Moving beyond the basics of linear regression, we can start looking at more complex ways to model our data. One commonly used approach is called velocity modelling. The method involves adding and subtracting multiples of independent variables in order to improve the accuracy and transparency of the model, which makes it easier to understand what drives your metrics in the end. In this article, we will take a closer look at velocity modelling. Let’s get started!
Brief Overview of Velocity Modelling
It’s hard to overestimate how important velocity modelling has become for software development teams over the last 10 years. Project managers, business analysts, and project owners alike want to know how long will it take? But more often than not, teams find themselves making approximate guesses at how much time different tasks will take. Because of that uncertainty, it’s difficult to create reliable estimates or schedules—which means trouble when deadlines loom. The best way to avoid delays (and disappointment) on projects is to apply velocity modelling techniques so that you can predict future performance based on past experience.
How can you Use Velocity Models?
Velocity models can be used to answer different questions. Some of these include: Does a product affect sales or market share in addition to revenue? Are customers buying a bundle offer, and if so, how does that change consumer behaviour? What does profitability look like for my business over time? How much of my business comes from existing customers vs. new customers? By answering these types of questions with velocity models, you can better understand your product’s impact on revenue and your customer base and make more informed decisions about future products and campaigns.
Benefits of Velocity Modelling
By incorporating velocity modelling into a Six Sigma project, businesses are better able to determine how long a task or procedure should take to perform. Doing so helps organisations plan and execute tasks, save money by knowing how long something will take and fix problems if they ever arise. The right data management software can make managing your supply chain effortless, allowing you to understand how products flow through your system in order to prevent delays before they happen. To further understand how velocity modelling works within a business setting, it’s helpful to examine some examples of Six Sigma projects that use velocity as an analysis method.
A Final Word On Velocity Modelling
You can use velocity modelling to determine how long it will take you to get your next feature completed, but there are two things you should keep in mind. First, velocity isn’t perfect. Your velocity can fluctuate from day-to-day or even hour-to-hour depending on how productive you are and whether or not you get distracted. It’s best not to set expectations too specifically around timing with velocity since it doesn’t represent a definitive timeframe; rather, it represents an ideal timeframe—one that you should try and achieve whenever possible. The second thing you should remember is to track how much time has actually been spent per story: your velocity models shouldn’t be overly optimistic. In order for them to work effectively, they need to reflect reality as closely as possible. Otherwise, they might just lead people astray instead of helping them make progress.
