1. A p in A ilt
p l g ge o
y
C T im l et io s
O S p m na n
e t
Ep r ne e ot
xeie c R p r
N m l ecat
ir aM r n
h
Document type
Date: 1-Fb 02
D t 7 e -21
a e
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of McKinsey & Company is strictly prohibited

2. b cgo n
akru d
TRACKER
Unit of measure
Title
ia
m w ae
er
Unit of measure
▪ Tcn l is&C r ie SrmM s r
eh o g t et d c
o if u at e ▪ A p aio d vl m n go pwh a
p l t n ee p et ru itin
ic o
▪ O e 1 yas fTep rne
vr 2 ero I xeiec g b lt t ic uins cnuin f
l asa g b s es o sl g ir
o re t m
▪ Su ad e &Bl o dne
cb ivr ar m acr
lo ▪ O e 5 ero A ilpate
vr yas f ge rc ic
▪ Ep nniay rw gp ro o po c in
xo etl go in ot l f rj t
l fio es
te a aa s adBaea
h d t nlis n Irn.
a y
▪ S eb p ro o inenlrj tin E P
iza l ot l f t apo c
e fio r e s R,
C lb rt n n C Mp t r s
oa oa ad R lf m.
l io ao
▪ H v oe 6 speakers d lein 9 talks a
ae vr e rg
iv t
tis o f ec
h cn rne
e
▪ Te
h great p c t wr
l e o ok
a …
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 2

3. TRACKER
sm ay
u mr
Unit of measure
Title
Unit of measure
W hv anm e o Iealdb s espoessweew pre eh hb s esvlein
eae u br fT nbe uins rcse hr e eciv ig uins au
l ea in Commercial Off The Shelf ( COTS) po utint do d vl in o r w.
e rg g
v rd c s a f ee p g u o n
s e o
H wvru COT im lmnaio stp alsfrdf m
o ee, o r S pe ettn yicl uf e r
y e o
▪ m sdim l et io d a le
ise p m na n ed s
e t in
▪ l g rim -t-m r t
o e t e o ak
n e
▪ h hrhn pim lu p rcs
ig e ta o t asp otot s
▪ b re o tem
und u t sa
▪ d stfdues
is is
a ie sr
C ngehlu eeueCOT im lmnaio sbt r
a A il ep s xct S pe ettn et ?
e
Tis xeiec rp rsae
h ep rne e othrs
▪ Teaes hr w l ea e A ilpinip s
h ra wee ee rg d ge r c l
v e
▪ W a w d dfrnl
ht e id if et
e y
▪ W a rsl d w ep rne
hteus id e xeiec.
t
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 3

4. TRACKER
mk / u
ae b y
Unit of measure
Title
I o s dUnit ofm n v. C T im l et io
n ue ee p ets O S p m na n
-h vl measure
o e t
W e wlo co s
hn il u h oe
y
o e vrh ohr
n oe te te?
Til e
ao d
r R a yowa
ed t er
w pe rob y hn
e rf t u we…
e
▪ W ne t ct -u whin ut b spate
e ed o a h p it d sy et rc s
c r ic
▪ T cm lwhin ut s n ad o rg lio s
o o p it d sy t d rs re u t n
y r a a
▪ Teeis os nicn b s es a e( ces inrvn erp tt n ind v tgf min ut
hr n ig ifat uins vl inrae eeu/ ua ) eia
u e io in r
o d syr
b spate ( .g o r d in t tecscne poess
et rc . e ., u a m isa / tet rcs )
ic r iv o r e
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 4

5. TRACKER
te eus fge O S
h rsl o a ilC T
t
Unit of measure
Title
Unit of measure
▪ C so im l ett nreduced to 1/3rd
ot f p m na
e io
▪ Ipe ett nefrrd cdf m9 months to 5 months
m l na
m io f te ue r
o o
▪ Efrfr a tnneu ga e rd cdf m3 months to 1 week
f to m ineac p rd se ue r
o o
▪ Higher ue stfc nada pict nua e
sra at n p la
is io io sg
▪ R d c ninsp otices
e ut io u p rtkt
▪ Better vn o rlio s
ed re t n
a
▪ R d cdcso cag
e ue ot fhn e
1 Footnote S wa d w d df et?
o ht id e o if rnl
e y
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 5

6. TRACKER
aes fecdb a il
ra inune y ge
l
Unit of measure
Title
Unit of measure
Ip m -
ml e
e F te
ith
Po ut
rd c Sfg
tf
a in Rl s
e ae
e Po ut
rd c
ne
tr po ut
rd c
Sl t n
ec
e io te em
ht a p n in
lng
a V la n
a t
id io
sl t n
ece io t yu
oo
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 6

7. TRACKER
po ute c n
rd csl t
e io
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
f tr seifa n
e ue p cict
a io b s es o l
uins g as
collaborati
on
wr g
ok
in
cnrc po iss
o t t rm e
a sf ae
ot r
w
Conversation and collaboration over contract negotiation
Working software over documentation
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 7

8. TRACKER
po ute c n
rd csl t
e io
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
▪ Product specifications aepeisl
r rcey ▪ Business goals aec alcm u ictdin
r l r o mn a
e y e
d fe u f n in h fr o a
e d pr t te om f
in o te omo a r rizdb cl user
h fr f pioite ak g
o
cm rhniv l o use cases.
o peeseis f t centric stories.
▪ Function leaders ea aepo utbsd
vl t rd c ae
u s ▪ End users ea aepo uttru h
vl t rd c ho g
u s
o m r tg& a s
n ak in sl presentations and
e e hands-on experience in sn b x
a ad o
demos evo m n
nirn et
▪ Teeis
hr minimal interaction b ten
e e
w ▪ C s m r n vn o come together t
ut e ad ed r
o o
Po uted radcs m radae
rd cvn os n ut es n r
o are t cm o u d rad go
r a a o m n n es n in f
iv t
ot separated b t ed t c.
fn
e yim , is ne
a b s es o l
uins g a .
s
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 8

9. TRACKER
im l et sl t n
p m ne e c
e r e io
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
Fe C s
ixd ot T e M t ia
im & a rl
e s
F e So e
ixd cp E bae hn e
m rc C ag
P nl s
eaie
t R wrs
e ad
PS rcs
F Poes
h t :/ t u b .d e m t e o / h m l r e 5 / 2 5 3 3 0 IK .j g
t p / h m s r a s im .c m t u b a g _2 0 1 0 9 0 9 U 0 O3 p
h t :/ d b y u ic o / p o t n / p o d / 0 1 1 / o t a t .j g
t p / j a m s .c m w - n e t u l a s 2 1 / 2 c n r c 1 p
c
h t :/ w w h n e w b o k I G/ 7 / 9 7 / a e p l rt - u t r l - h n e e a o p o is 7
t p / w .c a n l e .c .u /M 0 0 8 0 0 c t r il a - ob t e f y a g - t m r h s - 0
c m 3
http://aprilpedia.com/wp-content/uploads/2010/12/Tight-Budget.jpg
h t :/ w w o t a e o t r o / e o t g r m e t l / a e / p 0 0 7 5 0 0 .j g
t p / w .m r g g p r e .c m r p r in f o s a t e im g s m j 4 1 9 0 0 1 p
C APoes
Y rcs
h t :/ w w u in s t d y g o / a e / a k g in n e b s - f ic - v s m n - a ka a d p
t p / w .b s e s o a - .c m im g s b n in f a c / e t r a e t e t n - w r .j g
e a in b
1 Footnote
h t :/ w w ir u in o o / p o t n / p o d / 0 0 0 / c u - g e o t a e e e o m n 2 p
t p / w .v t e f .c m w - n e t u l a s 2 1 / 6 s r m il - f w r - v l p e t .j g
c a s d
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n |
p l g ge o O Sm l et io s
y e t 9

10. TRACKER
im l et sl t n
p m ne e c
e r e io
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
▪ Sces ers r bsdo tetimeliness
ucs m t ae ae n h
ic ▪ Sces ers r bsdo realization of
ucs m t ae ae n
ic
o d ley n s y gwh budget.
f e r ad t in itin
iv a business goals.
▪ So ecag s r discouraged b a rw
cp hn e ae y da n ▪ So ecag s r embraced b ao in
cp hn e ae y lw g
l
o t Mrq et rcs
u C e uspoes . t d -ofwilm x iz gb s es a e
r e f he aim in uins vl .
a s u
▪ V n o sl tdtru hcm eite
ed re c ho g o p t
ee iv ▪ V n os r pre-qualified fr xeiec
ed rae o ep rne
b d girrespective o te m to o g
id in fhir e d l y
h o inwlg esowrte ge a.
/il ns t okh a ilwy
in
▪ Peeec g e t vn o are go
rf ne ivn o ed r gein n
r ▪ Peeec g e t avn o o e t
rf ne ivn o ed r p n o
r
fixed scope adfixed cost wh
n it penalties changing scope ada
n time & materials
frce u s p g
o shd l l a e
e ip s t et f ok B d e is
t e n o wr u g t based on
am .
expected ROI adso e t oe
n cp isa rd
il
acrin l
cod g .y
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 10
p l g ge o O Sm l et io s
y e t

11. TRACKER
s f gte em
tf h t
ain a
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
http://farm5.static.flickr.com/4056/4619970091_6a5da2e39c_o.jpg
http://www.teleportmyjob.com/blog/wp-content/uploads/2009/07/interviewing-the-boss.jpg
Get the right people on the bus, the wrong people off the bus, and the right people in
the right seats - Jim Collins in Good to Great
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 11
p l g ge o O Sm l et io s
y e t

12. TRACKER
s f gte em
tf h t
ain a
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
▪ Delegate s f gt tevn o
t f o h ed r
a in ▪ Collaborate whtevn o frtf g
it h ed ro s f
a in
▪ Saf e p ta ecl seif tcn a
t p o l ht xein p ciceh icl
f e ▪ Saf e p wocnthrive inte
t po l h a
f e h
sil rg rl s fhir pitd adwr g
kl e ad s o t a t e n ok
s e e u in evo m n ta yu a ra tay n
nirn ethto cn el icl ad
is l
pe rne.
rf ecs
e cnis nlof .
o st t f r
e y e
▪ Saf e p frp cic
t p o l o seif roles and
f e ▪ Saf
t generalist specialists
f
expertise
▪ Shd ladb d e cm it etwr
ce u n u g to m m ns ee
e ▪ G ttrs s ae b tem m es
e s ie et t yh e b r
o im d
m d b p o ldf etrmtoe t f
a e y e p if rn f
e e o h s s fd
ae s f do te rj t
t f n h po c
ae e.
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 12
p l g ge o O Sm l et io s
y e t

13. TRACKER
rl s p n in
e ae l n g
e a
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
h t :/ c r n r a s o / p o t n / p o d / 0 9 0 / a _t e l p a t p
t p / h is ie h u .c m w - n e t u l a s 2 0 / 4 e t h _e e h n .j g
c
http://t1.gs tatic .c om/images ? q=tbn:A Nd9G cQYeL -qVbs BFIJ WE _LtrG ls rxIR-
aE zDPf38S tUOVhQA TS E 3WLfHg0h8G f0FQ
H w oyu a a e p at
o d o et n l hn?
e O e it a a im !
n be t t e
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 13
p l g ge o O Sm l et io s
y e t

14. TRACKER
rl s p n in
e ae l n g
e a
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
▪ Upfront cm rhniv rq irm n
o peese e u e et ▪ Iterative rq irm ns ahr gin
e u e etg tein
aa s & ig -of
nlis s n f
y d sed god r f uins vl
ecn in re o b s es a e
u
▪ Faue aed fe b business leads
etrs r e d y
in ▪ Faue aedivnb end users
etrs r re y
▪ P nt rl s tewhole ss mo svrl
l o e ae h
a e yt reea
e ▪ R l s asmall st fetrs t
e ae
e e o f ue ino
a
m d l ao c
o u s t ne
e po ut n smaller inevl
rd c in
io t a
r s
▪ Fcs nd lein cm leuecss
ou o e r g o p t s ae
iv e ▪ Fcs nm x iz gb s es a ead
ou o aim in uins vl nu
inl in l a a n & e oe d e ae
c d go l t s rm t e g css
u c iz io rd c grk
e uin is
▪ Stpteinrsutr frh woess m
e h f t c e o te h l yt
u ar u e ▪ Stpj t n u hinrsutr rq irdfr
e u eo g f t c e e u e o
u s ar u
uf n
pr t
o u cm grl s
po in e ae
e
▪ Fsrl s ish hailcs m e
ir e ae te evy ut izd
t e o ▪ First release ish cnig rdO Bpo ut
te o fue T rd c
po ut
rd c
Faster Time to Market….
1 Footnote
Faster Return on Investment…
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 14
p l g ge o O Sm l et io s
y e t

15. TRACKER
m k gte rd cf yu
ain h po utito
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
h t :/ w w u b s p ic o l e o / p o t n / p o d / 0 1 0 / h p n in .j g
t p / w .b y e t r e n in .c m w - n e t u l a s 2 1 / 4 s o o l e p
c
h t :/ b e iv b o .c m w - o t n / p o d / 0 0 0 / f ic - l t e _il - it in .j g
tp / e h e l g o / p n e t u l a s 2 1 / 9 o f e o h s l t g p
c c f
h t :/
tp /
w w l c p o c o h g l e a io s o / ic u e / e n .j g
w .b a k o l l t in a t r t n .c m p t r s j a s p
h t :/ w r r b a v e o / p o t n / p o d / 0 9 0 / it in - o m t u t e p
t p / a d o e d ic .c m w - n e t u l a s 2 0 / 8 F t gr o - iq e t .j g
c e
h t :/ 2 p l g p t o /c j - l 0 U T A A q X/ A A A A W / M 4 B k A / 6 0 d w
t p / .b .b o s o .c m - g rZ t X / Z 1 C0 g IA A A A A k S r 7 9 F w s 4 / o
h t :/ w w a h n r n s t e .c m a c s o ie _im g s 2 0 / c e s r e S 90 .j g
t p / w .f s io t e d e t r o / c e s r s a e / 0 9 A c s o iz - 0 - 3 p
S
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 15
p l g ge o O Sm l et io s
y e t

16. TRACKER
m k gte rd cf yu
ain h po utito
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
▪ H ailcs m etepo ut it cr-
evy ut iz h rd cwh oe
o ▪ C aeg teb s es a eo ten n
hln e h uins vl fh o -
l u
cd m dict n t acm o a n n
o e o ifa so co m d t o -
io e s n adpoes
t d r rcs
a
s n adb s es rcs s n n e o
t d r uins poes ad ic-t-
a e
hvs
ae
▪ Pr e whpo uted rofcitt te
at r it rd cvn o t ail e h
n a
poesho g cn ua n
rcs tru h o f rt
ig io
▪ Lvrg A It b ils n -a n, l sl
eea e P o ud t d l e o e
s a o o y
cu l et s n
o p d x nio s
e e
Configuration and Extensions
over Product Customization
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 16
p l g ge o O Sm l et io s
y e t

17. TRACKER
po uta a n
rd cvl t
id io
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
WTF!
h t :/ w w o id n is o / r e b o / p o t n / p o d / 0 2 0 / l d o d p
t p / w .l r e n .c m g e n l g w - n e t u l a s 2 1 / 1 b in f l .j g
c
t p / w .b a w r d o / l gm g s u e _t s in - 0 0 6 41 1 5 .j g
h t :/ w w o g o l .c m b o I a e / s r e t g2 1 0 0 - 2 0 9 p
h t :/
tp /
j n s r t il s o d r s .c m 2 0 / 3 a g y .j g w
o o c ip .f e .w r p e s o / 0 9 0 / n r 1 p ?
=5 0 h 3 2
1 &= 8
h t :/ p x y l g n in .c m w - o t n / p o d / 0 0 0 / u p is - a e p
t p / d c c in o l e o / p n e t u l a s 2 1 / 8 s r r e c .j g
c f
h t :/ w w o g o l .c m b o I a e / s r e t g2 1 0 0 - 2 0 9 p
t p / w .b a w r d o / l gm g s u e _t s in - 0 0 6 41 1 5 .j g
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 17
p l g ge o O Sm l et io s
y e t

18. TRACKER
po uta a n
rd cvl t
id io
Unit of measure
Title
te rd io awy
h t it nl a
a Unit of measure
te ge a
h a ilwy
▪ Ue ( ce tne ts gina
sracpac) et in separate ▪ Po ut vl s it fe bc f mte
rd ceo e wh ed akr h
v o
phase r h b fr rlu.
ig t e e oo t
o l ues
srthroughout te e ae
h rl s.
e
▪ Uail is
sbit secondary t f c nl . Ed
y ou t a y n
n io it ▪ Edue ep rneisena critical t
n sr xeiec se s o
ue ep rne not a priority.
sr xeiec is ra in b s es a e
el g uins vl .
iz u
▪ Ues p rahU Twhep c t nta
sra po c A it xet io ht
a ▪ Po ut vlae tru hue ts gina
rd cis a t ho g sret
id d in
product will change b sdo te
ae n hir risk contained, concentric m n e.
an r
f d ak Ia po ce U T it te
e b c. T p rahs A wh h
e
ep c t n ht srwill approve te
xet io t ues
a a h
po ut ito t n cag s
rd cwh u ay hn e.
High
E arly A dmin
ris k Text Friends & family
Text
adopters us ers
us ers
Time
1 Footnote
Reputation risk
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 18
p l g ge o O Sm l et io s
y e t

19. TRACKER
ky hln e
e caeg s
l
Unit of measure
Title
Unit of measure
▪ C ninin so sradvn osoadopt Agile
o v c g p nos n ed rt
▪ Securing time f med srfr rd csl t n&vlaio
r n -ueso po ute c
o e io a tn
id
▪ Srin ter h b l c o who to involve and when
t g h ig t a ne n
ik a
▪ Securing product support f mtem n fc rr hnyuaen t
r h au t e we o r o
o au
uin te o te p r eso te p m na n
s g hm rhir at rfrh im l et io
n e t
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 19
p l g ge o O Sm l et io s
y e t

20. TRACKER
kyaewy
e t a as
k
Unit of measure
Title
Unit of measure
▪ Sl t po utho g first hand experience
e ca rd ctru h
e
▪ Eg g a im l etr h cnpractice Agile
n a e n p m ne wo a
e
▪ Safh ta fr
t te em o success
f
▪ Deliver er adotn
al n f
y e
▪ Prefer cnig rt netnio s n cs m aio s ta od r
o fua , x s n ad ut izt n in ht re
io e o
▪ Continuously validate yu d lea lwhues
o r e rb it sr
iv e
1 Footnote
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 20
p l g ge o O Sm l et io s
y e t

21. TRACKER
tak o
hn yu
Unit of measure
Title
Unit of measure ▪ Tcn lg tpo ut we adcr ie srm
eh o is rd co nr n et d c
o , if u
m s r t g b luins cnuin f
at a a l ab s es o sl g ir
e o t m
▪ V o C m u ict n fr YO A
P f o m n a so N S E
io
▪ Psio frrvl g b l o d nin , s g g
as n o t ein , ar m ac g in in ,
a l lo
&t h o g cnuin fr o -poit
e n l y o sl g o n n rf .
c o t s
▪ cm et n: w w ir a ecato
o mn o w .n m l r n.cm
m h
▪ rahm : n m l ecat cine.cm
ec e ir a r n@mk sy o
_m h
▪ flw e# ir a ecat
oo m : n m l r n
l m h
1 Footnote ▪ f n m : fcb o.cmn m l ecat
r d e ae o k o /ir a r n
ie .m h
SOURCE: ecat
# ir a Source
nml r n
m h A p in A ilt C T I p m na n | 21
p l g ge o O Sm l et io s
y e t