Explaining value driven delivery and best practices for better customer satisfaction. This is the first principle – and highest priority in Agile software development to “…satisfy the customer through early and continuous delivery of valuable software."
2. Value
Value could be defined in terms of monetary benefit, compliance adherence, an answer to the competition in the market etc.
The term value can differ for each client based on what the client is expecting the product/software to accomplish.
The end product of a project is a value to the customer.
Requirements are prioritized based on what adds more value to customer delivery.
For projects with monetary benefits, value is commonly calculated using methods such as return on investment (ROI), internal rate of return (IRR),
and net present value (NPV).
3. Value Driven Delivery
Value-driven delivery means making
decisions that prioritize the value-
activities and risk-reducing efforts for
project and then executing based on
these priorities.
2 reasons we need to deliver value
The longer a project runs, the longer the
horizon becomes for risks that can reduce
value such as failure, decrease benefits,
erosion of opportunities, and so on.
Stakeholder satisfaction plays a huge role
in project success.
Delivering business value is a core
component of agile methods and it’s
embedded in agile values: “working
software over comprehensive
documentation.” And agile principles:
“Deliver working software frequently”
“working software is the primary
of progress.”
5. Value Driven Delivery Phases
Assessing
Assessing Value
•ROI
•NPV
Planning
Planning Value
•Customer value prioritization
•Product roadmap
Delivering
Delivering Value
•Task/Kanban board
Confirming
Confirming Value
•Customer valued prioritization
Tracking and reporting
Tracking and reporting value
•Task/Kanban Boards
•Risk Burndown charts
6. Value driven delivery flow
Collaboration with
stake holders for
identifying what
adds more value
Identity value e.g.
monetary value,
competitive value
Identify risks Prioritize the
requirements
Deliver the value
to the customer
iteratively for rapid
return on
investment (ROI)
Work on feedback Deliver the value
to the customer
iteratively for rapid
return on
investment (ROI)
Identify Minimum
Marketable
Features (MMFs)
to increase the
value delivered to
the customer.
7. Best Practices Value-driven Delivery
Review what is being delivered in each iteration. The project requirements, the environment around it keep changing. We need to have an eye on what is changing, re-look at
look at priorities, and re-order them.
Whenever there is a new requirement, it has to be compared with the whole priority list so that we don’t divert in our objective of providing highest value to the customer. If
the new requirement adds more value to the deliverable then that should move to priority list.
Decrease uncertainty and constantly address risks that can potentially decrease value if they materialize. Also work closely with project stakeholders showing them product
increments at the end of each Sprint, enabling effective management of changes.
Experiment early so that we fail fast and rethink on our approach very early in the development stage
Create Deliverables based on the priorities determined by producing potentially shippable product increments during each Sprint so that customers start realizing value early
on in the project.