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BUY DIFFERENT OUTSOURCING A STRATEGIC SOFTWARE DEVELOPMENT PROJECT

Buy different - Outsourcing of strategic software development projects

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A few advices helping in software development supplier selection to create a successful relationship from the start

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Page 1: Buy different - Outsourcing of strategic software development projects

B U Y D I F F E R E N TO U T S O U R C I N G A S T R A T E G I C S O F T W A R E D E V E L O P M E N T P R O J E C T

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A N D R E A B A N D E R A

• Product development manager & traveler

• @dottorbabba

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Company’s responsibilityOutsourcer’s responsibility

PAST NOW

S T R AT E G Y

K E Y P R O C E S S E S

I T O P E R AT I O NS T R AT E G Y

K E Y P R O C E S S E S

I T O P E R AT I O N

S T R AT E G Y

K E Y P R O C E S S E S

I T O P E R AT I O N

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S T R AT E G I C P R O J E C T

• i.e. new software product, internet service or even core process redesign

• not standard (usually even not existing) solutions

• responsive to market evolution

• medium to long term projects (6 months-2 years)

• time to market is a critical success factor

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S U P P L I E R S E L E C T I O N

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H O W T O A L I G N B U S I N E S S VA L U E W I T H P R O J E C T D E L I V E R Y ?

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Lean project management

Agile methodologies

Testing automation

Behavior driven development

Test driven developmentContinuous integration

Continuous delivery

User centric design

Minimum viable product

UX designContinuous learning

Continuous improvement

Domain driven design

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H O W T O R E W A R D T H E S E A S P E C T S ?

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• Detailed functional specifications

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• Detailed functional specifications

• Challenging time constraints

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• Detailed functional specifications

• Challenging time constraints

• PRICE NEGOTIATION TO DEATH!!!

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• Detailed functional specifications

• Challenging time constraints

• PRICE NEGOTIATION TO DEATH!!!

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I T F O C U S O N H O W A N D N O T W H Y

FA I L # 1

It doesn’t make clear what is the business value

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I T A N T I C I PAT E S D E C I S I O N S

FA I L # 2

Typically lowering the generated value and increasing the risk of failure because it ignores the learning value emerging from implementation

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I T I G N O R E S T H E U N E X P E C T E D

FA I L # 3

Reacting badly and making unrealistic assumptions about time

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I T D O E S N ’ T P U T B U S I N E S S VA L U E F I R S T

FA I L # 4

Considering the price the most critical success factor

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I T M A K E S W R O N G A S S U M P T I O N S O N S O F T W A R E L I F E C Y C L E

FA I L # 5

Underestimating the importance of structural ability to evolve based on business changes

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I N T R O D U C E T H E C O N T E X T F I R S T

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T H E R E A S O N S W H YW H A T L E A D S D E C I S I O N M A K I N G

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H O W D O Y O U M E A S U R E Y O U R G O A L S

Business KPIs are not the project KPIs! They are useful for a more value driven solution

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C O N S T R A I N T SData migration, integrations, regulatory requirements…

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C H A N G E T H E W A Y Y O U S P E N D Y O U R M O N E Y

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D O N O T D E F I N E T H E M O N E Y T O S P E N D AT T H E B E G I N N I N G O F A

P R O J E C T

A D V I C E # 1

Just define the spending capacity of the agreement

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C O M M I T Y O U R M O N E Y O N S M A L L A N D W E L L - D E F I N E D G O A L S

A D V I C E # 2

In order to get feedback about generated value as soon as possible and then take a decision on what it’s worth investing

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T H E P R O C E S S M AT T E R S

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S TA R T W I T H A D I S C O V E R Y P H A S E

A D V I C E # 3

Not a functional analysis because the supplier must well understand the project context to define a value driven solution

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W H AT A D I S C O V E R Y P H A S E I S ?

• It’s a project starting phase usually lasting for few days or for few weeks

• It’s the first small and well-defined goal on which you commit your money

• It’s an “all in a room” co-creation work where knowledge emerges and is shared between customer and supplier (and usually also among people from the same company)

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T H E D I S C O V E R Y J O U R N E Y

• Current value proposition

• Short/Long term vision and key drivers and anchors

• Key business and technical objectives and priorities

• Involved business workflows

• Customers and support team

• IT processes and architecture (setup, maintenance and support)

• Derive candidate initiatives and prioritize

• UX review

• Scenarios and roadmap

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P R I O R I T I Z EA D V I C E # 4

Take just one decision: what’s next step?

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C L A I M F O R A N I T E R AT I V E A N D I N C R E M E N TA L A P P R O A C H

A D V I C E # 5

Short iterations give feedback asap on your decisions.Delay commitment until the last responsible moment, that is, the moment

at which failing to make a decision eliminates an important alternative

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U S E R C E N T E R E D D E S I G N I S A M U S T

A D V I C E # 6

Users feedback must be at the heart of solution definition

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L O O K F O R Q U A L I T Y I N S O F T W A R E D E V E L O P M E N T

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T E S T S A R E A N A S S E TA D V I C E # 7

Testability also keeps architecture simple and leads to better technology choices

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N O T E S T I N G A N D D E L I V E R Y A U T O M AT I O N ? N O PA R T Y

A D V I C E # 8

It’s not about speed… it’s about change management

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W H AT Y O U G E T

• A value driven supplier

• Improve the ROI reducing the waste and managing the change

• Build a trusted relationship little by little based on experience

• Focus on the relationship and not just the contract

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– L O U I S L ' A M O U R

“a good beginning makes a good end”