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What everyone should know about time to market

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What everyone should know about time to market

  1. 1. What everyone should know abouttime to marketStephan Schmidt, Vice CTO, brands4friends
  2. 2. MeStephan SchmidtVice CTO
  3. 3. 3
  4. 4. brands4friends No.1 Shopping Club in Germany > 360k daily visitors > 4.5M Users eBay company5 20.04.12 WJAX 2011
  5. 5. 6
  6. 6. 7
  7. 7. Development atbrands4friendsTeamJava and web developers,data warehouse developersProcessScrum since 2009Kanban for DWH since2012
  8. 8. Time to Market
  9. 9. Why?10
  10. 10. If a feature is worthdeveloping, it‘sworth getting tomarket sooner.
  11. 11. Longer sales Larger market shareRevenue Early market Late Time entry market entry Reinertsen 1998
  12. 12. What is time to market?From idea tomaking money.Not from start of project!
  13. 13. Why does time to marketget worse?
  14. 14. Time Unmaintainable to CodeMarket Processes More people Founders no longer focus on product Startup Time
  15. 15. Time to market is ahuge lever.
  16. 16. Technology is nota huge driver.
  17. 17. Buffers are thebiggest driver.18
  18. 18. Development StartIdea Front-up DevelopmentProblems are here Everyone focuses here
  19. 19. Start Need Ship 42% 58% Need Ship 40% 60%Need Ship 51% 49%Need Ship 56% 44% -3 Years 0 3 Years Reinertsen 1998
  20. 20. MarketOpportunity Feeling of urgency Time relative to competitor Reinertsen 1998
  21. 21. Top Management Attention of top possible impact management for a project Reinertsen 1998
  22. 22. >50%  of  time  is  spent  before  development.      Time  to  market  in  development  is  a  solved  problem.  
  23. 23. Development is a solved problem24
  24. 24. Concrete Steps?
  25. 25. Measure
  26. 26. Low quality and reworkis one of the biggestwastes in softwaredevelopment.
  27. 27. Bug tracking is an anti- pattern. Dont do bugs.
  28. 28. 1. Feature 2. Feature 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 3. Feature 4. Feature 5. Feature Time TimeParallel Serial
  29. 29. 1. Feature 2. Feature 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 3. Feature 4. Feature 5. Feature Time Time5 15
  30. 30. TimeDeveloped Released 36
  31. 31. TimeDeveloped Released 54 Time Developed Released 36
  32. 32. TimeDeveloped Released 66 Time Developed Released 36
  33. 33. TimeDeveloped Released 54 TimeDeveloped Released 30
  34. 34. TimeDeveloped Released 54 6 Months TimeDeveloped Released 9 Months 30
  35. 35. 36
  36. 36. 1.  Measure, measure, measure2.  Increase quality3.  Reduce rework4.  Frequent releases5.  Stop working in parallel6.  Shorter stories7.  Visualize and manage flow8.  Rigorously cancel meetings9.  Continuous deployment10. Shorten product management11. No single point of failure or bottleneck12. Leveling work
  37. 37. Time to Market Cheat Sheet 5 Working in Parallel vs. Serialized work Release cycles and earned money 3 1. Feature !"#$%&()*+*"&,"-+.)"&"/012) Developed Developed Developed 2. Feature 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 3. Feature 1. Measure 4. Feature Time Time Time 5. Feature !"#$%#&#%&()*#+,#-.*(/#012.3+456#+(7,# Time Time -.*(/#5845#(.#9&*:(#,..4*" Released Released Released ;"#<+9#(.#9&*:(#+,#&#(34)#21*" !"# !"#1 ="#>)?*,#&*#(/#@+55,(#0*+1*" A"#<B/4.2.5C#+,#,&#&#/)5#0*+1*"Working in parallel reduces your time to market and your income. When If you release twice a year, developing one feature a This gets even better. When you reduce your release5 developers work on 5 features in parallel, each feature taking 5 month then after 6 months you have released 6 cycle to 1 month, releasing 12 times a year, you willmonths, it will take 5 months for the first one to reach the market. If features. They earn you money for 6 months, the make $66,000 with the same features and mostly the 6. >50% of time is spent beforeyou work feature after feature, assuming the developers can work on second half of the year. Suppose every released feature same costs. The optimum you can achieve areone feature in parallel, it takes one month for the first feature to reach makes you $1000 per month, thats $36,000 a year. continuous releases. But as you can see from the Released features earn you money. While when working in When you reduce your release cycle to 3 months, numbers: 36,54,66 doe converge. You cannot optimizeparallel you do not earn money for 5 months, whereas you have earned releasing 4 times a year, this will result in more money, forever and need to find the sweet spot for your10 units of money otherwise. $54,000 per year. Just changing realeases made you environment. 7. Time to market in development is a nearly twice the money. solved problem.How low-value features block high value features Time to market over time Time Developed Developed Unmaintainable to Code Market Processes Time Time More people Released Released Founders no longer focus on product 6 Months Startup 4 9 Months$%# !"# Time Developing features that dont earn you money, will really cost you. If In the beginning of a company, as a startup, time to market is short. 50% of your features do not earn money, then depending on release Founders are either developing themselves or are sitting right next to cycles and order you can lose 50% of new earnings. Developing developers. Founders are product managers themselves. Over time this features that do not earn money, will not only cost you money for changes. Time to market grows larger when founders no longer focus on development, but will also block features that earn you money. In this product, when processes are introduced, more people are hired and code example a feature is pushed 3 months later, from 6 months to 9 gets unmaintainable. Its easy to not not see the challenge, because in the months. 2 beginning everthing looks fine.
  38. 38. We‘re hiring :-)40
  39. 39. Thanks!
  40. 40. Images CC from Flickr: nimboo, imjustcreative, gremionis, justonlysteve, John_Scone, Matthias Wicke, irisgodd3ss, TunnelBug, alandd, seasonal wanderer, raulbarraltamayo, Gilmoth, Dunechaser, graftedno142
  • johannhartmann

    Nov. 13, 2014
  • hugosmn

    Apr. 1, 2014
  • SekharBurra

    May. 18, 2013
  • ndrssmn

    May. 2, 2012
  • xamde

    Apr. 22, 2012

What everyone should know about time to market


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