More Chefs and Agile Restauranteurs

As more of our clients have moved to agile software development, we’ve seen a growing need for business agility: getting non-engineering functions involved earlier and more collaboratively, so that companies deliver better revenue results as well as better software.  Let’s make this more concrete by mapping it to the restaurant business.

ChefOur first thoughts about restaurants are usually about the food.  It’s important to remember, though, that restaurants are businesses first-and-foremost: if they don’t make money, they close their doors.  A well-functioning restaurant profitably coordinates the chefs with its front-of-house staff and sales/marketing.  Translating this to the software world, agile software development teams (engineering, QA, tech docs, tech ops) are our chefs: creating the most visible part of what we sell.  As releases are passed to the customer-facing teams (marketing, sales, field SEs, channels, support), we need to be delivering fresh value to the market.  Revenue happens when customers buy and use our solutions, not when we release them. Continue reading

Grocers and Chefs: Software Service Models

This article captured an April 2007 talk I did at SVPMA.  The original slide deck is here.

I’m talking with more and more with companies considering a shift from traditional licensing models to hosted software-as-a-service (SaaS). It’s important to recognize the radical changes such a move may force within your entire company.  This column serves up a metaphor for the mental and organizational adjustments needed to move from a “product” model to a service business. Continue reading

So Your Product Wants to Be a Service…

Sometimes we take a fresh look at a product, with the thought of turning it into a service.  This is especially attractive if sales of our product-as-a-product are less than planned.  Here’s a short exploration of the opportunities and pitfalls in moving from a product model to a service model.

hotel reception bell
First, we’ll step through some successful service models including application hosting, transaction-based, and subscriptions.  Then, sketch an example to highlight some of the advantages and challenges of services versus classic product sales. Continue reading