Agile for Startups

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This presentation was given at the Agile Australia 2011 (http://www.agileaustralia.com/)

Startup businesses face significant risk in the search for a sustainable, profitable and scalable business model. Consequently, the success rate for Startups is low, making them a typically high risk investment. Agile methods offer a way of reducing the risk for both the technical implementation and the development of customers. This is achieved by increasing the ability for a Startup to adapt to change and to incorporate the lessons learned from early customer engagement. In this presentation the nature of technology Startups is examined and the application of Agile principles, practices and tools discussed.

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  • Agile for Startups

    1. 1. Agile for Startups Adrian Smith @adrianlsmith Engineering Innovation.Thursday, 11 August 2011
    2. 2. Thursday, 11 August 2011 !"
    3. 3. Why Startups Matter ?Thursday, 11 August 2011
    4. 4. Railscamp ~150 DevelopersThursday, 11 August 2011
    5. 5. Why Startups Matter Engineering Innovation.Thursday, 11 August 2011
    6. 6. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage Engineering Innovation.Thursday, 11 August 2011
    7. 7. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage 2. Solve Problems Startups are able to solve complex problems with very few resources Engineering Innovation.Thursday, 11 August 2011
    8. 8. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage 2. Solve Problems Startups are able to solve complex problems with very few resources 3. Great People Startups have a culture that attracts smart, creative and motivated people Engineering Innovation.Thursday, 11 August 2011
    9. 9. Why Startups Matter 1. Innovation Innovation provides businesses with a source of competitive advantage 2. Solve Problems Startups are able to solve complex problems with very few resources 3. Great People Startups have a culture that attracts smart, creative and motivated people 4. New Markets Startups define and validate new markets with actual customers and revenue Engineering Innovation.Thursday, 11 August 2011
    10. 10. What is a Startup ?Thursday, 11 August 2011
    11. 11. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Engineering Innovation.Thursday, 11 August 2011
    12. 12. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Startups don’t last forever Startups are transitional by nature and eventually end in either success or failure Engineering Innovation.Thursday, 11 August 2011
    13. 13. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Successful Business Startups don’t last forever Startups are transitional by nature and eventually end in either success or failure Engineering Innovation.Thursday, 11 August 2011
    14. 14. Startup Business A Startup is an entity created to search for a sustainable, profitable, and scalable business model. Successful Business Startups don’t last forever Startups are transitional by nature and eventually end in either success or failure Failed Business Engineering Innovation.Thursday, 11 August 2011
    15. 15. Startup Life Cycle NAIVE BUSINESS GROWTH GOOD EXIT POINT BAD VALUE EXIT POINT REAL BUSINESS BUILD HARD UP WORK TIME Engineering Innovation.Thursday, 11 August 2011
    16. 16. Doll House Fallacy NOT a Small Business A Startup is NOT just a smaller version of an established business. Engineering Innovation.Thursday, 11 August 2011
    17. 17. Doll House Fallacy NOT a Small Business A Startup is NOT just a smaller version of an established business. High Risk Startups require greater flexibility to cope with the high level of risk and change. Engineering Innovation.Thursday, 11 August 2011
    18. 18. Startup IngredientsThursday, 11 August 2011
    19. 19. 1. Idea Making New Things “Find (a) simple solutions (b) to overlooked problems (c) that actually need to be solved, and (d) deliver them as informally as possible, (e) starting with a very crude version 1 then (f) iterate rapidly.” - Paul Graham Six Principles for Making New Things Engineering Innovation.Thursday, 11 August 2011
    20. 20. 1. Idea Making New Things “Find (a) simple solutions Personal Need (b) to overlooked These ideas originate from personal necessity problems (c) that but have wide appeal. actually need to be solved, and (d) deliver them as informally as possible, (e) starting with a very crude version 1 then (f) iterate rapidly.” - Paul Graham Six Principles for Making New Things Engineering Innovation.Thursday, 11 August 2011
    21. 21. 1. Idea Making New Things “Find (a) simple solutions Personal Need (b) to overlooked These ideas originate from personal necessity problems (c) that but have wide appeal. actually need to be solved, and (d) deliver them as informally as possible, (e) starting with a very crude version 1 Speculative Need then (f) iterate rapidly.” These ideas are based on the speculated needs - Paul Graham of a group of people other than yourself. Six Principles for Making New Things Engineering Innovation.Thursday, 11 August 2011
    22. 22. 2. Good People Good Developers “The most important factor in software work is the quality of the programmers. The best programmers are up to 28 times better than the worst programmers.” - Robert L. Glass Facts and Fallacies of Software Engineering Engineering Innovation.Thursday, 11 August 2011
    23. 23. 2. Good People Share the Vision Good Developers Understanding the vision is critical because it forms the basis for decisions about direction “The most important and implementation factor in software work is the quality of the programmers. The best programmers are up to 28 times better than the worst programmers.” - Robert L. Glass Facts and Fallacies of Software Engineering Engineering Innovation.Thursday, 11 August 2011
    24. 24. 2. Good People Share the Vision Good Developers Understanding the vision is critical because it forms the basis for decisions about direction “The most important and implementation factor in software work is the quality of the programmers. Understand Startups The best programmers Working in a Startup is different from a regular are up to 28 times better job and requires passion and flexibility than the worst programmers.” - Robert L. Glass Facts and Fallacies of Software Engineering Engineering Innovation.Thursday, 11 August 2011
    25. 25. 2. Good People Share the Vision Good Developers Understanding the vision is critical because it forms the basis for decisions about direction “The most important and implementation factor in software work is the quality of the programmers. Understand Startups The best programmers Working in a Startup is different from a regular are up to 28 times better job and requires passion and flexibility than the worst programmers.” - Robert L. Glass Common Culture Facts and Fallacies of Software Engineering It is important to be able to work under pressure without personal difficulties Engineering Innovation.Thursday, 11 August 2011
    26. 26. 3. Customers Engineering Innovation.Thursday, 11 August 2011
    27. 27. 3. Customers Customer Development Customer development is much more important than product development Engineering Innovation.Thursday, 11 August 2011
    28. 28. 3. Customers Customer Development Customer development is much more important than product development Field of Dreams Waiting for the product to be complete before developing customers is a very bad strategy Engineering Innovation.Thursday, 11 August 2011
    29. 29. 3. Customers Greatest Risk Customer Development “The greatest risk—and Customer development is much more important hence the greatest cause of than product development failure—in startups is not in the development of the new product but in the development of customers and markets.” Field of Dreams - Steve Blank The Four Steps to the Epiphany Waiting for the product to be complete before developing customers is a very bad strategy Engineering Innovation.Thursday, 11 August 2011
    30. 30. 90% of Startups Fail Because of a Lack of CustomersThursday, 11 August 2011
    31. 31. Can we reduce the risks ?Thursday, 11 August 2011
    32. 32. Lean Startup CUSTOMER DEVELOPMENT Problem is GO GO GO NO/GO NO/GO NO/GO Unknown DECISION DECISION DECISION Customer Customer Customer Scale Discovery Validation Creation Company PIVOT Data Feedback Hypotheses Insights Experiments Insights Product Iteration Deployable Backlog Backlog Product RELEASE ITERATION PLANNING PLANNING Solution is ITERATE Unknown PRODUCT DEVELOPMENTDiagram adapted from Steve Blank & Eric Ries Engineering Innovation.Thursday, 11 August 2011
    33. 33. Lean Startup IDEAS Learn Faster Develop Faster LEARN BUILD Customer Interviews Test-Driven Development 5 Whys - Root Cause Analysis Continuous Integration Cross-Functional Teams Minimize Pair-Programming Retrospectives Feature Prioritisation Total Shared Code Ownership Code Standards / Metrics Cycle Evolutionary Architecture Incremental Deployment Time Open Source Software DATA CODE Cloud Computing Just-In-Time Scalability Measure Faster MEASURE Analytics Usability Testing Split-Testing Production Monitoring Search Engine Marketing Customer Feedback Feature Branching One-Click DeploymentDiagram adapted from Eric Ries and KISSMetrics Engineering Innovation.Thursday, 11 August 2011
    34. 34. Lessons Learned at EnnovaThursday, 11 August 2011
    35. 35. Envision. Browser Smart Tablet Phone Envision is a SaaS (Software as a Service) construction management tool that reduces project administration effort and cost while radically improving field productivity. Project Dashboard Executive Summary Project Reporting Photo Libraries Document Integration Material Management Envision. Custom Time Schedule 4D Model Management Updates Animation Work Kanban Quality Packages Board Management Event Correspondence Notifications Management Features ts en m u oc D ERP ScheduleThursday, 11 August 2011
    36. 36. Garage Work Space Meeting Ping-Pong TableThursday, 11 August 2011
    37. 37. Planning Wall (Customer + Product Coffee Development Work) Schedule Pairing Stations Pairing Stations Meeting Ping-Pong Table Agile Work Space Cloud-Based InfrastructureThursday, 11 August 2011
    38. 38. Adapt Based on Feedback Engineering Innovation.Thursday, 11 August 2011
    39. 39. Adapt Based on Feedback Original Idea The original idea is not as important as being able to quickly adapt to meet customer needs while still maintaining the original vision Engineering Innovation.Thursday, 11 August 2011
    40. 40. Adapt Based on Feedback Original Idea The original idea is not as important as being able to quickly adapt to meet customer needs while still maintaining the original vision Be Embarrassed Be prepared to be embarrassed by your product when you first show it to customers Engineering Innovation.Thursday, 11 August 2011
    41. 41. Adapt Based on Feedback Original Idea The original idea is not as important as being able to quickly adapt to meet customer needs while still maintaining the original vision Be Embarrassed Be prepared to be embarrassed by your product when you first show it to customers Observe your Customers Spend time watching your customers actually using the product - what seems obvious to you is often not to them Engineering Innovation.Thursday, 11 August 2011
    42. 42. Thursday, 11 August 2011
    43. 43. Thursday, 11 August 2011
    44. 44. Feature Growth Before First Customer Schedule! 30%! Material Supply! 4D Model! 20%! WorkPackage Material Demand! Management! 10%! Document Events 0%! Management! Management! Photo Reporting! Management! Notices! Time Tracking! iPhone! Distribution of features based on the ratio of Lines of Code normalised by Total Lines of Code Engineering Innovation.Thursday, 11 August 2011
    45. 45. Feature Growth Before First Customer After First Customer Schedule! Schedule! 30%! 30%! Material Supply! 4D Model! Material Supply! 4D Model! 20%! 20%! WorkPackage WorkPackage Material Demand! Material Demand! Management! Management! 10%! 10%! Document Events Document Events 0%! 0%! Management! Management! Management! Management! Photo Photo Reporting! Reporting! Management! Management! Notices! Time Tracking! Notices! Time Tracking! iPhone! iPhone! Distribution of features based on the ratio of Lines of Code normalised by Total Lines of Code Engineering Innovation.Thursday, 11 August 2011
    46. 46. Current Feature Distribution Schedule! 20%! Material Supply! 4D Model! WorkPackage Material Demand! 10%! Management! Document Events 0%! Management! Management! Photo Reporting! Management! Notices! Time Tracking! iPhone! Engineering Innovation.Thursday, 11 August 2011
    47. 47. Focus on Quality Code Quality Code Quality Focus attention on quality and technical health to ensure that features can be easily adapted based “Continuous attention to on feedback quality can help maintain velocity, maintain the ability to deliver, without it the Automated Testing team will slow down” Maximise the use of automated testing to enable rapid change with confidence - Robert “Uncle Bob” Martin (Author of Clean Code) Automated Deployment Automated as much as possible of the build, provisioning and deployment process. Engineering Innovation.Thursday, 11 August 2011
    48. 48. Code Base Changes 6000! !"#$%&(&)*$& After First !"#$&(&+$%,& 5000! Customer 4000! Sustainable Pace 3000! 2000! Before First 1000! Customer 0! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 10 0 10 10 10 10 1 11 11 11 11 11 11 11 11 1 11 01 01 01 20 20 0 20 0 20 20 20 20 20 20 20 20 20 2 /2 /2 2 2 / 9/ / / 1/ / / / / / / / / 5/ / /8 /9 10 12 12 /1 /1 /2 /2 /3 /3 /4 /4 /5 3/ 3/ 9/ 20 17 17 31 14 28 14 28 11 25 23 / 6/ / 31 20 Excludes libraries and acceptance test code Engineering Innovation.Thursday, 11 August 2011
    49. 49. Code Base Changes 6000! !"#$%&(&)*$& After First !"#$&(&+$%,& 5000! Customer 4000! Sustainable Pace 3000! Many Late Nights 2000! Before First 1000! Customer 0! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! 10 0 10 10 10 10 1 11 11 11 11 11 11 11 11 1 11 01 01 01 20 20 0 20 0 20 20 20 20 20 20 20 20 20 2 /2 /2 2 2 / 9/ / / 1/ / / / / / / / / 5/ / /8 /9 10 12 12 /1 /1 /2 /2 /3 /3 /4 /4 /5 3/ 3/ 9/ 20 17 17 31 14 28 14 28 11 25 23 / 6/ / 31 20 Excludes libraries and acceptance test code Engineering Innovation.Thursday, 11 August 2011
    50. 50. Be Ruthless with Features Engineering Innovation.Thursday, 11 August 2011
    51. 51. Be Ruthless with Features Minimum Viable Product Watching your users will help you identify the minimum viable product and prioritise features for implementation Engineering Innovation.Thursday, 11 August 2011
    52. 52. Be Ruthless with Features Minimum Viable Product Watching your users will help you identify the minimum viable product and prioritise features for implementation Eliminate Unused Features Remove unused features because the cost to maintain is waste and will slow down development of valued features Engineering Innovation.Thursday, 11 August 2011
    53. 53. Be Ruthless with Features Minimum Viable Product Watching your users will help you identify the minimum viable product and prioritise features for implementation Eliminate Unused Features Remove unused features because the cost to maintain is waste and will slow down development of valued features Half a Product is better than Half Arse Product Poorly implemented features are difficult to use and limit the usefulness of customer feedback and usage analysis Engineering Innovation.Thursday, 11 August 2011
    54. 54. Agile Methods in StartupsThursday, 11 August 2011
    55. 55. Agile Planning Engineering Innovation.Thursday, 11 August 2011
    56. 56. Agile Requirements Engineering Innovation.Thursday, 11 August 2011
    57. 57. Agile Architecture Engineering Innovation.Thursday, 11 August 2011
    58. 58. Agile Implementation Engineering Innovation.Thursday, 11 August 2011
    59. 59. Agile Testing Engineering Innovation.Thursday, 11 August 2011
    60. 60. Agile Process Engineering Innovation.Thursday, 11 August 2011
    61. 61. Startup ManifestoThursday, 11 August 2011
    62. 62. Startup Manifesto Engineering Innovation.Thursday, 11 August 2011
    63. 63. Startup Manifesto Useful software over Comprehensive business plan Engineering Innovation.Thursday, 11 August 2011
    64. 64. Startup Manifesto Useful software over Comprehensive business plan Customer revenue over External funding Engineering Innovation.Thursday, 11 August 2011
    65. 65. Startup Manifesto Useful software over Comprehensive business plan Customer revenue over External fundingValidated customer learning over Secret launch plan Engineering Innovation.Thursday, 11 August 2011
    66. 66. Startup Manifesto Useful software over Comprehensive business plan Customer revenue over External fundingValidated customer learning over Secret launch plan Building it well over Building it to sell Engineering Innovation.Thursday, 11 August 2011
    67. 67. Startup in 13 Sentences Engineering Innovation.Thursday, 11 August 2011
    68. 68. Startup in 13 Sentences 1. Pick good cofounders 2. Launch fast 3. Let you idea evolve 4. Understand your users 5. Better to make a few users love you than a lot ambivalent 6. Offer surprisingly good customer service 7. You make what you measure 8. Spend little 9. Get ramen profitable 10. Avoid distractions 11. Don’t get demoralized 12. Don’t give up 13. Deals fall through - Paul Graham Engineering Innovation.Thursday, 11 August 2011
    69. 69. Useful ReferencesThursday, 11 August 2011
    70. 70. Agile for Startups Adrian Smith @adrianlsmith Engineering Innovation.Thursday, 11 August 2011

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