This document discusses strategies for outsourcing a strategic software development project. It recommends taking an iterative approach focused on discovering business needs and generating value, rather than predefining requirements or budget. Specifically, it advises starting with a discovery phase to understand context before defining solutions, prioritizing small goals to get early feedback, and using agile methodologies like user testing and test-driven development.
2. ANDREA
BANDERA
• Product development
manager & traveler
• @dottorbabba
3.
4. STRATEGY
KEY PROCESSES
IT OPERATION
Company’s responsibility
Outsourcer’s responsibility
STRATEGY
KEY PROCESSES
IT OPERATION
STRATEGY
KEY PROCESSES
IT OPERATION
PAST NOW
5. STRATEGIC PROJECT
• i.e. new software product, internet service or even core
process redesign
• not standard (usually even not existing) solutions
• responsive to market evolution
• medium to long term projects (6 months-2 years)
• time to market is a critical success factor
12. • Detailed functional specifications
• Challenging time constraints
• PRICE NEGOTIATION TO DEATH!!!
13. • Detailed functional specifications
• Challenging time constraints
• PRICE NEGOTIATION TO DEATH!!!
14. FAI L #1
IT FOCUS ON HOW AND
NOT WHY
It doesn’t make clear what is the business value
15. FAI L #2
IT ANTICIPATES
DECISIONS
Typically lowering the generated value and increasing the risk of failure
because it ignores the learning value emerging from implementation
16. FAI L #3
IT IGNORES THE
UNEXPECTED
Reacting badly and making unrealistic assumptions about time
17. FAI L #4
IT DOESN’T PUT
BUSINESS VALUE FIRST
Considering the price the most critical success factor
18. FAI L #5
IT MAKES WRONG ASSUMPTIONS
ON SOFTWARE LIFECYCLE
Underestimating the importance of structural ability to evolve based on
business changes
25. ADVICE #1
DO NOT DEFINE THE MONEY TO
SPEND AT THE BEGINNING OF A
PROJECT
Just define the spending capacity of the agreement
26. ADVICE #2
COMMIT YOUR MONEY ON SMALL
AND WELL-DEFINED GOALS
In order to get feedback about generated value as soon as possible and
then take a decision on what it’s worth investing
28. ADVICE #3
START WITH A
DISCOVERY PHASE
Not a functional analysis because the supplier must well understand the
project context to define a value driven solution
29. WHAT A
DISCOVERY PHASE
I S ?
• It’s a project starting phase
usually lasting for few days or for
few weeks
• It’s the first small and well-defined
goal on which you
commit your money
• It’s an “all in a room” co-creation
work where knowledge emerges
and is shared between customer
and supplier (and usually also
among people from the same
company)
30. THE DISCOVERY JOURNEY
• Current value proposition
• Short/Long term vision and key drivers and anchors
• Key business and technical objectives and priorities
• Involved business workflows
• Customers and support team
• IT processes and architecture (setup, maintenance and support)
• Derive candidate initiatives and prioritize
• UX review
• Scenarios and roadmap
33. ADVICE #5
CLAIM FOR AN ITERATIVE AND
INCREMENTAL APPROACH
Short iterations give feedback asap on your decisions.
Delay commitment until the last responsible moment, that is, the moment
at which failing to make a decision eliminates an important alternative
34. ADVICE #6
USER CENTERED
DESIGN IS A MUST
Users feedback must be at the heart of solution definition
36. ADVICE #7
TESTS ARE AN ASSET
Testability also keeps architecture simple and leads to better technology
choices
37. ADVICE #8
NO TESTING AND DELIVERY
AUTOMATION? NO PARTY
It’s not about speed… it’s about change management
38. WHAT YOU GET
• A value driven supplier
• Improve the ROI reducing the waste and managing
the change
• Build a trusted relationship little by little based on
experience
• Focus on the relationship and not just the contract