Business caseforagile agiletourbeijing

© 2011 Agile Learning Labs

AGILEThe Business Case

Chris SimsAgile Learning Labs

http://flickr.com/photos/montanapets/


Chris Sims…

Who is this guy?


Chris Sims…

Who is this guy?


TRADITIONAL


TRADITIONAL

Requirements


TRADITIONAL

Requirements

Design

Time


TRADITIONAL

Requirements

Design

Code

Time


TRADITIONAL

Requirements

Design

Code

Testing

Time


TRADITIONAL

Requirements

Design

Code

Testing

Time

Deliver Value


AGILE


AGILE

Time

R


AGILE

Time

R D


AGILE

Time

R D C


AGILE

Time

R D C T


AGILE

Time

R D C T

Deliver Value


AGILE

Time

Deliver Value

Deliver Value


AGILE

Time

Deliver Value

Deliver Value

Deliver Value


AGILE

Time

Deliver Value

Deliver Value

Deliver Value

Deliver Value

Deliver Value

Deliver Value


OUR PROJECT

• 7 Engineers• Product Owner• Scrum Master / Project

Manager• Cost: $1,000,000 / Year• Development Time: 1.5 Years• Expected Revenue: $6M / Year


REVENUEAgile Traditional


REVENUE – Q1Agile : $0 Traditional : $0


REVENUE – Q2Agile: $250,000 Traditional: $0


REVENUE – Q3Agile: $750,000 Traditional: $0


REVENUE – Q4Agile: $1,500,000 Traditional: $0






REVENUE – Q7Agile: $5,250,000 Traditional:

$1,500,000


Traditional: $3,000,000

REVENUE – Q8Agile:

$6,750,000


CASH FLOWAgile Traditional


CASH FLOW – Q1Agile: - $250,000 Traditional: -$250,000


CASH FLOW – Q2Agile: - $250,000 Traditional: -$500,000


CASH FLOW – Q3Agile: $0 Traditional: -$750,000


CASH FLOW – Q4Agile: $500,000 Traditional: -

$1,000,000


CASH FLOW – Q5Agile: $1,250,000 Traditional: -

$1,250,000


CASH FLOW – Q6Agile: $2,250,000 Traditional: -

$1,500,000


CASH FLOW – Q7Agile: $3,750,000 Traditional: $0


CASH FLOW – Q8Agile: $5,250,000 Traditional:

$1,500,000


PERFORMANCEAgile Traditional

Break Even: Q3

Required Investment:

$250,000

Profit: $5.25 M

ROI: 2,100%

Break Even: Q7

Required Investment:

$1.5 M

Profit: $1.5 M

ROI: 100%


Not the whole story…


In the beginning...

Desired


DesiredRequirement

s


DesiredRequirement

s


DesiredRequirement

s


DesiredRequirement

s


TRADITIONAL

Time

DesiredRequirement

s


TRADITIONAL

Time

DesiredRequirement

s


TRADITIONAL

Time

Desired

Delivered

Requirements


AGILE

DesiredRequirements


AGILE

DesiredRequirements


AGILE

DesiredRequirements


AGILE

DesiredDelivered

Requirements

R


AGILE

DesiredDelivered

Delivered

Requirements

R


AGILE

DesiredDelivered

Delivered

DeliveredRequirements


AGILE

DesiredDelivered

Delivered

Delivered

DeliveredRequirements


Incremental Delivery

• Reduced risk • More revenue• Earlier revenue• Lower up-front investment• Better product• More profit


Incremental Delivery

• Reduced risk • More revenue• Earlier revenue• Lower up-front investment• Better product• More profit, sooner


Make more money , Sooner

Go Agile!

Technology

Business caseforagile agiletourbeijing