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Agile Roi

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Why agile contracts make financial sense

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Agile Roi

  1. 1. Agile ROI Or, why agile contracts make financial sense Cristiano Sadun Manager TietoEnator Corporation [email_address]
  2. 2. Agile principles in focus <ul><li>Prioritize features on business value </li></ul><ul><li>Prioritize often </li></ul><ul><li>Put in production often, and as early as you can </li></ul>
  3. 3. Example - 5-features delivery
  4. 4. 1- One-go full delivery <ul><li>All features-pre specified and estimated </li></ul><ul><li>Delivery in July </li></ul><ul><li>Cost-first cash flow </li></ul><ul><li>Breakeven in Sept. (9 months) </li></ul>
  5. 5. 2- Per-feature delivery <ul><li>All features pre-specified and estimated </li></ul><ul><li>Deliveries from March to July </li></ul><ul><li>Smoother cash flow </li></ul><ul><li>Breakeven in August (8 months) </li></ul>
  6. 6. 3- Prioritized per-feature delivery <ul><li>Features prioritized and released in order of priority </li></ul><ul><li>Deliveries from March to July </li></ul><ul><li>Very flat cash flow </li></ul><ul><li>Breakeven already in February! </li></ul>
  7. 7. Calculations <ul><li>Easy to replicate by yourself! </li></ul>
  8. 8. Agile ROI <ul><li>Agile contracts: </li></ul><ul><ul><li>Huge benefits can be reaped by prioritizing and delivering early </li></ul></ul><ul><ul><li>“ Cut-away” of less valuable feature becomes the norm </li></ul></ul><ul><ul><li>Prioritization and value-evaluation are built-in </li></ul></ul><ul><ul><li>Stop clauses allow for agreed ramp-down once valuable features are realized </li></ul></ul>
  9. 9. Agile ROI – why Tieto <ul><li>Execution is essential: project and delivery management skills </li></ul><ul><li>Continuous open communication with Customers is a Tieto hallmark </li></ul><ul><li>“ Real world pitfalls vs. the example </li></ul><ul><li>First-time guidance </li></ul><ul><li>We’ve done it before: </li></ul><ul><ul><li>Salsa – Portal project at NetCom, major telecom operator in Norway (2008) </li></ul></ul>

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