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A value proposition model for capstone projects

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 A value proposition model for capstone projects
Dr Samuel Mann Lesley Smith
Information Technology Information Technology
Otago Polytechnic, Dunedin NZ Otago Polytechnic, Dunedin NZ

[email protected] [email protected]

Abstract The capstone literature is full of claims for the value of

individual projects (Garrett, Youngman, McCormack,
This paper proposes a value proposition (or earned value) Rosescu, and Mann, 2003), for the value of courses, for
model for considering computing capstone projects with example Bruhn and Camp’s (2004) “win-win-win”
real clients. The value of student industry projects are situation for all:
considered in terms of value of product, benefit of
process, and in terms of quality of work. This model is 1. The students gain real professional skills;
developed from discussion of an assessed value of 2. The industry receives useful products; and
example projects. Characteristics of projects in different
value categories are explored and potential uses of the 3. The faculty successfully engages students in
model discussed. meaningful education that prepares them for transitions
from academic theory to industrial practice.”
Keywords: capstone projects, computer education, value Bruhn and Camp (2004) give an example of “one
proposition heathcare corporate sponsor reports that one team saved
them over $100,000 in consulting services, plus a
1 Introduction projected savings of thousands annually in overhead and
Many computing degrees include a capstone project operational costs”. But beyond such anecdotes of
(Fincher and Petre, 2001). Chamillard and Braun (2002) individual projects there is little in the literature regarding
argued that “the most critical aspect of the (software the economic value of capstone projects.
engineering/capstone) sequence is the use of real projects, We argue that the value to the industry is more complex
with real customers” (p227). than just this “receives useful products”. We first
The value of these projects is of interest for several examine client satisfaction as a means of valuing projects
reasons. In the initiation of capstone projects the project and then attempt to give a monetary value to projects.
size and scope may be specified in course documents in We then propose an earned value model of considering
terms of a nominal hypothetical value for the required projects and finally, consider the implications of such a
project size and complexity. At the end of a project, the model.
value may have a role in assessment (eg Mann and Smith
2005 describe a 80% weighting on deployment and 2 Client satisfaction
implementation with a threshold for assessment of The value to the client is usually expressed as client
attaining “client satisfaction”). satisfaction which could be used to calculate a monetary
The value of a project can also be seen to have value. Each client may be asked to provide a letter
importance in development. Cockton (2004) describes expressing their satisfaction with the project (Figure 1).
value propositions as driver in human computer These letters are a source of pride for the students and
interaction. On a larger scale, Boehm (2003) describes many institutions but they are difficult to use for
the role of value in project monitoring and control. ascribing value of the project to the business.
A single project may be examined in terms of its potential The most obvious flaw is the dual role of these letters –
value, especially with expectations for innovation, and be their primary role is a tool in assessment – after working
seen as having potential for developing as business, with students for a year, unless the interaction has gone
perhaps in an institution supported incubator (Tidd, very badly, most clients will try to say positive things (the
Bessant and Pavit, 2001). At an institutional level there is school report phenomena). A further difficulty is
interest in valuing any contribution to industry and inconsistency of language.
community, especially where the claim is for the value of Nevertheless, clearly there would be many projects where
applied research (ie in Pasteur’s quadrant, as described in a positive client response lines up with what we would
Stokes, 1997). consider to be a good project. Similarly, a bad project
This quality assured paper appeared at the 19th Annual will often elicit a tempered response. Most capstone
Conference of the National Advisory Committee on Computing supervisors will also recognise mismatches of client
Qualifications (NACCQ 2006), Wellington, New Zealand. response and quality of project (“Great project – fail”, or
Samuel Mann and Noel Bridgeman (Eds). Reproduction for “Terrible project – pass”).
academic, not-for profit purposes permitted provided this text is
included. www.naccq.ac.nz

175
 3 Value proposition Potential is also found in projects undertaken for large
organisations. In 2005, a project for a major meat
In accounting, the client satisfaction would be considered company investigated RFID by adding the chips to the
in terms of “prepared to pay” (Copeland, Koller and labelling system: After this exercise the company is now
Murrin, 2000). embarking on a multi-million initiative to convert the
In this section we examine this “prepared to pay” using production lines to being RFID capable. Although the
the capstone projects described by (Mann and Smith product of this work was RFID in a very small part of the
2004, 2005) as examples. These projects range from production system, the company found this very valuable
websites to complex applications and embedded systems “this project has enabled us to obtain a very good
(see full descriptions in Mann and Smith 2004, 2005). understanding of RFID and the knowledge gained will be
of much value to us”. A consultant to spend several
A project to develop a remote water monitoring buoy months working with a company as it explored new
(Richards, Wood, Fahey, Barclay, Hay and Mann, 2005) technology in this way would cost at least $50,000.
has resulted in a business now preparing to sell Similar examples include the proof of concept of a
monitoring buoys for $70,000 each. This business can be content management system for an accountancy firm and
clearly valued at several hundred thousand dollars. This proving the potential of mobile access to corporate data
is despite not having any significant intellectual property. for a large institution.
Some projects result in a tool that the client can directly
make money from. An electrical engineering company
servicing dairy farms had a need to measure power
quality in rural areas. A project team developed a
recording voltmeter suitable for use in agri-industrial
environments and a software application. This unit is
now being hired out at a cost of $200 per day. The
engineers could have purchased a system for around
$7000 but they are now in a position to manufacture the
devices themselves, this. being new business for our
client.
Many capstone projects are designed to act in support of
the business infrastructure. Such infrastructure projects
are more difficult to ascribe a value (how much are the
checkouts worth to a supermarket?).
A workflow support system for an architectural office
resulted in measurable savings in time for the business.
The system, a hybrid project management system,
contacts management system and file management was
explicitly developed to meet the legal requirements of an
architectural practice.
An event management system (Wade, Roger, Sewell and
Mann, 2004) is a tool that produces graphical images and
equipment schedules that assist with communication
about event layouts between conference centre customers,
staff and consultants. The system quickly became part of
the business system, being used to manage 84 major
events in the first few months and in active use three
years later. Similar systems cost more than $20,000.
Other business infrastructure financial systems include
tenancy management systems, an ecommerce sales
system for an international clothing company, and an
booking/invoice system for a chain of restaurants. Each
of these, in active use before the end of the project and
servicing a critical business function can be seen to be of
high value to the business. Depending on the scale of the
system (and business) a commercially developed
customised management system could cost anything from
$10-100,000.
Some business infrastructure projects deliver technical
solutions. In 2005 a project for a regional media
company delivered the ability to capture and rebroadcast
Figure 1: Example client satisfaction letters
content. Another project, the Museum Object
176
Acquisition System (Garrett et al., 2003) provided a 3D organisations) had had 14,000 unique visitors and had
artefact display solution for a museum which in currently received extensive media coverage. Projects supporting
in active use (www.otagomusuem.govt.nz). MOAS school based initiatives and other community projects
replaces an object capture approach that had been costing have had similar outcomes. At the extreme are projects
the museum $1000 per object and not delivering the with community benefits in other countries.
benefits required. In addition, the museum is still
The marketing value of the projects is difficult to
working with the students (now graduates) to market the
calculate. Approximately half the projects generate a
system itself.
news item in the regional news media. Several have been
For some projects the drivers are non-financial. A rest covered in national press (MOAS, SciCards, Rest home,
home management system was driven by changes in power monitoring), one has been the subject of a TV
health legislation. advertising campaign (Fox, Takau, Yuan, Haden, and
Mann, 2004) and three have attracted national and
"I write to express my grateful thanks for allowing Leith
international print and television (Smarttop, BallCam,
House to be involved in the third year project that has
eFence).
produced such fine work. I was very happy working with
the three students that were involved with this huge
undertaking. They were so professional and thorough in 4 Model
their approach. This programme gives to our business a It would be possible to formalise the values ascribed to
first class professional care package which actually runs each project and aggregate these values. This, though,
the whole of the staffs' day, enabling them to better would be a flawed process. In the somewhat idealised
deliver the care in a more structured way". Also, the section above too many factors have been ignored. The
Health and Disabilities Act has required that we have a notion of “earned value” (Ergdogmus 2002, and Huang
system that documents the outcomes of all actions and and Boehm, 2005) recognises that the benefits ascribed to
there are hundreds of these every day. It has been so a development should be tempered by other factors, in
difficult in the past to be able to measure and portray to our case, the quality of the work.
the H&D that we meet their requirements. We now have
confidence that we have a superb way of proving that we We can then, propose a four factor model of earned value
do meet their requirements and deliver the highest care to for considering capstone projects:
our residents. We have now, the tools to achieve great 1. Use of product
results. I am indebted to your department an am delighted
with the excellent result that will be ongoing for many 2. Value of process (to client and institution)
years to come”. (Client letter, unpublished) 3. Quality of project
For some projects the initiative is the development of a 4. Pedagogical benefits
new business. One project, for example, was the
development of a platform to support an after school The latter, the pedagogical benefits has been widely
distance tutoring programme. The successful discussed elsewhere. Each of the remaining factors can
development of the platform was critical to the ongoing be defined as follows:
business success. In another development, a sports Use of product: the extent to which interacted with by
management new business is entirely reliant on the sports live user within expected lifespan of product; both
contract management system developed as a project. frequency and intensity of interaction are considered.
On a less tangible front, projects may be intended to Value of process: the extent to which being involved in
support non-business infrastructure. A race car engine the process generates follow-on business value (to both
performance monitoring system (Benson, Rao, McLean, client and institution).
Reid and Mann, 2005) was intended to increase car
performance (a commercial but different system retails Quality of work: quality of produced product or process.
for $20,000). Similarly, a cricket training device was
intended to improve the reaction time of eye muscles as
batsman follow high speed deliveries. While recognising that these are not entirely independent
measures, we argue that examining capstone projects
Such intangible benefits can also be seen in exhibition against these three measures will highlight substantial
development (Mann and Smith, 2005), a 3D rugby differences in earned value.
training system and a kiosk for a gold-fields exhibit. It is,
unfortunately, difficult to cost these projects. The clients In the following sections we explore this earned value
are community based institutions with a limited ability to model by way of application to the existing project set.
pay. Many of these developments have wider benefit,
Scicards, for example (Goodsir, Douglas, Holo, Mann, 5 Model applied
Sewell, Smith and Mann 2005) was part of a wider
The full corpora of projects (n=102) were assessed
initiative to promote science to primary age children. In
according to the earned value model. Each project was
addition to this perhaps, immeasurable, benefit, the
classified high/medium/low for each measure. This
publicity surrounding the initiative was extremely
process was not formalised but done to explore the
valuable to both the client and institution. By the time the
model. The summarised data are shown in Table 1 and
project was submitted, the webpage (branded with both
Figures 2 and 3.
177
 Table 1: Summarised Earned Value Proposition Data for Capstone Projects.

Count of
Value_quality Use_of_Product
Grand
Value_of_Process Value_quality High Medium Low Total
High High 7 1 1 9
Medium 3 2 5 10
Low 2 2
High Total 10 3 8 21
Medium High 6 2 8
Medium 5 10 9 24
Low 2 1 9 12
Medium Total 13 13 18 44
Low High 4 2 6
Medium 5 12 3 20
Low 1 2 8 11
Low Total 10 14 13 37
Grand Total 33 30 39 102

Figure 2: Table as a datacube (shaded according to frequency light none or <3; medium between 4 and 7; and
dark 8 and above, axes low/medium/high).

178
 Figure 3: Key clusters highlighted

Figure 3 shows the datacube with key clusters

highlighted. The interaction of the measures can be seen 5.1.2 6 High product, medium process, high
with a dominance of the ordinal, with a reasonably even quality
distribution along it. In the section below we examine A second group of projects had high value products but
the characteristics of key clusters, both the strong the clients probably did not get as much from the process
(frequent) groups and those that are weak or missing from itself. The common thread in these projects is a slightly
the corpora. distant client (emotion rather than distance): an
accounting system was developed for a client who was
5.1 High use product instructed by head office to deploy such a system, a
school technician was told he was having a project done
5.1.1 7 High product, high process, high for him, an academic stood in for an absent colleague,
quality and so on.
This group of projects are the star projects described as
5.1.3 5 High product, medium process,
exemplars in Mann and Smith (2004, 2005). They are the
high quality projects that delivered both product and medium quality
process benefits for the client. This group can be characterised as having a keen client
These projects tend to be for repeat clients. Most of these with clearly scoped project and the project team got away
are local government or community institutions (museum, with slightly lower quality of work. These are mainly
library etc) but the project types are wide ranging. web-database systems but with some back-end
Examples in this group include exhibition developments, application processing (compared with just data i/o) or
an event management system and a 3D object capture more complex display or interactivity (eg spatial).
system, all of them could be considered total systems that Only two projects got away with being of very low
are well packaged. Almost all had an early delivery of quality but still resulted in a highly useful product. One
functional product. of these was working with an education development –
Two slightly lower quality projects achieved the same deficiencies were overshadowed by excited children, the
outcomes in product and process, but without spark. other, the development of a database to support homestay
accommodation – although poorly designed and
implemented – anything would have been an
improvement on the non-functional paper system.

179
 5.1.4 9 High product, low process, high or 5.2.3 10 Medium product use, medium value
medium quality process, medium quality.
These projects have high product high use despite little This large group of projects could have been much more
involvement of client in the development process. They exciting. Medium quality work turned them into
tend to be projects with tightly defined functional workman-like rather than their exciting potential. These
requirements at outset and tight simple solutions. Seven are mostly web-database systems that we could call
of these projects involved electronic or microprocessors content management systems, but in reality are dynamic
developments. websites that are somewhat light on functionality and
content. For several, the missing factor was adequate
Only one project managed high product with low process
testing prior to deployment so that while in use, some
despite low quality (gaming house). This for a client so
features are not working properly, meaning the system’s
desperately in need of help that anything would be
ongoing utility is limited.
beneficial, the product developed was functional but it
was poorly written, had poor design etc. A further nine projects are low value in process and only
had medium uptake of products. These are largely
5.2 Medium product use adequate projects but again, they didn’t quite live up to
expectation. In this group are several eCommerce
5.2.1 3 Medium product use, high value websites that, while functional, did not quite make it to
process, high or medium quality being fully integrated.

Only three projects fall into this category. These are 5.3 Low product use
projects for which the major benefit for the client is in the
process. The actual product may be a little disappointing. 5.3.1 Low product use but high quality
Two of these were educational infrastructure projects, the
third a sports training simulator. For all, the product is in Only three projects here deemed of high quality. One had
actual use but the far greater benefit to the client was the high process value; although the project originally
increased understanding of their own needs and/or intended a development stage, the analysis became the
community involvement in the development process. focus of the project. It is perhaps not surprising that with
an emphasis on implementation and deployment in
In the case of the 3D rugby decision simulation, while the assessment, this is the only ‘process project’
product was actively used for a three month period during
development, it was not packaged in such a way as to The two high quality projects with low product use and
allow extensive further use. The improved understanding low process value can be considered as missed
of their own business (sporting) context has had great opportunities. Both of these are excellent technical
benefit to the client who is now leading the development developments (and both won external awards) but we
of an integrated system for the national union. failed to capitalise on the developments.

5.2.2 3 Medium product use, medium value 5.3.2 7 High process value, medium and low
process, high quality. quality
Only three projects fall into this category of being These are projects that despite a lack of use of the product
considered high quality products but only reaching and varying quality of work, can be seen to have been of
medium product and process value. high value to the client. In most cases the client went on
to develop products using ideas developed in the project.
One of these was a project management system that the For all of these the original intention was a working
group scoped down during development to a relatively product but most finished up being “first-failure call it
small tool. This superbly developed tool was perhaps too prototype 1”. Despite being apparent failings, some of
elegant for the client who, expecting complexity, clung to these projects have had significant impact on the client’s
existing systems and failed to use the tool to its full business. The electric fence data network, for example,
potential. An almost identical scenario can be seen for a was a long way off “product” but has lead to substantial
tourism familiarisation tool that was too elegant for its development income for the client. We have tried in
own good. recent years to avoid projects that might be seen as failed
One excellent project has only had medium use and had developments such as these, rather we have recast them in
little process benefit, halfway through the project the early stages of development as having a product: that
client decided to buy the expensive alternative being an intentional prototype (or series of prototypes) to
commercial product with less features. The group carried answer specific questions.
on to complete the project.
5.3.3 18 medium process, medium/low quality
These projects could perhaps be seen as slight overkill,
the academic imperative of excellence setting a higher These are project for which no product was produced but
standard than was needed for the industrial reality. there were still some benefits to the client. Some have
made a business pathway clear, sometimes that this is in
an area worth investing in, in others, an area or technical
approach they wish to avoid.
180
Strangely perhaps, this group contains several intentional characteristics of previous projects in this category
prototype projects. It seems that when we switch focus highlight a fine line between value and situations where
to a prototype development, a higher (or at least different) the work involved outweighs benefits to the client.
set of requirements become apparent. While the required
This work has highlighted that we do need to be cautious
experimental approach might be understood by
about claims for value of end product. It is too easy to
academics, in particular that a well designed experiment
claim benefits on the basis of what the product might be
with negative results is better than a poor experiment with
able to do, any attempt to place a monetary value on
apparently positive results, this approach has not been
projects (individually or in aggregate) should carefully
well adopted by students.
take into account the earned value, that is the quality of
In one case a group failed to understand the effects of the projects and the separately costed benefits for product
scale on perception for a set of reaction time training and process. A useful area of further research would be
lights. In another, a GIS/GPS development got bogged to develop costing questions and equations for the
down in a tangential technical area but missed the different value categories.
overriding question about utility initially posed by the
At a wider level the distribution of the projects on the
client. Several projects took simply too long to reach a
model raises management questions. Clearly we would
first prototype stage – a stable platform that would have
want all projects to fall in the top right – generating high
allowed testing of concepts. Sometimes a macho attitude
value to clients in process, product and the academic
towards the use of tools such as phidgets (Greenberg and
stamp of quality, but equally clearly; most projects fall
Fitchett, 2001) may be to blame here with students
short of this goal. We can and should ask ourselves what
instead struggling to program in assembler or low level
factors drive projects down on one or more axis?
tools.
One factor is the choice of projects, perhaps sub optimal
It is interesting that some of the most innovative and
from client’s perspective. Choices made for pedagogical
media friendly projects are in this category.
benefits reduce efficiency. The technical complexity
requirements of a project (ie we don’t give credit for
5.3.4 11 Low process, medium and low quality typing) may conflict with the desire of client who wants a
It is difficult to see benefits to clients for this category at webpage – instead we insist on developing a content
the opposite end of the spectrum from the “star projects”. management system (sometimes less than successfully).
In some cases the only benefit is in the 4th dimension, the Another consideration is the assessment of ongoing value.
pedagogical benefits, but for most these projects are not The model has helped identify some projects that have
successful. missed their potential. Initiatives to develop innovation
These projects have little in common in terms of processes involving appraisal of product portfolios could
complexity, type of project or scope. They do, however, use a model such as this to identify potential products for
mostly (9/11) share a characteristic of not having a “real commercialisation.
client”, instead having internal clients or Chinese-wall We are not all content with the cluster at the bottom left.
structures. While some of these projects may have been suitable
learning experiences for the students, there is a significant
6 Discussion potential damaging effect on community relations. We
The value of projects is likely to become an increasingly should ensure that where clients are involved, is at least
important aspect of capstone projects. medium value for product or more likely process for the
client – this will have impact on the choice of project.
The earned value model may be of use in each of the Fortunately, or perhaps it was a contributing factor, most
various stages of each capstone project. In the initiation of these poor projects did not have a direct client
stage, the intended positioning of the project on the model relationship.
could be used in communication between client, students
and supervisors. It is hoped that this positioning will This model also leads to consideration of what are we
provide a common understanding of the benefits of the looking for in projects. Most capstone courses attempt a
proposed development. balance of product and process in teaching (Clear, Young,
Goldweber, Leidig and Scott 2001), a model such as this
At the end of the project, a positioning on the model may help in identifying alternative approaches.
might aid in assessment. This would clarify the
contribution the work has made and make explicit any 7 References
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