www.synerzip.com using agile approach with fixed budget projects april 15, 2009
TRANSCRIPT
www.synerzip.com
Using Agile Approach with Fixed Budget Projects
April 15, 2009
Confidential www.synerzip.com 2
The Challenge
Business Benefit of Agile
Approach
Mgmt Need For Fixed/Known $
Budget
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Our Experience
Synerzip Project
1 Neofirma2 Gimmal Workshare3 Gimmal PRM4 Broadlane5 FD2S6 Maximus NY7 Maximus Indiana8 Fellowship Technologies9 FedEx Kinkos CRDB
10 Datacert Oracle Migration11 SevaYatra12 Award Solutions13 Arc One14 Fundraiser15 CAPS
• 15 Client projects delivered in Fixed-budget Agile
• Numerous discussions with Agile practitioners
• Research into published work of industry experts
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1. Software development partner for small/mid-sized technology companies
• Focus: small/mid-sized technology companies• Deep experience in product development, testing, & deployment• Handles full software development life cycle• Technology and industry domain agnostic
2. Actually reduces risk of development/delivery• Experienced software management team• Brings in appropriate level of engineering discipline• Practices Agile development – responsive, yet disciplined
3. Reduces cost – dual-shore team, 50% cost advantage4. Offers long term flexibility – allows (facilitates) taking
offshore team captive
Synerzip in a Nut-shell
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Our Clients - Examples
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Discussion Topics For Today• Highlight characteristics of projects that are good
candidates for fixed-budget Agile delivery • Share empirical data from over a dozen fixed-
budget Agile projects • Discuss the common DOs and DONTs• Recommend alternative approaches for effectively
using Agile in fixed budget situations
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Key Characteristics
1. How baked are the requirements
2. Level of trust between the dev team and the product owner
3. Timing of (fixed) budget estimate commitment
4. Maturity and caliber of team
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1. Requirements Baked?• Is the vision and the idea that drives the product evolving from hazy to
well defined ?• Is the scope of the market that the product is trying to address
becoming more and more accurately defined ?• Is the revenue model thought through as an integral part of the idea ?• Have any real end users started using the product? Is it a startup
building out a product idea from scratch or an extension to an existing product?
• Is it an existing technology being applied to a new domain or a new technology being applied to an existing domain?
• Is it a case of a simple re-write where you are porting an existing product to a new database or a different operating system?
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New/Innovative Known/”ReWrite”
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2. Level of Mutual Trust• Mutual trust is a two-way street• Client/product owner apprehensive about
– Receiving good quality software– Not getting “ripped-off” (willing to pay only fair/competitive market
price)– Don’t want dev team spinning wheels with “$ meter running”
• Vendor/dev team apprehensive about– Continued client commitment and involvement– Likelihood of collecting the payment and not being unfairly
penalized for over-runs• Are the two sides seeing each other as competing or collaborating? If
there are developers on both sides are the experience levels matching? Do they have professional respect for each other?
No Trust Complete Trust
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3. Timing of the estimate• Early estimates are inaccurate because
– Customer has not yet thought through the requirements– Developers have not yet thought through the design.
• Estimates after “iteration zero” are more accurate. • Estimates go on improving as iterations progress.
Hence do re-plan and re estimate
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Upfront After iteration 0 or 1
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Do Re-Estimate and Re-plan
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Fixed Bid with waterfall vs DSDM
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Requirem
ents
Time
Converging requirements
Fixed bid with Waterfall Model
Overestimate- Customer’s loss
Requirem
ents
Time
Diverging requirements
Underestimate- Developer’s loss
Estimation before project kick off
Estimation before project kick off
Req
uirem
ents
Time
Converging requirements
Estimate
Fixed bid with Agile Model
Overestimate- Customer’s loss
Req
uirem
ents
Time
Diverging requirementsEstim
ate
Underestimate- Developer’s loss
Iteration Zero
Iteration Zero
Improved Accuracy and
lower risk due to agile
Improved Accuracy and
lower risk due to agile
Estimation after iteration zero
Estimation after iteration zero
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4. Maturity & Caliber of Team• Domain knowledge- is the customer and
established player in the domain? Does the development team have domain experience?
• Technical Expertise – Is the customer aware of technical challenges? Does the development team have the technical expertise to address the technical challenges?
• Experience level – Are the developers and the product managers well experienced?
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Inexperienced/Junior
Highly seasoned
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Confidential
Discussion Topics For Today• Highlight characteristics of projects that are good
candidates for fixed-budget Agile delivery • Share empirical data from over a dozen fixed-
budget Agile projects • Discuss the common DOs and DONTs• Recommend alternative approaches for effectively
using Agile in fixed budget situations
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Fixed Budget Projects at Synerzip
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Key Characteristics
Synerzip ProjectBaked Requiremts?
Mutual Trust Level
Timing of Estimate
Team Maturity & Caliber
Project Successful*?
1 Documentum add-on product2 Vendor portal for hospitals3 Oil & gas well monitoring tool4 Sharepoint add-on product5 Kiosk display using Flash6 NY State health care svc app7 IN State health care svc app8 Reporting module for SaaS9 Retail service center mgmt app
10 Database porting MS to Oracle11 Voluntourism platform12 Cell tower data analyses app13 BI/reporting for comm distributor14 Charity campaign mgmt app15 Common college app platform
*Project considered successful, if both the client and the vendor (Synerzip) are happy with the results
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When Fixed Budget Agile Works?
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Discussion Topics For Today• Highlight characteristics of projects that are good
candidates for fixed-budget Agile delivery • Share empirical data from over a dozen fixed-
budget Agile projects • Discuss the common DOs and DONTs• Recommend alternative approaches for effectively
using Agile in fixed budget situations
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Common DOs • Wait for at least one iteration before you submit the
bid
• Keep re prioritizing and re-estimating after each iteration
• Listen to the end users’ pain points
• Question the product-market definition and the revenue model if its not clear to you.
• Add a time buffer, requirements buffer and/or price buffer
• Above all, stick with sound design and coding practices. Move some stories out but don’t reduce the story points by compromising quality
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Common DONTs • Don’t go for a fixed budget if there is lack of
maturity in terms of technical or domain knowledge.
• Don’t commit to a price until you have at least one iteration completed.
• Don’t work in a fixed price for a startup who are still unclear about their product/market or business model.
• Don’t sign up if a project has no flexibility on price, requirements, time or resources
• Above all, don’t compromise on quality of software delivered or coding standards to fit within the budget
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Confidential
Discussion Topics For Today• Highlight characteristics of projects that are good
candidates for fixed-budget Agile delivery • Share empirical data from over a dozen fixed-
budget Agile projects • Discuss the common DOs and DONTs• Recommend alternative approaches for effectively
using Agile in fixed budget situations
Confidential www.synerzip.com 21
Alternative approaches
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Story Points Based Agile
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Approaches UsedKey Characteristics
Synerzip Project
Baked Requiremts?
Mutual Trust Level
Timing of Estimate
Team Maturity & Caliber
Project Successful*? Approach Used
1 Documentum add-on product 2. Agile/DSDM2 Vendor portal for hospitals 1. RUP3 Oil & gas well monitoring tool 2. Agile/DSDM4 Sharepoint add-on product 2. Agile/DSDM5 Kiosk display using Flash 1. RUP6 NY State health care svc app 3. Incremental Agile7 IN State health care svc app 3. Incremental Agile8 Reporting module for SaaS 2. Agile/DSDM9 Retail service center mgmt app 1. RUP
10 Database porting MS to Oracle 1. RUP11 Voluntourism platform 4. Story Point Based Agile12 Cell tower data analyses app 1. RUP13 BI/reporting for comm distributor 2. Agile/DSDM14 Charity campaign mgmt app 2. Agile/DSDM15 Common college app platform 1. RUP
*Project considered successful, if both the client and the vendor (Synerzip) are happy with the results
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Recommended Approaches
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Key Characteristics
Baked Requiremts?
Mutual Trust Level
Timing of Estimate
Team Maturity & Caliber
Recommended Approach
1. RUP
2. Agile/DSDM
3. Incremental Agile
4. Story Point Based Agile
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Questions?
www.synerzip.com
Hemant Elhence, [email protected]
469.322.0349
Agile Software Product Development Partner
Call us for a free consultation