Curt, great article. And the diagrams, although simple, do get some important points across. I would caution on the Waterfall vs. Agile diagram.

First, the idea of “value” needs to be defined and contextualized. We have to stop using vague/generic terms like “value” in these discussions. What kind(s) of “value”? “Value” to whom? What scale of “value”? Over what timeframe? To align with what objectives/outcomes?

Second, shipping features does not constitute value creation. If it were, then the feature factory model would win every time. Production (shipping) and consumption (usage) need to be aligned and that alignment is driven by consumption. Intuit doesn’t deliver TurboTax in tiny increments over the year. Instead, it’s delivered all at once at the beginning of the tax season. It may in fact be developed in an incremental way over the year, but only when it can be consumed and used, is there “value” created ($$$ for Intuit, tax prep etc. for users etc.).

Lastly, we need to look much more holistically at the product and how it generates value. Yes, development cost is significant but in larger orgs, it may only be 20% of the overall costs going into the product. Sales, Marketing, Support/Success/Services etc. will a much larger % of the costs than Eng. As product managers/leaders we should focus on optimizing the efforts and outcomes of those teams to drive towards overall product success.