#18 Luke Hohmann - Software Profit Streams™

In this episode, Benjamin interviews Luke Hohmann, a prominent figure in the Agile product development community and author of 'Software Profit Streams™'. They discuss the critical link between value and profit, emphasizing the importance of understanding profitability within Agile practices. Luke shares insights on how Agile coaches and practitioners can contribute to a company's profitability and the necessity of defining value in order to create sustainable business models. The conversation also touches on the concept of Profit Streams™, the role of cost centers, and the significance of pricing strategies in the software industry.

Luke Hohmann

Luke Hohmann is a four-time author, three-time founder, and SAFe® Fellow known for his expertise in Agile Software Development and creating sustainable business models. As Chief Innovation Officer of Applied Frameworks, he helps companies design sustainably profitable software businesses. His latest book, *Software Profit Streams™*, co-authored with Jason Tanner, shares key strategies for building profitable software solutions. Luke also founded Conteneo, Inc., known for its decision agility platforms, which was later acquired by Scaled Agile, Inc.

https://www.linkedin.com/in/lukehohmann/

https://profit-streams.com/

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00:00 Introduction to Luke Hohmann

03:29 The Importance of Profit in Agile

05:48 Roles in Agile and Profitability10:40Understanding Value in Agile Practices

15:01 Feature Traps and Customer Feedback

18:38 Profit as a Measure of Success

20:57 Defining Value in Agile

24:34 Cost Centers and Value Creation26:55Introduction to Software Profit Streams

30:55 Target Audience for Software Profit Streams

37:17 Total Cost of Ownership and Pricing

43:18 The Agile Community's Approach to Value

51:22 Conclusion and Future Directions