In a world where software has become the backbone of modern business, Prof. Dr. Hermann Sikora, CEO of Raiffeisen Software, delivered a masterclass on the critical importance of transitioning to the self-organizing software factory. Through a meticulous exploration of industrial evolution and its parallels with software engineering, Sikora presented a compelling case for rethinking how we approach, manage, and execute software development in the digital age.
Sikora began by tracing the history of manufacturing, drawing clear parallels between the rise of traditional factories and the potential future of software engineering. The journey, he explained, follows distinct phases:
For software engineering, these stages serve as a metaphor for progress. While some organizations remain in the "handicraft" phase, relying on bespoke coding practices, others have embraced elements of automation and scalability. However, Sikora argued, the ultimate goal is to achieve self-organization—a state where software systems autonomously adapt and evolve with minimal human intervention.
The software factory is not just a concept; it is a necessity. Sikora underscored its relevance with a bold assertion: "Software and software engineering are 100% business-critical." For industries like banking, he noted, software is as essential as equity. Without it, the entire business collapses.
However, while many organizations recognize the importance of software, few have taken the steps needed to adopt a true factory model. Sikora identified the core attributes of a software factory:
The software factory, Sikora argued, is the “Champions League” of software engineering—difficult to establish but vital for long-term success.
Despite the clear benefits, Sikora acknowledged that most organizations have yet to implement a mature software factory model. He outlined several barriers:
Sikora emphasized that these challenges are surmountable but require proactive management and a shift in mindset at the executive level.
Artificial intelligence (AI) is poised to revolutionize the software factory. Generative AI tools, such as GitHub Copilot, are already streamlining coding processes, while advanced analytics enable greater transparency and control. Sikora predicted that AI would become the foundation of all engines in the software factory, transforming every aspect of the development lifecycle:
Sikora likened the rise of AI in software engineering to the advent of robotics in manufacturing—a disruptive force that will redefine how work is done and what skills are needed.
Sikora highlighted two distinct interpretations of the software factory:
The second model, Sikora argued, represents the true essence of the software factory, enabling companies to retain control and independence while achieving industrial-scale efficiency.
To succeed in building a software factory, organizations must embrace a long-term, strategic approach. Sikora outlined the steps required:
Sikora issued a stark warning to organizations that fail to adopt a software factory model: they risk becoming mere consumers, dependent on others for innovation and technological advancement. This dependency not only limits competitiveness but also exposes businesses to significant risks, from vendor lock-in to cybersecurity threats.
Conversely, organizations that invest in their own software factories will gain unprecedented control, agility, and competitive advantage. As Sikora put it, "Software engineering has universal problem-solving competence. Those who harness it will thrive; those who don't will fall behind."
In closing, Sikora emphasized that the software factory is not just a technical concept but a strategic necessity. It represents the culmination of decades of progress in software engineering and offers a blueprint for navigating the complexities of the digital age.
Yes, we can implement the software factory, as Sikora concluded. But only if we are willing to invest in it, learn from it, and lead with it. The future belongs to those who dare to engineer it.
For businesses looking to stay ahead, the message is clear: the time to build is now.
This masterclass was part of the Navigating Software Production executive exchange, an event hosted by the Software Excellence Network. Dedicated to addressing the most pressing challenges in corporate software development, the Network fosters open dialogue and collaboration between leading IT executives and academia. By creating a platform for the exchange of innovative ideas and best practices, the Software Excellence Network empowers organizations to drive meaningful progress in the field. Interested in learning more? Click here.
A Note to Our Readers
This article provides a journalistic summary of the ideas shared by Prof. Dr. Hermann Sikora during his presentation. While we’ve highlighted the key concepts and innovations he discussed, the full depth of his insights and examples can only be appreciated by watching the complete session. If you’re intrigued by these ideas and want to hear them explained directly by the speaker, we encourage you to watch the full video of his presentation. If you have any questions or concerns, please contact us.
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