A strategy called software product line engineering, or SPLE, is taking hold in industries in which software is an integral part of product offerings. Where it has found a foothold, SPLE has brought about remarkable results such as unprecedented product variation, substantial production cost savings, slashing of time to market, and massive productivity gains. SPLE is the software version of an old manufacturing concept: building a suite of products from common parts assembled under a common design in a common production facility. The special properties of software make SPLE a particularly high-payoff proposition. SPLE exploits the commonalities among products to achieve economies of scale, by creating core assets assets that will be applied to multiple products in the product line. SPLE accommodates the differences among products by explicitly identifying and planning for those variations in product behavior and qualities. This management of variation allows the organization to achieve economies of scope and provides the capability of mass customization where every market is treated as a niche. Management ensures that core asset developers create effective core assets and product builders efficiently build products by using them. This requires oversight, coordination, and melding of purpose of groups that have slightly different inherent goals. (C) 2011 Kelley School of Business, Indiana University. All rights reserved.
