This document discusses using an agile approach for projects with a fixed budget. It outlines some of the benefits of an agile approach, including early delivery of working software, ability to incorporate changes throughout the project, and improved collaboration between developers and customers. The document provides details on how to structure an agile project, including estimating work using story points, tracking velocity to calculate timeline, and handling the backlog. It also notes some challenges that may remain when adopting an agile approach.

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Sebastian Klett
Agile on a fixed budget

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• Business Analyst and Solutions Architect @
• Magento Enterprise Partner in the Asia-Pacific region
• 80+ developers from 21 nations and 4 locations
About me
About the talk
• Not a silver bullet
• Not following a strict framework

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A new Magento 2 site is like ...

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The initial struggle
How can we solve this problem?

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A superpower is an exceptional or
extraordinary power or ability that helps a
hero to solve problems that seem
impossible for common people
Use Superpowers !

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• Reliable project dimensions
• Allows competitive bidding
• “Agency rips us off” thinking
• Easier reporting
• “I know what we want”
• More control
… are some reasons,
why clients want a
waterfall approach,
and do not like agile.

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Looking at a waterfall…
vs.
Niagara Falls (CAN) Niagara Falls (NZ)

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• Too much initial investment
• Requirements unclear
• “I told you before” problem
• Good ideas are threats
• Changes are not welcome
• Unsatisfying
• Lack of collaboration
Issues with a waterfall
approach ...

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Contracts are about protection Agile is about trust

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MoSCoWed
Product
Backlog
RFP or
Project Brief
Create
initial
backlog
Sprint wise
releases with
demo to
client
Interactive
prototypes
MVP with
fixed budget
and timeline
CR becomes
a ER
Incremental
releases
Ongoing
development
An agile project approach simplified...
Kickoff
Refine backlog
and breakdown
phases

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First Contract - Discovery
Second Contract - MVP
Third Contract - Additional Features
FP + FS
FP + FS
FB + VS
The agile contract ...

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Critical elements
• Estimation
• Initial time, budget and customer vision
• Ship often and early
• Build first what creates most value
• Welcome change: Reprioritise, reorder, redo features
• Sticking to the process

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The difference for your projects
Scoping
Design and
analysis
Development
and testing
UAT and bug
fixes
Deployment
and closing
vs.
10% of effort 20% of effort 45% of effort 20% of effort 5% of effort
10% of effort
scoping
85% of effort
Design, analysis, development, testing
and continuous deployment
5% of effort
or closing the
project

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Before the project
• Discovery with client based on RFP or
workshop
• High-level estimates based on Epics
• UI and UX kickoff
• Wireframe prototypes
The agile approach
During the project
• Sprint planning
• Daily scrum
• Backlog grooming
• Sprint review
• Sprint retrospective

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• Inspect current platform
• Shopping flow
• Transaction flow
• Focus on MVP
• Empower native Magento 2 functionality
• Refine features during the project
• Don't forget the obvious
Gathering requirements

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• Estimate epics/stories based on story points
• Change costs become exchange costs
• High complexity needs high clarity
• Early MVP release
• MoSCoW principle
The backlog
Must (70%)
Should (30%)
Could (20% Buffer)
Won`t
Out of Scope

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• Based on backlog and SP
• Cost per SP
• Velocity based on Team and used to
calculate project length
• Fixed budget means fixed amount of
SP
Timeline and costs

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Agency
• Developers can get right into the project
• Empowers developers
• Faster deliveries with feedback from client
• Reduces risk & frustration with clients
• Collaboration with customer
How everyone can benefit
Customers
• Able to see progress quickly
• Allows scope changes
• Able to align backlog with their needs
• Ongoing testing and shorter UAT
• Collaboration with agency

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• A long acceptance test phase at the end
• Unwanted features
• Big bang releases
• Surprised customers
• Long handover periods
• Ongoing budget discussions
What you can get rid off

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• Estimation for M2 not based on long-term experience
• Unknown issues with Magento 2
• Clients need to get used to the process
• ...
Remaining problems ...
vs.

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Sebastian Klett
Business Analyst @ Balance Internet
linkedin.com/in/sebastianklett
Thank you !