Business Value Modeling

Developers, their direct contribution to
business success?
Presented by Baf
Kurtulaj
03 Dec 2015
IT is enabler to Business – It’s a principal
How aware are you in creating business value ?
① Value / Business Value / Value Drivers / Business Model
② Challenges
③ The Golden Cycle – WHY, HOW, WHAT
① Understand the business of your customers
②
Business Value Model
③
Take away points
Value
“…based on the relationship between satisfying needs and
expectations
and the resources required to achieve them
”
and getting what you require for what you will pay
By Institute of Value Management
Business Value
“…an informal term that includes all forms of value that
determine the health and well-being of the firm in the long-run”
By Wikipedia
Value Drivers
“……are anything that can be added to a product or service that will
increase its value to consumers”
By Steve Blank
EXAMPLE:
 Increase customer satisfaction by 50%
 Increase profits by 150%
 Increase Market share by 0.5%
Business Model
“is how a company creates value for itself while delivering products and
services for its customers”
By Steve Blank
Value Proposition
 What pains are you solving ?
 What gains are you creating ?
 Who are our customers ?
Why Business Value matters?
 Its how we measure
the success of an organization.
…..and its our responsibility to contribute to archive the business goals.
Challenges
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Commercial unawareness
Lack of communication
Lack of understanding needs and goals
Lack of inquisition
Not selecting software functionality that creates value
Value Drivers and prioritisation
Luck of measurements of value drivers
Understand the purpose
How can you design and implement good software product without deep
understanding of the purpose?
The Golden Cycle – Starting with WHY?
 Start with WHY and
not WHAT
 How we can make the
difference
 What becomes the by
product of the above
 Purpose
 Cause
 Believe
 How we do what we do
 How different are we as
software engineers
WHY?
HOW?
 What we do
 Job function
What we normally do
WHAT?
By Simon Sinek
Understand the Business of your customers
 Understand the business?
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Why we are in this industry?
How the industry operates?
What are our direct competitors ?
What are the key challenges ?
How we position our product to meet needs of customers?
………….the better you know the business the higher the probability to
implement the solution
 KYC – Customers archetypes
 Pain
 Gains
 Problems
……….....leads to better requirements, designs, implementation and tests.
Business Value Modeling - its what business values
①
②
③
④
⑤
⑥
Business value driver variables
Quantify
Priorities
Agree
Communicate
Get involved
Take away points
VALUE DRIVERS + CONTRIBUTORS + VALUE CREATION +
CUSTOMERS SATISFACTION = BUSIENSS SUCCESS
① Businesses exist to create VALUE
① Value creation is collaborative afford by all (Developer teams,
PMs, Product Owners and other stakeholders)
② Why we do what we do and the impact created
③ Know your business and customers
④ Get involved – start mixing your technical know – how
capabilities with business skills
Thank You
Any Questions ?