The concept of a “Product Increment” plays a pivotal role in agile software development methodologies, particularly in Scrum. It represents the tangible and potentially shippable output of a development cycle, typically a sprint or iteration. The Product Increment is a core aspect of delivering value to stakeholders and fostering continuous improvement within agile teams.
To understand the significance of the Product Increment, it’s essential to grasp several foundational concepts:
Agile Manifesto: The Agile Manifesto values “working software over comprehensive documentation.” The Product Increment embodies this principle by emphasizing the delivery of functional and valuable software.
Iterative Development: Agile methodologies promote iterative development, where a project is broken down into smaller, manageable cycles. Each iteration aims to produce a potentially shippable Product Increment.
Stakeholder Value: Agile development prioritizes delivering value to stakeholders, with each Product Increment representing a step towards fulfilling their needs and expectations.
Feedback Loop: Regularly delivering Product Increments allows for a feedback loop, where stakeholders can provide input, helping teams adapt and refine their work.
Core Principles of the Product Increment
Several core principles underpin the concept of the Product Increment:
Tangible Output: A Product Increment is a tangible output, representing real progress and value. It is not just a plan or a specification.
Potentially Shippable: The Product Increment should be in a state where, if necessary, it could be shipped or deployed immediately. This implies a high level of quality and functionality.
Incremental Delivery: Agile teams aim to deliver incremental value with each iteration. The Product Increment demonstrates this incremental approach to stakeholders.
Stakeholder-Centric: The Product Increment is focused on satisfying the needs and expectations of stakeholders, ensuring their requirements are met.
Importance of the Product Increment
The Product Increment holds significant importance in agile development for several compelling reasons:
Delivering Value: It is a tangible representation of value delivered to stakeholders. Each increment should bring the product closer to meeting their requirements.
Feedback Gathering: Regular delivery of Product Increments allows for the collection of valuable feedback from stakeholders, helping teams refine their work and align with user expectations.
Quality Assurance: Incremental development encourages a focus on quality. Each increment should meet a high standard to be considered potentially shippable.
Transparency: The Product Increment provides transparency into project progress, making it easier to track development and assess whether it aligns with expectations.
Risk Mitigation: Regular incremental delivery reduces the risk of late project failure. Stakeholders can identify issues early and adjust course if necessary.
Continuous Improvement: The Product Increment promotes a culture of continuous improvement. Teams learn from each iteration and apply lessons to future work.
Strategies for Creating a Product Increment
Effective creation and delivery of a Product Increment require strategic planning and execution:
Define a Clear Goal: Each iteration should have a clear goal or set of objectives that the Product Increment aims to achieve. This ensures that the increment adds value.
Cross-Functional Teams: Agile teams should be cross-functional, meaning they have all the necessary skills to produce a potentially shippable increment, including development, testing, and design.
Backlog Prioritization: Prioritize items in the product backlog based on their value to stakeholders. High-priority items are more likely to be included in the next Product Increment.
Regular Reviews: Conduct regular reviews with stakeholders to gather feedback on the increment. Use this feedback to refine future increments.
Testing and Quality Assurance: Ensure that the Product Increment undergoes rigorous testing and quality assurance to meet the criteria of being potentially shippable.
Incremental Release: While not every increment needs to be released immediately, aim to release increments frequently to realize the value sooner and gather additional feedback.
Benefits of the Product Increment
The Product Increment offers numerous benefits to agile development teams and organizations:
Delivering Value: It represents a tangible delivery of value to stakeholders, fulfilling their requirements incrementally.
Feedback Gathering: Regular delivery of Product Increments allows for the collection of valuable feedback, helping teams make necessary adjustments.
Quality Assurance: Each increment aims to meet a high standard of quality and functionality, ensuring that potentially shippable work is of high quality.
Transparency: The Product Increment provides transparency into project progress, making it easier to assess development alignment with expectations.
Risk Mitigation: Incremental delivery reduces the risk of late project failure by identifying issues early and allowing for course corrections.
Continuous Improvement: Agile teams foster a culture of continuous improvement by learning from each iteration and applying lessons to future work.
Practical Considerations
While the Product Increment offers significant advantages, there are practical considerations to keep in mind:
Clear Objectives: Ensure that each increment has clear objectives aligned with stakeholder needs.
Cross-Functional Teams: Assemble cross-functional teams with all the necessary skills to produce a potentially shippable increment.
Prioritization: Prioritize items in the product backlog based on stakeholder value to determine what goes into the next Product Increment.
Regular Reviews: Conduct regular reviews with stakeholders to gather feedback and make necessary adjustments.
Testing and Quality Assurance: Invest in rigorous testing and quality assurance to meet the criteria of a potentially shippable increment.
Incremental Release: While not all increments need immediate release, consider releasing frequently to realize value sooner and gather additional feedback.
Conclusion
The Product Increment is a cornerstone of agile development, representing tangible progress and value delivery to stakeholders. By adhering to the core principles and best practices of the Product Increment, agile teams can ensure they deliver value, gather crucial feedback, maintain high-quality standards, foster transparency, mitigate risks, and embrace a culture of continuous improvement. In today’s fast-paced and competitive software development landscape, the Product Increment remains an essential concept for achieving agile success and satisfying stakeholders’ needs.
Key Highlights:
Foundations of Product Increment:
Rooted in Agile Manifesto’s principles, iterative development, stakeholder value, and feedback loop.
Core Principles:
Tangibility, Potentially Shippable, Incremental Delivery, Stakeholder-Centricity are key to the Product Increment concept.
Importance:
Signifies value delivery, facilitates feedback gathering, ensures quality assurance, promotes transparency, mitigates risks, and fosters continuous improvement.
Strategies for Creation:
Define clear goals, form cross-functional teams, prioritize backlog items, conduct regular reviews, ensure testing and QA, and consider incremental release.
Benefits:
Delivers value incrementally, gathers feedback effectively, maintains high-quality standards, fosters transparency, mitigates risks, and promotes continuous improvement.
Practical Considerations:
Set clear objectives, assemble cross-functional teams, prioritize backlog items, conduct regular reviews, invest in testing and QA, and consider incremental release.
Framework
Description
When to Apply
Breakdown
SCRUM Framework
An Agile framework for managing complex projects, involving iterative development, collaboration, and self-organization within teams.
When developing software or products requiring iterative development and close collaboration.
Break down work into sprints, conduct daily stand-ups, and hold regular retrospectives.
Kanban Method
A Lean framework for visualizing work, limiting work in progress, and maximizing efficiency using Kanban boards.
When managing workflow processes that require visualizing work and optimizing flow.
Visualize workflow, set WIP limits, and continuously improve processes.
Design Thinking
A human-centered approach to innovation and problem-solving, emphasizing empathy, creativity, and iterative refinement.
When developing new products, services, or solutions requiring a deep understanding of user needs.
Empathize, define, ideate, prototype, and test solutions iteratively.
Lean Startup Methodology
Focuses on building and launching new products or services quickly to test assumptions and gather feedback through rapid experimentation.
When launching new ventures or products in uncertain or rapidly changing markets.
Build, measure, learn cycle, MVP development, and validated learning.
TOGAF (The Open Group Architecture Framework)
An enterprise architecture framework for aligning business goals with IT strategy and architecture.
When designing, planning, and implementing enterprise IT architecture.
Architecture vision, business architecture, data architecture, and technology architecture.
AIOps is the application of artificial intelligence to IT operations. It has become particularly useful for modern IT management in hybridized, distributed, and dynamic environments. AIOps has become a key operational component of modern digital-based organizations, built around software and algorithms.
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.
Agile Program Management is a means of managing, planning, and coordinating interrelated work in such a way that value delivery is emphasized for all key stakeholders. Agile Program Management (AgilePgM) is a disciplined yet flexible agile approach to managing transformational change within an organization.
Agile project management (APM) is a strategy that breaks large projects into smaller, more manageable tasks. In the APM methodology, each project is completed in small sections – often referred to as iterations. Each iteration is completed according to its project life cycle, beginning with the initial design and progressing to testing and then quality assurance.
Agile Modeling (AM) is a methodology for modeling and documenting software-based systems. Agile Modeling is critical to the rapid and continuous delivery of software. It is a collection of values, principles, and practices that guide effective, lightweight software modeling.
Agile Business Analysis (AgileBA) is certification in the form of guidance and training for business analysts seeking to work in agile environments. To support this shift, AgileBA also helps the business analyst relate Agile projects to a wider organizational mission or strategy. To ensure that analysts have the necessary skills and expertise, AgileBA certification was developed.
Agile leadership is the embodiment of agile manifesto principles by a manager or management team. Agile leadership impacts two important levels of a business. The structural level defines the roles, responsibilities, and key performance indicators. The behavioral level describes the actions leaders exhibit to others based on agile principles.
The andon system alerts managerial, maintenance, or other staff of a production process problem. The alert itself can be activated manually with a button or pull cord, but it can also be activated automatically by production equipment. Most Andon boards utilize three colored lights similar to a traffic signal: green (no errors), yellow or amber (problem identified, or quality check needed), and red (production stopped due to unidentified issue).
Bimodal Portfolio Management (BimodalPfM) helps an organization manage both agile and traditional portfolios concurrently. Bimodal Portfolio Management – sometimes referred to as bimodal development – was coined by research and advisory company Gartner. The firm argued that many agile organizations still needed to run some aspects of their operations using traditional delivery models.
Business innovation is about creating new opportunities for an organization to reinvent its core offerings, revenue streams, and enhance the value proposition for existing or new customers, thus renewing its whole business model. Business innovation springs by understanding the structure of the market, thus adapting or anticipating those changes.
Business modelinnovation is about increasing the success of an organization with existing products and technologies by crafting a compelling value proposition able to propel a new business model to scale up customers and create a lasting competitive advantage. And it all starts by mastering the key customers.
A consumer brand company like Procter & Gamble (P&G) defines “Constructive Disruption” as: a willingness to change, adapt, and create new trends and technologies that will shape our industry for the future. According to P&G, it moves around four pillars: lean innovation, brand building, supply chain, and digitalization & data analytics.
That is a process that requires a continuous feedback loop to develop a valuable product and build a viable business model. Continuous innovation is a mindset where products and services are designed and delivered to tune them around the customers’ problem and not the technical solution of its founders.
A design sprint is a proven five-day process where critical business questions are answered through speedy design and prototyping, focusing on the end-user. A design sprint starts with a weekly challenge that should finish with a prototype, test at the end, and therefore a lesson learned to be iterated.
Tim Brown, Executive Chair of IDEO, defined design thinking as “a human-centered approach to innovation that draws from the designer’s toolkit to integrate the needs of people, the possibilities of technology, and the requirements for business success.” Therefore, desirability, feasibility, and viability are balanced to solve critical problems.
DevOps refers to a series of practices performed to perform automated software development processes. It is a conjugation of the term “development” and “operations” to emphasize how functions integrate across IT teams. DevOps strategies promote seamless building, testing, and deployment of products. It aims to bridge a gap between development and operations teams to streamline the development altogether.
Product discovery is a critical part of agile methodologies, as its aim is to ensure that products customers love are built. Product discovery involves learning through a raft of methods, including design thinking, lean start-up, and A/B testing to name a few. Dual Track Agile is an agile methodology containing two separate tracks: the “discovery” track and the “delivery” track.
eXtreme Programming was developed in the late 1990s by Ken Beck, Ron Jeffries, and Ward Cunningham. During this time, the trio was working on the Chrysler Comprehensive Compensation System (C3) to help manage the company payroll system. eXtreme Programming (XP) is a software development methodology. It is designed to improve software quality and the ability of software to adapt to changing customer needs.
Feature-Driven Development is a pragmatic software process that is client and architecture-centric. Feature-Driven Development (FDD) is an agile software development model that organizes workflow according to which features need to be developed next.
A Gemba Walk is a fundamental component of lean management. It describes the personal observation of work to learn more about it. Gemba is a Japanese word that loosely translates as “the real place”, or in business, “the place where value is created”. The Gemba Walk as a concept was created by Taiichi Ohno, the father of the Toyota Production System of lean manufacturing. Ohno wanted to encourage management executives to leave their offices and see where the real work happened. This, he hoped, would build relationships between employees with vastly different skillsets and build trust.
GIST Planning is a relatively easy and lightweight agile approach to product planning that favors autonomous working. GIST Planning is a lean and agile methodology that was created by former Google product manager Itamar Gilad. GIST Planning seeks to address this situation by creating lightweight plans that are responsive and adaptable to change. GIST Planning also improves team velocity, autonomy, and alignment by reducing the pervasive influence of management. It consists of four blocks: goals, ideas, step-projects, and tasks.
The ICE Scoring Model is an agile methodology that prioritizes features using data according to three components: impact, confidence, and ease of implementation. The ICE Scoring Model was initially created by author and growth expert Sean Ellis to help companies expand. Today, the model is broadly used to prioritize projects, features, initiatives, and rollouts. It is ideally suited for early-stage product development where there is a continuous flow of ideas and momentum must be maintained.
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).
The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.
The Agile methodology has been primarily thought of for software development (and other business disciplines have also adopted it). Lean thinking is a process improvement technique where teams prioritize the value streams to improve it continuously. Both methodologies look at the customer as the key driver to improvement and waste reduction. Both methodologies look at improvement as something continuous.
A startup company is a high-tech business that tries to build a scalable business model in tech-driven industries. A startup company usually follows a lean methodology, where continuous innovation, driven by built-in viral loops is the rule. Thus, driving growth and building network effects as a consequence of this strategy.
As pointed out by Eric Ries, a minimum viable product is that version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort through a cycle of build, measure, learn; that is the foundation of the lean startup methodology.
Kanban is a lean manufacturing framework first developed by Toyota in the late 1940s. The Kanban framework is a means of visualizing work as it moves through identifying potential bottlenecks. It does that through a process called just-in-time (JIT) manufacturing to optimize engineering processes, speed up manufacturing products, and improve the go-to-market strategy.
Jidoka was first used in 1896 by Sakichi Toyoda, who invented a textile loom that would stop automatically when it encountered a defective thread. Jidoka is a Japanese term used in lean manufacturing. The term describes a scenario where machines cease operating without human intervention when a problem or defect is discovered.
The PDCA (Plan-Do-Check-Act) cycle was first proposed by American physicist and engineer Walter A. Shewhart in the 1920s. The PDCA cycle is a continuous process and product improvement method and an essential component of the lean manufacturing philosophy.
RAD was first introduced by author and consultant James Martin in 1991. Martin recognized and then took advantage of the endless malleability of software in designing development models. Rapid Application Development (RAD) is a methodology focusing on delivering rapidly through continuous feedback and frequent iterations.
Retrospective analyses are held after a project to determine what worked well and what did not. They are also conducted at the end of an iteration in Agile project management. Agile practitioners call these meetings retrospectives or retros. They are an effective way to check the pulse of a project team, reflect on the work performed to date, and reach a consensus on how to tackle the next sprint cycle. These are the five stages of a retrospective analysis for effective Agile project management: set the stage, gather the data, generate insights, decide on the next steps, and close the retrospective.
Scaled Agile Lean Development (ScALeD) helps businesses discover a balanced approach to agile transition and scaling questions. The ScALed approach helps businesses successfully respond to change. Inspired by a combination of lean and agile values, ScALed is practitioner-based and can be completed through various agile frameworks and practices.
The SMED (single minute exchange of die) method is a lean production framework to reduce waste and increase production efficiency. The SMED method is a framework for reducing the time associated with completing an equipment changeover.
The Spotify Model is an autonomous approach to scaling agile, focusing on culture communication, accountability, and quality. The Spotify model was first recognized in 2012 after Henrik Kniberg, and Anders Ivarsson released a white paper detailing how streaming company Spotify approached agility. Therefore, the Spotify model represents an evolution of agile.
As the name suggests, TDD is a test-driven technique for delivering high-quality software rapidly and sustainably. It is an iterative approach based on the idea that a failing test should be written before any code for a feature or function is written. Test-Driven Development (TDD) is an approach to software development that relies on very short development cycles.
Timeboxing is a simple yet powerful time-management technique for improving productivity. Timeboxing describes the process of proactively scheduling a block of time to spend on a task in the future. It was first described by author James Martin in a book about agile software development.
Scrum is a methodology co-created by Ken Schwaber and Jeff Sutherland for effective team collaboration on complex products. Scrum was primarily thought for software development projects to deliver new software capability every 2-4 weeks. It is a sub-group of agile also used in project management to improve startups’ productivity.
Scrumban is a project management framework that is a hybrid of two popular agile methodologies: Scrum and Kanban. Scrumban is a popular approach to helping businesses focus on the right strategic tasks while simultaneously strengthening their processes.
Scrum anti-patterns describe any attractive, easy-to-implement solution that ultimately makes a problem worse. Therefore, these are the practice not to follow to prevent issues from emerging. Some classic examples of scrum anti-patterns comprise absent product owners, pre-assigned tickets (making individuals work in isolation), and discounting retrospectives (where review meetings are not useful to really make improvements).
Scrum at Scale (Scrum@Scale) is a framework that Scrum teams use to address complex problems and deliver high-value products. Scrum at Scale was created through a joint venture between the Scrum Alliance and Scrum Inc. The joint venture was overseen by Jeff Sutherland, a co-creator of Scrum and one of the principal authors of the Agile Manifesto.
Six Sigma is a data-driven approach and methodology for eliminating errors or defects in a product, service, or process. Six Sigma was developed by Motorola as a management approach based on quality fundamentals in the early 1980s. A decade later, it was popularized by General Electric who estimated that the methodology saved them $12 billion in the first five years of operation.
Stretch objectives describe any task an agile team plans to complete without expressly committing to do so. Teams incorporate stretch objectives during a Sprint or Program Increment (PI) as part of Scaled Agile. They are used when the agile team is unsure of its capacity to attain an objective. Therefore, stretch objectives are instead outcomes that, while extremely desirable, are not the difference between the success or failure of each sprint.
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.
