26/11/19

Sergej Berendsen

The Agile Value Paradox

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METRI proposition

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Agile is all about ValuePrinciples behind the Agile Manifesto

We follow these principles:

Our highest priority is to satisfy the customer

through early and continuous delivery

of valuable software.

Welcome changing requirements, even late in

development. Agile processes harness change for

the customer's competitive advantage.

. . and 10 other principlesagilemanifesto.org

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How to determinevalue? WSJF.

Feature Business

user value

Time

criticality

RR | OE

value

CoD Job Size WSJF

÷

÷

÷

÷

+

+

+

+

+

+

+

+

=

=

=

=

=

=

=

=

:

:

:

:

AGILE method WSJF: Weighted Shortest Job First

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How to determinevalue?

Increase

client

revenue

Increase

IT/OPS

perfor-

mance

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Agile is out of control –destroyingvalue

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Losingvaluedue to lackof control

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AssessSoftware Quality& productivity

Risk of critical failures in

production

Risk of performance / scaling issues

Risk of security breaches

Ease and speed of modifying

Ease and speed of learning

RISK MAINTAINABILITY

PRODUCTIVITY

Overall application functional size

Performance and productivity

OMG Standards for

automated function points

BENCHMARK

9Software Resiliency

64100 50 0 50 100

C#

Software Agility

42.6100 50 0 50 100

C#

Software Elegance

42100 50 0 50 100

C#

Focus on speed creates:loweragility& higher TCO

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Different value in the Application lifecycle

•Question marks

•Stars

•Cash cows

•Dogs

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Applicatie lifecycle

Application is functionally or

technically obsolete and is

phased out within 1 year

Legacy applications that require

minimal changes

Research and disruption.

Creating accepted

Minimal Viable Products

Rebuilding MVPs as

full-fledged applications on the

target architecture

Stable applications that need

controlled change to respond to

changing environmental

conditions

Question-mark

Dogs

Cash CowsStars

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Shiftingbalance in valuecreation

QUESTIONMARK STARS CASH COWS DOGS

Business Control Innovation output quality / productivity cost

Financial control

fixed budget

(mostly CAPEX)

business case

(mostly CAPEX)

TCO/Margin

(mixed CAP/OPEX)

Declining budget

(mostly OPEX)

Operating Model

lean start-up agile safe / lean /

devops

lean / oper.excell.

Market VALUE product leader

customer intimacy /

product leader operational excellence operational excellence

Revenue 0 strong inclining stabile declining

Cost Fixed strong inclining stabile declining

€ €

Break even RIP

€ €

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17Focus on:

•Creating value

•Creating the RIGHT value

•Finding a proper balance between:

•Market Value

•Product Value

•Operational Value

•Being agile in using the RIGHT agile toolbox

Solving the Agile valueparadox

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No part of this publication may be reproduced, stored in a retrieval system,

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Disclaimer2019 METRI. All rights reserved.

No part of this publication may be reproduced, stored in a retrieval system,

transmitted or made public, in any form or by any means, electronic,

mechanical, photocopying, recording or otherwise, without the prior

written consent of METRI.