In today’s fast-paced digital world, businesses must be agile to thrive. One way to do this is for companies to build upon proven agile methods from the past. As a result, organizations can reduce cycle times, foster continuous improvement, and promote collaboration. Moreover, agile methods can empower businesses to make rapid, informed decisions that drive innovation and growth. In this article, I’ll show you four successful agile method examples that have worked in and outside of business. These include military tactics, lean manufacturing, agile software development, and IT DevOps. Moreover, I’ll look at how organizations can leverage these agile methodologies in the midst of rapid digital change.

1. Lean Manufacturing: An Agile Method that Reduces Cycle Time, Uses Feedback Loops, Continuously Improves.

In the post-war boom of the 50’s and 60’s Toyota perfected an innovative methodology called the Toyota Production System. This approach focused on minimizing waste in manufacturing while simultaneously maximizing productivity. Here Toyota succeeded in a dynamic era of great expansion of markets, consumers desiring more variety and advances in manufacturing technologies. In particular, this methodology has many agile characteristics. This included reducing cycle times, the use of feedback loops, and continuous improvement. 

To illustrate, a manufacturing company can implement lean principles by using just-in-time (JIT) inventory systems to minimize stock holding costs and reduce lead times. By continuously monitoring and optimizing production processes, the company can quickly identify and address bottlenecks. Now with new digital technologies, such as IoT sensors and on-demand data analytics, businesses can fully utilize agile methods like lean manufacturing to enhance operational efficiency and decision-making speed. For more on lean manufacturing agility, see QAD’s Taiichi Ohno: Hero of the Toyota Production System. Also, see Tim Darling’s article, Strategy and Agility: Lessons from Toyota, Honda, Yamaha, and Tesla. 

“A relentless barrage of ‘why’s’ is the best way to prepare your mind to pierce the clouded veil of thinking caused by the status quo. Use it often.”

Shigeo Shingo

2. OODA Loop: Agile Military Decision-Making – Observe, Orient, Decide, Action.

In the 1990s, the U.S. military developed the OODA (Observe, Orient, Decide, Action) Loop doctrine, inspired by jet fighter pilot tactics. Despite rapid aeronautical advances that increased aircraft speed, military leaders found that success in battle really hinged on agile decision-making. Specifically, the OODA Loop decision framework emphasized quick decisions and actions. Moreover, this new agile method enabled both pilots and military organizations to outmaneuver their adversaries in combat situations. For more information on this operational concept and how it applies to business, see this article, The Forgotten OODA Loop: It’s An Amazing Military Decision Framework And Awesome Gift To Business.

OODA – Enabling Business Agility: The Best Way To Disrupt Competitors, Seize Opportunities, And Overcome Obstacles

Also for a more modern illustration, a tech startup can adopt the OODA Loop decision framework to stay ahead in a competitive market. They do this by first continuously observing market trends and analyzing customer feedback. From there they orient themselves to diagnose the why behind anomalies, changing conditions, and new trends that they see. Lastly, they decide on the most effective strategy, and take swift action. As a result, the startup can quickly adapt to changes and capitalize on new opportunities. This agile method ensures that the company remains agile and responsive. They do this by leveraging digital tools like AI and data analytics to make timely, informed decisions.

For more on applying OODA Loop in a modern business setting, see my article, OODA – Enabling Business Agility: The Best Way To Disrupt Competitors, Seize Opportunities, And Overcome Obstacles.

“He who can handle the quickest rate of change survives”

John Boyd

3. Agile Software Development: Speed, Collaboration, Continuous Delivery to End Customer

Agile Software Development is another example of agility becoming the winning strategy in a dynamic environment. In this case, an agile method was needed to take advantage of rapid advances in software technology. Specifically, this agile approach was formalized in 2001 with the Agile Manifesto. Here, software developers identified an agile strategy for delivering software applications and updates. Indeed, instead of using traditional, long-drawn out “waterfall” methods to develop software, developers started using an Agile approach. Specifically, agile software development focuses on speed, collaboration, and continuous delivery. Today, most software companies have embraced these practices to rapidly innovate, deliver value to customers, and outmaneuver slower-moving competitors. 

To illustrate, an organization can use methodologies like Scrum and Kanban to facilitate regular feedback and iterative improvements. Also, by involving end customers in the development process through frequent demos and user testing, the firm can ensure that the final product meets user needs and is delivered quickly. Indeed, this method not only accelerates the development cycle but also enhances the quality and relevance of the final product. For more on Agile software development, see opentext’s article, What is Agile Development?

“Agility is the ability to adapt and respond to change … agile organizations view change as an opportunity, not a threat.”

Jim Highsmith

4. IT DevOps: An Agile Method where IT Development and Operations Teams Collaborate for Accelerated Software Delivery.

DevOps is a process methodology where Agile software development teams work in concert with IT operations teams. By doing this, they can leverage more automation and enable fast, continuous software delivery. The DevOps movement began around 2007 as a way to do away with functional silos within IT organizations by adopting an agile, continuous process for software delivery. To detail, this agile process consists of the following steps: Plan, Build, Test, Deploy, Operate, Observe, Continuous Feedback, and Discover. As you may notice, this agile, operational process is similar to previous approaches for leveraging technology in dynamic environments such as the OODA Loop for military operations. 

To Illustrate, a financial services company can implement DevOps practices to improve the speed and reliability of its software releases. By automating testing and deployment processes, the company can reduce the time it takes to release new features and updates. Additionally, continuous integration and continuous delivery (CI/CD) pipelines ensure that any issues are identified and resolved quickly. As a result, the company can respond rapidly to market changes and customer demands. Moreover, this collaboration and automation are crucial for leveraging new digital technologies to enhance business agility and decision-making. For more details on DevOps, see Atlassian’s article, What Is DevOps?

“Programmers don’t burn out on hard work, they burn out on change-with-the-wind directives and not ‘shipping’.”

Mark Berry

Summary.

So, recent history shows numerous instances where agility was critical for survival, but enabled organizations to thrive in a constantly evolving competitive landscape amid technological changes. Further, these examples provide continuity and valuable lessons that are highly relevant to modern businesses navigating digitalization. Hence, these examples provide strong evidence that agility is a key success factor in today’s rapidly converging digital environment. For a more detailed discussion on business agility, see my article, Business Agility: The Best Way For Leveraging Digital Tech To Disrupt Competitors, Seize Opportunities, And Overcome Obstacles.

Business Agility: The Best Way For Leveraging Digital Tech To Disrupt Competitors, Seize Opportunities, And Overcome Obstacles

More References.

• Gareth Holebrook’s article, A Brief History of the Progress Towards the Agile Manifesto 
• Willy-Peter Schaub’s article, Why OODA is one of the DevOps genomes
• SoftServe’s article, DevOps: Strategies from a Fighter Pilot

Lastly, if you are in the supply chain industry and have a need to supercharge your decision-making cycles, please contact me to discuss next steps. I’m Randy McClure, and I’ve spent many years solving data analytics and decision support problems. As a supply chain tech advisor, I’ve implemented hundreds of successful projects across all transportation modes, working with the data of thousands of shippers, carriers, and 3rd party logistics (3PL) providers.  I specialize in launching new analytics-based strategies, proof-of-concepts and operational pilot projects using emerging technologies and methodologies. To reach me, click here to access my contact form or you can find me on LinkedIn.

For more from SC Tech Insights, see the latest articles on Decision Science and Information Technology.