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AGILE The Business Case Chris Sims Agile 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 ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
REVENUE Agile Traditional
REVENUE – Q1 Agile : $0 Traditional : $0
REVENUE – Q2 Agile: $250,000 Traditional: $0
REVENUE – Q3 Agile: $750,000 Traditional: $0
REVENUE – Q4 Agile: $1,500,000 Traditional: $0
REVENUE – Q5 Agile: $2,500,000 Traditional: $0
REVENUE – Q6 Agile: $3,750,000 Traditional: $0
REVENUE – Q7 Agile: $5,250,000 Traditional: $1,500,000
REVENUE – Q8 Traditional: $3,000,000 Agile: $6,750,000
CASH FLOW Agile Traditional
CASH FLOW – Q1 Agile: - $250,000 Traditional: -$250,000
CASH FLOW – Q2 Agile: - $250,000 Traditional: -$500,000
CASH FLOW – Q3 Agile: $0 Traditional: -$750,000
CASH FLOW – Q4 Agile: $500,000 Traditional: -$1,000,000
CASH FLOW – Q5 Agile: $1,250,000 Traditional: -$1,250,000
CASH FLOW – Q6 Agile: $2,250,000 Traditional: -$1,500,000
CASH FLOW – Q7 Agile: $3,750,000 Traditional: $0
CASH FLOW – Q8 Agile: $5,250,000 Traditional: $1,500,000
PERFORMANCE Agile Traditional 2,100% ROI: $5.25 M Profit: $250,000 Required Investment: Q3 Break Even: 100% ROI: $1.5 M Profit: $1.5 M Required Investment: Q7 Break Even:
Not the whole story…
In the beginning... Desired
Desired Requirements
Desired Requirements
Desired Requirements
Desired Requirements
TRADITIONAL Time Desired Requirements
TRADITIONAL Time Desired Requirements
TRADITIONAL Time Desired Delivered Requirements
AGILE Desired R equirements
AGILE Desired R equirements
AGILE Desired R equirements
AGILE Desired Delivered R equirements R
AGILE Desired Delivered Delivered R equirements R
AGILE Desired Delivered Delivered Delivered R equirements
AGILE Desired Delivered Delivered Delivered Delivered R equirements
Incremental Delivery ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Incremental Delivery ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Make more money , Sooner Go Agile!

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Editor's Notes

  1. Winston Royce, 1970, "Proceedings" IEEE WESCON. Ironically, he actually argues that this is a bad idea!
  2. Q2 rev: .25
  3. Q3 revs .25 (Q1) + .5 (Q2) = .75
  4. Q4 revs: .25 + .5 + .75 = 1.5
  5. Q5 revs: .25 + .5 + .75 + 1 = 2.5
  6. Q6 revs: .25 + .5 + .75 + 1 + 1.25 =3.75
  7. Q7 revs: .25 + .5 + .75 + 1 + 1.25 + 1.5 =5.25 Total cost: 1.5 Profit: 5.25 – 1.5 = 3.75
  8. Q8 revs: .25 + .5 + .75 + 1 + 1.25 + 1.5 + 1.5 = 6.75 Total cost: 1.5 Profit: 6.75 – 1.5 = 5.25