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.

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Project thinking and digital service business

  1. 1. Nordic Process Days, 10.4.2014 Mikko Viikari Project thinking and digital service business
  2. 2. Futurice Companyfacts › Digitalservices agency › Establishedin 2000 › 5 locations: London, Berlin, Helsinki,Tam pere, Lausanne › 200+ employees; 30% annualgrowth 200
  3. 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. 4. Afewbrandswe’veworkedwith
  5. 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. 6. TheClockRateofDigital
  7. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 19. Waste Speed 20
  20. 20. MikkoViikari mikko.viikari@futurice.com +35850 3797 152 Contact

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