<p>Inspired by <a href="https://devops.stackexchange.com/questions/1381/software-development-which-environment-is-it-manufacturing-or-projects">this question</a> on DevOps Stack Exchange,
here is a question to economists:</p>

<p>For long time being, software engineering and IT operations have been - and I guess they still are - considered to be "services". I.e. the product is after all the time that I can trade and bill.
But, now we have many standard software components, and successful works like Kim Gene's "The Phoenix Project" align to industrial methodologies we know from manufacturing, and it seems like "manufacturing-like" teams become significantly competitive.
But then, billing hours is not really profitable if I am good, and not competitive if I am not so good.</p>

<p>Now, which type of work is done by computer specialists in software delivery and operations from economical point of view (manufacturing, service or something else)?</p>

CC BY-SA 3.0
2017-06-21T17:07:28.070Z
For me it is still a service.  Manufacturing is essentially about transforming one kind of stuff into another kind of stuff, with various physical stocks of input stuff and output stuff as part of the process.  Managing software engineering or IT services with methods drawn from manufacturing management or production lines might work effectively in certain circumstances, but management in itself is not what makes manufacturing manufacturing.
Henry
CC BY-SA 3.0
2017-06-21T17:09:31.920Z
@Henry What do you mean by "For me"? In your opinion this is the way it is included in the GDP by the statisticians? (If so, perhaps back this claim up with a source and make your comment an answer.)
Giskard
CC BY-SA 3.0
2017-06-21T17:27:12.663Z
@denesp  Statisticians certain do treat this as a service.  For example in the [UK standard industrial classification of economic
activities (SIC) 2007](https://onsdigital.github.io/dp-classification-tools/standard-industrial-classification/ONS_SIC_hierarchy_view.html) *Computer programming, consultancy and related activities* is division 62, part of Section J (Information and Communication).  Sections G to T are typically regarded as services, while section C is Manufacturing.
Henry
CC BY-SA 3.0
2017-06-21T18:40:36.067Z
Services can be either manufacturing (made to order) or projects. So the distinction of Manufacturing vs. Projects is imho at a lower level that is it a service. Everyone agrees it's a service, but which kind of service?
Evgeny Zislis
CC BY-SA 3.0
2017-06-21T18:44:43.977Z
to differ from manufacturing, there is also Construction http://smallbusiness.chron.com/difference-between-construction-manufacturing-20748.html - so working at customer site to build software is Construction?
J. Doe
CC BY-SA 3.0
2017-06-21T18:48:16.900Z
Goldratt defined Manufacturing as an environment where touch time is very small compared to waiting time. I tend to agree. In software it is usually true, but depends on the definition of touch time and wait time that needs to be agreed upon.
Evgeny Zislis
CC BY-SA 3.0
2017-06-21T18:48:48.073Z
Construction is most definitely Projects environment.
Evgeny Zislis
<software>
Which type of work is actually Software Development?
J. Doe
# Which type of work is actually Software Development?

(Asked by: username_0 on 2017-06-21)

Inspired by [this question](https://devops.stackexchange.com/questions/1381/software-development-which-environment-is-it-manufacturing-or-projects) on DevOps Stack Exchange,
here is a question to economists:

For long time being, software engineering and IT operations have been - and I guess they still are - considered to be "services". I.e. the product is after all the time that I can trade and bill.
But, now we have many standard software components, and successful works like Kim Gene's "The Phoenix Project" align to industrial methodologies we know from manufacturing, and it seems like "manufacturing-like" teams become significantly competitive.
But then, billing hours is not really profitable if I am good, and not competitive if I am not so good.

Now, which type of work is done by computer specialists in software delivery and operations from economical point of view (manufacturing, service or something else)?

**Tags:** software
> **Comments:**
> **username_1**: For me it is still a service.  Manufacturing is essentially about transforming one kind of stuff into another kind of stuff, with various physical stocks of input stuff and output stuff as part of the process.  Managing software engineering or IT services with methods drawn from manufacturing management or production lines might work effectively in certain circumstances, but management in itself is not what makes manufacturing manufacturing.  
> **username_2**: @Henry What do you mean by "For me"? In your opinion this is the way it is included in the GDP by the statisticians? (If so, perhaps back this claim up with a source and make your comment an answer.)  
> **username_1**: @denesp  Statisticians certain do treat this as a service.  For example in the [UK standard industrial classification of economic activities (SIC) 2007](https://onsdigital.github.io/dp-classification-tools/standard-industrial-classification/ONS_SIC_hierarchy_view.html) *Computer programming, consultancy and related activities* is division 62, part of Section J (Information and Communication).  Sections G to T are typically regarded as services, while section C is Manufacturing.  
> **username_3**: Services can be either manufacturing (made to order) or projects. So the distinction of Manufacturing vs. Projects is imho at a lower level that is it a service. Everyone agrees it's a service, but which kind of service?  
> **username_0**: to differ from manufacturing, there is also Construction http://smallbusiness.chron.com/difference-between-construction-manufacturing-20748.html - so working at customer site to build software is Construction?  
> **username_3**: Goldratt defined Manufacturing as an environment where touch time is very small compared to waiting time. I tend to agree. In software it is usually true, but depends on the definition of touch time and wait time that needs to be agreed upon.  
> **username_3**: Construction is most definitely Projects environment.  

---

## 0 answers

