Roi Main


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This presented by J. V. Ravichandran (Group Manager in JK Technosoft Ltd.) at Agile NCR 2009 Conference held on 18th July at Park Premier Hotel.

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  • Animation Note – Click ONLY ONCE to start the slide.
  • Animation Note – Click ONLY ONCE to start the slide. Because projects are defined as unique, the uniqueness contribute to the risk factor of each project.
  • Animation Note – Click ONLY ONCE to start the slide.
  • Animation Note – Click ONLY ONCE to start the slide.
  • Animation Note – Click ONLY ONCE to start the slide.
  • The probability of risks happening as time progresses is greater due to the lack of clarity of longer periods of time. In traditional project management because risk management is done upfront as per the design and architecture of the software system being built, the impact of the risks are also likely to be higher as they will occur at a point from where undoing or repairing measures would become extremely time-consuming and effort intensive tus increasing the cost of change. Animation note: Do nothing
  • Animation Note – Click ONLY ONCE to start the slide.
  • Animation Note – Click ONLY ONCE to start the slide.
  • Animation Note – Click ONLY ONCE to start the slide.
  • Animation Note – Click ONLY ONCE to start the slide.
  • Animation Note – Click ONLY ONCE to start the slide.
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  • Roi Main

    1. 1. ROI with Agile Converting risks to returns Presented by Ravichandran Jv Group Manager/Agile Trainer Email:
    2. 2. About JK Technosoft Ltd <ul><li>JK Technosoft (JKT) Ltd. is a global software & solutions company that is driven by the simple yet powerful tenet of providing ‘ total customer satisfaction ’. </li></ul><ul><li>A valuable asset of the JK Organization, one of India's largest industrial groups with an annual turnover exceeding US$ 4 billion, JKT is at the leading edge of comprehensive IT services & solutions. </li></ul>
    3. 3. Acknowledgements <ul><li>Ravinder Rawat, JK Technosoft Ltd. </li></ul><ul><li>Sanjeev Kaushik, JK Technosoft Ltd </li></ul><ul><li>JKT Agile Group </li></ul>
    4. 4. Assumptions <ul><li>The audience is already aware of the Agile Manifesto, Principles, Values and Practices. </li></ul><ul><li>The organization is not an Agile organization but is looking to transform itself into one. </li></ul><ul><li>Audience is aware of the artifacts of Software Development. </li></ul>
    5. 5. Agenda of this presentation <ul><li>What is ROI? </li></ul><ul><li>Primer </li></ul><ul><li>Definitions </li></ul><ul><li>Perspective </li></ul><ul><li>Solution </li></ul><ul><li>Summary </li></ul>
    6. 6. What is ROI? An Organization Investment Growth Sales Profit Turnover Value of assets Return on Investment Net Profit Value of Assets / Net profit after taxes An Organization Support Staff ROI = Value of Assets / Net Profit Resources Fixed Assets Fixed Assets
    7. 7. A Primer to the “R” of “ROI” <ul><li>Why have I interpreted “R” as “Risk” as well as </li></ul><ul><li>“ Return”, in “ROI”? </li></ul><ul><li>Answer : </li></ul><ul><li>There is substantial risk in adopting or adhering to Agile practices/recommendations if care is not taken to abide by them religiously! </li></ul><ul><li>Risk and Return are as related to each other as cause and consequences. </li></ul>
    8. 8. What is Risk? <ul><li>“… because the work is unique, it involves a level of risk.” </li></ul><ul><li>The Royal Society view risk as the probability “..that a particular adverse event occurs during a stated period of time, or results from a particular challenge.” </li></ul><ul><li>Any definition of risk is likely to carry an element of subjectivity, depending upon the nature of the risk and to what it is applied! </li></ul>
    9. 9. <ul><li>Traditional Project </li></ul>Enumeration of Risks in Agile Agile Project Time Cost Scope Fixed In an Agile context, the risk is that all the three components – Scope, Time and Cost - can change! Time Cost Scope Time Cost Scope
    10. 10. Enumeration of Risks in Agile <ul><li>Infrastructure Cost is high! </li></ul><ul><li>Pair working on a single PC = Additional Resource Cost </li></ul><ul><li>A dinner table like seating structure needs additional investment. </li></ul><ul><li>Why are these factors risks? </li></ul>
    11. 11. Enumeration of Risks in Agile <ul><li>Why are these factors risks? </li></ul><ul><li>Unless customer is committed and knows the benefits of Agile practices, all these factors can become risks. How? </li></ul><ul><li>The contracts and their nature contribute to make them so. </li></ul>
    12. 12. What is Return? <ul><li>Return is the gain or loss from an investment. </li></ul><ul><li>It is also known as Return Of Rate (RoR) or Return On Investment (ROI). </li></ul><ul><li>Return can be classified as Return for Organization and Return for a Project Team. </li></ul>
    13. 13. Risk-Return TradeOff <ul><li>Taking on some risk is the price of achieving returns; therefore, if you want to make money, you can't cut out all risk. </li></ul><ul><li>The goal instead is to find an appropriate balance - one that generates some profit, but still allows you to sleep at night. </li></ul><ul><li>Source: investopedia </li></ul>
    14. 14. How are Risks & Returns related? <ul><li>Greater the risks, lower the probability of good returns. </li></ul><ul><li>But, without greater risks you cannot expect greater returns ! </li></ul><ul><li>Greater the duration, higher the risk probability rate. </li></ul><ul><li>So, managing risks is of utmost importance for greater returns in any type of project. </li></ul>
    15. 15. Traditional Risk Risk Probability Risk Impact Time Cost Quality Time Cost Scope
    16. 16. Traditional Tracking <ul><li>Static View </li></ul><ul><li>No clarity on actual status thereby increasing risk. </li></ul><ul><li>Looks presentable, though! </li></ul>
    17. 17. Enter Agile <ul><li>So, how does Agile help ? </li></ul><ul><li>Using Agile, </li></ul><ul><li>you have more visibility leading to better clarity in tracking risks. </li></ul><ul><li>there is greater communication between all stakeholders leading to better view of status of risks. </li></ul><ul><li>there is less risk of incurring high cost at final stages of the project because of the iterative nature of Agile. </li></ul>
    18. 18. Agile Project Tracking Greater visibility and Control Greater visibility and Control Less Control Less Control
    19. 19. Benefits of Agile <ul><li>Quality </li></ul>To maintain high quality, Agile uses rapid feedback, simplicity as a design goal and rigorous automated testing. Quality Ensures ROI Time Cost Scope
    20. 20. Benefits of Agile – Value for money <ul><li>Power Consumption Cost (per month) – Rs. 80,000 </li></ul><ul><li>Per person cost – Rs. 2,667. </li></ul><ul><li>A dinner table-like seating, a recommended infrastructure for Agile, caters to 60 or more! </li></ul><ul><li>A cubicle-like seating caters to 30 employees. </li></ul>Power Consumption Cost (per month) – Rs. 80,000 Per person cost – Rs. 1,334. Ensures ROI
    21. 21. Benefits of Agile - Clarity of progress <ul><li>Economical </li></ul><ul><li>Enables a higher degree of transparency </li></ul><ul><li>Increase in visibility </li></ul><ul><li>Better communication </li></ul><ul><li>Faster feedback. </li></ul>Ensures ROI
    22. 22. Benefits of Agile <ul><li>With Agile, </li></ul><ul><li>Resources cost less to the project </li></ul><ul><li>The probability of success is higher </li></ul><ul><li>Better visibility of risks </li></ul><ul><li>More value for customer due to frequent delivery </li></ul><ul><li>Whole Team with more synergy </li></ul>
    23. 23. Summary <ul><li>Agile shows you what you need and what you don’t need . </li></ul><ul><li>Agile does not prescribe that you need this or that . </li></ul><ul><li>Faster the feedback, lower the probability rate of unforeseen or untracked risks. </li></ul><ul><li>Better communication, faster feedback = better Return On Investment. </li></ul>
    24. 24. Summary Customer Infrastructure Fast Feedback Follow Agile Practices Visibility Communication The Last Responsible Moment Contract
    25. 25. <ul><li>Q & A </li></ul>
    26. 26. <ul><li>Thank you! </li></ul>