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Why systems engineering must create added value (What actually is added value?)

Added value

There are many thankless jobs in companies, such as IT, accounting or data protection. These often go by the name of "cost center" and are thankless because they don't seem to make a direct contribution to the success of the business. Unfortunately, this is also how systems engineering is perceived in some companies. The point of this article is to show that SE can create significant added value (if practiced correctly). To show this, however, we must first define what "added value" actually is.

Speaking of thankless jobs: Formal Mind GmbH (and therefore also the SE Trends blog) have long been GDPR-compliant. There will also be no annoying e-mail.

What is added value?

This question, which may seem "stupid" at first glance, is not so easy to answer. I'll give you the answer in advance. Added value can be expressed in the following formula:

Added value = benefit-for-others × quality × efficiency [tweetthis]Added value = benefit-for-others × quality × efficiency[/tweetthis]

We can now take this formula apart:

Benefits for others: When it comes to added value, it is important to consider the external view. In other words: Who benefits from the result? A concrete example: As a systems engineer, we maintain traceability. Whether this work has value or not depends on who uses this traceability. I have seen companies where one employee maintained the traces full-time. The reason given for this was that ISO 15288 requires this, but the traces were not used by anyone.

Quality: The higher the quality, the higher the added value - logically. To stay with the example of traceability: The worse it is maintained, the lower the value. A Use case for traceability is, for example, the tracking of changes. Good traceability gives us the confidence to understand the impact of changes. If the traceability is not well maintained, we may feel compelled to check more than necessary by hand.

Efficiency: Anyone who has seen the movie Zoomania will understand how important efficiency can be. If a sloth is working as a clerk, then that also reduces the added value enormously.

https://www.youtube.com/watch?v=tUXNxrPb0M0

Incidentally, this is also a reason why tools are important: In systems engineering, it is difficult to be efficient without tools. And that in turn leads to low added value.

Added value in systems engineering

The first point - "Benefits for others" - is often the biggest hurdle. This is because systems engineering costs money, and the person with the money is typically interested in business success. Arguments that cannot be explained in terms of savings or higher turnover/profit are therefore difficult to implement. The challenge here is to translate empowerment through systems engineering into business goals. For example:

  • SE enables us to react more quickly to changes. This enables us to the right products faster on the market
  • If we do not meet the requirements of IEC 61508 (functional safety), this can drive the company to ruin in the event of damage. SE reduces the overhead for compliance, or makes it possible in the first place!
  • Properly practiced SE makes product development plannableand ensures that the products within the specified time and budget be realized.

The second point is Quality. To create added value here, we need to measure quality. That is certainly possible. To pick up on the examples just given:

  • We can measure whether the schedule and budget are being adhered to.
  • How long does an audit take? How many failures occur during audits?
  • Are there product recalls? How many? How many serious bugs in the late project phase?

The third point is Efficiency. Time can often be used as a proxy for efficiency.

  • How long does it take to compile the documents for compliance?
  • How much time do employees spend on reviews?
  • How long does it take on average for an issue to be closed?

Conclusion

Goals and added value are not the same thing! You can achieve your goals without having achieved any added value. Because goals are directed inwards, added value is directed outwards.

In addition to the benefits for others, added value also includes quality and efficiency.

And all readers are surely aware that these concepts can be applied not only to systems engineering, but to pretty much all areas of work - and perhaps even beyond.

Image source: Pixabay

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