Agile and Business Value

Transcription

1 Agile and Business Value 10 th October 2007 Presenter Olivier Lafontan

2 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

3 Who are Exoftware Exoftware is a leader in Agile Enablement, Solutions and Consulting Our customers include: Benefits consistently delivered Reduced time for Concept to Market Significant decrease in the Cost of Delivery Reduction in Technical Debt built up over years Enhanced Customer Experience Elimination of Waste in the delivery process

4 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

5 A Vicious Circle project failure lower productivity increased control lower morale increased documentation increased stress

6 Traditional Development Insights

7 Waterfall Insights start project timeline finish this is the place we would least like to find any defects start analysis design code test finish the design of the waterfall means that we will always be at our most vulnerable just when we least want to be and that defects will be found where they are the most expensive to fix.

8 The Shunt Effect A Project Schedule analysis design code test But if delays occur analysis design code test As each phase of the project is delayed, the remaining phases get moved back but the deadline remains the same causing compression in the last stages. Delays are often caused by the reticence of individuals to sign-off the preceding stage.

9 Fear Based Paralysis

10 Predictability Paradox

11 Traditonal Planning Ready, Aim, Fire! Waterfall,Big- Bang

12 Waterfall,Big- Bang Reality Bites!

13 Paradox to get predictability we need to stop predicting make decisions based on fact not forecasts i.e. create and respond to feedback

14 Fear Based Paralysis

15 Ready, Fire, Aim, Aim, Aim! Waterfall,Big- Bang Evolutionary Courtesy Niels Malotaux July based on a diagram in Gilb88

16 Predictability - Invert the axis 50% Analysis Design Code Test Time

17 Predictability - Invert the axis Analysis Design Code Test Analysis Design Code Test 50% Time

18 Adaptive Approach starts early, learns constantly, commits late, delivers fast

19 Productivity

20 Productivity Input Production Output Input Productivity = Output Copyright 2003 Poppendieck.llc

21 Increase Productivity Do Less Work Produce More Value

22 How? Always 7% Often 13% Never 45% Sometimes 16% Rarely 19% identify these high value features and prioritize them appropriately Standish Group Study Reported at XP2002 by Jim Johnson, Chairman

23 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

24 Concept to Cash cycle

25 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

26 Importance of reducing the cycle Time

27 Importance of reducing the cycle Big Time A Time Less Time

28 Importance of reducing the cycle What the market wants Time? Less Time?

29 Importance of reducing the cycle A maturity model Time Less Time

30 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

31 Some Agile answers

32 Some Agile answers Phase 1 Phase 2

33 Some Agile answers HOW? Source: agilemanifesto.org

34 Some Agile answers

35 Some Agile answers Companies who achieve the implementation of these 3 principles... Have a great competitive advantage against other organisations using the waterfall. These principles will be achieved though the implementation of Agile practices. This also require a Culture shift where although cost is Important, Value prevails.

36 Some Agile answers

37 Some Agile answers Release

38 Some Agile answers Overall Investment 400 Project Balance at Y2Q4 400 % Value Released 100 % Payback Period Y2Q2 Overall Value Released at Y2Q

39 Some Agile answers Overall Investment 400 Project Balance at Y2Q4 700 % Value Released 100 % Payback Period Y2Q1 Overall Value Released at Y2Q4 1,100

40 Some Agile answers 1, , , year 1 Year 2 Cumulated Value Generated Project Balance Agile - even distribution, full plan 0 0 Cumulated Value Generated , Project Balance

41 What is left? Phase 1? Phase 2

42 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

43 What is left? Phase 1 Phase 2 In large organisations in particular, we found that there is a distinct separation between phase 1 and phase 2. Fear of being wrong we cannot develop and launch with the wrong concept Result >> more time is spent on Phase 1 Finance Model tell me what I am going to get and at what price Result >> more time is spent on Phase 1 These tend to make the Concept to Cash cycles longer... Culture/Organisation split between Business and Project Teams The Business comes up with concepts and solutions Result >> work can only start in Phase 2

44 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

45 Some more Agile answers

46 Some more Agile answers

47 Some more Agile answers Agile Analysis Agile Delivery Iteratively

48 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

49 Business Value of Agility - Theory Setting the scene Company s data Setting the scene Portfolio Structure 49

50 Business Value of Agility - Theory Back to Waterfall for a moment 50 In this example, the company has to finance up to Y2Q4

51 Business Value of Agility - Theory And now Agile: with even Business Value distribution, full execution 51 In this example, the company has to finance up to Y2Q1

52 Business Value of Agility - Theory Finally: Agile with Upfront 80% Business Value, half execution Starts new projects earlier Saves Budget 52 In this example, the company has to finance up to Y1Q4

53 Contents Exoftware Why Agile Concept to Cash cycle Importance of reducing the cycle Some Agile answers What is left? Some more Agile answers Full Programme View Questions

54 Olivier Lafontan