1. Archana Joshi â Sr. Manager, Cognizant
Zaheer Abbas Contractor â Head-AgileNext, Wipro
Sep 2013
Minimum Viable Product to deliver
business value
Symbiosis Center for Information Technology (SCIT Pune)
2. Agile Basics
What's the primary goal of Agile development?
2) Delivering software every Quarter
3) Co-location of the team
4) Processes, Documentation, Contracts, and limited change
1) Added value of working software
3. Agile Basics
What are the critical items to start a Scrum Project?
2) Scrum Team, Product Backlog, Scrum Master
3) Product Backlog, Scrum Team, Scrum Master, and Product Owner
4) Time, Scope, Budget, and Quality
1) Scrum Team and Stakeholders
4. Agile Basics
Sprint Burn-down charts are an efficient tracking tool because they show -
2) How many Product Backlog items remain
3) How many hours have been worked by each team member.
4) How much effort has gone into the Sprint
1) The estimated work remaining as the Sprint progresses
5. Agile Basics
Correct sequence of events in using Scrum framework is as follows
2) Release Planning, Sprint Planning, Sprint, Daily Scrum, Sprint Review, and Sprint
Retrospective
3) Sprint Planning, Release Planning, Sprint, Sprint Retrospective, Daily Scrum, and
Sprint Review.
4) Release Planning, Sprint Planning, Daily Scrum, Sprint, Sprint Review, and Sprint
Retrospective
1) Release Planning, Sprint Planning, Sprint, Sprint Retrospective, Daily Scrum, and
Sprint Review
6. Agile Basics
When is a Product Backlog item considered complete?
2) When QA reports that it passes all acceptance criteria
3) When it adheres to the definition of "done".
4) At the end of the Sprint
1) When all defined tasks are complete
7. Agile Basics
John is the product owner for an agile project. The development team is in middle of an
iteration and John notices that he has got a new user story from the business. Johnâs
action shall be -
2) Work with the business teams and the scrum master to add the user story to the
product backlog with suitable priority
3) c) Do nothing. Wait till the current iteration gets over and then work with business
on understanding the requirement
1) Excitedly inform the team about the new requirement and interrupt the iteration
8. Agile Basics
When many Scrum Teams are working on a project, what best describes the definition of
"done"?
2) Each Team uses its own but must make it clear to all other Teams
3) All teams must use the same definition
1) Each Team defines and uses its own.
4) It depends
9. Agile Basics
Drawing a trend line from previous completed work on a release burn-down chart
indicates
2) Cost of the project.
3) When all Sprint Backlog tasks will be completed and the Scrum Team will be
released for other work
1) When the project will be over if the Product Owner removes work that is equal in
effort to any new work that is added .
4) When the work remaining will be completed if nothing changes
10. Agile Basics â Few more!
⢠Anything that prevents the team from meeting their
potential
⢠Person who holds the vision for the product and is
responsible for the product backlog
⢠The rate at which a team completes work; usually
measured in story points
⢠A session where the Team and Scrum Master reflect
on the process and make commitments to improve
⢠A prioritized list of stories that are waiting to be
worked on
⢠A very large user story that is eventually broken down
into smaller stories
⢠Impediment
⢠Product Owner
⢠Velocity
⢠Retrospective
⢠Product
Backlog
⢠Epic
11. What is a Product
In marketing, a product is
anything that can be offered
to a market that might
satisfy a want or need
[Source: Wikipedia]
As a company, why do I need a Product
To deliver value to my consumer to satisfy
their want so that I can make money on it
17. Probability of Success
P(s) = f(Business-value delivered,
End-user satisfaction,
Customer satisfaction,
Quality, Cost, Schedule, Effort)
18. Product Life Cyle
Most crucial aspect distinguishing
success from failure
Can I as a company focus on reducing the feedback
time from the market so that I waste less money &
resources on doing something which is does not make
sense for me
20. Knowledge Types
ď Product Knowledge:
ď Project Knowledge:
Knowledge about WHAT will be developed
Knowledge about HOW will it be developed
End Uncertainty cannot be Eliminated at the Outset.
Risk of building wrong product can be reduced by sharing early working
features in the hands of end users!
Low
Means Uncertainty (How)
EndUncertainty(What)
High Low
High
Traditional
Source: Agile Estimating & Planning : Mike Cohn
21. What is MVP
In product development, the Minimum Viable Product
(MVP) is a strategy used for fast and quantitative market
testing of a product or product feature
Characteristics:
⢠Minimum subset of scope
⢠Has enough tangible value
⢠Limited User Base
22. Can you avoid failure with
Minimum Viable Product
And increase P(s)
24. MVP vs MMF vs Product Backlog
High
Low Product
Backlog
(PB)
Minimum
Marketable
Features
(MMF)
Minimum
Viable
Product
(MVP)
Start
25. Identifying MVP - Prioritizing Desirability
ď Kano Model Of Customer Satisfaction
⢠Threshold [must have] features
⢠Linear features
⢠Exciters and delighters or unknown features
26. Financial Prioritization
ď Sources of Return On Investment:
⢠New Revenue: New sources of revenue with increased market share(new
customers)
⢠Incremental Revenue: Additional revenue from existing customers
⢠Retained Revenue: Enhancing product to retain existing customers
⢠Operational Efficiencies: Improved in anticipation of strong growth
Quarter Cost New
Revenue
Incremental
Revenue
Retained
Revenue
Operational
Efficiencies
Net
Cash Flow
1 0(0) 0 2000(20) 0
2 2500(50) 1600(100) 2000(20) 0
3 3750(50) 5000(200) 2000(20) 7500
4 3750(50) 7500(300) 2000(20) 7500
5 7500(100) 10000(400) 4000(40) 7500
6 7500(100) 10000(400) 4000(40) 15000
Source: Agile Estimating & Planning : Mike Cohn
ď Projected Returns of Theme A
27. Financial Prioritization
ď Projected Cost of a Team for Theme A
Role Salary Fully Burdened
Cost
Burdened Cost
per Sprint
% Cost
on Project
Adjusted Cost
per Sprint
Product Owner 50,000 75,000 2,900 100% 2,900
Developer 50,000 75,000 2,900 100% 2,900
Developer 30,000 45,000 1,700 50% 850
Analyst 40,000 60,000 2,300 100% 2,300
Tester 30,000 45,000 1,700 100% 1,700
Tester 50,000 75,000 2,900 100% 2,900
TOTAL 13,500
Source: Agile Estimating & Planning : Mike Cohn
Measure Cost
Cost per story point 675
Cost per week 6,750
Cost per Sprint 13,500
ď Projected Cost of a Team
Assuming average velocity of team as 20SP, Cost per Story point is 675
28. Financial Prioritization
Quarter Cost New
Revenue
Incremental
Revenue
Retained
Revenue
Operational
Efficiencies
Net
Cash Flow
1 -87,750 0(0) 0 2,000(20) 0 -85,750
2 -20,250 2,500(50) 1,600(100) 2,000(20) 0 -14,150
3 3,750(50) 5,000(200) 2,000(20) 7,500 18,250
4 3,750(50) 7,500(300) 2,000(20) 7,500 20,750
5 7,500(100) 10,000(400) 4,000(40) 7,500 29,000
6 7,500(100) 10,000(400) 4,000(40) 7,500 29,000
7 7,500(100) 10,000(400) 4,000(40) 15,000 36,500
8 7,500(100) 10,000(400) 4,000(40) 15,000 36,500
ď Projected Returns forThemeA
Source:Agile Estimating & Planning : Mike Cohn
Features for desired returns to be finished in 8th sprint(16 weeks).
First quarter will be 13 of those weeks for a cost of 87,750(13 x 6,750)
Second quarter will be further 3 weeks of cost 20,250(3 x 6,750)
ď Financial Measures forThemeA
NPV (12%) = 46,341
(It can be NPV, IRR, Payback Period, Discounted Payback Period)
29. Financial Prioritization
ď Comparing Returns and Valuations for each Theme:
Theme Story Points Cost NPV ROI Discounted Payback
Period
ThemeA 150 101,250 46,341 45% 7 quarters
Theme B 90 60,750 34,533 15% 6 quarters
Theme C 60 40,500 30,013 49% 3 quarters
Theme A has highest NPV but takes longest to earn back investment
Theme C has highest ROI but and takes shortest time however is has lowest NPV
Theme B has lowest rate of return
What is your decision?
30. Understanding Product Owner Role
Ken Schwaber writes about the product owner
⢠The Product Owner is the one and only person responsible
for managing the Product Backlog and ensuring the value
of the work the team performs. This person maintains the
Product Backlog and ensures that it is visible to everyone.
⢠Being the product owner is no solo act.The PO is part of the Scrum
team and closely collaborates with its other members.
⢠The PO is new, multifaceted role that unites the authority and
responsibility traditionally scattered across separate roles, including the
customer or sponsor, the product manager and the project manager. Its
specific shape is context-sensitive.
⢠For commercial software, a product managers typically takes on the
product owner role. For software developed in-house, a project
manager or business analyst may play the role.
31. Responsibility of Product Owner
Product Owner
Voice of the customer
Manages stakeholders and
interests
Leads the development effort
by conveying his or her vision
to the team
Drives the business valueBuilds and Grooms the
Product Backlog
Define Done, Accepts or rejects
work results
Negotiates and takes tough
decision to derive business value
32. Characteristics of Product Owner
Visionary and Doer
⢠Who can envision the final product and communicate the vision
⢠A doer who sees the vision through to completion
Leader andTeam Player
⢠Creates and articulate the vision, owns the vision,drives it to completion and takes decision such
as should there be less functionality or adjust the release date.
⢠Relies on close collaboration with ScrumTeam members.
Communicator and Negotiator
⢠Effective communication with different stakeholders including customers, users, development,
marketing, sales and management.
⢠Represents voice of customer needs, negotiates want and need.
Empowered and Committed
⢠Leading the development effort to bring product to life
⢠Have the decision making authority â which functionality to be delivered first.
Available and Qualified
⢠Understanding of the customer, describe the requirements and guide the development team.