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Project thinking and digital service business


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Project thinking and digital service business – Mikko Viikari's presentation at Nordic Process Days 4/10/2014.

Project thinking and digital service business – Mikko Viikari's presentation at Nordic Process Days 4/10/2014.

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  • Fort Boyard:Planning started on 17th century (1692)Buit in 56 years (1801-1857 )When completed, range of canoons had increased -> fort was unnecessary: ”MARKET CHANGED”
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    • 1. Nordic Process Days, 10.4.2014 Mikko Viikari Project thinking and digital service business
    • 2. Futurice Companyfacts › Digitalservices agency › Establishedin 2000 › 5 locations: London, Berlin, Helsinki,Tam pere, Lausanne › 200+ employees; 30% annualgrowth 200
    • 3. We believe that our values – trust, caring, transparency and continuous improvement – are the key to our happiness cycle that includes happy customers, happy people and happy end- users! Today,Futuriceis the bestplaceto workin Europe! #1
    • 4. Afewbrandswe’veworkedwith
    • 5. Digitalservice? Service is an intangible commodity. Service is produced and consumed at the same time. Digital service? Same stuff, but (primarily) using digital channel.
    • 6. TheClockRateofDigital
    • 7. Markets are global Changes in work culture The digital revolution has disrupted traditional ways of doing business Competition is global State of the world, 2014
    • 8. Project » Ethymology: › latinproicere,beforeaction. › Inenglish:”planofsomething” » By definion projecthas start,end, goal, plan and budget/resources 4/16/2014 Futurice 8 scope Product or service Project budget plan
    • 9. Projectthinkinghasclearbenefits » Focuses resources to achieve defined goals » Abstractsaway complexity. Project is an elegant box. » Everybody knows ”project” and ”project management”. Makes communicationand management much easier. » Clear procedures for investments,decisions and contracts. » Existing,good models for planningwork and trackingprogress. » Project is excellent concept when the problem is somewhat clear and the game is linear. 4/16/2014 Futurice 9
    • 10. Softwareprojectsin2trad.ways 4/16/2014 Futurice 10 Reqs spec Design Build Deploy Maintenance 80% ofTCO 100% of benefits We build exactly what was specified, in schedule, and budget! Cool? Front-end Agile development project Small-scale development We released the desired product iteratively, in schedule and budget. Hooray! And we improved based on the user feedback. Actually a lot of work was done here.
    • 11. Historyofsoftwareprojects 4/16/2014 Futurice 11 » Project failed.(1990, wtrfll) » Project was a success but the patientdied. (2000) » Project was a success and the customer was rather happy. (2010, agile) » 2014: ?
    • 12. So,whatiswrongwithagilesoftware development,evenifappliedproperly. » Notthatmuch,agileisa greatstart,butit... » oftenfocuseson method,ratherthanactualgoalsand results » andon delivering software,ratherthanuserexperienceor businessimpact.Softwareas suchiswaste. » makesyouadd featuresand removebugs,insteadof creatinga productthe userswould love(eveniftheydonot know it yet) » expectationsforProductOwnerare typicallyunrealistic » isan ismand somehowdetachedfromreality. 4/16/2014 Futurice 12
    • 13. Whathaschanged,whatisneeded? » UserAcceptance vs.User Experience.Acceptable user experience is a loosingstrategy in a ”winner takes it all” game. » Product and marketing are the same. Digitalservices are more and more about customer development. » Continuous learning,tweaking,designing and hacking to improve the KPIs. » You need a smart architecture(micro services andAPIs) to be able to change the business direction in agile way. » Buy (from cloud) or build? 134/16/2014 Futurice
    • 14. ACritiqueofProject » Focus on wrong stuff: › Managementfocuson”project”,not”product”.”Howtofullfilpredefinedscopewithintheset limitations.” › Whenweshouldfocusontheproductandthecustomers.Whatisthebestwaytoaddvalueand learnrightnow? » Projecttime-box is mis-leadingabstraction › Launchisnotanendofanything.Itisthestartforbusinessbenefitsand(mostofthe)learning. › Goodserviceisnever100%completed. › Projectisafundamentallywrongstateofmind.Itgivesanillusionthatwearefreeafterthedeadline anddelivery. 4/16/2014 Futurice 14
    • 15. 4/16/2014 Futurice 15 … New approach. Lean Service Creation (LSC) Continuous learning and hypothesis-driven development. Continuous development of the service and the customers. Every day.
    • 16. Historyofsoftwareprojects,v2 4/16/2014 Futurice 17 » Project failed.(1990, wtrfll) » Project was a success but the patientdied. (2000) » Project was a success and the customer was rather happy. (2010, agile) » There was no project but digitalbusiness was successful. (2014, LSC)
    • 17. Whatwillreplace”agileproject”working model? » Continuousdevelopmentflow. Kanban. » Moreownership:”Youbuild it,You run it” (Amazon). DevOps. » No distinctionwith ”developmentproject”and ”maintenance” » Theslowerbeat:ServiceVisionSprint. Frequent,intensive,freshanalysis and steeringmethod. » Validated,direct customerand businessneedsdrive and prioritizethe development. » Marketmechanismsand intrapreneurshipinsteadof presentation+committeemodelin making investmentdecisions. 184/16/2014 Futurice
    • 18. 6tipsfororganisingservicecreation » Build a realcross-functionalservicecreationteam: design,developmentand marketing. » Have a proper design,product vision,”strongcenters”and unique value prop, not just a backlog. » Spendabsolutemax 50% of your budget pre-launch.Launch is a beginning, not an end. » Spend80% of the time on improving existing”features”,20% on adding new ones. (ok...dependson the levelof competition) » Validatewith real users,verify the businessresults » UseKanban for workflowmanagement 194/16/2014 Futurice
    • 19. Waste Speed 20
    • 20. MikkoViikari +35850 3797 152 Contact