ESSENTIAL RECIPES FOR THE DIGITAL JOURNEY OF ENTERPRISES

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1 DIRK KRAFZIG MANAS DEB MARTIN FRICK DIGITAL COOKBOOK ESSENTIAL RECIPES FOR THE DIGITAL JOURNEY OF ENTERPRISES For more details visit: GRAPHIC DESIGN BY KNUT JUNKER AND DIETMAR GRUBERT

2 320 Chapter 11: Executing the Digital Transformation WE RE NOT THERE YET. Let s prioritise the Backlog For the current sprint. Agile Project Management Quickly adapt to change and leverage disruption to your advantage Two-speed IT serves as an intermediate step on the path to a fully agile organisation DevOps and continuous delivery enable collaboration between development, quality assurance and It operation

3 Chapter 11: Executing the Digital Transformation Agile Project Management T. Wüst P. Kasper Digitalisation is driving variability and changeability in business at a faster rate than ever before in history. The hypothesis of a stable business environment with gradual technical innovation and foreseeable customer behaviour is no longer true. At this point, agile project management steps in. It supports highly productive development, despite continuously changing business needs, and helps to reach the goals of the digital vision. Following lean and agile principles facilitates organisations to effectively reach these goals. Some important principles are as follows: Deliver early and on a regular basis while managing economic trade-off parameters such as risk, cost and delay for each solution. Manage uncertainty by not picking a single option early in the process, but instead by maintaining multiple design options. Short iterations support rapid customer feedback and fast learning cycles. Failing earlier means faster learning. Milestone evaluation based on working systems promises better understanding between customer and builder. Provide autonomy, mission and purpose to knowledge workers for a better motivation. The Agile Manifesto was an important milestone in The manifesto combined several socalled lightweight methods such as Scrum, 253 Dynamic Systems Development Method (DSDM), Extreme Programming (XP) and Crystal, which were agile in the sense that they matched the spirit of the Agile Manifesto. Agile software development defines a set of principles under which requirements and solutions grow through the collaborative power of self-organising crossfunctional teams. It permits adaptive planning, evolutionary development, early delivery and continuous improvement, and it encourages rapid and flexible response to change. Scrum, perhaps the best-known agile software development framework, is a lightweight framework designed to help small teams successfully develop complex products. 252 Beck, K., Grenning, J., Martin, R. C., et al.: Manifesto for Agile Software Development, Agile Alliance, Schwaber, K., Beedle, M.: Agile Software Development with Scrum, Pearson, 2001.

4 322 Chapter 11: Executing the Digital Transformation The previous sections discussed modelling techniques for digitalisation. In particular they describe the phases Business Architecture and Functional Architecture. Those preparative phases are required as the frame in which agile projects can act independently, deliver value and can be integrated into the context of the enterprise. This requirement has also been reflected in more recent 254, 255 agile frameworks that address enterprise-level activities, for example, Scaled Agile Framework (SAFe) and Large-Scale Scrum 256, 257 (LeSS). Comparing SAFe with LeSS, both frameworks are based on Scrum at the team level and both have a selection of agile and lean practices for agile scaling. SAFe provides quite a detailed process layer on top of Scrum to coordinate the complex flows and provide predictability. It implements new processes and introduces agile principles. SAFe is a relatively complex framework for embedding agile processes into large organisations and is more easily understood by the traditional operative management. LeSS scales up Scrum teamwork without adding layers or processes. It simplifies the organisation radically and is very flexible. It is based on the concept of self-organising teams. In a LeSS organisation, for example, feature teams deliver business components, cross-functional teams take care of technical coordination and the product owner team works with the market. Managers become coaches. However, transforming an existing organisation into an agile organisation is a tremendous task 258, 259 taking several years. Many organisations take an intermediary step known as two-speed IT (also known as bimodal IT ), which was invented around A two-speed IT architecture enables companies to develop their customer-facing applications at high speed while decoupling legacy systems for which release cycles of new functionality remain at a much slower pace using traditional development styles. 254 Leffingwell, D.: SAFe 4.0 Reference Guide: Scaled Agile Framework for Lean Software and Systems Engineering, Addison Wesley, Scaled Agile Inc.: SAFe, Scaled Agile Inc., Larman, C., Vodde, B.: Large-Scale Scrum: More with LeSS, Addison Wesley, Larman, C., Vodde, B.: LeSS, The LeSS Company B.V., Gartner: Bimodal, Gartner, Gourevitch, A., Rehberg, B., Bobier, J. F.: Two-Speed IT: A Linchpin for Success in a Digitized World, BCG, 2012.

5 Chapter 11: Executing the Digital Transformation 323 Two-speed IT is a valuable intermediate step on the path to an agile organisation. A new IT architecture fully based on agile principles can facilitate organisations to develop software at full speed without separating the back end from the front end. Younger companies, like Google, Amazon, Facebook and Spotify, demonstrate this impressively. While the agile transformation focuses more on the earlier phases of a development life cycle, it is also important to look at the later phases. It is important to establish an environment where the releasing of applications becomes more reliable, faster and more frequent. In traditional functionally separated organisations, there is rarely cross-departmental integration of development and quality assurance (QA) with IT operations. DevOps and continuous delivery concepts help to enable this integration and speed up release. Continuous delivery and DevOps are two different concepts with common goals. DevOps has a broader scope and is about organisational change, the collaboration between teams (development, operations, QA) and the automation of the processes in software delivery. Continuous delivery is an approach to automating delivery inherently; it focuses on bringing together different delivery processes and executing them more quickly and more frequently. Implementing these lean and agile principles in the development organisation enables the enterprise to quickly adapt to change. Evolutionary development, early releases and continuous improvement deliver a constant flow of business value while maintaining the highest quality levels. To drive and apply agile transformation to the enterprise, an appropriate agile scaling framework is directly implemented or an intermediary step with two-speed IT is carried out. Embedding development departments into QA and IT operation departments results in a high-performing, exceedingly competitive digital enterprise, leveraging disruption to its advantage.

6 382 Guest Authors Thomas Wüst studied information technology at the ETH in Zurich and has been engaged in IT consulting, software engineering and project settlement for over 30 years. In 2005, he founded ti&m AG and since then has been leading the company as CEO. From 2002 to the beginning of 2005, he was Executive Director of sd&m AG Switzerland. Before 2005, he built the application development area as business unit leader of a Swiss consulting agency for six years. He started his professional career as a software engineer and later worked as project manager at UBS AG in the risk management section. Patrik Kasper studied chemistry at the ETH in Zurich. After completing his PhD on computational chemistry, he spent over 17 years of his professional life in various software engineering and consulting companies as consultant, project manager and agile coach. Furthermore he has led teams of project managers, agile coaches, requirement engineers and test managers for over 11 years. He is currently Head of Agile Consulting and Project Management at ti&m AG, and is leading and coaching agile transformations for several important and large companies.