That's a tough one Abdeen. Agile should in theory save money on the finished product. One example of this would be the following: Once the product is finished, a number of features that may have been included that didn't need to be, would have most likely been identified earlier using Agile methods, and thus the product would have been finished earlier, and for less cost. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
In principal, Agile helps big time as it minimizes error by inspection and adaption and delivering the product incrementally. It also incorporates some lean concepts if I am not mistaken.
It definitely contributes towards your project success. I cant say it will save you money per say. Saving Changes...
Stephan WeinholdConsultant| S&N InventSalzburg, Österreich, Austria
There's no definition of what "agile" really is. My two cents... It's an umbrella-term for several methods that all have two things in common: a) they follow the Agile Principles and b) they are tailored for areas of high uncertainty (right and up on the Stacey Matrix). If your project is located in these areas and if it's done right (the upside-down iron triangle) then Agile Methods will be way more effective than predictive PM. If. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
The point is: what does mean cost?. From the point of view of applying practice like Agile cost is not monetary cost only. When organizations start to implement something to do things (Agile, Lean, etc) the first thing to do is to evaluate impacts taking into account the whole enterprise architecture. After that cost can be determined as well as benefits (again, in this case benefits are not monetary only). In case organizations will put in place things like Agile or Lean the key driver is how they will be ready for the future.Is the same than people take a decision to take a certification or not. Saving Changes...
Hi Abdeen, I concur, as the approach is to fix time, cost and quality, the iterative and incremental approach ensures the more important requirements are built to the agreed level of quality, and always on time which should in turn deliver business benefit as early as practical, the less valuable features can then be either dropped or deferred.
This should in essence keep your project on track, however, whether it would save money....... Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
On the other side, Agile is not a method, is not software or IT related only, did not start with the Manifesto. Agile was born in 1990 as an alternative of Lean and if you search the use of Agile is in manufacturing in latest 1980. To evaluate the effort to implement Agile the focus is not the use of a method based on Agile. But if the organization decide to start from there then the impacts that it will create at whole organization have to be taken into account. Saving Changes...
Pawan RaiSenior Project Manager| Axtrics Solution Pvt. Ltd.Ambala, Haryana, India
It all really boils down to what do you consider is the cost. E.g. are you just look at the cost of man, machine and other things required to carry out the project or are you taking into account the cost of not going to market early with minimum viable product and building the product over time due to opting for pure waterfall hence loosing out in market. Saving Changes...
As my colleagues have indicated, it depends. I would never "sell" agile delivery to an organization as a means to save costs, however, if their current methods are heavy, then an agile transformation might lean things out. Those savings would be counterbalanced in the short term by the cost of the agile transformation.
Disciplined product management might end up reducing opportunity costs of continuing to invest in developing a product beyond the point where customers are receiving value.
Kiron Saving Changes...
Drew CraigSr. Agile & Product Coach| VanguardPhiladelphia, Pa, United States
There is a lot of 'it depends' in the answer, but in the long run, I'd say less overall 'cost', with a closer relationship b/t business and IT to ensure delivering value as opposed to a litany of requirements. This drives producing the MVP. So while delivery is incremental, the focus is always on value, likely cutting the scope and length of a project through restricting overhead. Saving Changes...
Meade RubensteinPM III| IT Project GuideSparta, Nj, United States
If by Agile, you mean incremental development of some product, where each iteration is finalized with a review/reflection of what to do next (if anything) - then yes, it will cost more. This follows the basic laws of physics where any stopping/starting action takes a certain amount of energy (aka cost). If done properly, Agile will provide a great cost/benefit ratio by producing higher quality products with the focus on delivering the higher priority parts of the product first. Saving Changes...
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