090214 Fail Software Development

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Ed Kuiters

How to learn from your mistakes in software projects. Presentation at Yokohama IT Business Meetup 14 feb 2009.

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Standish Report ('95) More than 30% never completes More than 50% doubles original budget Est costs US $ 140 billion Failures are covered up, ignored, rationalized ...and not only by others...

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Prepare for fundraising: Materials: Pitch deck Backup slides Due diligence references: founders, customers/users, industry experts Financials: 2/3-year model and actual financials Practice your narrative, over and over Know it well, be comfortable with interruptions and not going linear Pitch friendlies: advisors, fellow entrepreneurs, existing investors Incorporate feedback, and initiate introductions once The higher the risk, the lower the valuation, the smaller the raise The valuation is a measure of all the risks that have not been eliminated (team, tech, production, goto market, etc.) Pre-Seed: < $1M To build the product Sources: Angels, AngelList, pre-seed firms, accelerators Runway: 9/12 months Team: handful Valuation: $3 to $6M pre Dilution: 5% to 15% Seed: $1M to $3M To launch the product Sources: Seed funds, angels, AngelList, other funds Runway: 18/24 months Team: < dozen Valuation: $6M to $10M Dilution: 20/25%

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090214 Fail Software Development

1. how to fail at software development

2. Standish Report ('95) More than 30% never completes More than 50% doubles original budget Est costs US $ 140 billion Failures are covered up, ignored, rationalized ...and not only by others...

3. Program 1. Identify failure 2. Learn from from failure 3. Change approach

4. Product

5. Make an irrelevant product

6. Beating a dead horse

7. Use BIG tools for small jobs

8. Wrong platform

9. Management

10. Fixed price innovation

11. Single step approach

12. Choke your supplier

13. Don't share intentions

14. Attitude

15. Hope for the best

16. Don't listen to your inner voice

17. You are right!

18. I am not responsible

19. Lessons learned?

20. Failures Trefpunt Kiddy KPN Leiden !Go Fabory Semecs RHG Profile Heuver ABS OSN Total solve problem 1 1 1 3 dead horse 1 1 1 1 4 big tool 1 1 platform 1 1 2 fixed price innov 1 1 2 1 step 1 1 1 1 4 uitknijpen 1 1 1 1 4 hidden agenda 1 1 1 3 ignore signals 1 1 1 3 hope best 1 1 not responsible 1 1 open kaart 1 1 1 1 4 1 1 2 1 3 3 4 2 0 3 3 9

21.

22. It is ALWAYS your fault

23. Think harder

24. Force yourself to draw conclusions

25. Read

26. It has got HURT

27. Not my fault...

28. It is ALWAYS your fault

29. Think DEEPER

30. Draw conclusions

31. Read

32. 37signals 1. Smaller = better 2. Fix: time, budget. Flex scope 3. What is the big idea? Ignore details 4. Make opiniated software 5. Brainstorm > sketch > coding 6. Interface first, Epicenter design, no functional specs 7. Less software 8. Half, not half assed products 9. Features; it does not matter

33.

34. How do you learn from them?

35. What did you learn from them?

Editor's Notes

Ed Kuiters Economist working in IT since 96 - not a software developer Came to Japan 2 years ago Started a company. Making Open Service Network I recently had a big failure... how could this happen? Thinking about a topic for a speech: How can you learn something from me? How do I learn > making mistakes > talk about failure Ime Why not talk about making mistakes, I have made many, perhaps you can learn from them as well.. Who knows you might made 1 or 2 yourself..

090214 Fail Software Development

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090214 Fail Software Development

Editor's Notes