IT AS AN INTEGRATED PART OF THE BUSINESS LEAN & DIGITALIZATION PETRA ÅLUND SANDVIK IT GLOBAL SHARED SERVICES

Transcription

1 IT AS AN INTEGRATED PART OF THE BUSINESS LEAN & DIGITALIZATION PETRA ÅLUND SANDVIK IT GLOBAL SHARED SERVICES

2 SAFETY FIRST Sandvik s objective is zero harm to our people, the environment we work in, our customers and our suppliers. PROTECTIVE EQUIPMENT FIRST AID KIT ALARM EMERGENCY NUMBER EMERGENCY EXIT ASSEMBLY POINT

3 AGENDA 15:10-16:00 WELCOME! Sandvik Sandvik IT Sandvik Questions All Photos in presentation: Sandvik 3

4 SANDVIK & SANDVIK IT 4

5 WELCOME TO A COMPANY DRIVEN BY EXPERTISE AND IMAGINATION

6 47,000 EMPLOYEES 89 BILLION SEK INVOICED SALES 60 R&D CENTERS GLOBALLY WE OPERATE IN OVER 130 COUNTRIES AROUND THE GLOBE 3 BILLION SEK INTO R&D EACH YEAR 8,000 ACTIVE PATENTS

7 IT AS AN INTEGRATED PART OF THE BUSINESS SANDVIK IT

8 LEAN IN MANUFACTURING 8

9 LEAN IN IT? 9

10 WHY BOTHER WITH LEAN IN IT? BE RELEVANT TO THE BUSINESS, OR BE GONE! 10

11 VISION OF A LEAN SANDVIK IT AN ORGANIZATION IN CONSTANT EVOLUTION Sandvik IT delivers more value to Sandvik We develop the business, not just IT Solutions We deliver predictably with the right quality We are innovative and proactive We keep costs down Everyone is engaged in continuously improving the services and deliveries Sandvik IT is an attractive employer 11 People grow, there is time to learn and develop new skills The pace of work is sustainable The organization is in constant evolution, not constant revolution (few big organization changes)

12 THIS IS WHAT WE NEED TO DO TO SUCCEED: We need to improve from a customer perspective We need to create the time to improve We need to improve continuously We need to engage everyone We need a safe-to-fail environment 12

13 THIS IS HOW WE DO LEAN WE STAY RELEVANT & WE DELIGHT THE BUSINESS BY: Continuously improving (continuous improvements) From a customer perspective (customer focus) Using the people doing the job (respect people) With small experiments (kaizen) In an environment where it is safe to fail (respect people) 13

14 Adjust Adjust EXAMPLE OF WASTE REMOVAL WINDOWS WEB APPLICATION DEPLOYMENT TIME Lead-time = 3-7 days Long lead-times due to wait time, reworks, non value-adding work (administration, coordination and planning), handovers and actual deployment time. Workflow for deploying Windows web applications Create & record requested change Accept & Categorize Change Authorize & Schedule Change Deploy Verify Close Change Windows Dev. Team WAP Team CAB Meeting WAP Team Windows Dev. Team Windows Dev. Team Workflow for deploying Windows web applications using Web Deploy (today) Lead-time < 1 hour Create & record requested change Deploy Close Change 286 hours estimated saved per year (considering 44 releases per year) Shorter Time-to-Market More time available for value-creating activities Higher deployment quality 14 Windows Dev. Team Short lead-times achieved by removing wait times, less reworks, less administration, coordination, planning and handovers, less actual deployment time. Other Benefits: Fewer mistakes and therefore less rework Easier trouble shooting Less downtime during incidents in production Less downtime during production deploys Configuration of automatic backups Easier rollback

15 EXAMPLE OF GETTING OUT OF FIRE FIGHTING JAVA INTEGRATION TEAM BEFORE WHAT THEY DID RESULT NEXT Fire fighting Not in control No room for necessary improvements Stressed team Low motivation Took time to plan the way forward together Set up policies to: Avoid parallel work Avoid task switching Take control of incoming work. Stick to the polices Team is in control of the work, motivated to come to work and less stressed Time created for working on improvements Same delivery capability for standard work * Prioritize and plan for what improvements to work on when Stick to and improve the way of working Created a Safe to Fail environment. 15 * standard work = enhancement, maintenance, incident and support

16 TYPICAL KANBAN BOARD 16 Change footer at: View > Slide Master. Select the first slide master and go to Insert > Header & Footer to change the text. Apply to all. Typical Kanban Board for development team

17 TYPICAL DIGITAL KANBAN BOARD Typical digital Kanban Board for development team Photo: Marie S. Nilsson

18 SANDVIK IT KANBAN JOURNEY Kanban Kick-start Field Guide & Kanban Assessment Get more info about the Sandvik IT Journey on InfoQ:

19 THE KEY: METHODIC CHANGES TO LEARN A SCIENTIFIC METHOD Articulate a Challenge Understand the current condition (using facts/metrics) Set a target condition (using facts/metrics) Plan: Gather insight & create options/hypothesis Do/Execute: Implement a change based on an hypothesis Check: Was the change an improvement (using facts/metrics) Act/Adapt: Not done yet? Select/develop a new hypothesis 19

20 KEY TAKE-AWAYS Lean is not only for manufacturing! For Sandvik IT, being Lean means creating a culture of continuous improvements To succeed, we need to engage everyone This requires a safe-to-fail Lean Leadership Kanban for knowledge-work helps to create acts of leadership (team initiative) Check Sandvik IT s Kanban Kick-start Field Guide & our Kanban journey Lean improvements are methodic and controlled The more IT becomes Lean, the more it is an integrated part of the business Becoming Lean is a rewarding, but long, journey: start now! 20

21 START DOING LEAN TODAY! ANSWER THESE QUESTIONS: What is the most obvious waste that you can see? How do we know when it s gone (measure)? What experiments can you think about to remove it? Select one experiment Plan: What do we expect will happen? Do it! Check: What is the result (measure)? Reflect: What did we learn? If the waste is not gone, pick another experiment! If the waste is gone, pick the next waste! 21

22 WE ARE JUST STARTING! 22

23 IT AS AN INTEGRATED PART OF THE BUSINESS SANDVIK

24 BUT FIRST, TAKE A LOOK AT THE PUBLIC SANDVIK GROUP PRESENTATION 24

25 LEVERAGING GROWTH DRIVERS TRENDSPOTTING TO SERVE OUR CUSTOMERS DEMOGRAPHIC CHANGES Shifting our footprint towards growth Adapt our offering to meet the needs of an aging population URBANIZATION Strong equipment and service for the construction industry Intra-urban solutions to develop housing, infrastructure and transport solutions GLOBALIZATION Being true to our brand Mid-market offering Speed in R&D: Products to enhance productivity and energy efficiency CLIMATE CHANGE & SCARCITY OF RESOURCES Driving the materials evolution Recycling Energy efficient processes INFORMATION & COMMUNICATION TECHNOLOGY (ICT) Digitalized customer offerings ICT solutions

26 CUSTOMERS REALITY OUR SOURCE FOR INNOVATION COST EFFICIENCY SAFETY FEATURES DIGITAL OFFERING & SERVICES

27 WE ARE BUILDING FOR TOMORROW INTELLIGENT TOOLS MY PAGES DIGITAL OFFERING AND SERVICE MONITORING & AUTOMATION TDM TOOL DATA MANAGEMENT DIGITAL CUSTOMER INTERFACE INDUSTRY 4.0 ADVEON TOOL LIBRARY DIGITALIZED PROCESSES

28 SETTING THE SCENE ON WHAT IT S ALL ABOUT 28

29 FROM IT TO ICT HOW DOES THE HISTORY LOOK LIKE? Source: IDC

30 DIGITAL BUSINESS EVOLVEMENT GARTNERS TAKE ON IT 30

31 INDUSTRY 4.0 GERMAN INITIATIVE INITIATED 2011 The vision is smart factories where every product control how it is produced. It is possible while it is tagged with information, and is in constant contact with other production equipment (Internet of Things) Cyber Physical System (CPS): Embedded computers and networks monitor and control the physical processes, with feedback loops 31

32 ICT IN MANUFACTURING IT S MORE THAN INDUSTRY 4.0 IT S ABOUT UNIVERSAL COLLABORATION People, machine and systems will be much more integrated. Human centric approach. Communication intensifying Human/Human Human/Machine Machine/Machine The higher level of cooperation will improve both the development and the production processes. 32

33 DEFINITION ICT FROM INFORMATION TO INTELLIGENCE Performance Technology shift Information Technology (IT) IT refers to information collection, storage, processing and presentation. The technology involving the development, maintenance, and use of computer systems, software, and networks for the processing and distribution of data. IT ICT Information and Communication Technologies (ICT) ICT involve a wide area of collaboration and communication between humans and/or technologies. ICT is a key enabler for intelligent human-centric and smart factories including the logistics and value chain integration, Big Data storage, Cloud, Cyber Physical Systems, Internet of Things Etc Time 33

34 SETTING THE SCENE ON WHAT IT S ALL ABOUT 34

35 CUSTOMER VALUE DEVELOPMENT IT/ICT SHARE OF PRODUCT/SERVICE OFFER Customer value Product The Physical Product Including Performance, Quality, Delivery etc. Product ICT Embedded system enabled by ICT Product Product Human Human/manual service/support relationship Human ICT Software as a Service enabled by ICT Human Human ICT Service/support enabled by IT IT IT IT IT Note: The height of the bars are just symbolic

36 A SMALL EVOLUTION IN TECHNOLOGY, A POTENTIAL HUGE LEAP FOR BUSINESS AS WE KNOW IT Business Processes (HOW) Information Business Models Organization & Individuals (WHO) Products & Services (WHAT) (WHY) Business opportunity and consequence of change The hard part: understanding the consequence sizing the opportunity define and capture the inherent business value potential Technology A small evolution

37 FROM IT TO ICT LOOKING INTO THE FUTURE 37 Source: IDC

38 PREPARE FOR A SHIFT IN POSITIONING ECOSYSTEMS WITH NEW DYNAMICS Business Transformation / Digital shift Traditional value chains Eco system / Value System Disruptive Technologies are predicted to turn into ecosystems serving the Customers, often formed around one dominant player that possesses the standard Gray - COMMODITY Colored -DIFFERENTIATION time

39 ICT CUSTOMER INTERACTION THE DIGITAL BUSINESS ECOSYSTEM 1. Product feedback via digital media New ideas => R&D Problems => Customer support 2. New deliveries New products and services communicated via digital media 39

40 CHALLENGES FOR SANDVIK INDUSTRY 4.0 Customers View How will this change our customers behavior? How will the requirements change on our products & services? What new business opportunities will be there for us? Value network - 3rd Platform implications! Internal view What requirements needed - changing our own IT? and manufacturing? Value network - 3rd Platform implications! 40

41 CONCLUSIONS 41

42 ICT COMPETENCES AND SKILLS NEEDED STRATEGIC FOCUS TECHNICAL SPECIALISTS Chief Digital Architect Has a holistic perspective of how technology works and communicates among one another along with suggesting new business opportunities this can provide. Digital Architects (Cloud Mobility Social Business Big Data/Analytics) Understands engineering, programming languages, infrastructure and how to combine everything into a connected enterprise through a lot of platforms: desktop, laptop, mobile, cloud, etc. Understanding the value of information to the business and the opportunities of new business models by taking advantage of the digital enterprise. Data scientist (Big Data/Analytics) A data scientist represents an evolution from the business or data analyst role using computer science, applications, modeling, statistics, analytics and math to find valuable assets in the information. Big Data - Administration, analytics and visualization to technically support business people with reports and the data scientists with tools. Machine learning - optimizers and configurators Cloud - Solution Architects and developers, administrators, virtualization experts, IT security experts etc. Mobility - App Development Social Business Experts of collaborative environments to connect an innovative way to colleagues, customers, and partners. Integration Experts of integration and communication Smart items Engineering and Software development Automation Engineers and Embedded systems development 42

43 ENABLING OUR INFRASTRUCTURE WHAT DO WE DO TO ENABLE THE VISION OF ICT Network upgrade Version 1.0, paying of our lifecycle dept Version 2.0, enabling the digitalization journey Mobility Creating a ref architecture (blueprint) of how it will look. Human consumption Digital Workplace, the new generation of Intranet were we as humans can consume all of this. Messaging and Collaboration Enable our messaging and collaboration services for the future as well as migrating the platform. 43

44 CLOUD NOT ONLY TO OPTIMIZE INFRASTRUCTURE

45 HOW TO RELATE TRADITIONAL IT TO THE ENABLEMENT OF DIGITALIZATION OF OUR BUSINESS

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