Nov 26, 2019
Special Presentation on Agile Methodology
Joshua: I am Joshua from Dorks Delivered. So, cool stuff I've done in the past are columns for an online entrepreneur magazine so that's something that's happened more recently. Published a book, a couple ago which I'm pretty excited about. Some of the different stuff and ways that we do business has been featured on news.com.au I've got a YouTube channel and a podcast as I already sort of pointed out there. Which you guys will all be podcast famous in a few weeks so, it's pretty exciting. Woo! In one way or another I've been a business owner for 19 years, with Dorks Delivered for 12 years. And I'm pretty keen on automating things. So my home, my lifestyle, and everything is automated wherever possible.
Learn more about Agile Methodology at dorksdelivered.com.au
A business owner needs to be able to automate everything. Not just when they're in their business and trying to get their processes and their staff all accounted and right, they need to make sure they're doing that in their home lifestyle as well, because if you're sitting at home and you're vacuuming, well you're not vacuuming if you're sitting are you? But if you're at home and you're vacuuming then you're wasting time a lot of the time. You need make sure that you're looking at every single process. That's the fish pond that I've automated, which goes through, uses the fertiliser coming from the, or the excrement from the fish is fertiliser across all the gardens, and does it all automatically. Looks at the amount of evaporation and goes nuts. Any questions? I can see a few confused faces.
Speaker 5: It looks like a spa.
Joshua: It does look like a spa! It's actually a dual tank fish, so you can have two different breeds of fish, sit out there in a little pond and have a look and they've got a little putt putt area up the top there. That I build around, so, just, fun stuff. You've got to automate your life. So with Dorks Delivered as I said, I'm an automation specialist through south-east Queensland. And what we do for business is remove poor time, time-poor, we bring time back to business owners by improving efficiencies and removing repetitious tasks. So I also help with sales and marketing to an extent through some of their social media aspects, but mostly all just as a holistic view, and point you in the right direction of how to get to the right person.
So, what is agile development? As we sort of discussed, there's a waterfall methodology which is where you're producing something and then you're saying "okay now it's working, but it might have broken", and then you're going through a very, very, a process that's in series. There's a clear start and there's a clear end, but there's nothing in the, necessarily in the middle that isn't defined. It has a start, has an end and then the product is created.
The problem with that is it's incredibly, tell me if I'm talking to quickly, because I say it and I just get excited. But the problem with it is, agile development, has a start, has an end, but costs a lot of money and doesn't make money most of the time throughout the process. And so the whole process of agile development costs a lot of money, needs a lot of capital and there's no money coming in from it. So, as I said, in a nutshell, it's creating the smallest most basic item that's scalable, that you can have sent off to your clients or sent out to market.
So a good example would be Uber. Whoop I've gone too far. So Uber created their app on their phone so that you can rideshare and so on and so forth. Their intention is, and was, was and still is, to create autonomous vehicles but they needed to have acceleration, data and any other points of black spots and what-not... Of what's going around the area. So, Uber's intention is to create an autonomous vehicle, but they created an app that allowed for ridesharing, and used people, the meat in a seat, to achieve their objectives until they were able to have AI to a spot where they were able to then have it work. Because AI was going to be way too expensive, so they created a small product and then continued to develop the product, but had a known ending, but had a profitable product to start off with. So, any questions on how that all works? Any participation you get a prize.
Speaker 4: Josh, it's just a, yes a question. So you said like, with agile development, there's like, you'd don't really get any sort of like, the potential return on investment until the end. So what you're saying now is with Uber, if you look at their agile development, you know, the intention was at the end was to have the AI intelligence that will make them, you know, self-automated. But what, so, they have got a return now, by implementing the first basic part of it.
Joshua: So agile development gives you a return straight away. Or very, very close to straight away. Traditional models, or the waterfall model, means that you, they would have said, "we're going to make an autonomous vehicle" and they're going to say "okay, it's going to cost us billions of dollars but we have a clear defined outcome". Instead they've said "let's break this down into profitable steps, where we can then, use that". So although Uber appears as if they're in competition with DiDi and Ola and Lyft overseas, they're not really in competition with them and that's why Uber's balance sheets look like they're running at a loss.
Joshua: Significantly. That's right. And then you look at others and you go "wow they're doing exactly the same thing, how are they running at such a loss?". So, and that's where their money is going, is-
Speaker 4: But you generally find that people who are first, are the ones who end up losing all the money and then the others jump on it and like, like the DiDis and the Olas, et cetera, now they're using the same, but Uber paved it.
Joshua: It depends, like McDonald's and Hungry Jack's could have the same argument. McDonald's and Hungry Jack's are pretty much exactly the same, but you've got McDonald's and it's definitely first, and it's still out there and I'd, it's definitely larger. It all depends. Uber's definitely got the name. No one says "I'm going to catch an Ola", they're going to go catch an Uber.
They've changed the market. They've made it a level playing ground. From my house into Brisbane, it was a 20 dollar Uber, now it's a 46 dollar Uber, to get to the airport was 28 dollars and now it's something like 55 dollars. So all DiDi's done is they've just levelled the playing field. What Uber did is they said "let's crush", they did what Netflix did to Blockbuster, "let's crush the taxi drivers, once we've crushed taxi drivers, increase our profits". But you have the early adopters, and then you have the latecomers, and the early adopters and their... I'm not sure if I'm, that makes sense? The curve of where everyone sits in the adoption cycle. They would've known that someone was going to come along and copy the idea. But they would have had such a deep footing and grounding in what they've done, that it wouldn't have mattered, it doesn't matter a whole bunch because their end goal isn't to be competing with DiDi or Ola, it's just to be using their, the points of data. So for us, it looks like the same app, but what they're actually gaining, and the intelligence they're gaining from the app is far greater than what DiDi or Ola has does that make sense?
For the questions, I'm going to give, you get a pair of fun, where is it? Green glasses! All right we can match. So has anyone heard of Beyond Meat? So Beyond Meat is this meat that has more protein than steak, more protein than most hamburgers, takes up 99 percent less landmass, has nearly all the health benefits of consuming meat, burns and cooks like meat, has haem in it the same as you have haemoglobin in meat, and to anyone that has not tried one of these, it tastes exactly like you've had meat. Has anyone tried any of these before? Grill'd, yeah they have them at Grill'd. They've only just recently come in there. And they're absolutely amazing. I tried when I went, you can't tell, if I gave that to a vegetarian, they would have sent it back to the kitchen they said "oh no this is terrible, this is meat". It, yeah, it flame grills a whole lot exactly the same.
Anyway so, they created one product. Which is the Beyond Meat patty. And the Beyond Meat patty is absolutely revolutionary with the way that it works, and it means that it'll be a sustainable product that still gives you all the same benefits as meat into the future. Regardless of health and life choices and stuff, their intention was to have a huge range of products. But they obviously can't do that and be profitable if they're working on all these products at once. So they developed the easiest product that was able to sneak into the market as easy as possible. So, if you have a look at the predominant meat eaters, it'd definitely be America ever ever else, obviously India and Asia are significantly more vegetarian than they are anything else, even though they have a huge population.
Jeff: So why does agile make a difference? Surely [crosstalk 00:11:24] the traditional project methodology, your goal was to produce the simplest product into the market as quickly as possible, why does agile make a difference?
Joshua: It's about improving upon the original product, with a bigger end goal than just the initial project.
Joshua: So the idea is testing the waters without getting your feet wet. You can use the agile methodology for anything, even marketing. So, as I said here, you can slowly develop your business without having huge cost outlay, is one of the big things. So from a marketing perspective, there are different ways that people use the agile methodology.
So Dad and I, we've started a craft brewery. We've got ten different products that we've got on tap. We haven't got the licensing to sell it or anything like that, and the licensing to sell it and what not is quite expensive, when you don't know if it's going to work and people are actually going to enjoy the taste of your brew. So what we've done is we've created a survey, where when people fill out the survey, because we can give the beers away for free, when people fill out the survey and they try they beers and they go "yes this is fantastic", we pay a pre-order to buy a six pack for instance, when we have 6000 people on that list we then know that there's enough of a test there that we know that people would be interested in buying it, without having to then fork out the money for larger infrastructure and any of the licensing costs and so on and so forth.
Speaker 4: So what will it cost you though, to give those 6000 beers for free?
Joshua: Well the beers for free to start off with, the 6000 beers are quite cheap. Maybe 30 cents a beer or something like that.
Speaker 4: Oh, okay.
Joshua: Yeah, so it's very, very cheap. And in scale, cheaper than that. So that's why my wallet, it's better to be producing something that you can test the waters with. So if you need any help with the agile development process or anything in your business we can jump in and have a look at some of the projects that you're doing and make sure that you are doing them in the most efficient and effective way.
So, what Steve Jobs did, is he has six different iPhones in front of his stand. On the six different iPhones one of them played videos, one of them received SMSs and calls, one of them played music and so on and so forth. So one of them had different apps that showed maps, and all these different things. Not a single iPhone could do all the things at once without crashing. Additionally, if you tried to, and you accidentally did it, it may start working and then crash mid presentation. So to save face, while he was showing everyone this revolutionary new technology, each different person with agile methodology was able to create the certain function working on each device, but not all of them together.
He went up and said, "this is world-changing, this is revolutionary, everyone's going to have one of these in their pocket". And he's not half wrong. What he did there it was just fancy video editing, as he put the phone down and then picked it up, he already knew that it was going to be exactly the spot where it needed to be. Additionally to that, they had a tower that was put there by Verizon that, that was only paired to their phones that were on the stand, to make sure that they had absolutely lightning-fast speed, that had no congestion with everyone else that was in the audience. So, that is, that bit isn't really agile, that's just tricky. But having the different phones, knowing that you can do it somewhat, but you don't have the capital to continue producing a single device, and you don't know how well it's going to be received, this allowed for a world audience to see, pre-order the devices, continue to have the money to then build it out.
Does that make sense? Does that kind of answer your question before on the, how it can be varied with the approach for agile development as opposed to just creating a full device from start to finish?
Jeff: I'd be interested to know what your thoughts are on the difference between lean, agile and scrum, as delivering outcomes for small business owners like us.
Joshua: With communication and branding you'd say that a lot of that would come to their marketing, and how well they're being shown on the web, making sure that everything's consistent. Yeah?
Jeff: Oh, well I'm thinking about story-telling, so, if Steve Jobs you just gave is the best example of, any marketing story-telling, best businesses telling their stories.
Joshua: That's correct. But if you went to a small business and you said "you need to make sure that your story resonates with your ideal client, and you need to make sure this you do that and this", and you said that the marketing budget is going to be $200,000 to make sure that we get your message our the appropriate people. Most business owners are going to be like "I can't afford that, I know that that's what I need to do, but I can't afford that". So let's test the water, use a long tail key word, sniper marketing, target a very test small audience, because you can't afford the $200,000 even thought you know that's going to work. You test a smaller audience, a subset niche of their target market, and then from that go "okay, that has worked, that is now bringing in an income", especially for startup business or something like, even if the income's not huge, it's bringing in then an income to then afford to then push the money towards the $200,000.
So it's about, that would still be testing the waters, as opposed to knowing that you've got from start to finish the full solution.
Speaker 4: Isn't that just the normal way that you would start a business? [crosstalk 00:29:17] don't startups just do that?
Joshua: Do what, sorry?
Speaker 4: Exactly what you're saying. You start with a smaller part of the market, make some money.
Joshua: You should. That's exactly right. But even if you know that you need to have the larger portion of the market, or you're not necessarily a larger portion, but you need to market and brand in a certain way. Like I know that for instance, YouTube, cost the business a lot of money to produce a channel, it doesn't necessarily have a whole bunch of views, but the views that are does have, convert, and work towards our end goal in our business. So it's a functional platform, but most businesses when they start out they know, "if I have a YouTube channel I'll be able to get my message across more easily, be able to tell the story about what we do", but you won't necessarily be able to afford to be able to tell your story to the audience that needs to hear it. So, does that, am I explaining that right? I don't know, does that sound fair?
So, sometimes you don't know how to go about finishing creating a product to service, and that's where we've sort of just said: "agile developmental design is your answer". That's what Steve Jobs did to make sure that they had a product, although they would have had the money and the market research that said "this product is going to work", they may not have wanted to spend the capital on something that might have flopped because there already was the Nokia phone that could do nearly everything, but it just didn't have the right story-telling and the right approach to it.
So, security is another big objective towards agile development. If you don't have good security in your business, if you don't have good security practices, it will delay and push things out. One of the things that a lot of businesses, has everyone seen the HTTPS at the start of their website? So like, up until a couple of years ago, there was this thing, a vulnerability in it, that had been there for decades, for about a decade. Called heart bleed. Apple was aware of it. Apple had protected all their systems. Apple didn't let everyone else know about that. Apple was able to snoop and see any details that were deemed encrypted on everyone else's system. That's terrible.
The OpenSSL protocol was able to be broken into. Certain people knew about it and other people didn't. The person that developed that was in their garage, just a home business that developed this and gave it away for free for everyone to use, and then everyone abused that, and that then opened up to mass hysteria when that came out of, the security problem came out about a year ago. So that's where you need to make sure you keep your eyes on the process and your security around all of the processes. Because if you don't, you, you'll have delays in the way that your product's going to be released.