Agile business development

PowerPoint Presentation

Bringing Agility to Business Development

Somik Raha, AssociateSmartOrg, Incsmartorg.com

2000-2012 SmartOrg. | Confidential and Proprietary.

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Legal Stuff

This deck is licensed under the Creative Commons Attribution No Derivatives 3.0 License.

Please feel free to contact [email protected] if you have any questions.

2000-2013 SmartOrg. | For Classroom Use Only. Not for distribution.

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Agenda

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Business DevelopmentThe Agile ManifestoCurrent StateValues

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Definition of Business Development

Business Development is the turning of an idea into a marketable business asset

2000-2012 SmartOrg. | Confidential and Proprietary.

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Agile Software Development greatly increases quality and productivity

2000-2012 SmartOrg. | Confidential and Proprietary.

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Collaborative developmentWorking softwareCustomer collaborationResponding to change

Processes and toolsComprehensive documentationContract negotiationFollowing a plan

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The Agile Manifesto

We value

That is, while there is value in the items onthe right, we value the items on the left more.

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Current Business Development vs. Agile Business Development

2000-2012 SmartOrg. | Confidential and Proprietary.

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Processes and toolsComprehensive paperworkContract negotiationFollowing a plan

Processes and toolsComprehensive documentationContract negotiationFollowing a plan

Collaborative DevelopmentWorking business modelsCustomer collaborationResponding to change

CURRENT BUSINESS DEVELOPMENT FOCUS

AGILE BUSINESS DEVELOPMENT FOCUS

NON-AGILE SOFTWARE DEVELOPMENT FOCUS

Collaborative DevelopmentWorking softwareCustomer collaborationResponding to change

AGILE SOFTWARE DEVELOPMENT FOCUS

Instructions: Poll title State of business development in your organizationWe do not have a formal business development processThe term business development is often confused with salesWe have a formal process but are not agileWe have a formal process and are agile

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Poll: What role do you play in your organization?

Business Development Marketing/Sales Product Management Product Development Project Management Engineering

2000-2012 SmartOrg. | Confidential and Proprietary.

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Instructions: Please prepare this poll as follows with the title What role do you play in your organization?: Business Development Marketing/Sales Product Management Product Development Project Management Engineering

This should be multiple-choice more than one can be picked.

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Collaborative DevelopmentWorking business modelsCustomer collaborationResponding to change

Communication,Simplicity, Feedback

Courage, Respect

Agile practices support the Agile manifesto

PRACTICES

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2000-2012 SmartOrg. | Confidential and Proprietary.

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Collaborative DevelopmentWorking business modelsCustomer collaborationResponding to change

Communication,Simplicity, Feedback

Courage, Respect

What practices get us to the goalpost?

?

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Agenda

2000-2012 SmartOrg. | Confidential and Proprietary.

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Business Development: Turning idea into marketable business asset

Market Performance: Given business development has succeeded, how will this product fare in the market?

Combined Value: What dollar amount represents our option value of developing this idea as a business given where we are right now?

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Agenda

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Business development is about managing increasing amounts of investment

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Time

Cashflow

Double-down

Take-off

Die

Develop

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Agile business development is about learning/failing/succeeding quickly

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Time

Develop

Double-down

Take-off

Die

Learn

Try other projects

Cashflow

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We will communicate Agile Business Development with a catalog of patterns

Each pattern describes a problem which occurs over and over again in our environment, and then describes the core of the solution to that problem, in such a way that you can use this solution a million times over, without ever doing it the same way twice.

What is a design pattern? from Design Patterns: Elements of Reusable Object-Oriented Software by Gamma et al., 1995

Elements of a pattern: pattern name, problem, solution, image* and consequences

* optional

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Evidential Work

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Pattern: Evidential Work

When investing serious money behind an idea, it is easy to be distracted away from the evidence needed to justify the investment by the work that needs to be done.

Therefore, design work to deliver evidence as quickly as possible

ConsequencesA clear idea of the proof needed to justify investment, the work needed to deliver that proof, the cost and the schedule of that work

Related Patterns: Communicate evidential work with Learning Plans

2000-2012 SmartOrg. | Confidential and Proprietary.

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The Mortgage Question

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What do you need to see before mortgaging your house to fund this project?

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Simulation: Corp

Makes statistical data analysis products

2000-2012 SmartOrg. | Confidential and Proprietary.

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Life

Flow

AB

Fly

Zoom

Mark

New Product

Allows analysis of the effectiveness of marketing campaigns by examining social media chatter for emotional content around the product.

This product will help Corp enter the social media space.

What evidence do you need to see before mortgaging your house on this product?

Instructions:Show chat window; title of chat window What evidence do you need to see before mortgaging your house to fund BetaMark?When we move to the next slide, the chat window should move on the side, visible only to speaker and moderators.

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Simulation: Evidential Work

2000-2012 SmartOrg. | Confidential and Proprietary.

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Solicit pilot customersBusiness case analysisObtain right to pursueRequirements / gap analysis => technical roadmapPreliminary offerPre-sales, talk to customersIncubation structure definedInvestment: $0.5M4 FTE x 6 month x $200K = $400KExpenses = $100K

Conduct 2-4 customer pilots across areas - map processes, demonstrate valueFill gaps in platform and servicesCapture learningBuild resources / PMOPlan G2M / businessExtend / revise roadmapAdvance needed technologyDefine full platformInvestment: $4M20 FTE x 1 year x $150K = $3MExpenses, capital = $1M

Complete, harden platformEstablish channel / G2MSales / BDMarketing / communicationSet up P&L / organizationDeliver operationally to first pilotsConduct additional pilots of new kindsSupport structure

Investment: $6MTeam, Expenses as in Phase II = $4MSales, Business Development = $1MSupport, infrastructure = $1M

Instructions:I will refer to the chat window to make points connecting with this slide. After this slide, this chat window is no longer needed.

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Learning Plans

2000-2012 SmartOrg. | Confidential and Proprietary.

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Pattern: Learning Plans

When communicating development plans, it is easy to lose sight of the learning needed to justify further investment.

Therefore, depict key stages of evidence needed and the work needed to deliver that evidence on a timescale

ConsequencesA simple timeline that communicates key evidential stages, the work involved (details and investment) and the sequence.

Related Patterns: Evidential Work and Evidence Assessment

2000-2012 SmartOrg. | Confidential and Proprietary.

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Simulation: Mark Learning Plan

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Q1

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10

Mark

Phase I Develop Value Proposition, Get Approval

Solicit pilot customersBusiness case analysisObtain right to pursueRequirements / gap analysis => technical roadmapPreliminary offerPre-sales, talk to customersIncubation structure definedInvestment: $0.5M4 FTE x 6 month x $200K = $400KExpenses = $100K

Phase II Prove Value Proposition with Customers

Customer enthusiasm, Corp sponsorship

Conduct 2-4 customer pilots across areas - map processes, demonstrate valueFill gaps in platform and servicesCapture learningBuild resources / PMOPlan G2M / businessExtend / revise roadmapAdvance needed technologyDefine full platformInvestment: $4M20 FTE x 1 year x $150K = $3MExpenses, capital = $1M

Technical performance, Customer commitment

Key:

Major Phase

Work during phasePhase Investment

Proof points at milestone

Cumulative investment through launch

Total: $10.5M

P&amp