Date post: | 16-Jul-2015 |
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Software |
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About Ryan
Co-Founder, Dynamis
Recovering Developer
Lean Product Strategy & Agile Coach
Focused on Innovation, Software Startups
Helping teams accelerate new product growth
Gold is invisible.
only1 oz gold
63 tons of rock. Long, expensive process.
Challenge: Must find rocks with highest value.
Jim Burnellholding his X-ray gun
Fast Feedback. Before Investing.
Use Fast-feedback InnovationCreate Value
Playing by a new set of rules.
IT & Software
Sales Marketing
DistributionOrder
ProcessingAccounts
Receivable ProductsFulfillmentCustomer Support
Management Team
Shareholders Customers
You have huge impact opportunity
Your Company
Value Flow - Capturing Business Opportunity
IT Delivery
Business
Customer’sGoals
#1 Responsiveness (Time)
#2Value
Accelerating Value in IT
Reality:As Humans – We need continuous visibility & feedback.We need to see & touch – as we create.
PainterIce sculptureChainsaw sculptureCar clay prototypeSand sculpture
Accelerating Value in IT
Moving Target
Technology Change
Customer Expectations
Solution RiskSystems Integration Risk
Customer Needs
3rd Parties
Story - Southeast Wisconsin Company
Consequences of Poor IT DecisionsDelivered without Minimizing Risk
Business Requirements
Develop Test Deploy Production
CustomizationsNo Automated Tests
100 Testers Multiple ArtifactsModifying Environments
Production IssuesTicketsCustomers Frustrated
You likely also see:
• Systems become Fragile• Protect Fragile Systems – Create Bottleneck• Tickets, High Wait Times• Production Issues• High Defect Rates• Urgency – Clients & Hot Fixes• Teams not Aligned• Testing Time Increases or Testing Less• Business has to promise to fix mistakes• IT under increasing pressure, deadlines
When you see:
• Fast value (without IT reliability)• Manual Testing• Lower & Upper Environments don’t match• Multiple Artifacts to Deploy• Version Control for only code• New Environments take long time to spin up• Slow feedback to developers
Watch Out For…
BusinessResponsiveness
Reliability
Fragile SystemsHigh Defect Rates
Over Promise CustomersUrgency
Careers on the Line
Fragile SystemsSlow Delivery
Dissatisfied CustomersBusiness Failing
Agile & DevOpsHighly Responsive
Highly ReliableHappy Customers
Enables Innovation & Value
StagnationSlow Delivery
Customers FrustratedLosing Marketshare
IT Maturity Model
Focused on Sales & Business Value
Business
IT Delivery
Business Requirements
Develop Test Deploy Production
Customers
Development Capacity – almost 100% New Business Value
Business
IT Delivery
Business Requirements
Develop Test Deploy Production
Customers
Cost of Failure Increases Downstream
Unplanned Work – Steals Business Value
Business
IT Delivery
Business Requirements
Develop Test Deploy Production
Customers
Defects, Urgent Items, Ticket Wait Times, Unplanned Work
New Business Value
Deployment PipelineStop the Line. “Build Quality In”
Compile
Unit Tests
Smoke Tests
Basic Scenarios
Acceptance Tests
Scenario Tests
Edge Cases
Browser Tests
Performance
Load Tests
Deployto Production
Feedback TimeFastest Slowest
Deployments
Code
DatabaseConfiguration
Files
OS & Libraries
Network
Environment
Security Patches
Application
DB Migrations
Secret Keys
Module 1
Module 2
Module 3
Accelerating Value in IT
RequirementsIntegrate & TestComponent A Component B Component C
What’s wrong with this picture?
Sprint 1-3 Sprint 4-6 Sprint 7-9 Sprint 10-12
Customer Delivery
Accelerating Value in IT
Customer Delivery
Milestone 4 MaintainMilestone 1 Milestone 2 Milestone 3Requirements
P D C A
Value Flow - Capturing Business Opportunity
IT Delivery
Business
Customer’sGoals
#1 Responsiveness (Time)
#2Value
Value Flow - Capturing Business Opportunity
ITDelivery
Business
Customer’sGoals
#1 Responsiveness (Time)
Faster Business ResponseFaster & More Reliable Releases
• Fast Feedback Cycles• Stop Defects Upstream• Release to Production Often• Make Production-like Environments Available Upstream• Integrate Early• Single Build Artifact• Configuration – NOT Customization• Monitor Production Proactively• Get Customer Involved Early
Takeaways
MOVE FASTAND
MINIMIZE RISK
Value Flow - Capturing Business Opportunity
ITDelivery
Business
Customer’sGoals
#2Value
$ Value / TimeTime
Velocity is not Value
Focus on Business Impact, not Velocity
Is our customer able to accomplish their goals?
Are we getting feedback from real customers?
Are they even using our features?
How can we run experiments to learn?
cinderellascrummaster
Accelerating Value in IT
Success Story Maersk IT = $150M / year, 20 development teams
Prioritization process was poor, low value delivered
Accelerating Value in IT
Success Story Maersk
Business Conversation - Value is measured in $
1. Revenue Increase2. Protect Existing Revenue3. Decrease Existing Costs4. Avoid Future Costs
Creating Project Success
Cost of Delay improves prioritization
$150/m
4m
$150/m
2m
Which wins?Business Value
Duration
Creating Project Success
Cost of Delay improves prioritization
$150/m
4m
$150/m
2m
Winner !Cost of Delay
Duration
Myth: Build it. And they will come.
Truth
You build it, and no one cares.
Customers are often biggest risk. Not Technology.
Product development is a discovery process.
Sell before you Build.
Innovation Accounting
Growth Hacking Experiments
Flow Metrics
# of Customer Interviews
# of Hypotheses Tested
Value Flow - Capturing Business Opportunity
ITDelivery
Business
Customer’sGoals
#2Value
$ Value / TimeTime