AGILE IN KAZAKHSTAN CORPORATIONS: MODIFICATION AND TRANSFORMATION

ABSTRACT

The Agile methodology, which has gained widespread adoption in service companies, is characterized by several key principles. Firstly, it emphasizes the importance of understanding and addressing the client's objectives and requirements for the implemented product. Secondly, it advocates for the execution of product development in short cycles, with each cycle culminating in an evaluation of client satisfaction with the progress made. This approach aims to prevent potential user dissatisfaction that may arise from the utilization of the traditional "waterfall" method, which often fails to address specific details adequately. Consequently, the Agile methodology promotes uniqueness and individuality in digital projects, enhances clarity and transparency in the product creation process for the client, and reduces the time required to deploy the product. Additionally, the client acquires knowledge on product usage throughout the development process, ensuring comprehensive familiarity with the available functionalities by project completion. According to the data that will be given in this article, it will be seen how the Agile approach gives a good result. For example, Air Astana reported an increase in the flexibility of implementation from 35% to 88% compared to the Waterfall method. Similarly, Samruk-Kazyna experienced an increase from 23% to 47%, while JSC "Accumulative Pension Fund "GNPF" experienced an increase from 56% to 65%, and all this compared to the waterfall method. These data reflect the growing prevalence of flexible practices within corporations. Therefore, the article is devoted to the importance of optimal Agile implementation for companies that are striving to reach a new level and increase revenue sources.

АННОТАЦИЯ

Методология Agile, получившая широкое распространение в сервисных компаниях, характеризуется несколькими ключевыми принципами. Во-первых, подчеркивается важность понимания и решения задач и требований клиента к реализуемому продукту. Во-вторых, он выступает за выполнение разработки продукта короткими циклами, каждый из которых завершается оценкой удовлетворенности клиента достигнутым прогрессом. Этот подход направлен на предотвращение потенциальной неудовлетворенности пользователей, которая может возникнуть из-за использования традиционного «водопадного» метода, который часто не учитывает должным образом конкретные детали. Следовательно, методология Agile способствует уникальности и индивидуальности цифровых проектов, повышает ясность и прозрачность процесса создания продукта для клиента и сокращает время, необходимое для развертывания продукта. Кроме того, клиент получает знания об использовании продукта на протяжении всего процесса разработки, обеспечивая всестороннее знакомство с доступными функциями по завершении проекта. Согласно данным, которые будут приводиться в данной статье, будет видно насколько Agile-подход дает хороший результат. Например, Air Astana сообщила о росте гибкости внедрения с 35% до 88% по сравнению с методом "Водопада". Аналогичным образом, у Самрук-Казына наблюдался рост с 23% до 47%, в то время как у АО "Накопительный пенсионный фонд "ГНПФ" наблюдался рост с 56% до 65%, и все это по сравнению с методом водопада. Эти данные отражают растущую распространенность гибких практик внутри корпораций. Следовательно, статья посвящена важности оптимального внедрения Agile для компании, которые стремятся выйти на новый уровень и увеличить источники дохода. 

Keywords: Agile methodology, digital projects, Corporations in Kazakhstan

Ключевые слова: методология Agile, цифровые проекты, корпорации Казахстана.

1. Introduction

The Agile methodology originated as an alternative approach to software development in the United States during the 1990s. It was discovered that cross-functional self-organizing teams working in small iterations toward a shared objective were more effective compared to the conventional method of working with functional departments [1].

In 2001, prominent methodologists from various regions collaborated to establish the Agile Manifesto, consisting of four fundamental principles. Among the most popular Agile approaches are Scrum and Kanban.

Since its inception, Agile has undergone significant advancements. The industry has acquired the ability to scale Agile practices to suit the requirements of large organizations, resulting in the emergence of methods such as SAFe, LeSS, and Nexus. Consequently, numerous major IT companies have embraced Agile. Furthermore, there have been instances of Agile methodologies being applied beyond the realm of IT, extending its reach to industries ranging from manufacturing to management teams. This third wave of Agile adoption has expanded its application to encompass the entire business. Agile has emerged as a viable alternative for growing companies.

Business Agility involves replacing traditional corporate bureaucracy with a flat organizational structure comprised of flexible and expedient teams focused on delivering value to the business and its customers. An emerging trend is the adoption of Agile transformation by government entities worldwide [2].

Agile can be implemented at different levels, such as project work, but its most profound impact is observed through organizational restructuring. An Agile company embraces a flat organizational structure consisting of cross-functional teams, representing a substantial change for the entire organization. To achieve success, it is crucial for top management to be genuinely invested in the outcomes; otherwise, the existing organizational structure may resist the proposed changes.

Two popular Agile methods are Kanban and Scrum. Kanban is a management approach that adheres to the "just in time" principle, ensuring an equitable distribution of workload among employees. Tasks are added to a dedicated list as they arise, allowing each developer to select tasks as needed. On the other hand, Scrum is a framework based on specific principles that enable the development process to deliver a functional project with new features and functionalities of the highest priority within fixed and short timeframes known as iterations, ultimately aimed at satisfying end users [3].

2. Analysis

The pace of global innovation has experienced a significant surge, resulting in a shorter timeframe from idea conception to initial outcomes. Agile methodology has emerged as a response to the overarching trend of acceleration. Initially originating in the IT industry, Agile has progressively expanded its influence to encompass sectors such as banking, insurance, finance, social services, and education. Furthermore, pilot Agile projects have been introduced in domains such as construction, aerospace, and manufacturing [4].

Given the rapid pace of technological advancements, governments must possess the ability to promptly adapt. However, governmental responses to new phenomena often manifest in two reflexive approaches: either ignoring or prohibiting them. For instance, companies and countries are currently grappling with the challenges presented by blockchain, artificial intelligence, and drones. Companies require governmental support in legalizing these emerging approaches, yet governments often lack a comprehensive understanding of their intricacies and seek assistance from experts. In such circumstances, the establishment of small cross-functional teams comprising representatives from the business sector, experts, and commercial entities is recommended [5].

The likelihood of reaping the benefits of rapid changes, owing to the "low base effect," appears to be greater for smaller and younger countries. In this regard, Kazakhstan represents an excellent platform for implementing novel methodologies. Samruk-Kazyna, in particular, holds tremendous potential for leveraging Agile practices. This potential stems from its involvement in innovative domains and the opportunities for process improvement and organizational transformations. Developing a public administration system that aligns with the digital age and the pace of contemporary times poses a significant challenge for governmental bodies worldwide. Several governments have embraced Agile methodologies as a means to foster cultural change within departments, facilitate swift initiative implementation, and create an appealing work environment for young professionals. Working in small interdisciplinary teams, consistently delivering tangible albeit incremental results, represents a radical departure from the conventional departmental hierarchies and bureaucratic red tape commonly found in classical narratives such as those depicted in Chekhov's stories [6].

Kazakhtelecom has actively initiated the adoption of Agile practices since 2019. As a pilot project, two teams were formed to focus on creating new products and implementing innovative projects based on Big Data.    

The United Kingdom, where such an approach is mandatory in the development of any public digital services, can be called the leaders in the transition to Agile in the public sector; as well as the United States and a number of European countries. Systematic work on the regulatory regulation of flexible approaches is also being carried out in Russia, there are examples of the use of Agile at the federal and regional levels. It is obvious that flexible approaches in state activity are no longer a tribute to fashion, but a means of increasing efficiency, which definitely should be paid attention to by Kazakhstani officials. According to information, taken from “The Journal of Economic Research & Business Administration. №2 (128). 2019 “Agile method in different corporation were successful. Let’s illustrate this percent analysis [7]:

Figure 1. Agile methodology success in percentages

According to the data, it can be seen that today's iterative approach gave a good result. This also proves that at the present time all leading companies have begun to use and implement this modern approach [8].

Figure 2. Agile success vs Waterfall method in percentages

According to the "11th annual report State of Agile," the utilization of Agile methodology has witnessed a notable increase in various companies. For instance, Air Astana reported a rise from 35 percent to 88 percent in Agile implementation compared to the Waterfall method. Similarly, Samruk Kazyna experienced an increase from 23 percent to 47 percent, while JSC "Accumulative Pension Fund 'GNPF'" observed a growth from 56 percent to 65 percent, all in comparison to the Waterfall method. This data reflects the growing prevalence of Agile practices within corporations [9].

Furthermore, the proliferation of training courses aimed at preparing individuals for the adoption of iterative methods has become apparent on the internet. This availability of training opportunities contributes to the continued success and adoption of the Agile methodology in corporate environments, as organizations seek to enhance their prosperity through the implementation of Agile practices.

3. Conclusion

The Agile methodology serves as a vital requirement for businesses aspiring to enhance their revenue streams. Employing an Agile approach offers companies a potent strategic tool to wield. Particularly, organizations aiming to foster a dynamic and innovative team that readily embraces new challenges can greatly benefit from adopting the Agile methodology. Notably, a significant number of developers worldwide have already opted for Agile practices, and it is worth emphasizing that this approach extends beyond the realm of information technology. Its applicability encompasses domains such as management, marketing, sales, and human resources processes, among others. In my perspective, in the face of intensifying competition, companies that are reluctant to lose clients will eventually need to transition their management approaches and align themselves with the Agile paradigm. It is merely a matter of time before such a transition becomes imperative in the rapidly evolving business landscape.

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