This document discusses real options analysis and how it can be applied to make decisions on software projects and architecture. It provides examples of using techniques like identifying options and their costs/values, setting decision deadlines, and implementing options in parallel to avoid sunk costs and keep options open. The key message is that real options analysis focuses on creating flexibility and avoiding premature decisions by planning to decide later when more information is available.
Learn 14 Antipatterns. Three types of antipatterns. Traps that are applicable to common solutions. Development, Architecture, and Project management pattern. Feud,Golder ,
We’re all doing Agile nowadays, aren’t we? We’ll all delivering software in an Agile way. But what does that mean? Does it mean sprints and stand-ups? Kanban even? But what about Extreme Programming? If as a development team we’re not using pair programming, test driven development, continuous integration, and other XP practices, then we’re not really doing Agile software development and we may be on a march to frustration, or even failure.
I’m going to look at why the current trend of companies and projects adopting Scrum, calling themselves Agile, but not transitioning their development to XP, is a recipe for disaster. I’d like to cover the main practices of XP as well as other good practices that can really help a team deliver quality software, whether they’re doing two-week sprints, Kanban, or even Waterfall.
https://www.youtube.com/watch?v=aZgnY9fAHOA
Learn 14 Antipatterns. Three types of antipatterns. Traps that are applicable to common solutions. Development, Architecture, and Project management pattern. Feud,Golder ,
We’re all doing Agile nowadays, aren’t we? We’ll all delivering software in an Agile way. But what does that mean? Does it mean sprints and stand-ups? Kanban even? But what about Extreme Programming? If as a development team we’re not using pair programming, test driven development, continuous integration, and other XP practices, then we’re not really doing Agile software development and we may be on a march to frustration, or even failure.
I’m going to look at why the current trend of companies and projects adopting Scrum, calling themselves Agile, but not transitioning their development to XP, is a recipe for disaster. I’d like to cover the main practices of XP as well as other good practices that can really help a team deliver quality software, whether they’re doing two-week sprints, Kanban, or even Waterfall.
https://www.youtube.com/watch?v=aZgnY9fAHOA
Real Options, Investment Analysis and Process PANKAJ PANDEY
Understand the capital budgeting process:
Document the policies and practices of companies in India and compare them with that of the companies in developed countries.
Understand the linkage between corporate strategy and investment decisions.
Define strategic real options.
Show the valuation of real options.
Keynote présentée à Agile grenoble 2013. Comment écrire du mauvais code plus rapidement avec les méthodes agiles. Il est temps de prendre plus de responsabilité pour la qualité de notre travail et nos produits qui affectent la vie de tout le monde.
We talk a lot about "maximizing business value". We ask business people and product managers to prioritise by estimating the business value of user stories. But what exactly do we mean by business value?
Vous pouvez ignorerr les controleurs de gestionAgileCoach.net
Présentation de la session "Vous pouvez ignorer les controleurs de gestion, eux ne vous ignoreront pas" about the influence of accounting models on agile and lean
A case study like no other. In this series of sessions at BoS Conference USA 2023 we deep dived into how Autobooks retooled their business and ask the question, “What Happens if Product, Sales & Marketing Work Together?”
By focussing everything they did on the needs of their customers and helping them grow, they also grew faster, made their lives easier and changed the way they think about collaboration across the company.
https://businessofsoftware.org/events/business-of-software-conference-usa-2023/how-autobooks-reinvented-itself-2/
A conversation about effective support for your website, with project management, the lifecycle of a project, and many stories.
I've added in a section for smaller dev shops who want a model for maintenance for their projects.
Lean Product Development using Design ThinkingAgedo GmbH
How to face uncertainty in the product development process using a lean design approach. Build products that matter, that your customers need and want and all of that in less time at lower costs. Substitute assumptions with facts and progress in fast iterations, without forgetting about the "joy of use" of your product.
PlatinumGames and Hansoft - the Road to AgilityHansoft AB
Presentation at GDC 2015 by Creative Producer Jean Pierre Kellams at PlatinumGames and Senior Coach Jon Leslie at Hansoft. Read more: ow.ly/JwCWc
PlatinumGames and Hansoft - the Road to Agility
More and more teams are moving towards agile or hybrids of agile and traditional methods. Managing the transition can be a challenge and it is important to align your teams, use the right metrics and organize the work in a good way in order to get studio wide buy-in and a satisfying result. In this session, Jean Pierre Kellams, Creative Producer of Scalebound from Osaka, Japan-based developer PlatinumGames, creator of titles such as Bayonetta, and Jon Leslie from Hansoft will tell you how the team at PlatinumGames made the switch. They will take you through the process, starting with the strengths and weaknesses that brought about the change, the actual transition, and the successes and failures that led to the realization that what seems ideal isn't always the case.
Does this FizzGood? Improve velocity, predictability & agility by asking a si...Jon Terry
LeanKit's founding team had a strong Lean-Agile background from previous careers. So, in the early days of the company, we just instinctively did things in a Lean way with as few formal processes as any startup. But, like any growing company, we eventually did have to start clearly defining how we do things. And like anyone, we were tempted to become more bureaucratic - with lots of scheduling, coordination, meetings and estimates.
Instead, we developed our FSGD (Frequent Small Good Decoupled) approach. This LeanKit way of working has provided our teams with a simple yardstick for making effective decisions without a lot of cross team scheduling and coordination. It has simplified abstract Agile concepts into something everyone easily understands and cheerfully applies on a daily basis.
FSGD isn't a replacement for Kanban, Scrum, XP, etc. We strongly believe in and spend lots of time teaching our teams about the Kanban Method as well as standard Lean and Agile principles, tools, and techniques. But FSGD distills what we think are the key decision making elements of those methods into something everyone can remember.
We apply this model to all of our teams: design, development, testing, operations, sales, marketing, finance, HR. Indeed, we believe that applying it as broadly as possible makes it work most effectively.
Indeed, that's part of why the model doesn't reference software directly at all. It's meant to be generally applicable. One sub-concept included in the slides TLDR (Tested, Logged, Documented, Reviewed) is more specific to the technology context.
We have seen significant improvements in our delivery speed across multiple teams since rolling out the FSGD approach. We want to help other people gain the same benefits.
Bio:
Jon Terry is co-Chief Executive Officer of LeanKit. Before LeanKit, Jon held a number of senior IT positions with hospital-giant HCA and its logistics subsidiary, HealthTrust Purchasing Group. He was among those responsible for launching HCA’s adoption of Lean/Agile methods.
Jon earned his Global Executive MBA from Georgetown University and ESADE Business School in Barcelona, Spain, and his Masters Certificate in Project Management from George Washington University. He is a Project Management Professional, a Certified Scrum Master, a Kanban Coaching Professional, is certified in the Lean Construction Institute’s Last Planner Method, and trained in the SAFe Lean Systems Engineering method.
Getting Started with Architecture Decision RecordsMichael Keeling
Documenting architecture design decisions is commonly considered a good practice and yet many teams don't take the time to write down the decisions they make. In our experience this happens for a few reasons: documentation is rejected as being too heavyweight, documentation has little influence since it is typically out of sight and out of mind, and many developers don’t know what to document. Architecture Decision Records (ADRs) address many of these problems by capturing design decisions in a simple, lightweight templates that is stored close to repositories used by stakeholders -- often in the same repository as code affected by the ADR.
In this hands-on workshop you will learn how to write effective ADRs and how to overcome road bumps teams often experience when first getting started with ADRs. By the end of this session you will have the skills you need to champion ADRs and help your team start (or improve) your design decision log.
The is the keynote presentation at the DevOps/vDay conference in Budapest on November 27, 2014. There was a nice crowd (300-400) and the presentation was well received with lots of good questions at the end.
Real Options, Investment Analysis and Process PANKAJ PANDEY
Understand the capital budgeting process:
Document the policies and practices of companies in India and compare them with that of the companies in developed countries.
Understand the linkage between corporate strategy and investment decisions.
Define strategic real options.
Show the valuation of real options.
Keynote présentée à Agile grenoble 2013. Comment écrire du mauvais code plus rapidement avec les méthodes agiles. Il est temps de prendre plus de responsabilité pour la qualité de notre travail et nos produits qui affectent la vie de tout le monde.
We talk a lot about "maximizing business value". We ask business people and product managers to prioritise by estimating the business value of user stories. But what exactly do we mean by business value?
Vous pouvez ignorerr les controleurs de gestionAgileCoach.net
Présentation de la session "Vous pouvez ignorer les controleurs de gestion, eux ne vous ignoreront pas" about the influence of accounting models on agile and lean
A case study like no other. In this series of sessions at BoS Conference USA 2023 we deep dived into how Autobooks retooled their business and ask the question, “What Happens if Product, Sales & Marketing Work Together?”
By focussing everything they did on the needs of their customers and helping them grow, they also grew faster, made their lives easier and changed the way they think about collaboration across the company.
https://businessofsoftware.org/events/business-of-software-conference-usa-2023/how-autobooks-reinvented-itself-2/
A conversation about effective support for your website, with project management, the lifecycle of a project, and many stories.
I've added in a section for smaller dev shops who want a model for maintenance for their projects.
Lean Product Development using Design ThinkingAgedo GmbH
How to face uncertainty in the product development process using a lean design approach. Build products that matter, that your customers need and want and all of that in less time at lower costs. Substitute assumptions with facts and progress in fast iterations, without forgetting about the "joy of use" of your product.
PlatinumGames and Hansoft - the Road to AgilityHansoft AB
Presentation at GDC 2015 by Creative Producer Jean Pierre Kellams at PlatinumGames and Senior Coach Jon Leslie at Hansoft. Read more: ow.ly/JwCWc
PlatinumGames and Hansoft - the Road to Agility
More and more teams are moving towards agile or hybrids of agile and traditional methods. Managing the transition can be a challenge and it is important to align your teams, use the right metrics and organize the work in a good way in order to get studio wide buy-in and a satisfying result. In this session, Jean Pierre Kellams, Creative Producer of Scalebound from Osaka, Japan-based developer PlatinumGames, creator of titles such as Bayonetta, and Jon Leslie from Hansoft will tell you how the team at PlatinumGames made the switch. They will take you through the process, starting with the strengths and weaknesses that brought about the change, the actual transition, and the successes and failures that led to the realization that what seems ideal isn't always the case.
Does this FizzGood? Improve velocity, predictability & agility by asking a si...Jon Terry
LeanKit's founding team had a strong Lean-Agile background from previous careers. So, in the early days of the company, we just instinctively did things in a Lean way with as few formal processes as any startup. But, like any growing company, we eventually did have to start clearly defining how we do things. And like anyone, we were tempted to become more bureaucratic - with lots of scheduling, coordination, meetings and estimates.
Instead, we developed our FSGD (Frequent Small Good Decoupled) approach. This LeanKit way of working has provided our teams with a simple yardstick for making effective decisions without a lot of cross team scheduling and coordination. It has simplified abstract Agile concepts into something everyone easily understands and cheerfully applies on a daily basis.
FSGD isn't a replacement for Kanban, Scrum, XP, etc. We strongly believe in and spend lots of time teaching our teams about the Kanban Method as well as standard Lean and Agile principles, tools, and techniques. But FSGD distills what we think are the key decision making elements of those methods into something everyone can remember.
We apply this model to all of our teams: design, development, testing, operations, sales, marketing, finance, HR. Indeed, we believe that applying it as broadly as possible makes it work most effectively.
Indeed, that's part of why the model doesn't reference software directly at all. It's meant to be generally applicable. One sub-concept included in the slides TLDR (Tested, Logged, Documented, Reviewed) is more specific to the technology context.
We have seen significant improvements in our delivery speed across multiple teams since rolling out the FSGD approach. We want to help other people gain the same benefits.
Bio:
Jon Terry is co-Chief Executive Officer of LeanKit. Before LeanKit, Jon held a number of senior IT positions with hospital-giant HCA and its logistics subsidiary, HealthTrust Purchasing Group. He was among those responsible for launching HCA’s adoption of Lean/Agile methods.
Jon earned his Global Executive MBA from Georgetown University and ESADE Business School in Barcelona, Spain, and his Masters Certificate in Project Management from George Washington University. He is a Project Management Professional, a Certified Scrum Master, a Kanban Coaching Professional, is certified in the Lean Construction Institute’s Last Planner Method, and trained in the SAFe Lean Systems Engineering method.
Getting Started with Architecture Decision RecordsMichael Keeling
Documenting architecture design decisions is commonly considered a good practice and yet many teams don't take the time to write down the decisions they make. In our experience this happens for a few reasons: documentation is rejected as being too heavyweight, documentation has little influence since it is typically out of sight and out of mind, and many developers don’t know what to document. Architecture Decision Records (ADRs) address many of these problems by capturing design decisions in a simple, lightweight templates that is stored close to repositories used by stakeholders -- often in the same repository as code affected by the ADR.
In this hands-on workshop you will learn how to write effective ADRs and how to overcome road bumps teams often experience when first getting started with ADRs. By the end of this session you will have the skills you need to champion ADRs and help your team start (or improve) your design decision log.
The is the keynote presentation at the DevOps/vDay conference in Budapest on November 27, 2014. There was a nice crowd (300-400) and the presentation was well received with lots of good questions at the end.
This presentation describes a "business trip" to Cambodia for a inter-cultural software project. Learn some of the benefits, challenges and lessons learned of this collaboration and how SCRUM can help you in such a setting.
This slide is translated version. Originally it was written in Korean. (http://www.slideshare.net/saltynut/how-do-we-drive-tech-changes )
It describes how do we drive technical changes onto our organizations had used old-fashioned java combinations(Java 1.6+Spring 3.x+MyBatis) and monolithic architecture.
Key point is what we need to do to drive changes, and I'll discuss what we did during Phase1 and what we are doing at Phase 2 for architecture, frontend, backend, methodologies/process.
Phase1
- Architecture : Frontend / Backend Separation
- Frontend : Angular.js, Grunt, Bower
- Backend : Java 1.7/Spring4, ORM
- Methodology/Process : Scrum, Git
Phase2
- Architecture : Micro-Service Architecture(MSA)
- Frontend : Content Router, E2E Test
- Backend : Polyglot, Multi-Framework
- Methodology/Process : Scrum+JIRA, Git Branch Policy, Pair Programming, Code Workshop
Tutorial on how to use the Conflict Resolution Diagram. Presented by Portia Tung and Pascal Van Cauwenberghe at the Mini SPA conference, London, September 2010
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
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Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
7. New DESIGN !!
L'analyse par les Options Réelles est
une technique qui permet de prendre
des décisions sur les décisions. C'est
cool, c'est meta.
Mais quel est l'intéret pour l'équipe au
quotidien ?
Vous prenez plein de décisions
chaque jour comme développeur ou
architecte. Des décisions qui peuvent
couter cher.
Les Options Réelles ne sont pas très
compliquées, cela s'explique en
quelques minutes. Mais en appliquant
les Options Réelles sur les projets
informatiques et sur l'architecture des
logiciels j'ai découvert que plein de
choses que je croyais vraies ou qui
me semblaient intuitivement
correctes étaient fausses.
J'illustre chaque technique avec des
exemples qui viennent de projets
auxquels j'ai participé les dernières
années, ou bien de la vie de tous les
jours.
Découvrez une autre façon de voir les
décisions, des techniques simples
pour gérer des projets ou définir une
architecture de logiciel. Vous
découvrirez peut-être que vous aussi
croyez des choses qui sont fausses.
Au minimum vous entendrez
quelques histoires belges... :-)
CELEBRITY NEWS AND GOSSIP WORLD EXCLUSIVES
The NIOUZE
Redesign
de tous les
sites!
Le “vieux” design jaune
sera remplacé par un
design bleu cool, fresh et
clair
Template:
www.presentationmagazine.com
20. Real Options Team to the
Rescue!
“Give us a day and we’ll tell you when and how to decide”
Olav Chris Chris
21. What is the problem?
Cost of Delay: a delay (even one day) can
cost us 50% of sales
22. Real Options
Real Options
Have a cost (= the price of the option)
Have a value
Have a price (“strike price”) when we exercise the option
Have an expiration date/condition
~ “Call Option”
An option is not an obligation
This is a metaphor
23. What are our options?
1. Go in production with the (new) blue design
• Yes but, we risk delay while we wait for the new design
to stabilize
• Yes but, meanwhile there will be many changes to the
design
2. Go in production with the (old) yellow design, the
redesign with the (new) blue design
• Yes but, it won’t be consistent with the other sites
• Yes but, the blue redesign will cost extra time/money
24. Comparing our options
Option Cost Price Value Expires
Blue ??? / Consistent
Design
???
Yellow +
Blue
??? Blue
redesign
Cost of
Delay == 0
???
25. When do we have to
decide?
Yellow + Blue option ???
Blue option ???
DecNov
Stock
shops
Oct
Produce
DVD+box
Servers
????March
We are here!
26. Questions for the developers
• Do we have to apply the design from the start?
• “We’ve always done it like this, but we could do it later”
• How much time to apply the Yellow design?
• “Around one month”
• How much time for a complex design?
• “Less than two months”
• Imagine the worst design the designers can create
• Laughs. “Two months. We’ve got experience with that kind
of design.”
27. When do we have to
decide?
Yellow + Blue option ???
Blue option ???
DecNov
Stock
shops
Oct
Produce
DVD+box
Servers
AugustMarch
We are here!
Design
and test
(2M)
28. How will we decide?
• IF the new blue design is completely stable
• AND if the estimate of the blue design < 2 months
• THEN we use the blue design
• ELSE we use the yellow design AND we’ll plan the
blue redesign once the blue design is stable
• Meeting: August 1st
29. Meanwhile...
• We develop the site in “black & white”
• One team member participates in the followup
meetings of the new design (2 hours every 2 weeks)
and keeps the team informed of the situation
30. The day is not done yet
• A few more questions:
• Developers, what changes when the design
changes?
• Developers show architecture and code
• What if there was less to change?
• Quick architectural “spike”: remove duplication,
separate concerns...
• How much to refactor the site?
• “We can do it in a few days”
• “Afterwards, any redesign costs less than 1 month”
31. When do we have to
decide?
Yellow + Blue option ???
Blue option ???
DecNov
Stock
shops
Oct
Produce
DVD+box
Servers
AugustMarch
We are here!
Design
and test
(2M)
32. When do we have to
decide?
Yellow + Blue option ???
Blue option ???
DecNov
Stock
shops
Oct
Producte
DVD+box
Servers
SeptMarch
We are here!
Design
and test
(1M)
33. The benefits of reducing
cycle time
• We can decide another month later
• We have one month more to implement functionality
• The redesign Yellow=>Blue costs 1 extra month, not 2
• New meeting date: September 1st
34. Comparing our options
Option Cost Price Value Expires
Blue 1 week of
refactoring
+ 2h followup /
2 weeks
/ Consistent
Design
01/09/20XX
Yellow +
Blue
1 week of
refactoring
+ 2h followup /
2 weeks
Blue
redesign
(1 month)
Cost of
Delay == 0
01/09/20XX
35. 3. Real Options
Optimal Decision Process
Option Implement
Option
Option
Decisions Deadline
http://commitment-thebook.com/
36. Retrospective
• 1 september: the blue design isn’t stable (no surprise).
We keep using the yellow design.
• Product delivered on time
• “This project was a lot less stressful than usual”
• Functions:
• Design:
40. Your mission, should you
decide to accept it...
• Online banking goes live on DD/MM/YYYY
• Company X will develop the frontend
• You need to deliver the backend servers on time
• A few small details...
• We’re still deciding what server platform to use
• We’ve started documenting the DB you have to use
• We’ll start documenting the requirements
• “But start developing, because we don’t have a lot of
time!”
• Would you accept this mission?
42. Our solution
• IF we don’t have enough time to implement either
Platform A OR Platform B
• THEN we implement Platform A AND B
• It’s logical when you think about it…
45. Retrospective
• Decision: platform A
• Implementation A in production on time
• Dev+Test platform continues to be used
• Implementation B was wasted
• To be continued...
47. Company B acquires A
L'analyse par les Options Réelles est
une technique qui permet de prendre
des décisions sur les décisions. C'est
cool, c'est meta.
Mais quel est l'intérêt pour l'équipe au
quotidien ?
Vous prenez plein de décisions
chaque jour comme développeur ou
architecte. Des décisions qui peuvent
couter cher.
Les Options Réelles ne sont pas très
compliquées, cela s'explique en
quelques minutes. Mais en appliquant
les Options Réelles sur les projets
informatiques et sur l'architecture des
logiciels j'ai découvert que plein de
choses que je croyais vraies ou qui
me semblaient intuitivement
correctes étaient fausses.
J'illustre chaque technique avec des
exemples qui viennent de projets
auxquels j'ai participé les dernières
années, ou bien de la vie de tous les
jours.
Découvrez une autre façon de voir les
décisions, des techniques simples
pour gérer des projets ou définir une
architecture de logiciel. Vous
découvrirez peut-être que vous aussi
croyez des choses qui sont fausses.
Au minimum vous entendrez
quelques histoires belges... :-)
CELEBRITY NEWS AND GOSSIP WORLD EXCLUSIVES
The NIOUZE
Redesign
de tous les
sites!
Le “vieux” design jaune
sera remplacé par un
design bleu cool, fresh et
clair
Template:
www.presentationmagazine.com
48. A little bit later
• Company B sends a letter to the bank
“Great news! We’ve just acquired company A. All
development on platform A has been stopped. We will
stop support very soon.
Please migrate to platform B.”
• Easy!
A B
B
C
55. Sunk Cost Fallacy
• Our investment to date is gone
• We should not take it into account when deciding if we
want to continue
• Yet we value money and time spent very highly
• Solution: look at the “deltas” of value and cost
• “Marginal Economics” (Reinertsen, Flow)
• Also: “Emotional Sunk Cost”
56. We suck at estimating
• We have trouble with absolute values
• Use relative estimates to make decisions
• We overestimate the costs and underestimate
the benefits of changing a decision
• Once decided, we fear losing what we have
• We overestimate the value of what we have
• This confirms that we made a good decision
• We overestimate the value of events closer to
now (faulty discount function)
=> We favour short term decisions
57. Choice Anxiety
• We freeze when there’s too much choice
• Many choices, high odds of take the wrong
choice
• We lose sight of the goal when we have too
many options
• Spend all our time “chasing options”
• Create “generic solutions”
59. We don’t like uncertainty
• Especially when under stress
• These tools help me calm down, slow down
• We don’t decide, we plan to decide:
• When will we make the decision?
• How will we make the decision?
• What data will we use? Where/how will we get the data?
• Who needs to be involved
• => We make decisions quickly and confidently
• My favourite tool to manage options: my calendar
62. What is architecture?
“Architecture are those decisions that are hard to
change and must be taken at the beginning of the
project”
If the decision is hard to change
• Either we make it easier to change
• Or we buy an option to move the decision back
I’m ready to pay for valuable options
• “Yes but… There are some things you can’t change”
64. Another project (4)
• Hard deadline: the EU law changes on 01/01/YYYY
• The current system is not compatible with the new law
• We’re building a replacement system
• What happens if we’re too late (cost of delay)?
• Deadline is getting nearer...
• Shouldn’t we look at backup options?
• Option: ask vendor to estimate cost and last moment to
start work to make current system compatible
• My estimate: option costs < 1000€
• “No. Failure is not an option”
65. What happened next?
• System is not accepted for production in december
• Company can’t invoice it’s customers
• Every month of delay cost X00.000€
• But we saved a few thousand euros on options!
66. What is the added
value for your
customer of your
architecture and
process?
67. Useful techniques (1)
• Cost of Delay:
• What is the (financial) in time for early/late delivery?
• Creative Process:
• Create options, select options, implement
• Options:
• Cost, value, price, expiration date/condition
• Optimal Decision Process:
• Decision point = Deadline – Implementation Time
68. Useful techniques (2)
• Variation Separation:
• Keep items with different rate of variability separate
• Set-based design:
• Implement many options simultaneously. Choose the best
• Sunk Cost Fallacy:
• Forget your investment to date
• Create options for your customers
70. Principle of the right moment
Easy to change decision: decide early
Hard to change decision:
• Make it easier to change
• Delay decision date
71. Minimum effort principle
Don’t do tomorrow’s work today(YAGNI)
AND
Don’t do anything today that makes
tomorrow’s work more difficult
Aka “The laziness principle”
72. A good architecture…
Creates options for your team; your
organisation and your customer
Creating and maintaining the options is
continuous, daily work in small steps
Otherwise you create legacy systems that
contain fewer and fewer options