what everyone should know about time to market
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What everyone should know abouttime to marketTRANSCRIPT
What everyone should know about time to market
Stephan Schmidt, Vice CTO, brands4friends
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brands4friends No.1 Shopping Club in Germany > 360k daily visitors > 4.5M Users eBay company
20.04.12 5 WJAX 2011
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Development at brands4friends Team Java and web developers, data warehouse developers Process Scrum since 2009 Kanban for DWH since 2012
Time to Market
10
Why?
If a feature is worth developing, it‘s worth getting to market sooner.
Revenue
Early market entry
Late market entry
Time
Longer sales Larger market share
Reinertsen 1998
What is time to market? From idea to making money. Not from start of project!
Why does time to market get worse?
Time
Founders no longer focus on product
More people
Unmaintainable Code
Timeto
MarketProcesses
Startup
Time to market is a huge lever.
Technology is not a huge driver.
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Buffers are the biggest driver.
Front-up
Development Start
Development
Everyone focuses here
Problems are here
Idea
Reinertsen 1998
42%
Start
58%
40% 60%
49%51%
56% 44%
0-3 Years 3 Years
Need Ship
Need Ship
Need
Need
Ship
Ship
MarketOpportunity
Feeling of urgency
Time relative to competitor Reinertsen 1998
Top Managementpossible impact
Reinertsen 1998
Attention of top management for a
project
>50% of time is spent before development. Time to market in development is a solved problem.
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Development is a solved problem
Concrete Steps?
Measure
Low quality and rework is one of the biggest wastes in software development.
Bug tracking is an anti-pattern.
Don't do bugs.
Time Time
1. Feature
2. Feature
3. Feature
4. Feature
5. Feature
1. F
eatu
re
2. F
eatu
re
3. F
eatu
re
4. F
eatu
re
5. F
eatu
re
Parallel Serial
Time Time
1. Feature
2. Feature
3. Feature
4. Feature
5. Feature
1. F
eatu
re
2. F
eatu
re
3. F
eatu
re
4. F
eatu
re
5. F
eatu
re
5 15
Time
Released
Developed
36
Time
Released
Developed
Time
Released
Developed
54 36
Time
Released
Developed
66
Time
Released
Developed
36
Time
Released
Developed
54 30
Time
Released
Developed
Time
Released
Developed
Time
Released
Developed
6 Months
9 Months 54 30
36
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
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1. Measure
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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. F
eatu
re
2. F
eatu
re
3. F
eatu
re
4. F
eatu
re
5. F
eatu
re
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
Develop
ed
Time
Released
Develop
ed
Time
Released
Develop
ed
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
Timeto
MarketProcesses
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.
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We‘re hiring :-)
Thanks! @codemonkeyism [email protected]
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