Digitization-customer-centered and in small steps Agile software development in practice
Agile methods are an excellent basis for the development of digitization solutions. This article provides information on which elements of agile software development help companies in practice to successfully advance digitization-step by step, result-oriented and fast.
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Agile methods make it possible to achieve initial success in digitization quickly and with little effort.
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Agile, but with method
Digitizing business processes or opening up new business ideas with digital support is currently one of the most important goals for many companies of any size. A possible obstacle to achieving this quickly are heavy and complex methods of software development.
In practice, these also often lead to the fact that the initial digitization euphoria in the company is quickly followed by disillusionment. How this can be prevented by the effective use of agile software development methods, will be discussed in more detail Below.
Digitization is not the same as digitizing
The term digitization is currently omnipresent, but due to the vague definition there is no uniform understanding. This leads to a wide range of digitization solutions.
On one side of the spectrum, digitization begins, for example, with the support of a manual business process through the use of an Excel spreadsheet. The other extreme is the complete rethinking of a business process using new, digital technologies. From this, the following two basic digitization approaches can be derived:
- Continue as before – but more efficient, faster and more cost-effective
- Fundamental rethinking of the business, taking into account the technical possibilities
As always, one approach is not per se better than the other, but it depends on the specific application. In order to find the optimal solution for a scenario, an initial workshop is recommended for each digitization project.
It is important to fundamentally question the business processes – especially with regard to the current technical possibilities – and to develop possible digitization alternatives. In the context of a cost-benefit assessment, the appropriate digitization strategy for a project can then be identified.
What does successful digitization mean from the customer’s point of view?
The enthusiasm for new technologies is certainly one of the reasons for digitization projects. However, practical experience has shown that after the initial euphoria of all participants for pure technology, the following aspects are the actual characteristics of a successful digitization project:
- Start small with low investment risk
- Quick successes (“Time-to-market“)
- Small steps – Feedback flows into the further development at short notice
- Good cost-benefit ratio-the benefit is significantly higher than the cost
- Flexibility as the business is constantly changing
- And the most important thing: enthusiasm among customers and users
The majority of these criteria are difficult to achieve with static software development methods, so the use of agile methods is the de facto standard in the field of digitization. However, for their successful application, there are several points to consider.
Agile software development – few formalities, short sprints and fast results
Conceptually, agile development methods such as Scrum are per se lean and result-oriented. In order to benefit from these advantages in practice, it is crucial to take into account the following aspects:
Experienced Scrum Master
One component of agile methods are their rituals such as backlog refinement, review, etc.Here, the experience of the Scrum Master is required in order to design these formats as effectively as possible (e.g. without excessive discussions) and with little formalities in the sense of rapid project progress.
Clear, compact, User Stories
Agile methods that lead to fast results live from simple, clear user stories without lengthy specification phases. In addition, the user stories must be cut so small that they can also be realized within a sprint.
Short development sprints (14 days) with new functionalities
In order to fully develop the potential of agile methods, short development sprints with direct results are of fundamental importance for users. Only through these fast, tangible results can the dynamics of a digitization project be maintained in the long term.
Immediate rollout of new Features – automated DevOps Pipeline
A technical requirement that is often underestimated in digitization projects is the existence of a mature and automated DevOps pipeline. Only in this way can the software be quickly built, tested, distributed and set up productively without manual intervention. This is a core requirement for short development sprints, which then also deliver tangible results directly for the users.
Initial workshop = Reconciling ideas and technology
As already outlined, the initial workshop for a digitization project will set the course for the general orientation of the solution. The main contents and results of the workshop are the following:
- The definition of the specific objectives of the digitisation project
- Definition of the key points of the future, digitized process taking into account the technological possibilities
- Concretization of the first steps (e.g. defining minimum viable product)
Verify new business ideas with a prototype
A special case is new digital business ideas, whose exact processes and possible market acceptance are still unclear. For this purpose, the concept for a minimal, digital prototype is developed as part of the initial workshop. This offers the opportunity to test a new business idea with low risk:
- Testing acceptance in the market with minimal costs
- Get customer/user feedback
- Concretization of the further procedure on the basis of the results from the prototype
Minimum Viable Product – the starting point
As already explained, fast, tangible results in digitization are important for the long-term motivation of all participants. In this context, the first digitization step in the form of the “Minimum Viable Products” (MVP) is of great importance for the further course of a project. Core of the MVP is:
- Definition of a minimum functional scope that brings benefits to the users (e.g. can be a significant partial functionality with high user benefits)
- Quickly deploy a first, functional product
- The technical infrastructure for the operation of the product (e.g., Cloud environment)
- Basis for the step-by-step development
- Initial feedback as input for further development
Technology for practice
Technology is certainly an important component of a digitization solution. However, it is often overrated as a miracle cure for all problems. Decisive in the selection and evaluation of technologies are:
- Use of a single basic technology stack
- As few additional technologies as possible (use of additional technologies only if they solve a specific problem)
- Technologies must be mature, robust and widespread if a digitization project is not to become an alpha testing phase for new technologies
Conclusion
The use of agile methods is not necessarily a guarantee of success. Rather, as described in the article, it is important to consider some basic aspects. If you take these to heart, you can quickly achieve initial digitization successes with little effort and then gradually expand them-on the way to a digital business model that flexibly adapts to market needs.
- * Matthias Hänsgen works as a system architect for Consist Software Solutions GmbH. For over 25 years, he has been developing business-critical applications based on object-oriented technologies. His current focus is the development of microservices applications based on agile methods.
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