Differences in the domain, and the divergent evolution of the markets for the created
THE ECONOMICS OF DSM 35
products, could later require that EADS modify the DSM solution to satisfy its own
requirements.
2.4.2 When to Invest in Building a DSM Solution?
The basic economic assumption is that investment in building a DSM solution is paid
back later during its use. This payback can be calculated from many factors such as a
faster development cycle, improved product quality, or being able to allocate work
differently. Some of these factors are not always easy to calculate beforehand. What is
the value of having up-to-date documentation? Or being able to reach new customer
segments? Or having a product ready a few months earlier than your competitors?
While there is certainly signi?¬?cant value in usingDSMfor these reasons, wewill focus
here solely on development costs that are typically already known or can be reliably
estimated.
The basic decision for most companies is between two major alternatives: continue
using a general-purpose approach or build a domain-speci?¬?c one. Figure 2.1
illustrates these alternatives in relation to cumulative costs of application
development. For the sake of simplicity, we will assume here that the development
costs are linear.
The increased use of automation by DSM gives a potential payback.
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