AGILE The Business Case Chris Sims Agile Learning Labs http://flickr.com/photos/montanapets/
Chris Sims…   Who is this guy?
Chris Sims…   Who is this guy?
TRADITIONAL
TRADITIONAL Requirements
TRADITIONAL Requirements Design Time
TRADITIONAL Requirements Design Code Time
TRADITIONAL Requirements Design Code Testing Time
TRADITIONAL Requirements Design Code Testing Time Deliver Value
AGILE
AGILE Time R
AGILE Time R D
AGILE Time R D C
AGILE Time R D C T
AGILE Time R D C T Deliver Value
AGILE Time Deliver Value Deliver Value
AGILE Time Deliver Value Deliver Value Deliver Value
AGILE Time Deliver Value Deliver Value Deliver Value Deliver Value Deliver Value Deliver Value
OUR PROJECT <ul><li>7 Engineers </li></ul><ul><li>Product Owner </li></ul><ul><li>Scrum Master / Project Manager </li></ul...
REVENUE Agile Traditional
REVENUE – Q1 Agile : $0 Traditional : $0
REVENUE – Q2 Agile: $250,000 Traditional: $0
REVENUE – Q3 Agile: $750,000 Traditional: $0
REVENUE – Q4 Agile: $1,500,000 Traditional: $0
REVENUE – Q5 Agile: $2,500,000 Traditional: $0
REVENUE – Q6 Agile: $3,750,000 Traditional: $0
REVENUE – Q7 Agile: $5,250,000 Traditional: $1,500,000
REVENUE – Q8 Traditional: $3,000,000 Agile: $6,750,000
CASH FLOW Agile Traditional
CASH FLOW – Q1 Agile: - $250,000 Traditional: -$250,000
CASH FLOW – Q2 Agile: - $250,000 Traditional: -$500,000
CASH FLOW – Q3 Agile: $0 Traditional: -$750,000
CASH FLOW – Q4 Agile: $500,000 Traditional: -$1,000,000
CASH FLOW – Q5 Agile: $1,250,000 Traditional: -$1,250,000
CASH FLOW – Q6 Agile: $2,250,000 Traditional: -$1,500,000
CASH FLOW – Q7 Agile: $3,750,000 Traditional: $0
CASH FLOW – Q8 Agile: $5,250,000 Traditional: $1,500,000
PERFORMANCE Agile Traditional 2,100% ROI: $5.25 M Profit: $250,000 Required Investment: Q3 Break Even: 100% ROI: $1.5 M Pr...
Not the whole story…
In the beginning... Desired
Desired Requirements
Desired Requirements
Desired Requirements
Desired Requirements
TRADITIONAL Time Desired Requirements
TRADITIONAL Time Desired Requirements
TRADITIONAL Time Desired Delivered Requirements
AGILE Desired R equirements
AGILE Desired R equirements
AGILE Desired R equirements
AGILE Desired Delivered R equirements R
AGILE Desired Delivered Delivered R equirements R
AGILE Desired Delivered Delivered Delivered R equirements
AGILE Desired Delivered Delivered Delivered Delivered R equirements
Incremental Delivery <ul><li>Reduced risk  </li></ul><ul><li>More revenue </li></ul><ul><li>Earlier revenue </li></ul><ul>...
Incremental Delivery <ul><li>Reduced risk  </li></ul><ul><li>More revenue </li></ul><ul><li>Earlier revenue </li></ul><ul>...
Make more money , Sooner Go Agile!
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Business caseforagile agiletourbeijing

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  • Winston Royce, 1970, &amp;quot;Proceedings&amp;quot; IEEE WESCON. Ironically, he actually argues that this is a bad idea!
  • Q2 rev: .25
  • Q3 revs .25 (Q1) + .5 (Q2) = .75
  • Q4 revs: .25 + .5 + .75 = 1.5
  • Q5 revs: .25 + .5 + .75 + 1 = 2.5
  • Q6 revs: .25 + .5 + .75 + 1 + 1.25 =3.75
  • Q7 revs: .25 + .5 + .75 + 1 + 1.25 + 1.5 =5.25 Total cost: 1.5 Profit: 5.25 – 1.5 = 3.75
  • Q8 revs: .25 + .5 + .75 + 1 + 1.25 + 1.5 + 1.5 = 6.75 Total cost: 1.5 Profit: 6.75 – 1.5 = 5.25
  • Business caseforagile agiletourbeijing

    1. 1. AGILE The Business Case Chris Sims Agile Learning Labs http://flickr.com/photos/montanapets/
    2. 2. Chris Sims… Who is this guy?
    3. 3. Chris Sims… Who is this guy?
    4. 4. TRADITIONAL
    5. 5. TRADITIONAL Requirements
    6. 6. TRADITIONAL Requirements Design Time
    7. 7. TRADITIONAL Requirements Design Code Time
    8. 8. TRADITIONAL Requirements Design Code Testing Time
    9. 9. TRADITIONAL Requirements Design Code Testing Time Deliver Value
    10. 10. AGILE
    11. 11. AGILE Time R
    12. 12. AGILE Time R D
    13. 13. AGILE Time R D C
    14. 14. AGILE Time R D C T
    15. 15. AGILE Time R D C T Deliver Value
    16. 16. AGILE Time Deliver Value Deliver Value
    17. 17. AGILE Time Deliver Value Deliver Value Deliver Value
    18. 18. AGILE Time Deliver Value Deliver Value Deliver Value Deliver Value Deliver Value Deliver Value
    19. 19. OUR PROJECT <ul><li>7 Engineers </li></ul><ul><li>Product Owner </li></ul><ul><li>Scrum Master / Project Manager </li></ul><ul><li>Cost: $1,000,000 / Year </li></ul><ul><li>Development Time: 1.5 Years </li></ul><ul><li>Expected Revenue: $6M / Year </li></ul>
    20. 20. REVENUE Agile Traditional
    21. 21. REVENUE – Q1 Agile : $0 Traditional : $0
    22. 22. REVENUE – Q2 Agile: $250,000 Traditional: $0
    23. 23. REVENUE – Q3 Agile: $750,000 Traditional: $0
    24. 24. REVENUE – Q4 Agile: $1,500,000 Traditional: $0
    25. 25. REVENUE – Q5 Agile: $2,500,000 Traditional: $0
    26. 26. REVENUE – Q6 Agile: $3,750,000 Traditional: $0
    27. 27. REVENUE – Q7 Agile: $5,250,000 Traditional: $1,500,000
    28. 28. REVENUE – Q8 Traditional: $3,000,000 Agile: $6,750,000
    29. 29. CASH FLOW Agile Traditional
    30. 30. CASH FLOW – Q1 Agile: - $250,000 Traditional: -$250,000
    31. 31. CASH FLOW – Q2 Agile: - $250,000 Traditional: -$500,000
    32. 32. CASH FLOW – Q3 Agile: $0 Traditional: -$750,000
    33. 33. CASH FLOW – Q4 Agile: $500,000 Traditional: -$1,000,000
    34. 34. CASH FLOW – Q5 Agile: $1,250,000 Traditional: -$1,250,000
    35. 35. CASH FLOW – Q6 Agile: $2,250,000 Traditional: -$1,500,000
    36. 36. CASH FLOW – Q7 Agile: $3,750,000 Traditional: $0
    37. 37. CASH FLOW – Q8 Agile: $5,250,000 Traditional: $1,500,000
    38. 38. PERFORMANCE Agile Traditional 2,100% ROI: $5.25 M Profit: $250,000 Required Investment: Q3 Break Even: 100% ROI: $1.5 M Profit: $1.5 M Required Investment: Q7 Break Even:
    39. 39. Not the whole story…
    40. 40. In the beginning... Desired
    41. 41. Desired Requirements
    42. 42. Desired Requirements
    43. 43. Desired Requirements
    44. 44. Desired Requirements
    45. 45. TRADITIONAL Time Desired Requirements
    46. 46. TRADITIONAL Time Desired Requirements
    47. 47. TRADITIONAL Time Desired Delivered Requirements
    48. 48. AGILE Desired R equirements
    49. 49. AGILE Desired R equirements
    50. 50. AGILE Desired R equirements
    51. 51. AGILE Desired Delivered R equirements R
    52. 52. AGILE Desired Delivered Delivered R equirements R
    53. 53. AGILE Desired Delivered Delivered Delivered R equirements
    54. 54. AGILE Desired Delivered Delivered Delivered Delivered R equirements
    55. 55. Incremental Delivery <ul><li>Reduced risk </li></ul><ul><li>More revenue </li></ul><ul><li>Earlier revenue </li></ul><ul><li>Lower up-front investment </li></ul><ul><li>Better product </li></ul><ul><li>More profit </li></ul>
    56. 56. Incremental Delivery <ul><li>Reduced risk </li></ul><ul><li>More revenue </li></ul><ul><li>Earlier revenue </li></ul><ul><li>Lower up-front investment </li></ul><ul><li>Better product </li></ul><ul><li>More profit, sooner </li></ul>
    57. 57. Make more money , Sooner Go Agile!
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