Is agile really that successful? What is the ROI in Agile?

Looking for proof that agile delivers results beyond the team level? It can drive tremendous financial benefits for organizations. Oddly enough, these financial benefits are rarely given much attention in discussions about organizational agility, even though return on investment is a big part of any organization's decision to commit time, resources, and money to becoming agile. 

Agile delivers performance against scope, quality, schedule, and budget. When you lower your execution cost, you improve your margin and reduce your investment payback period. That means you free up funds and internal resources for new investments.
Quality can deliver financial benefits in a number of ways: Better quality leads to more sales, allows for increased pricing, reduces support costs, and minimizes negative publicity/customer perception. Quality also drives customer satisfaction, which benefits your organization through repeat business, excellent references, and client advocacy.

Related: Enterprise agility: Buzz or business impact?

Best Buy Canada Makes the Case for Business Agility

Beginning in 2016, Best Buy Canada radically shifted its approach to delivering value in eCommerce to Technology. Through the use of an iterative agile methodology instead of a linear “waterfall” process, and by shifting its focus from projects to products, the company significantly improved its ability to release new code to production and gained speed and efficiencies throughout its eCommerce sector. Capitalizing on this capability, company leaders estimate a $40M reduction per year in cost of value delivery in addition to the improved time to market, increased incremental revenue, and more robust revenue protection.

The company pushed decision making to cross-functional teams focused on specific product areas and developed the capacity to rapidly iterate, breaking a pattern of producing two or three major releases and a handful of minor ones each year. In the first six months of 2019 alone, the teams released 85 net new features on eCommerce and technology at large within the organization.

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