Скачать или смотреть Agile vs. Waterfall. Which is more PROFITABLE?

Follow the money and you'll see that Agile has a massive head-start over Waterfall when it comes to profitability.

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Follow the money and you'll see that Agile has a massive head-start over Waterfall when it comes to profitability. Don't worry! There are no complex equations or boring spreadsheets to wade through. I've gone out of my way to make it as interesting and exciting - yes, exciting! - as possible.

0:26 - Present Value (PV)
2:13 - Net Present Value (NPV)
2:50 - Timing of Cash Flows
4:00 - How to maximise profit
4:12 - Waterfall
4:50 - Agile
5:23 - Waterfall vs. Agile

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Present Value (PV) -    • Видео  
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Music: 260809 Funky Nurykabe: ccmixter.org/files/jlbrock44/29186

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32. Agile vs. Waterfall. Which is more PROFITABLE?
#DevelopmentThatPays

Warning. In the next few minutes you'll see graphic images of finance and accounting concepts. Please don't be alarmed. There will be no equations. And no spreadsheets. Some viewers may shocked to find that the concepts presented are... rather awesome. If that is the case for you, support resources will be presented at the end of this video. The Time Value of Money -------- Money now is worth more than money later. Everything we'll look at today stems from this single principle. If in was to give you £12,000... Would you rather have it now Or a year from now I'm sure you'd prefer to have it now. The "Money now is worth more than money later" thing is, for most people, intuitive. We even have a saying for it: "A bird in the hand is worth two in the bush." Apples and oranges ----- What if I offer you £10,000 now OR £12,000 later. Which would you prefer I'm sure you'd say that that depends on what I mean by "later". If "later" if tomorrow... You'd wait for the £12k If "later" is 50 years from now... You'd take the £10k now. But what if "later" is 6 months Or 18 months That's far from clear-cut. The difficulty is this: We need to be able to compare a present value - the £10,000. With a future value - the £12,000. These are two different things. And as any schoolboy will tell you, you can't compare apples and oranges. We need to be comparing apples and apples. A present value with a present value. Luckily, there's a way to do exactly this. Present Value -- Finance types talk about discounting future cash flows down to their present value. It's something that can be calculated. Here's how the value of the £12k payment various over time: The further we travel into the future, the less it's worth. Each of these bars moves us a year into the the future. By the time we get 20 years into the future, £12,000 is worth... hardly anything at all. If we do the same thing, but taking small steps... each of these bars represents a month - ... then at a certain point the the PRESENT value of £12k drops below £10k. Multiple Payments -- We can apply the same approach to multiple payments. Here we have four quarterly payments of £3k. We already know that adding up the £3k's would be a case of mixing... oranges, bananas, blueberries and plums What wee need to do is DISCOUNT each of the payments down to their PRESENT values. once that's done, we have values that can be compared - and totalled. This total is known as the Net Present Value. NVP for short. Hold on a second... --- I know what you're thinking. These pretty graphs are all very well... But what about the whole Agile / Waterfall thing Let's see. Agile and Waterfall are projects... and projects involve expenses... and income*. Income and Expenses ---- Let's start with a super-contrived example of a project: It has expenses of: £10,000 a month for 6 months. At that point, the product is launched and the money starts pouring in: £10,000 a month for the following 6 months. £60k out. £60k in. Break even Not so fast: we need to do a spot of discounting. There's now more RED than green. This project has a negative Net Present Value. That's not a good thing. If we could magically switch this around... so that the income came before the expenses... This time, discounting works in our favour. There's more green than red. The net present value this time is positive. The Timing of Cash Flow
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