Case Study: Flexible Capacity is more valuable than a Flux Capacitor

July 4, 2016 — Posted by Guy Beaver

Recognize this pattern?  Product Manager wants mobile app.  Requests native apps for Android and iOS.  No one asks about priority, so IT organization silos provide iOS and Android teams to work in parallel.  Two project teams are formed and each estimates one year to deliver.  What’s wrong with this picture?

There’s nothing really wrong with this picture, but are there other approaches to consider?  

Product Manager asks if iOS team can join the Android team and help get the Android app done first.

Android and iOS Tech Lead says they could, but that would be wasteful.  

"My iOS team can’t deliver Android nearly as fast as the Android team.  If we work in parallel we get both apps done in a year.  If we combine teams and work sequentially, we could possibly get Android in 7 months, but then it would take at least another 6 months to finish the iOS app for a total of 13 months, so you end up paying for an extra month of effort. And remember the combined burn rate (cost) of our teams cost the company $100,000 per MONTH!!!!!"

This logic makes too much sense until the Product Manager pipes in with, 

"What if each month delay in getting any mobile app live results in $600,000 in lost revenue?  And since the Android app store has a quicker time-to-market review process, I want to do that one first!" And with the extra revenue generated getting live 5 months earlier, we can buy a flux capacitor!"

The payoff: Getting flexible capacity is an amazing value generator for your business, when driven by the right priorities.  It allows your organization to deliver the highest business value in the least amount of time (vs getting the most stuff done with the least amount of cost.) 

Blog Type: 
Case Study
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About the author | Guy Beaver

Guy Beaver is VP of Enterprise Engagements and a Senior Consultant. He is a seasoned technology executive known for building Lean organizations that are driven by business priorities. With 30+ years experience in Financial Services, Aerospace, Health Care and eCommerce, his technology accomplishments include managing enterprise web development and delivery for world class transaction systems (16 Million users), large data center transitions, and SaaS operational excellence utilizing Lean IT practices. He is skilled at organizational change and is the co-author of Lean-Agile Software Development: Achieving Enterprise Agility.



        

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