Globale Software-Entwicklung bei SAP AG Einführung von LEAN und Agile Development. Joerg Wacker

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Arleen Bradley
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1 Globale Software-Entwicklung bei SAP AG Einführung von LEAN und Agile Development Joerg Wacker

SAP Today 59,400+ SAP employees worldwide 120 countries 25 industries 37 languages 75

3 SAP Main Product Creation Locations Walldorf/Rot: 1972 HC ~ 6,800* Vancouver: 1984 HC ~ 370 Montreal & Toronto: 1998 HC ~ 450 Budapest: 2005 HC ~ 215 Dublin: 1997 HC ~ 165 Sofia: 2002 HC ~ 430 Shanghai: 2003 HC ~ 1,300 Palo Alto: 1993 HC ~ 2,000 Paris, Sophia Antipolis: 1991 HC ~ 675 Ra anana, Karmiel: 1991 HC ~ 705 Bangalore, Gurgaon: 1998 HC ~ 4,700 Sao Leopoldo: 2006 HC ~ 220 * HC: Head count ~ employees in SAP Labs 11 countries with SAP Labs 60+ Industry Solutions 540+ Product versions in unrestricted shipment 2011 SAP AG. All rights reserved. Confidential 3

8 NEW LEAN DEVELOPMENT PROCESS release planning Chief Product team Area Product team product backlog release backlog Implementation teams sprint backlog 2011 SAP AG. All rights reserved. Confidential 8

9 WE HAVE LEARNED SYSTEMATICALLY TO improve ratio of planning and execution incorporate early feedbacks build quality into products from the inside out. Build Coaches within the organization 2011 SAP AG. All rights reserved. Confidential 9

(38,5 %); 508 tickets Correction 257 days (47,2%); 2.689 tickets 545 days (100%) Val.

10 DOES IT WORK? #incoming internal messages Product A, Release 1 Old process Development 185 days (40,4%); 48 tickets Correction 221 days (48,3%); tickets 458 days Val. (100%) 52 days (11,4%) 117 tickets #incoming internal messages Product A, Release 2 Old process Development 210 days (38,5 %); 508 tickets Correction 257 days (47,2%); tickets 545 days (100%) Val. 78 days (14,3%) 406 tickets Key findings: Defects found earlier Development window increased #incoming internal messages Product A, Release 3 New process Development 256 days (46,3 %); 957 tickets Correction 157 days (28,4%); 636 tickets 553 days (100%) Validation 140 days (25,3%); so far: 87 tickets 2011 SAP AG. All rights reserved. Confidential 10

We are back on track Revenue per Employee EUR thousands 260 240 220 200 180 160 140 120 100 80 60 40 20 0 154 133 137 135 135 119 179 256 258 257 256 239 236 237 233 237 239 234 233 224 225 224 201

11 We are back on track Revenue per Employee EUR thousands Start of LEAN implementation Total revenue EUR billions Employees* Number ,367 2,138 2,685 3,157 3,648 5,229 6,857 9,202 12,856 19,308 21,699 24,480 28,410 28,797 29,610 32,205 35,873 39,355 43,861 51,536 47,578 53,531 55,400 * At year end, since 1999 in full-time equivalents Source: (January 14, 2011) 2011 SAP AG. All rights reserved. Confidential 11

12 Employee feedback to LEAN November 2011 I received sufficient training 88% All roles for Lean are in place 73% Direct managers act according Lean 79% Team works along prioritized backlog 90% Culture of trust within the team 80% Positive correlation between satisfaction about lean implementation and workload situation! Belief, that Lean will have positive impact on SAP in long run 76% See also SAP Sustainability Report

Lean implementation@sap 2008 2009 2010 2011 2012 Proof of concept Robust template under implementation in all areas Full organization live in new model Benefit and CIP of full year of implementation

process, rare and late customer feedback 2009 2011 in development: Implemented agile software development methodology with team based process, collocated teams with iterative development approach: 4

13 Lean Proof of concept Robust template under implementation in all areas Full organization live in new model Benefit and CIP of full year of implementation LEAN at SAP started in 2008 in development: Starting position: long release cycles, high planning and integration efforts, distributed development setup without clear guidance on location, waterfall process, rare and late customer feedback in development: Implemented agile software development methodology with team based process, collocated teams with iterative development approach: 4 week useable software with customer feedback early 2011/2012 status: people affected with LEAN awareness, SCRUM training. Collocated team in one location is now the standard. Reduction of management layers from 7 to 4. Team Value Added activities increased by 30%, Throughput time for a major release reduced from 18months to 6months 2011 SAP AG. All rights reserved. Confidential 13

14 Thank You! Contact information: Joerg Wacker

15 Appendix

16 Set up for Success Why does it work? Lessons learned at SAP so far Top down guidance, but bottom up buy in Street credible project team with significant time committment Sequence: Process -> Organization -> Leadership -> Innovation Try out phase to create and align excplicit change template Embedded set up within the units, support by local implementation teams Small cross functional think tank with central budget Stability then Quality then Customer/Innovation (order, not priority) Close collaboration with workcouncil (works agreement) Scientific support (SAP Research, ISF eg. with focus on workload) 2011 SAP AG. All rights reserved. Confidential 16

Optimizing Our Sustainability Performance Achievements 2011 2010 2011 Employee Retention (%)** 93 93 Women in Management (%) 17.8 18.

17 Optimizing Our Sustainability Performance Achievements Employee Retention (%)** Women in Management (%) Social Employee Health (%) Employee Engagement (%) For more information, see: SAP AG. All rights reserved. Confidential 17

AGILE Realities. Presenters: Chris Koo (Edward Jones) Blake Moyer (Edward Jones) Joan Romine (Boeing)

AGILE Realities. Presenters: Chris Koo (Edward Jones) Blake Moyer (Edward Jones) Joan Romine (Boeing) AGILE Realities Presenters: Chris Koo (Edward Jones) Blake Moyer (Edward Jones) Joan Romine (Boeing) 1 AGILE Gaining Momentum 2 AGILE First Impressions Fast! Flexible! 3 AGILE Development Myths "Agile