Prioritizing Value: How Agile and SAFe Deliver ROI-Driven Software
Software is built on features, each promising a specific benefit to your customers. However, not all features are created equal. Agile methodologies, particularly when paired with the Scaled Agile Framework (SAFe), help development teams prioritise features based on Return on Investment (ROI).
Here's how it works:
- Break it Down: The software is decomposed into smaller, manageable units called epics and features.
- Value Focus: Epics and features are prioritized based on the value they deliver to the customer. This value translates directly to the customer's willingness to pay.
- PI Planning: Using SAFe, development cycles are called Program Increments (PIs). During PI planning, teams consider the ROI of features when building the development roadmap.
- Fast ROI, High Margins: By focusing on high-value features first, you can get those features to market quickly. This means faster returns on development investment and higher profit margins thanks to features with high perceived value by your customers.
Benefits:
- Reduced Waste: Focus on features that deliver value, minimizing development time and resources spent on features with lower ROI.
- Happier Customers: Customers get the features they need first, leading to higher satisfaction and potentially increased brand loyalty.
- Sustainable Development: By focusing on ROI, your development efforts are aligned with market demands, ensuring long-term success.
In Conclusion:
Agile development paired with SAFe's prioritization framework helps software companies deliver features that matter most to customers. This focus on value translates directly to faster ROI and a more sustainable business model.