 market in Northern California Timeframe: 6 months – Approach Target strategic key accounts Work business relationships, prospect into accounts Establish contact and develop relationships with CIO, CTO, SVP Qualify opportunities: do they use Model Driven Architecture? Identify their business challenge (consultative selling) Request POC demonstration Perform POC, present results business benefits & return on investment Gary Flores, Account Executive, Integranova 22
  • 23. Next Steps Review Account Strategy Finalize Account Strategy, agree on contract and terms Drive and Implement Account Strategy Work opportunities, adjust Account Strategy as needed Generate POC wins Gary Flores, Account Executive, Integranova 23