openagilero - the financials behind software development

Financial  Improvements?!  

Jürgen  De  Smet    

jurgen@co-­‐learning.be  @JurgenLACoach  In/jurgendesmet  

My  Journey  

•  1996  -­‐  SoIware  Engineer    •  2001  –  Team  Lead  •  2008  –  Started  Co-­‐Teaching  CSx  trainings  &  help  other  companies  

•  …  2011  –  Manager  of  400+  OrganizaYon  •  Self  Employed  &  Happy  

Value  Chain  (Phased  Process)  

Customer  Request  

Account  Manager(s)  

Project  Manager(s)   Analyst(s)   Development   IntegraYon   Deployment   Customer  

Accepted  

Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  

Agile  Development  

Customer  Request  

Account  Manager(s)  

Project  Manager(s)   Analyst(s)   Development   IntegraYon   Deployment   Customer  

Accepted  

Managers  Point  of  View  

Focus  on  Net  Profit?!  

Net  Profit  =  Top  Line/Revenue              -­‐  Bo5om  Line/              Opera9onal  Expense  

More  with  Less?  

Which  Focus?  

Top  Line?  

Bo5om  Line?  

Net  Profit?  

Only  1  Focus!  

ROI  =  Net  Profit  /  Investment  

What  is  Investment?  

What  about  SoIware?  

Customer  Request  

Account  Manager(s)  

Project  Manager(s)   Analyst(s)   Development   IntegraYon   Deployment   Customer  

Accepted  

Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  

Customer  Request  

Account  Manager(s)  

Project  Manager(s)   Analyst(s)   Development   IntegraYon   Deployment   Customer  

Accepted  

An  example…  

AssumpYons:  -­‐  Revenue  =  

1.000.000€  -­‐  OperaYonal  Cost  =  

300.000€  

Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  

ROI  =  700.000€  /  150.000€  à  4,6  

Customer  Request  

Account  Manager(s)  

Project  Manager(s)   Analyst(s)   Development   IntegraYon   Deployment   Customer  

Accepted  

An  example…  

AssumpYons:  -­‐  Revenue  =  

1.000.000€  -­‐  OperaYonal  Cost  =  

300.000€  

Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  

ROI  =  700.000€  /  80.000€  à  8,75  

Customer  Request  

Account  Manager(s)  

Project  Manager(s)   Analyst(s)   Development   IntegraYon   Deployment   Customer  

Accepted  

An  example…  

AssumpYons:  -­‐  Revenue  =  

1.000.000€  -­‐  OperaYonal  Cost  =  

300.000€  

Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  

ROI  =  700.000€  /  80.000€  à  8,75  

Customer  Request  

Account  Manager(s)  

Project  Manager(s)   Analyst(s)   Development   IntegraYon   Deployment   Customer  

Accepted  

An  example…  

AssumpYons:  -­‐  Revenue  =  

1.500.000€  -­‐  OperaYonal  Cost  =  

300.000€  

Register  Demands   Budgets   Requirements   Code,  Tests…   Defects,  Performance…  

ROI  =  1.200.000€  /  80.000€  à  15  

So…  It’s  All  Management?!  

Let  us  zoom  in  on  Scrum…  

Stressed  Out  PO?!  

Product  Backlog  Inventory?!  

Strategic  Plan  

Business  Case  &  Drivers  

CapabiliYes  –  Features  

Use  Cases  –  Themes  –  Epics  

User  Stories  

Test  Cases  

next iteration

Epic/ Story

Strategic Plan

Themes/ Capabilities

Priority

Product Backlog

Bus. Case & Drivers

Velocity  Based!  

Focus  ≠  100%  Bussy!  

Doing  the  right  things  to  increase  ROI  of  the  team!  

Did  you  get  it?  

OpYmizing  Business  =  Kaizen  

•  Invest  in  capacity  improvement  acYons  •  Which  will  lead  to  greater  capacity  and  thus  beper  ROI  of  your  organizaYon  

•  This  instead  of  invesYng  in  building  even  more  inventory!  

•  Not  focussing  on  sales  funnel  or  bopom  line  but  on  ROI  all  the  way.  

Why  ROI?  

•  Because  it  increases  the  company  profitability  

Why  Agile?  

•  Because  it  helps  focusing  on  capacity  improvements  (retro’s)  

•  Pull  mechanisms  (sprint  planning,  kanban…)  •  It  helps  limiYng  the  inventory  thus  increasing  the  ROI  

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