What everyone should know about time to market

Time to market is a important thing to focus on for development organisations to better compete and

Transcript

1. What everyone should know about time to market Stephan Schmidt, Vice CTO, brands4friends
2. Me Stephan Schmidt Vice CTO brands4friends @codemonkeyism www.codemonkeyism.com stephan.schmidt@brands4friends.de
5. brands4friends No.1 Shopping Club in Germany > 360k daily visitors > 4.5M Users eBay company 20.04.12 5 WJAX 2011
8. Development at brands4friends Team Java and web developers, data warehouse developers Process Scrum since 2009 Kanban for DWH since 2012
9. Time to Market
10. 10 Why?
11. If a feature is worth developing, it‘s worth getting to market sooner.
12. Revenue Early market entry Late market entry Time Longer sales Larger market share Reinertsen 1998
13. What is time to market? From idea to making money. Not from start of project!
14. Why does time to market get worse?
15. Time Founders no longer focus on product More people Unmaintainable Code Time to Market Processes Startup
16. Time to market is a huge lever.
17. Technology is not a huge driver.
18. 18 Buffers are the biggest driver.
19. Front-up Development Start Development Everyone focuses here Problems are here Idea
20. Reinertsen 1998 42% Start 58% 40% 60% 49% 51% 56% 44% 0 -3 Years 3 Years Need Ship Need Ship Need Need Ship Ship
21. Market Opportunity Feeling of urgency Time relative to competitor Reinertsen 1998
22. Top Management possible impact Reinertsen 1998 Attention of top management for a project
23. >50%  of  time  is  spent  before  development.       Time  to  market  in  development  is  a  solved   problem.  
24. 24 Development is a solved problem
25. Concrete Steps?
26. Measure
27. Low quality and rework is one of the biggest wastes in software development.
28. Bug tracking is an anti- pattern. Don't do bugs.
29. Time Time 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature Parallel Serial
30. Time Time 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 5 15
31. Time Released Developed 36
32. Time Released Developed Time Released Developed 54 36
33. Time Released Developed 66 Time Released Developed 36
34. Time Released Developed 54 30 Time Released Developed
35. Time Released Developed Time Released Developed 6 Months 9 Months 54 30
37. 1.  Measure, measure, measure 2.  Increase quality 3.  Reduce rework 4.  Frequent releases 5.  Stop working in parallel 6.  Shorter stories 7.  Visualize and manage flow 8.  Rigorously cancel meetings 9.  Continuous deployment 10. Shorten product management 11. No single point of failure or bottleneck 12. Leveling work
39. 4 3 2 1 !"#$%&'()*+*"&,"-+.)"'&"/012)' 1. Measure !"#$%#&#%'&()*'#+,#-.*(/#0'1'2.3+456#+(7,# -.*(/#5'845#(.#9&*:'(#,..4'*" ;"#<+9'#(.#9&*:'(#+,#&#(34)#2'1'*" ="#>)?'*,#&*'#(/'#@+55',(#0*+1'*" A"#<'B/4.2.5C#+,#,&'#&#/)5'#0*+1'*" 6. >50% of time is spent before development. 7. Time to market in development is a solved problem. Time Time 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature 1. Feature 2. Feature 3. Feature 4. Feature 5. Feature Working in Parallel vs. Serialized work Working in parallel reduces your time to market and your income. When 5 developers work on 5 features in parallel, each feature taking 5 months, it will take 5 months for the first one to reach the market. If you work feature after feature, assuming the developers can work on one feature in parallel, it takes one month for the first feature to reach market Released features earn you money. While when working in parallel you do not earn money for 5 months, whereas you have earned 10 units of money otherwise. Time Released Developed Time Released Developed Time Released Developed Release cycles and earned money If you release twice a year, developing one feature a month then after 6 months you have released 6 features. They earn you money for 6 months, the second half of the year. Suppose every released feature makes you $1000 per month, that's $36,000 a year. When you reduce your release cycle to 3 months, releasing 4 times a year, this will result in more money, $54,000 per year. Just changing realeases made you nearly twice the money. This gets even better. When you reduce your release cycle to 1 month, releasing 12 times a year, you will make $66,000 with the same features and mostly the same costs. The optimum you can achieve are continuous releases. But as you can see from the numbers: 36,54,66 doe converge. You cannot optimize forever and need to find the sweet spot for your environment. !"# !"# Time to Market Cheat Sheet Time Released Developed Time Released Developed 6 Months 9 Months !"# $%# How low-value features block high value features Developing features that don't earn you money, will really cost you. If 50% of your features do not earn money, then depending on release cycles and order you can lose 50% of new earnings. Developing features that do not earn money, will not only cost you money for development, but will also block features that earn you money. In this example a feature is pushed 3 months later, from 6 months to 9 months. Time Founders no longer focus on product More people Unmaintainable Code Time to Market Processes Startup Time to market over time In the beginning of a company, as a startup, time to market is short. Founders are either developing themselves or are sitting right next to developers. Founders are product managers themselves. Over time this changes. Time to market grows larger when founders no longer focus on product, when processes are introduced, more people are hired and code gets unmaintainable. It's easy to not not see the challenge, because in the beginning everthing looks fine. 5
40. 40 We‘re hiring :-)
41. Thanks! @codemonkeyism stephan.schmidt@brands4friends.de
42. 42 Images CC from Flickr: nimboo, imjustcreative, gremionis, justonlysteve, John_Scone, Matthias Wicke, irisgodd3ss, TunnelBug, alandd, seasonal wanderer, raulbarraltamayo, Gilmoth, Dunechaser, graftedno1