Agile Executive Forum: Financial Implications and Business Benefits of Adopting Agile

CERQUIT SOLUTIONSwww.cerquit.com

Rod Cerrada Jr.VP of Operations, Cerquit Solutions


Financial Implications and Business Benefits of Adopting Agile

Agile Executive ForumBy: Rod Cerrada

Cerquit Solutions, Inc.www.cerquit.com


Trade-off Triangle• It conceptualizes the idea that Resources, Schedules,

and Features are related to each other.

• Any of the side changes the team have to make trade-off somewhere to maintain project balance

• if new features needs to be added it have to make trade-off in resources, schedule, or other features


• Resources– Resources can be team,

machines, budget, and/or tools that is needed by the project to accomplish its goal

• Features– Outlines the project scope

and requirements to satisfy the customer

• Schedule– the time required to

accomplish the project

New Features


Business Benefits


Incremental over Big Bang• Agile welcomes changes. The product owner has

a chance to change the course every sprint.– For a company who develop software products, you

can add features in the middle of development for your product to be highly competitive in the market.

– For a company who develop in-house software, you can add and prioritize features with high business value

• Agile discover issues at earlier stage of the development thus improve quality

• Agile ships builds every end of sprints thus create transparency and shortens the feedback loop


Traditional (Waterfall)

Incremental Releases

Agile

Big Bang Release

This is the only time the project visible to the

customer

SPRINT

SPRINT

SPRINT

SPRINT

Jan Feb Mar AprJan Feb Mar Apr


Increase Business Value• Agile improves the process through regular

retrospect • Agile increases customer satisfaction and

confidence to the product• Agile builds trust and relationship with

customer through regular and open communication

• Agile improves the quality of the product• Agile shortens time to market• Agile reduces Risk


Changes, Issues, Feedback, or New

Feature(s)

Customer/Product Owner reviews and validates the release

Agile ships working increment of the product to customer thus increase visibility and transparency

2 to 4 weeks cycle


Marketing

features

for Demo

Agile eliminates noise in the process that increase team’s productivity and focus

Sales Request new Features

TasksManagement

RequestChaos

Happy


Output over Theory• Agile is focused more in communication with

the team and the product owner to understand the customer requirements instead of documentation

• Agile is focused on bridging the communication gap between team members because feedback loop is much shorter

• Agile discovers issues before it strikes • Agile can start the project with minimal

documentation


The traditional model of gathering requirements and building specifications is based on a lot of formalising, handing over documents, and approval processes.

Analyst Developer(s) Tester(s)Customer/Product Owner

Worst case scenario


In agile processes, the feedback loop is much shorter and more frequent, so problems get discovered quickly. Communication between the team and product owner is always open.


Financial Implications


Faster Delivery Faster ROI• Less Management Overhead• Increase efficiency of the team results to lesser cost• Product Owners could throttle the budget without

sacrificing high valued features• Quality output results to low maintenance and downtime• Agile does not recommend Over Time results to low

operation cost• Shorten time to market thus increase revenue and help

position the product in the market.• Agile increase competitive edge of the product in the

market• Agile produces Happy developers = productive developers =

less turn over


Organic Growth. In agile, you don’t need huge team to start the project. It grows as the demand increases and it shrinks as the demand slows down. This results to lesser cost of implementation and efficiency.

Demand increasesDemand

Decreases


Team Benefits• Agile increases team confidence in the

product• Agile promotes self management and

teamwork• Agile produces highly maintainable product • Scrum meeting over documentation• Team are focus at one common goal and one

point person• Career growth


How to Cope Up with the Agility of Agile Development

• Setup Standards– Coding Standards– Development Standards

• Test Driven Development• Fameworks and tools• Design Patterns (MVC, MVP)

• Development Infrastructure– Source Code Control – Automation using Continuous Integration (CI)– Code Coverage


Reference

• Agile Project Management with Scrum by Ken Schuaber

• Peopleware by DemMarco & Lister• Goolge “Scrum” or “Agile Development”• http://www.it-cortex.com/Stat_Failure_Rate.h

tm• Microsoft Solutions Faramework -

http://technet.microsoft.com/en-us/library/bb497060.aspx

http://www.it-cortex.com/Stat_Failure_Rate.htm

http://www.it-cortex.com/Stat_Failure_Rate.htm



Agile Executive Forum: Financial Implications and Business Benefits of Adopting Agile

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