TY - GEN
T1 - Diversification of risk based on divided tasks in large-scale software system manufacture
AU - Matsuo, Tokuro
AU - Saito, Yoshihito
PY - 2007
Y1 - 2007
N2 - This paper presents a new contract model of risk aversion in large-scale software system manufacture. We consider a situation where ordering party does not order making software directly. Large-scale software consists of some modules. If the scale of a module is biggish, the software can be efficiently developed ordering as divided modules to some software developers. Generally, software developer has some risks as a company, such as, bankruptcy and dishonor. In such situation, it is important for an outsourcer to know how to reduce a rate of risks. In this paper, we propose a new risk diversification method of contracts with software developers in dividable software systems. In our protocol, we employ a payment policy of initial payment of and incentive fee. Then, the payment amount of initial fee is based on the developer's credit. Thus, our protocol prevents an outsourcer from risk on the project. Further we propose a distributed task model to reduce time of development. The results of experiments show the effective strategy for ordering party where risk and number of developers change. Our simulation shows that the outsourcer can get much earnings and performance selling/using the software at an early date when the number of modules and developers increase.
AB - This paper presents a new contract model of risk aversion in large-scale software system manufacture. We consider a situation where ordering party does not order making software directly. Large-scale software consists of some modules. If the scale of a module is biggish, the software can be efficiently developed ordering as divided modules to some software developers. Generally, software developer has some risks as a company, such as, bankruptcy and dishonor. In such situation, it is important for an outsourcer to know how to reduce a rate of risks. In this paper, we propose a new risk diversification method of contracts with software developers in dividable software systems. In our protocol, we employ a payment policy of initial payment of and incentive fee. Then, the payment amount of initial fee is based on the developer's credit. Thus, our protocol prevents an outsourcer from risk on the project. Further we propose a distributed task model to reduce time of development. The results of experiments show the effective strategy for ordering party where risk and number of developers change. Our simulation shows that the outsourcer can get much earnings and performance selling/using the software at an early date when the number of modules and developers increase.
KW - Auction
KW - Deversification
KW - Electronic commerce
KW - Task allocation
UR - https://www.scopus.com/pages/publications/36949032916
UR - https://www.scopus.com/pages/publications/36949032916#tab=citedBy
U2 - 10.1145/1278380.1278384
DO - 10.1145/1278380.1278384
M3 - Conference contribution
AN - SCOPUS:36949032916
SN - 1595938567
SN - 9781595938565
T3 - ACM International Conference Proceeding Series
SP - 12
EP - 17
BT - Proceedings of the 3rd International Workshop on Data Engineering Issues in E-Commerce and Services, DEECS 2007. In conjunction with ACM Conference on Electronic Commerce, EC'07
T2 - 3rd International Workshop on Data Engineering Issues in E-Commerce and Services, DEECS 2007
Y2 - 12 May 2007 through 12 May 2007
ER -