May 2012 Archives

Last week I met with Jim Highsmith at an event organised by ThoughtWorks, an IT consultancy for whom he works. Highsmith is one of the authors of the 2001 Agile Manifesto, which is so short I can quote it here:

We are uncovering better ways of developing software by doing it and helping others do it.

Through this work we have come to value:

  • Individuals and interactions over processes and tools
  • Working software over comprehensive documentation
  • Customer collaboration over contract negotiation
  • Responding to change over following a plan

That is, while there is value in the items on the right, we value the items on the left more.

That was over ten years ago, but Highsmith told me that his Agile journey because ten years before that. "I started doing first iterative development projects in the early Nineties," he told me.

Given the Manifesto's statement about tools, I asked Highsmith what he thought about the role of tools in Agile development today. I am aware, of course, that tool vendors frequently highlight their suitability for Agile (rightly or wrongly) as a marketing point.

"Vendors have come at it from two different directions," he said. "There is a set of vendors who basically had products, like IBM and their Rational toolset, who have essentially tried to reposition, redevelop or redesign those to do Agile, and then there are companies that have built up from the bottom, the Rally's, the ThoughtWorks, and built the tools out.

"As you have worked with organisations at scale, some of those tools have changed. So at one Agile team you can use a spreadsheet or just a storyboard, but if you've got a big organisation you have to have some additional complexity than that.

"All that said, I think vendors are overdoing it in some instances in order to appeal to organisations who may not be quite agile enough yet. For example I know one of the vendors was asked one time by one of their big clients 'We want you to do burn down charts by individual.' Their response was: you don't understand Agile and we're not going to do that.

"The Agile Manifesto said people and process over tools, but it didn't say instead of. The tooling is important, particularly around development stuff, automated testing tools, build pipeline tools, things that really help people operate in an agile manner."

How has his thinking about Agile evolved in recent years?

"It has not changed in terms of how to do Agile, but it has changed in terms of scale. Five years ago we were still doing bottom-up Agile implementations. Teams would come in and get dispensation to do an Agile project. In the last five years we've gotten a lot more top-down, we've got VPs of engineering and CIOs and CTOs coming in and saying, we want our organisation to be Agile. The largest one I've dealt with is 25,000 software engineers in China, at one company.

"So you get more of that which has its own problems and issues."

What are the biggest obstacles to Agile?

"One of the things that's happened, first with the movement to the web and now with the movement to mobility, and cloud, and big data, and those kinds of things, is that the technology changes are forcing people to look at business changes. So there is more interest. But I think there's still a lot of inertia in big companies, though you are seeing more and more big banks, big insurance companies, big manufacturing companies, that have realised the future is about responsiveness, that are moving to Agile." he said.

The question of scale came up repeatedly and seems to be a sign of maturity within Agile. It is no longer in any sense an underground movement, and Highsmith understands that change cannot only be bottom-up. His current topic is adaptive leadership, emphasising that top-down is also needed. "It is a mix ... It has got to be driven from the bottom in terms of delivering software, but if you don't also support it from the top you can't scale fast enough."

 

 

Can you make money in your sleep? Any freelance worker, including IT contractors, all sometimes get a little worried about where the next rent payment is coming from. The world is full of get-rich-quick schemes, and most of them these days seem to centre on the Internet. But can you really make money online for doing little? And for how long?

Passive income (also known as the 'muse business') is the domain of low-level Internet entrepreneurs and lifestyle enthusiasts. It's what Tim Ferris advocates in his book The Four Hour Work Week, and it's supposed to pay your bills. 

The first step is this: create a product that you can sell without having to be responsible for physically shipping it. This is generally an information product, or one that can be created and distributed electronically. It can also include physical products such as DVDs that can be drop shipped by a fulfilment house.

The products vary. Ebooks, web applications, or iPhone apps can all generate money once they have been produced, while requiring minimal maintenance. There are other options, too, such as ad-driven web sites (where the advertising itself is the product, and affiliate marketing (where you sell someone else's product and just take a cut of the revenue).

Once you have your product or a niche web site, you use search engine optimisation to market the heck out of it. In theory, it gets to the top of the Google search results for that niche, and then people either buy the product or click on the advertising on your site (or both). Then, you sit back, and wait for the cash to roll in. 

Products sell via a variety of platforms: Amazon's Kindle bookstore and Apple's iTunes App Store will sell your products for you (for a cut). Affiliate product vendors will pay you a commission for sales made via your web site. And then of course, there's money to be made via Google's AdSense advertising programme. 

It all sounds rather attractive, especially when you find people who have made a million dollars through ebooks, or when you stumble across people like this kid, who made money by bundling Mac software. 

But for most of us, it isn't that easy. You must find a niche that's popular enough to generate significant traffic, but not so popular that it will be outranked by competitive web sites who have a better Google PageRank than you do. Then you must play the search engine optimisation game, which involves an intricate process of competitive analysis, backlinking and content tweaking to get the best results. 

Then, you must convert traffic into sales by persuading people to buy the product once they find you. Pricing is one part of the puzzle, but you must also be sure to choose a product that relates to an urgent enough need - and one that hasn't already been exploited to too much competition.

For every Angry Birds, there are hundreds of thousands of iPhone apps that make pennies in sales. For every successful ebook, there are many that are never read. 

The revenue figures for an expertly-crafted niche site are respectable enough. This chap generates over a thousand a month from one niche site, and shows exactly how he did it, step by step. It isn't bad, but it isn't stellar. And when you look at the work he put into his site, you can see that passive income online isn't the huge moneyspinner that some would have you believe.

On the other hand, he makes $60,000 each month from his complete portfolio of passive income sites, and a lot of that comes from affiliate marketing on the site that tells others how to do the same, which is something of a self-fulfilling prophecy. This highlights one of the most important facts of passive income online that always get overlooked: you have to do lots of these little ventures to make a decent return. Each one requires a lot of heavy lifting, even when you get the formula down to a fine art. 

For freelancers of all types, passive income is a viable way to supplement your income. But if you're going to do it, an ounce of research up front will save a lot of disappointment down the line. And to do it properly, you might want to take a month off work and concentrate on it full time to get enough properties working. In other words, treat it like a business, not a hobby.

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