6.3.3 Cost Effective Systems Engineering for Companies that Build‐on‐Speculation

Abstract

AbstractThe System Engineering community has long been looking for a Systems Engineering solution for ‘Commercial’ Systems Engineering. Our recent initiatives in the cost effective practice of System Engineering for one commercial enterprise leads us to believe that the differentiation between the two types of System Engineering might be in the business strategy. Does the company build‐to‐specification (BTS) or build‐on‐speculation (BOS)? That is the question. The answer is still evolving. However, the insight from more than 5 years of trying to apply the Mil‐Aero SE Process to engineering for a commercial enterprise that enters new product development on speculation, leads us to believe there are indeed differences. Continuing to focus on making the case for the value of Mil‐Aero style system engineering to the ‘commercial’ enterprise doesn't get us to the cost effective solution build‐on‐speculation businesses need. We offer some thoughts about the differences, and the allowances that need to be made. We provide some directions for organizing the SE methods to cost effectively provide the advantages of Systems Engineering to an organization that builds‐on‐speculation. Note: We borrowed the term ‘Build on Speculation’ from the construction industry. We are using it to identify a company that brings new product to market without a specific buyer or contract.