Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.
The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework.
Agile vs. waterfall example
To understand the difference between the Agile methodology and its predecessor, consider the example of European company Ericsson.
Background
Ericsson is a Swedish multinational company with a core focus on networking and telecommunications.
The company, which was founded in 1876, sells software and infrastructure.
It also offers information and communications technology services including various 3G, 4G, and 5G equipment as well as IP and optical transport systems.
Use of the Waterfall model
With a long and storied history, Ericsson had used the Waterfall model for many years since it was first introduced in the 1970s.
However, the model’s lengthy project cycle before implementation was unsuitable for the dynamic and innovative industry in which Ericsson operated.
The company also found that the prediction of project outcomes was not accurate.
Both these factors meant the company had a problem with time and efficiency.
Under pressure to respond to dynamic market needs, Ericsson’s teams sacrificed the testing stage of the Waterfall model to meet deadlines.
Inevitably, this resulted in late deliveries of a questionable quality that were also not what the customer wanted.
In 2005 and with an awareness that its product lead times and feedback loops were too long, senior executives became tired of the Waterfall model and looked elsewhere for a solution.
Agile methodology implementation
Ericsson incorporated the Agile Project Management philosophy for the first time in 2008 – despite fears it could not be deployed at scale.
The company was also, at least to some extent, forced to adapt because of intense industry competition and more technologically advanced products that required continuous improvement.
The company hired external Agile Project Management practitioners and all employees were trained at the same time.
In this case, the primary objective of the training program was to transform Ericsson from a linear waterfall organization to one based on the specific Agile methodology known as Scrum.
To that end and in very general terms, existing project managers were transitioned into Scrum masters, coaches, and team members.
The results of Agile implementation
Once employees had been trained on Agile philosophies and methodologies, one of the first initiatives at Ericsson was to re-arrange the office space to enable teams to have their own dedicated working spaces.
In an interview post-implementation, Ericsson project manager Hendrik Esser described the changes on a more practical level:
“Early we understood that estimates shouldn’t be [mis]used any more as a “commitment”, but as an expression of uncertainty and risk. And it should be owned by the team. The method we introduced was “uncertainty ranges”, instead of one “precisely wrong” estimate like “we will deliver this on the 12th of October 10.30 am”, we started saying “According to our current best knowledge we will deliver this between August and November.”
Esser went on to explain that in Ericsson’s new lightweight Agile project office, teams would revise the estimate after each sprint.
Estimates would then be collected from each team to obtain a holistic picture that could then be discussed with business managers.
In the process, the company redefined the expectations of its various Product Owners.
Ultimately, Ericsson’s Agile transformation was successful for a company of its size.
Twelve months were allowed for the change, but momentum increased after six as teams working on older projects became envious of their happier colleagues working under the Agile approach.
Key Highlights
Agile Methodology vs. Waterfall Model:
Agile Methodology: Agile is a development approach that emphasizes continuous iteration and flexibility in software development. The Agile Manifesto, formulated in 2001, laid out principles for this new paradigm.
Waterfall Model: The waterfall model is a linear and sequential project management framework, which was widely used before the rise of Agile. It involves structured phases with a sequential progression.
Ericsson’s Background:
Ericsson is a Swedish multinational specializing in networking, telecommunications, and ICT services, founded in 1876.
The company faced challenges in adapting to a dynamic and innovative industry due to the Waterfall model’s lengthy project cycle and inaccurate prediction of outcomes.
Waterfall Model Challenges:
Ericsson had historically used the Waterfall model, but it resulted in late deliveries, compromised quality, and misalignment with customer needs due to its inflexible nature.
Market pressure and increased competition highlighted the need for a more adaptable approach.
Agile Implementation:
Ericsson embraced Agile Project Management in 2008 to address these challenges, despite initial concerns about scalability.
External Agile Project Management practitioners were hired, and all employees underwent training to transition from a linear waterfall organization to an Agile approach, particularly the Scrum framework.
Transition Process:
Existing project managers were transformed into Scrum masters, coaches, and team members.
Agile principles were incorporated into various aspects of the organization, including project estimation and ownership.
Results of Agile Implementation:
Ericsson rearranged its office space to accommodate Agile teams, fostering collaboration and dedicated working spaces.
Agile’s impact was visible in project estimation, which shifted from precise commitments to expressing uncertainty and risk through “uncertainty ranges.”
Teams revised estimates after each sprint, contributing to a more accurate picture for business managers.
Success of Agile Transformation:
Ericsson’s Agile transformation was successful for a company of its size.
The transition took around twelve months, with increased momentum and enthusiasm observed after six months.
Teams working on older projects recognized the benefits of the Agile approach, leading to positive changes in their approach and mindset.
Context
Agile
Waterfall
Software Development
In Agile, software development is iterative and incremental, with frequent releases, user feedback, and continuous adaptation to changing requirements.
In Waterfall, the development process follows a sequential order, with each phase (requirements, design, development, testing) completed before moving to the next.
Project Management
Agile project managers prioritize flexibility, collaboration, and responding to change. They use tools like Kanban and Scrum to manage tasks and workflows.
Waterfall project managers emphasize detailed planning, with strict adherence to timelines and deliverables defined at the outset of the project.
Product Development
Agile product development involves quick iterations, allowing teams to respond to customer feedback, market changes, and emerging opportunities swiftly.
Waterfall product development follows a linear process, where the entire product is developed and tested before release, making changes challenging and costly.
Marketing Campaigns
Agile marketing teams regularly adjust campaigns based on real-time data and feedback, ensuring the most effective strategies are employed.
Waterfall marketing campaigns adhere to predetermined plans and timelines, with minimal room for adjustments once the campaign is underway.
Manufacturing
Agile manufacturing processes enable rapid adjustments to production schedules, allowing for smaller batches and quicker responses to market demand.
Waterfall manufacturing follows a fixed production plan, making it less adaptable to changes in demand or unforeseen disruptions in the supply chain.
New Product Launch
Agile approaches to product launches involve soft launches, gathering user feedback, and adapting the product based on early adopters’ experiences.
Waterfall product launches involve extensive planning and coordination, with a single, well-defined launch date and minimal room for post-launch adjustments.
Educational Curriculum Design
Agile educational curriculum development involves ongoing adjustments based on student feedback and evolving educational needs.
Waterfall educational curriculum design follows a structured, predetermined curriculum that remains unchanged throughout an academic year.
Construction Projects
Agile construction projects focus on incremental progress, allowing for adjustments in design, materials, and scheduling as the project evolves.
Waterfall construction projects adhere to detailed blueprints and plans, with changes often resulting in delays and cost overruns.
Healthcare System Implementation
Agile healthcare system implementations involve iterative testing, training, and feedback, ensuring that the system aligns with the evolving needs of healthcare providers.
Waterfall healthcare system implementations require comprehensive planning and tend to have fixed timelines and budgets, making changes challenging.
Event Planning
Agile event planning adapts to changing circumstances, making adjustments to event details, schedules, and logistics as the event date approaches.
Waterfall event planning follows a detailed event plan that is established well in advance and rarely changes unless there are unforeseen circumstances.
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Agile started as a lightweight development method compared to heavyweight software development, which is the core paradigm of the previous decades of software development. By 2001 the Manifesto for Agile Software Development was born as a set of principles that defined the new paradigm for software development as a continuous iteration. This would also influence the way of doing business.
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The Toyota Production System (TPS) is an early form of lean manufacturing created by auto-manufacturer Toyota. Created by the Toyota Motor Corporation in the 1940s and 50s, the Toyota Production System seeks to manufacture vehicles ordered by customers most quickly and efficiently possible.
The Total Quality Management (TQM) framework is a technique based on the premise that employees continuously work on their ability to provide value to customers. Importantly, the word “total” means that all employees are involved in the process – regardless of whether they work in development, production, or fulfillment.
The waterfall model was first described by Herbert D. Benington in 1956 during a presentation about the software used in radar imaging during the Cold War. Since there were no knowledge-based, creative software development strategies at the time, the waterfall method became standard practice. The waterfall model is a linear and sequential project management framework.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
