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Agile Roi
 

Agile Roi

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Why agile contracts make financial sense

Why agile contracts make financial sense

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    Agile Roi Agile Roi Presentation Transcript

    • Agile ROI Or, why agile contracts make financial sense Cristiano Sadun Manager TietoEnator Corporation [email_address]
    • Agile principles in focus
      • Prioritize features on business value
      • Prioritize often
      • Put in production often, and as early as you can
    • Example - 5-features delivery
    • 1- One-go full delivery
      • All features-pre specified and estimated
      • Delivery in July
      • Cost-first cash flow
      • Breakeven in Sept. (9 months)
    • 2- Per-feature delivery
      • All features pre-specified and estimated
      • Deliveries from March to July
      • Smoother cash flow
      • Breakeven in August (8 months)
    • 3- Prioritized per-feature delivery
      • Features prioritized and released in order of priority
      • Deliveries from March to July
      • Very flat cash flow
      • Breakeven already in February!
    • Calculations
      • Easy to replicate by yourself!
    • Agile ROI
      • Agile contracts:
        • Huge benefits can be reaped by prioritizing and delivering early
        • “ Cut-away” of less valuable feature becomes the norm
        • Prioritization and value-evaluation are built-in
        • Stop clauses allow for agreed ramp-down once valuable features are realized
    • Agile ROI – why Tieto
      • Execution is essential: project and delivery management skills
      • Continuous open communication with Customers is a Tieto hallmark
      • “ Real world pitfalls vs. the example
      • First-time guidance
      • We’ve done it before:
        • Salsa – Portal project at NetCom, major telecom operator in Norway (2008)