project thinking and digital service business
DESCRIPTION
Project thinking and digital service business – Mikko Viikari's presentation at Nordic Process Days 4/10/2014.TRANSCRIPT
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Nordic Process Days, 10.4.2014Mikko Viikari
Project thinking and digital service business
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FuturiceCompany
facts› Digital services agency
› Established in 2000
› 5 locations: London, Berlin, Helsinki, Tampere, Lausanne
› 200+ employees; 30% annual growth
HELSINKITAMPERE
BERLIN
LONDON
200
LAUSANNE
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We believe that our values – trust, caring, transparency and continuous improvement – are the key to our happiness cycle that includes happy customers, happy people and happy end-users!
Today, Futurice is the best place to work in Europe!
#1
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A few brands we’ve worked with
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Digital service?
Service is an intangible commodity. Service is produced and consumed at the same time.
Digital service? Same stuff, but (primarily) using digital channel.
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The Clock Rate of Digital
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Markets are globalChanges in work
culture
The digital revolution has disrupted traditional ways of
doing business
Competition is global
State of the world, 2014
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Project» Ethymology:
› latin proicere, before action.
› In english: ”plan of something”
» By definion project has start, end, goal, plan and budget/resources
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Futurice 8
scope
Product or serviceProject
budget
plan
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Project thinking has clear benefits» Focuses resources to achieve defined goals
» Abstracts away complexity. Project is an elegant box.
» Everybody knows ”project” and ”project management”. Makes communication and management much easier.
» Clear procedures for investments, decisions and contracts.
» Existing, good models for planning work and tracking progress.
» Project is excellent concept when the problem is somewhat clear and the game is linear.
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Futurice 9
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Software projects in 2 trad. ways
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Futurice 10
Reqs spec Design
BuildDeploy
Maintenance
80% of TCO100% of benefits
We build exactly what was specified, in schedule,and budget! Cool?
Front-end
Agile development project Small-scale development
We released the desired product iteratively, in schedule and budget. Hooray! And we improved based on the user feedback.
Actually a lot of workwas done here.
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History of software projects
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Futurice 11
» Project failed. (1990, wtrfll)
» Project was a success but the patient died. (2000)
» Project was a success and the customer was rather happy. (2010, agile)
» 2014: ?
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So, what is wrong with agile software development, even if applied properly.
» Not that much, agile is a great start, but it...
» often focuses on method, rather than actual goals and results
» and on delivering software, rather than user experience or business impact. Software as such is waste.
» makes you add features and remove bugs, instead of creating a product the users would love (even if they do not know it yet)
» expectations for Product Owner are typically unrealistic
» is an ism and somehow detached from reality.
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Futurice 12
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Futurice 13
What has changed, what is needed?» User Acceptance vs. User Experience. Acceptable user
experience is a loosing strategy in a ”winner takes it all” game.
» Product and marketing are the same. Digital services are more and more about customer development.
» Continuous learning, tweaking, designing and hacking to improve the KPIs.
» You need a smart architecture (micro services and APIs) to be able to change the business direction in agile way.
» Buy (from cloud) or build?
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A Critique of Project» Focus on wrong stuff:
› Management focus on ”project”, not ”product”. ”How to fullfil predefined scope within the set limitations. ”
› When we should focus on the product and the customers. What is the best way to add value and learn right now?
» Project time-box is mis-leading abstraction
› Launch is not an end of anything. It is the start for business benefits and (most of the) learning.
› Good service is never 100% completed.
› Project is a fundamentally wrong state of mind. It gives an illusion that we are free after the deadline and delivery.
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Futurice 14
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Futurice 15
…
New approach. Lean Service Creation (LSC)
Continuous learning and hypothesis-driven development.
Continuous development of the service and the customers. Every day.
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History of software projects, v2
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Futurice 17
» Project failed. (1990, wtrfll)
» Project was a success but the patient died. (2000)
» Project was a success and the customer was rather happy. (2010, agile)
» There was no project but digital business was successful. (2014, LSC)
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Futurice 18
What will replace ”agile project” working model?» Continuous development flow. Kanban.
» More ownership: ”You build it, You run it” (Amazon). DevOps.
» No distinction with ”development project” and ”maintenance”
» The slower beat: Service Vision Sprint. Frequent, intensive, fresh analysis and steering method.
» Validated, direct customer and business needs drive and prioritize the development.
» Market mechanisms and intrapreneurship instead of presentation+committee model in making investment decisions.
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Futurice 19
6 tips for organising service creation» Build a real cross-functional service creation team: design,
development and marketing.
» Have a proper design, product vision, ”strong centers” and unique value prop, not just a backlog.
» Spend absolute max 50% of your budget pre-launch. Launch is a beginning, not an end.
» Spend 80% of the time on improving existing ”features”, 20% on adding new ones. (ok... depends on the level of competition)
» Validate with real users, verify the business results
» Use Kanban for workflow management
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Waste
Speed
20