Select Page

How to Scale Agile Software Development in Big Organizations

Agile methodologies such as SCRUM and KANBAN are the most used frameworks within small and independent software development teams. In theory, SCRUM and KANBAN are easy to establish in teams and companies. However, the majority of software development and product companies have more than one development team working on the same product at the same time.

Does that mean companies with more than one development team can’t establish agile methodologies? Of course not, but companies need to have the right environment and mindset to scale agile software development across all disciplines.

Stars at night

Finding the North Star

Every company must have a clear vision and goal for their product. Finding their own vision and goal is not always easy, but the north star metric can help.

The north star will give the whole organization a clear vision and mission. It gives teams guidance towards the right product decisions and direction. Furthermore, it communicates the impact and progress to the rest of the company to get more support from other departments.

A good north star metric must consist of two parts:

  1. A vision statement for the product
  2. A metric that is the key measurement of the current product strategy

An example product north star can look like:

Vision: 
Help artists to sell their work online
Metric: 
The number of sold artworks per week

Most important when finding the north star for the product is that it must be specific to the product and valuable for the customers. For example, one goal can be to optimize the checkout process to have only three steps until a user can purchase a product.

Invest in Development Infrastructure

Modern software products must be built as small independent units to run on large scale technology stacks without interfering with other parts of the product. With the help of a microservice architecture, multiple agile development teams can deploy and release independent from each other to the production systems. The teams can deploy as early as possible and can monitor the behavior on the production systems. In case there is a problem, the team can either revert or fix the issue right away.

Having a microservice architecture is also an investment in the stability of the software product. If parts of the product can run independent from each other, a single part of the product can fail while the rest of the system works as expected. If patching the live system is not an option, feature toggles might be a solution for companies to switch features off in production.

Keep the Teams Small & Independent

The best way to scale agile software development across the entire company is to have small independent teams. The small team can focus on one part of the whole product to follow the companies north star. Keeping the teams small is one thing. On the other hand, it’s important that everyone on the team has an agile mindset. Everybody on the team must feel responsible for the outcome. If one person in an agile team fails, the whole team will fail the sprint goal.

With the help of agile coaches, the agile mindset and the quality mindset can be spread across the entire company and to each single team. So called scrum of scrums can help to align and scale agile software development across multiple teams.

Scaling Agile Development The Right Way

To scale agile software development in bigger organizations, it’s important to focus on several layers. First of all, a company must have a north star which all teams can follow and to get guidance through their development phases. The next layer for successful scaling is the technical architecture of the system. A company should invest in building or migrating the product with the latest technologies as well as software development patterns to establish a microservice architecture. It will help the company to release as early as possible to production and provide the possibility to easily revert the changes without taking down the whole product.

A nice example on how to scale agile software development across the entire organization is Spotify (Part 1 and Part 2).

Once the engineering organization is working with agile methodologies and is scaled to deliver products with high speed and high quality, a company can think of scaling the agile mindset to other departments too. Why stop at the engineering level, when marketing, sales or even human resources can establish an agile mindset to understand the needs of the company and their north star?

Whitepapers

The Essential Guide To Agile Testing

Discover why the hottest startups and established enterprises are turning their focus to agile development.

Apps targeting young people

Naturally, banks and online brokers are also increasingly offering mobile solutions for stock trading. However, this new group of fintech startups has a different structure than traditional providers. As international apps with social media appeal, they are aimed at a particularly young target group of 25- to 35-year-olds who want not only access to stock trading but also a new kind of user experience. It has become clear that accessibility and user-friendliness are key selling points for these new investment apps. For example, according to Bitkom’s Digital Finance Report 2020, 40% of respondents expressed the expectation that “smartphone apps’ ease of use for stock and securities transactions will enable more people to benefit from companies’ performances.”

In a nutshell, the easy access via smartphones makes these “neobrokers” so appealing. Clear design, community integration, and ease of entry has turned UI/UX into an actual product.

Special opportunities – special risks?

Many apps have little to no limit on how small a trade can be, making it possible to buy fractional shares. As mentioned, they charge very low fees — or none at all — and are available outside of regular trading hours. The apps clearly aim to lower the entry threshold for stock trading, and sometimes lure new users with free shares. On the flip side, the apps offer no or minimal investing advice, unlike traditional brokers. Consequently, purchasers must do their own research outside of the app, using articles, forums and social media. This aspect has raised suspicions in the German market. In the survey undertaken for the Bitkom Digital Finance Report referenced above, 69% of respondents stated that “an advisor’s input is absolutely key to making good investment decisions.” As a result, the separation of professional advisory services and the gamification of trading stocks carries certain risks, especially for inexperienced users.

Too much power?

The potential dynamics unleashed by direct market access were demonstrated in an interesting case study in January. Small investors coordinated a purchase of GameStop stock via Reddit to prevent a decline in the company’s value, on which hedge funds had speculated. In fact, the Reddit community’s actions were so successful that U.S. authorities are now investigating the possibility of market manipulation. Outrage erupted, however, when Robinhood simply suspended trading in GameStop shares at the height of the buying frenzy.

Ultimately, the neobroker did have a good reason for halting trading. The security it had deposited with clearinghouse DTCC was insufficient to match increased trading volume. However, this episode illustrates that some luster has fallen from the new market power of small investors: Even trading apps do not eliminate the intermediary function; they only replace it, sometimes with even more opaque conditions than before.

The outlook is promising

And yet, neobrokers are attracting young investors by reinventing the process of investing and stock trading. With pleasing designs and customer experiences geared toward millennials, these apps will be able to gain many users in the next few years. At that point, they will have to show that they can keep up with the momentum that they created. Users expect apps, acting as financial service providers and managers of highly sensitive data, to be error-free at all times and in all places – and rightly so. User trust and compliance with financial rules will play a crucial role in determining whether neobrokers will remain competitive as market penetration continues.

However, the new investment apps’ penetration of the DACH market is still at an early stage. Established providers, especially banking apps, may leverage the trend by incorporating a more attractive UX and simplified investment features into their existing apps. For example, a whitepaper from the Sparkassen Innovation Hub on the topic of changing values recommends “opening up products to small investment amounts” as well as “using a clear, appealing interface (UI), playful elements for data entry and maintenance, [and] the use of status and progress indicators to guide users through processes” to attract a new group of potential investors.

One thing is certain: The phenomenal growth of investment and trading apps, especially in Germany, could be a precursor to interesting developments in the coming years.

Daniel Knott
Daniel Knott
Mobile Testing Expert
Published On: January 18, 2019
Reading Time: 4 min

Avoiding The Hidden Cost of Payment Failures

Learn how you can improve your payment experience and protect revenue across markets, methods, and moments.

Claude Code Crash Course: How to Master Claude Code for QA Engineering

Discover how you can use Claude Code to safely implement AI tools and skills to accelerate your testing lifecycle.

Why Test Plans Fail in the Real World

Your current test strategy might be the reason products fail. Find out why test plans must be adaptable.

How to Conduct AI Evals: Best Practices for Building AI Confidence

Discover why AI evals are crucial for releasing with confidence and get best practices for improving AI system performance.

Crowdtesting vs. System Integrators

Compare system integrator testing with managed crowdtesting services to find the right QA approach for real-world digital quality.

EU AI Act: A Practical Guide for QA Leaders

See how the EU AI Act affects QA and product leaders — and how to adapt testing workflows ahead of compliance deadlines.
No results found.
This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.