The (financial) Return of Agile
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The ƒinancial Return of AgileFrank VogelezangManager Pricing Office
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2Who is Frank Vogelezang
Manager Pricing Office OrdinaWhat IT services may cost in order to be competitiveWhat IT services should cost with a healthy financial return
President COSMICMeasurement Practices CommitteeFunctional Size of Software
Counting Practices Committee NesmaFunctional Size of Software
IWSM Mensura conference Conference ChairSoftware Measurement @IWSMMensura6-8 October in Rotterdam www.iwsm-mensura.org
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How to reach the drinks
COST
MISTAKE
shift
RETURN
DRINKS
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Calculating the Cost of Agile4
Cost
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Calculating the Cost of Agile is simple5
Cost
47
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6The Cost of (Agile) Software Development
TSP XP Scrum PP Waterfall€ 0
€ 500,000
€ 1,000,000
€ 1,500,000
€ 2,000,000
€ 2,500,000
MaintenanceDevelopment
Capers JonesEvaluating Agile and Scrum with Other Software Methodologies
1.000 Function Points5 years of maintenance
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7The Impact of introducing Agile
Cost
Productivity
Agile Waterfall
+34%
-27%
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8Proof for good Agile practices
Hennie HuijgensHow to build a goodsoftware portfolio
Steady heartbeat
Fixed team
Single application
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Mistake of the Century
COST
MISTAKE
shift
RETURN
DRINKS
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10It’s not about Cost
ƒinancial
Return
Benefit Cost
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11Cost pressure
Cost
Cost
DocumentContractProcessControl
Plan
Sin #1
Benefit
?
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12Whose Benefit?
Benefit
?
Purchasing
IT department
Business
User
Customer
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13Benefit for everyone?
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14What about ƒinancial Return?
ƒinancialReturn
Purchasing
IT department
Business
User
Customer
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15
Cost
Benefit
ƒinancial Return is maximizing Benefit
MoreBenefit
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16Cost pressure and Benefit
ƒinancial
ReturnBenefit
Cost
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Paradigm shift
COST
MISTAKE
shift
RETURN
DRINKS
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18Change the picture
ƒinancial
Return
Benefit Costƒinancial
Return
BenefitCost
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19What Benefit?
Benefit
?
Purchasing
IT department
Business
User
Customer
Business Value
Teamwork &Responsibility
PartnershipElaboration
Embrace
Change
! TRUST
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20MoreAgile Manifesto 2.1
We encounter possibilities to focus more on effectiveness by working Agile and learning from that. Based upon our experience we value:
Teamwork & responsibilityover Individuals and Interaction over processes and tools
Deliver Valueover Working software over comprehensive documentation
Partnership elaborationover Customer collaboration over contract negotiation
Embrace changeover Respond to Change over following a plan
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21Truly Rely on Utilizing STrenghts
Benefit
?
Purchasing
IT department
Business
User
Customer
Business Value
Teamwork &Responsibility
PartnershipElaboration
Embrace
Change
! TRUST
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The ƒinancial Return of Trust
COST
MISTAKE
shift
RETURN
DRINKS
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23In God we trust
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24The ƒinancial Return of Trust
SMARTTRUST
BLINDFAITH
DISTRUST
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25Smart Trust
Team Lease
Storypoints per sprint
Productivity
Business value
Virtue #1
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26Smart Trust ► Agile contracting
Period/Conditions/Non-disclosure
Definition of Done/Right
Incentive on Customer satisfaction
Incentive on Business KPI’s
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27Focus on ƒinancial return, the Agile wayIf your biggest value is cost reduction
Cost
Cost Cost
More Benefit
Don’t go Agile
If your biggest value is cost reduction
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Time for a drink
COST
MISTAKE
shift
RETURN
DRINKS
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29
WatKostIT.blogspot.nl
ThePriceofIT.blogspot.com
@FrankVogelezang
FrankVogelezang
www.linkedin.com/in/frankvogelezang