Www.synerzip.com Using Agile Approach with Fixed Budget Projects April 15, 2009.

www.synerzip.com

Using Agile Approach with Fixed Budget Projects

April 15, 2009

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The Challenge

Business Benefit of Agile

Approach

Mgmt Need For Fixed/Known $

Budget


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


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


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


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


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”


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


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


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


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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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


When Fixed Budget Agile Works?

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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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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


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


Recommended Approaches

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Key Characteristics

Baked Requiremts?

Mutual Trust Level

Timing of Estimate


Recommended Approach

1. RUP

2. Agile/DSDM

3. Incremental Agile

4. Story Point Based Agile


Questions?

www.synerzip.com

Hemant Elhence, [email protected]

469.322.0349

Agile Software Product Development Partner

Call us for a free consultation

Www.synerzip.com Using Agile Approach with Fixed Budget Projects April 15, 2009.

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