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ROI for Engineers
ROI = Benefits - Costs
ROI = Benefits - Costs
Revenue Drivers
ROI = Benefits - Costs
Revenue Sinks
ROI = Benefits - Costs
Incremental Gain (or Loss)
Recipe for SuccessExpanded Revenue
+
Squeezed Costs
=
More Incremental Income
ResponsibilitiesProduct Management, Sales &
Marketing
have greatest impact on
Revenue Drivers
ResponsibilitiesEngineering, Program
Management & QA
have greatest impact on
Revenue Sinks
Responsibilities
The greatest product idea in the world can be a financial failure
due to sloppy engineering
Usual ROI Failure Lower than expected Revenue
Higher than expected Support Cost
Late project, deferred debt
Squeezing CostsDev Cost Estimate well, manage risks, deliver cleanly, be done, Done, DONE.
Support Costs Don’t release crap code, customers will call, that costs money.
Upset Customers Annoy a customer, they buy from someone else next time.
Escalations If the front line support can’t solve it, the engineers get pulled in.
Tech Debt Deferred engineering always efforts come back to haunt.
Squeezing Costs
How??
Have Conscious
Awarenessat theStart
Engineers != Business People
Engineers != Business People
Hint: Don’t Focus on Numbers
Increase Decrease
Sales Support Good Will Dev Cost Support Upset Cust Escalations Tech Debt
Decrease Increase
Hint: Don’t Focus on Numbers ✓ ✓ ✓ ✓
Increase Decrease
Sales Support Good Will Dev Cost Support Upset Cust Escalations Tech Debt
Decrease Increase
✘ ✘ ✘ ✘
✓ = Good ✘ = BadConsciously look to maximise ✓ and minimize ✘
More above than below
Some Common Bad Patterns✓
Increase Decrease
Sales Support Good Will
Dev Cost Support Upset
CustEscalatio
nsTech Debt
Decrease Increase
✘ ✘ ✘ ✘ ✘
✓
Increase Decrease
Sales Support Good Will
Dev Cost Support Upset
CustEscalatio
nsTech Debt
Decrease Increase
✘ ✘ ✘ ✘ ✘ ✘ ✘
Poor quality delivery with bugs visible to customer and lots of support issues being escalated to engineering.
Late project, lower quality output, deferring work that should be done to later.
Some Patterns to Strive for✓ ✓ ✓ ✓
Increase Decrease
Sales Support Good Will
Dev Cost Support Upset
CustEscalatio
nsTech Debt
Decrease Increase
✘
✓ ✓ ✓
Increase Decrease
Sales Support Good Will
Dev Cost Support Upset
CustEscalatio
nsTech Debt
Decrease Increase
✘
Reduce support churn and escalations into engineering.
Retiring tech debt, increase in quality, less engineering churn.
Application
Timebox: Seconds to consider Consider & Discuss
Why Use It?
Creates a Common Language and Gets
People Thinking
Will this feature increase support calls?
Does this make the customer happy?
What can I do to allow the customer or support team to self serve?
Obscure Images References
Hydrogen and Maths, the common language giving Directions To Earth on the Voyager Spacecraft
Swiss Railway Clock, used by Apple without permission for iOS 7.
Gnome Business Plan with a health dose of separation from reality. From South Park.
The cast from Silicon Valley. Frighteningly accurate.
http://use-cases.org/
Short form & long form articles on this and other engineering topics.