An Agile Procurement Model that Facilitates Agile Execution of Projects : A Case Study at Telia Company

Abstract: Since agile execution of projects has become more frequently used the discovery that the surroundings of the projects are not always compatible has been made. The problematic within the area is traditional accounting restrictions and cost estimation. The purpose with this research is to develop a procurement method that facilitates for agile execution of projects. Previous research proves that the agile principles can be used in a procurement process successfully, but with focus on facilitating on the procurement itself and not on the agile execution. This research includes theories about the agile estimation models and requirement prioritizing methods. The method used to complete this research is design science, which includes six steps to ensure reproducibility and validity. This research resulted in a procurement method that includes three methods and two phases with focus on minimizing the pre-study, with focus on only the most important requirements only. The procurer will then attend the agile execution and both procurer and executer enter the project with the mindset that the initial budget- and time estimation will be increased. Both procurer and executor works together towards the same goal, maximum customer value for minimum cost. The method is tested beside two projects conducted by Telia Company and the test result is that the generated solution reduces the total cost of the project and time to generate project result and facilitates for an agile execution. This research concludes that an agile procurement can facilitate agile execution of project but before agile procurement can be a recommendation more tests are needed.