Agile is an iterative approach to project management and software development that focuses on continuous improvement, scope flexibility, team input, and delivering working software frequently. This document discusses the Agile Manifesto, principles, history and evolution of Agile methods. It also covers the business value of Agile in terms of increased productivity, quality and reduced costs compared to traditional methods.

1. © People10 1
Business Value of Agile
Agile introduction

2. © People10 2
Understanding
Agile

3. Contents
3
The AGILE Manifesto and Principles
History and evolution
Industry coverage and presence
© People10

4. The AGILE Manifesto
and 12 Principles
4
We are uncovering better ways of developing software by doing it and Build projects around motivated individuals. Give
helping others do it. Through this work we have come to value:
Individuals and interactions over processes and tools
05 them the environment and support they need, and
trust them to get the job done
Working software over comprehensive documentation
Customer collaboration over contract negotiation The most efficient and effective method of conveying
Responding to change over following a plan 06 information to and within a development team is
face-to-face conversation
That is, while there is value in the items on the right, we value the
items on the left more.
07 Working software is the primary measure of
progress
Kent Beck James Grenning Robert C. Martin
Mike Beedle Jim Highsmith Agile processes promote sustainable development.
Arie van Bennekum
Alistair Cockburn
Andrew Hunt
Ron Jeffries
Steve Mellor
Ken Schwaber
Jeff Sutherland
08 The sponsors, developers, and users should be able
to maintain a constant pace indefinitely
Ward Cunningham Jon Kern Dave Thomas
Martin Fowler Brian Marick
09 Continuous attention to technical excellence and
good design enhances agility
01 Our highest priority is to satisfy the customer through
early and continuous delivery of valuable software
Simplicity “the art of maximizing the amount of work
Welcome changing requirements, even late in
10 not done” is essential
02 development. Agile processes harness change for
the customer's competitive advantage
Deliver working software frequently, from a couple of
11 The best architectures, requirements, and designs
emerge from self-organizing teams
03 weeks to a couple of months, with a preference to
the shorter timescale At regular intervals, the team reflects on how to
12 become more effective, then tunes and adjusts its
behavior accordingly
04 Business people and developers must work together
daily throughout the project
Source : http://agilemanifesto.org/
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5. History and evolution
5
Year Method Founder Firm Features
Use Cases, Domain Models, Frequent Delivery,
1991 Crystal Methods Cockburn IBM
Reflection Workshops, Risk Management
Backlogs (Feature Lists), Daily Scrums, Sprints
1993 Scrum Sutherland Easel
(Iterations), Retrospectives (Post Mortems)
Dynamic
User Involvement, Time Boxes and Prototypes
1993 Systems Millington DSDM
(Iterations), Testing and Quality Assurance
Development
Feature-Driven Feature Lists (Customer Needs), Domain Model
1997 Development
De Luca Nebulon
(Object Orientation), Inspection (Peer Review)
Extreme Release Planning, Onsite Customers, Iterations, Pair
1998 Programming
Beck Chrysler
Programming, Test-Driven Development
P10 follows a hybrid of Scrum and Extreme Programming
Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone
© People10

6. Coverage and presence of Agile
6
“A Forrester report on Northrop Grumman Corp Manpower
agile indicate that agile DHL Express Acxiom Corp.
development processes Delphi Corp.
are already in use in FedEx Corp. DaimlerChrysler Fannie Mae
14% of North American Merrill Lynch & Co.
and European General Motors Corp. Flextronics International
enterprises, and Verizon Wireless 7-Eleven
another 19% of Harvard Business School
enterprises are either
interested in adopting Hewlett-Packard Corp. Dell Lincoln National
Corp.
agile or already
planning to do so”
Source : cio.com (most honored agile companies)
© People10 Forrester Research Report : “Corporate IT leads the second wave of IT adoption” by Carey Schwaber and Richard Fichera

7. © People10 7
Benefits of Agile

8. Contents
8
Current business context and Agile
Comparing Traditional vs. Agile methods
Measuring Agile value
Industry surveys, cost advantage and benefits
Business value of Agile
Other intangible benefits
© People10

9. Agile for current business context
9
business environment human behavior
our business is constantly changing, so we misunderstand
our needs evolve continuously requirements and only
discover the
new ideas emerges constantly, not just at misunderstanding after we
the beginning have started building
opportunities and threats appear when we see working
unexpectedly, software, we also see
we must respond quickly improvements
Software building process
Agile
what we build doesn’t always work
as well as we expect, so changes methodology
must be made delivers best in
today’s impatient
world !
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10. The traditional method
10
high risk for customer
 Long requirement gathering phase low confidence on
 Tight contracts; rigidity in change outcome
 Possibility of significant re-work during testing
 Tunnel effect (low product visibility) between requirement and delivery
 Large volume of documentation
“tunnel effect” Project life cycle
Requirement
Design
Build
Testing
Deployment
Product life cycle
© People10

11. The Agile “value”
11
low risk for customer
high confidence
 Short iterative cycles; features prioritized with client on outcome
 Regular product demos; welcoming feedbacks
 High focus on software quality and maintainability
 Flexible to change
Project life cycle
1 2 3 n
Product life cycle
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12. How do we measure value?
Metrics for Agile Value Measurement
Metric Definition Agile context Formula
Total amount of money Total development cost (includes n
Costs spent (Life Cycle Cost) training, coaching, automated tools) ΣCosti
Sum of Costs i=1
Total amount of money Economic benefit from new system
Benefits n
Sum of Benefits
gained (includes maintenance, rework ΣBenefiti
savings) i=1
Ratio of benefits to Includes development, Benefits
B/CR costs maintenance and business
Benefit to Cost Ratio Cost
ROI Ratio of adjusted Benefits – Costs
benefits to costs
Return on Investment Cost
n
Discounted cash flows Time value considered. Preferred
NPV for Agile ΣCosti Benefitsi .- Costs
0
(1+Discount Rate) Years
Net Present Value i=1
Point when benefits New Costs .
BEP exceed costs
Breakeven Point Old Costs / New Costs − 1
Value gained from Considers „risk factor‟ and N(d1 ) × Benefits − N(d2 ) × Costs X
ROA strategic delay reduction in possible loss due to
Real Options Analysis delays in investment
e−Rate × Years
d1 = [ln(Benefits ÷ Costs) + (Rate + 0.5 × Risk2) ×
Years] ÷ Risk × √ Years
d2 = d1 − Risk × √ Years
Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone
© People10

13. Industry survey outcomes on Agile
13
67% more
Data from 5183 respondents worldwide suggests consensus on
productivity, 65% more Quality and 49% better on cost
compared with traditional methods. Survey also suggests
Number of world-wide developers using agile is rising
Agile is not just confined to small organizations; size of organizations using agile is getting larger
Productivity Quality Cost
Year Organization Author # Respondents
increase increase reduction
2003 Shine Johnson 131 93% 88% 49%
2006 Agile Journal Barnett 400 45% 43% 23%
2007 Microsoft Begel et al. 492 14% 32% 16%
2007 UMUC Reco et al. 250 81% 80% 75%
2008 AmbySoft Ambier 642 82% 72% 72%
2008 IT Agile Wolf, et al. 207 78% 74% 72%
2008 Version One Hanscom 3061 74% 68% 38%
Average 67% 65% 49%
Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone Page 89
© People10

14. Cost advantage and economic benefits
measured through Productivity and Quality
14
development cost through Productivity maintenance cost through Quality
(lines of code / hour) (defect density)
26 studies with 726 programmers show average productivity of 21 21 studies with 323 programmers give average defect density of
LOC / hour 1.79 defects / KLOC
10 to 20 times higher 19 times higher
Agile proves to be highly productive (fast and efficient) and of higher quality than traditional
10 Measures Traditional Agile
92
8 21.24 LOC / hour (7.9311
69 Productivity .85 LOC / hour
adjusted)
6
46 Defect density 33.33 defects / KLOC 1.797 defects / KLOC
4
Development 5,087.89 hrs ($508,789 ) /
471 hrs ($47,087) / KLOC
23 cost KLOC
2
0 0
Total Life 18,751 hrs ($4,509,997) /
2268 hrs ($217,712) / KLOC
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 cycle cost KLOC
Productivity (LOC / hour) Quality( Defects / KLOC) Tangible benefits (Traditional – Agile) $4,292,285 / KLOC
Agile increases economic benefits
increase revenue through collaboration, interaction, listening to customers, capturing their needs as flexible stories,
implement the stories with highest business value first
reduce development and maintenance cost through increased productivity (reduce development cost)and
improved quality (reducing maintenance cost ) thereby decreasing total cost of ownership
Source : Benediktsson, O., & Dalcher, D. (2005).
© People10 Estimating size in incremental software development projects. Journal of Engineering Manufacture, 152(6), 253-259.

15. Business value of Agile
Result of studies
15
79 studies with quantitative data proves
average ROI of 2633%
($26 return for $1 invested) for Agile Category Low% Median% High%
Development Cost 10 26 70
ROI due to high productivity and Schedule 11 71 700
high quality; Productivity 14 122 712
reduction in cost of software Quality 10 75 1000
maintenance (brings down cost of Satisfaction 70 70 70
ownership)
ROI 240 2633 8852
Summary : Result of Business Value in Agile Vs Traditional context
Total Cost Benefits B/CR ROI% NPV BEP ROA
ISO 9001 $1,73,000 $5,69,841 3:1 229% $3,20,423 $11,96,206 $5,03,345
CMMI® $11,08,233 $30,23,064 3:1 173% $15,09,424 $5,45,099 $26,33,052
SW-CMM® $3,11,433 $30,23,064 10:1 871% $23,06,224 $1,53,182 $28,28,802
Agile
$2,17,712 $42,92,285 20:1 1,872% $34,98,958 $11,043 $41,25,209
Methods
Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone
© People10

16. Business value of Agile
Agile vs. Traditional comparison
16
Cost Benefits (Million $ / KLOC) Cost Benefit Ratio ROI
(Million $ / KLOC)
5 2100%
Millions
25
1800%
4
20 1500%
3 1200%
15
2 900%
10
600%
1 5
300%
0 0 0%
Cost Benefits Cost / Benefit Ratio ROI
Agile CMMI® SW-CMM® ISO 9001 Agile CMMI® SW-CMM® ISO 9001 Agile CMMI® SW-CMM® ISO 9001
NPV BEP ROA
4 1.5 5
Millions
Millions
Millions
1.2 4
3
0.9 3
2
0.6 2
1
0.3 1
0 0 0
NPV Break Even Point Real Options Analysis
Agile CMMI® SW-CMM® ISO 9001 Agile CMMI® SW-CMM® ISO 9001 Agile CMMI® SW-CMM® ISO 9001
© People10 Source : The Business Value of Agile Software Methods by Dr. F Rico, Dr. H Sayani, Dr. S Sone

17. Intangible benefits
17
visibility business value adaptability reduced risk
high degree of customer &
developer interaction gives features prioritized directly adaptability to changing frequent visibility and
maximum visibility by customers and market/customer needs feedback mechanism
delivered in iterations give ensures reduced risk
better time-to-market and
business value
improved teamwork product
communication high customer sustainability
highly skilled
satisfaction professionals
transparency quality
customer collaboration maintainability
better co-operation
strong relationships automated testing
problem solving
more trust lightweight
processes and
traditional development documentation
agile development
Source : VersionOne LLC
© People10

18. © People10 18
Agile Approach

19. Contents
19
Agile iterative workflow
Agile delivery life cycle – process and deliverables
Tools and techniques
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20. Agile; the iterative workflow
20
Daily scrum
project team
Demo of features
completed to the
Product backlog product owner/end
prioritized with product owner users
Iteration Plan Feedback on
project team deliverables
Priority of
Release Plan remaining features
Project Manager
Release
deployed to end users
© People10

21. A typical Agile delivery life cycle
processes and deliverables
21
release scope, release
signed milestones planning, deliverable
contract detailed specs
& schedule
structure,
RACI
iteration goal, task allocation,
prioritized backlog retrospective actions
implemented
time, scope, cost, quality indicators operational
meetings scrum, TDD, completed
requirements tasks, performance info.
signed– action items, actor, action date
off specs
,
validated weekly status reports
prioritized published dashboard
specification
features
accepted
project review meetings, Steerco features, completed features
changes (RTF), demo,
retrospective
agreed KPI
& metrics
information
re-allocate
archive
team,
project plan (comm.,
training, travel, risk, fixes,
schedule…) acceptance
sign-off documentation,
HLD, high level user training
signed-off
sizing & estimation
project
© People10

22. Tools and techniques
22
white board
daily scrum
Product
backlog burn down
Iteration Plan charts
project team
software factory
Release Plan sanity checks
Project Manager retrospective
end of iteration
demo
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23. © People10 23
P10 Advantage

24. Contents
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Our Agile capabilities
Agile myths resolved through P10 facts
P10 radical team management
© People10

25. Our Agile capabilities
P10 time tested and proven track record
25
management capabilities Agile transformation capabilities
certified scrum masters (industry certified) transformed 1400+ IT professionals from
traditional to Agile
directly managed Agile teams of 1000+ size built and implemented in-house customized Agile
tools and methods
developed in-house training and certifications for
delivery capabilities Agile transformations
evangelized sizing and estimation techniques for
successfully delivered 200+ IT projects with 100% Agile
agile teams using modern technologies (java, .net,
Oracle..), legacy technologies (COBOL, ProC, business complexity
PHP, Sybase…) and complex products in
Business Intelligence space (Business Objects,
Informatica, Terradata..) delivered 25% of global IT projects for leading
Investment Bank covering front, middle and back
recruited, trained and managed 200+ technical office, Risk and Accounting systems in distributed
leader and solution architects who have designed Agile model with 100% Agile teams
and developed highly complex, scalable IT
systems across businesses recruited and managed 150+ business Analysts
who are experts in collaborative requirements
gathering techniques to provide most robust
solutions for evolving business needs
mindset and behavior
we are Agile in our thinking and approach, every day, in and out of work !
© People10

26. Agile myths resolved through P10 facts
26
P10 uses an Agile model which is a hybrid of Scrum and XP. We ensure the
following disciplines and rituals as part of Agile practice:
test driven development
“Agile development is daily stand-up meetings
not disciplined” continuous integration of code to ensure working software
iteration planning day
story point and task level estimations
weekly sanity checks
end-user demo…
At the beginning of the project, P10 provides you high level planning and
estimation including delivery milestones
“Agile teams do not Throughout the project, P10 refines incremental plan (Release Plan, Iteration
plan” plan) and share with you
This „progressive elaboration‟ eliminates re-planning wastage throughout the
project and provides realistic view of project timeline and cost
At P10, we deliver features to you in every iteration. Valuable historic data
quickly emerges from iterations. The quality of our plans improve as
speculation is replaced with historic results and facts.
“Agile development is
not predictable” Based on the progress of our product(not just process), we are able to predict
the outcome with greater accuracy throughout the project. Our predictability
is a result of constant planning, estimating, prioritizing and delivering against
the plan
© People10

27. Agile myths resolved through P10 facts
27
Smaller teams have been proven time and time again to be much more
productive than large teams
“Agile development At P10, we take very large projects and break them down into a coordinated
does not scale” series of smaller projects. We have teams staffed by smaller, cross-
functional experts and completely autonomous to deliver highest level of
quality and scale
A recent Forrester report on agile indicate :
“Agile development processes are already in use in 14% of North American and European
enterprises, and another 19% of enterprises are either interested in adopting agile or already
planning to do so.”
Many of today‟s adopters are large divisions and software organizations of
“Agile development is enterprise IT. The top three reasons noted for transitioning to agile
development include
just another fad / accelerating delivery
hype” aligning business and market needs with IT
improving visibility into s/w development process
As founders of P10, our track record of 100s of successful deliveries prove
several folds of productivity, quality, business value, employee satisfaction
and customer satisfaction
Agile has been around for a while; It is here to stay !
© People10

28. Agile myths resolved through P10 facts
28
P10 delivers to you all necessary project management documentation like
Project Plan, communications plan, estimation and costing sheets, resource
plan, project governance documents, Risk and Issues register, weekly status
“Agile means you reports, quantitative monthly delivery dashboards
never have to write P10 ensures requirement specifications, design documents, test plans, defect
documentation” reports throughout the project life cycle.
The documents are done at the right time to ensure less editing and
revisions
P10 normally follows 3 week iterations(sprint). For every sprint, P10 business
“Agile means I can analysts work with the client representatives and ensure visibility to the team
change my mind Within the sprints in Agile development, change needs to be on hold or very
whenever I want to” minimal. At the end of 3 weeks and the demo, the required changes are
incorporated into next sprint
At P10, we have expertise to deliver very large projects in Agile mode. We
achieve this by keeping agile teams small and link together these teams to
handle size
“Agile works only for
small projects” This phenomenon is achieved through a technique called „scrum of scrums‟
As per the industry, a large project had as many as 27 teams successfully
linked together
© People10

29. Agile myths resolved through P10 facts
29
At P10, we exercise „radical management‟ principles to manage our highly
competent agile teams
“Agile means teams
cannot be controlled We believe in control through planning, monitoring, and adapting.
Management is about getting more done by removing obstacles. There is a
by management” different style of management
(ref. „P10 Radical Management‟ for details)
At P10, our architecture needs to come out from working through the
“Agile requires problems and should not be just a guiding factor
detailed architecture
and design” We let architecture emerge and is open to adapt and change throughout the
product life cycle to ensure the best scalability and „state of the art‟ solution
At P10, we ensure right balance of work and fun. For our highly motivated
“Agile teams do not staff, „focus‟ is key
work hard, they just However, our Agile developers are more likely to have fun outside work and
play foosball” sleep better at night as they work with close collaboration within the team,
and with end-clients , so there tends to be less worries about errors
© People10

30. How we manage our teams
P10 radical management
30
The differences between traditional management and radical management are stark. They flow from different
goals, modalities and consequences. They are summarized in the following table:
Traditional Management P10 Radical Management
The purpose of work is to produce goods or
Goal services
Focus work on delighting clients
How work is
Work is done by individuals reporting to bosses Do work through self-organizing teams
organized
Work is done in accordance with a comprehensive Do work in client-driven iterations aimed at
Plan plan continuous innovation
As work proceeds, provide progress reports of
Measuring progress what is under way
Deliver value to clients each iteration
What is Be totally open about impediments to
Communications cover what people need to know
communicated improvement
Create a context for continuous self-
Improvement Bosses are responsible for productivity
improvement by the team itself
How it is One-way communication: send people messages, Communicate interactively through stories,
communicated and tell them what to do questions, conversations
Principal focus of Cost reduction: economies of scale, downsizing, Time: deliver more value to the client sooner
competition outsourcing
Rates of return on assets steadily decline. Continuous innovation: self-organizing teams
Innovation is stunted. Four in five workers are not normally evolve into high-performance teams,
Consequence fully engaged in their jobs. Customers receive focused on delighting clients, with above-
average products and services average productivity and deep job satisfaction
© People10

31. Get in Touch
31
www.people10.com
info@people10.com
+91 80 3342 0800