Husqvarna Group IT s engagement in digitalised product IT
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1 Husqvarna Group IT s engagement in digitalised product IT Lars Olofsson, Husqvarna Group Jan Tietze, Nordcloud 2016, Amazon Web Services, Inc. or its Affiliates. All rights reserved.
2 Husqvarna Group IT s engagement in digitalised product IT
3 WE RE ON A MISSION TO HELP ENTERPRISES GAIN THE MAXIMUM BENEFITS OF THE CLOUD
4 NORDCLOUD ARE CLOUD-NATIVE SPECIALISTS IN Cloud Strategy Cloud Consulting, Migration & Automation Managed Services Cloud Capacity & Optimisation
5 WE RE MAKING THE WORLD A MORE CLOUDY PLACE ONE MIGRATION AT A TIME
6 NORDCLOUD HAS OVER 200 CUSTOMERS RUNNING PRODUCTION WORKLOADS ON AWS
7 AWS Premier Consulting Partner
8 Husqvarna Group IT s engagement in digitalised product IT Who we are What we do How we work
9 Presenter: Lars Olofsson Enterprise Architect Focuses on digitalisation, connectivity and PaaS technology Architects Group IoT Platform s common services Provides business engagement to digitalisation projects in the company. Information Systems Engineer 15 years of professional experience Developer, CTO and
10 Husqvarna Group today A world leading producer of outdoor power products including chainsaws, trimmers, robotic lawn mowers and garden tractors European leader in watering products One of the world leaders in cutting equipment and diamond tools for the construction and stone industries
11 Short facts Net sales in 2015 SEK 36 billion Core brands: Husqvarna, Gardena Supporting brands: McCulloch, Poulan Pro, Weed Eater, Flymo, Zenoah, Diamant Boart and more The Group s products and solutions are sold in more than 100 countries Main distribution channels are dealers and retailers More than 14,000 employees in 40 countries Head office is located in Stockholm, Sweden The share is listed on Nasdaq Stockholm (HUSQ A and HUSQ B)
12 Background: Both external and internal drivers led to the founding of DSS External drivers Internal drivers Shift to a more digital society with new behaviors and focus on usability New types of skills not found within traditional IT was required Internet of Things (IoT) meant new opportunities for Husqvarna group Lack of standards for IoT solutions Digital Solution & Services (DSS) Need for new ways of working embracing agility and speed Not used to digital solutions interacting with end-users The technology change rate is steadily increasing To keep up, we needed to treat IoT as a start-up, focusing on speed and agility instead of traditional operational excellence Need for new technology, such as cloud, big data
13 Background: Bi-modal Group IT (DSS) drivers & directives Appointed and supported by the CIO Support the business! Interact with and boost the product owners Deliver according to business requirements Enable Group IT to deliver direct business value Explore and start excelling on new technologies & methods Establish infrastructure (PaaS-based) Establish and deliver a Delivery Pipeline (process & tools) Set the standards for way of working, services, frameworks and patterns Develop and deliver common services (eg IDaaS, Device Registry etc)
14 DSS mission: To be an enabler for delivery of digital solutions Support the Husqvarna group brand divisions to broaden their offerings with competitive digital value-adding services to end-users Digital innovation through prototyping and Proof-of- Concepts Deliver digital value-adding services to end-user with a great user experience Explore new ways of working and be cultural pioneers Perform design prototypes or technical Proof of Concepts using cutting edge technology as a basis for decision Work in close relation with business product owners in order to develop digital services Explore new ways of working, suited for rapid and iterative development 4 Implement group common digital back-end capabilities that ensures scalable and maintainable digital services Establish reusable digital building blocks that can be composed into different customer facing services
15 DSS s digital back-end ambition (I/II): Enable service centric digital solutions 4 Digital back-end Internet of Things maturity levels Other services Constr. Mgmt system Fleet system Fleet system 1. Product 2. Smart product 3. Connected product 4. Product system 5. System of systems Product centric Digitalization Service centric 5. System of system what does it mean for our digital back-end? Needs to be built to enable interoperability between digital systems/services, this for professional endcustomer as well as consumers. Should be seen as one in all touchpoints, i.e. a seamless customer experience Must enable partnership, alliances and continuous evolution of our capabilities Master Data and information flow should be kept group wide
16 Digital back-end s ambition (II/II): Enable interoperability, speed & economy of scale 4 Digital back-end Open: Public interfaces that enable interoperability toward alliances, customer and between our solutions. Components: By establishing common back-end services we maximize reuse and speed in development and deployment of new services. Information: Create a group wide information model to secure common master data, traceability and to fulfill privacy legislation and interoperability. This supported by a Big Data solution. Infrastructure based on Cloud infrastructure to ensure economy of scale and global presence, and by using Open source limit cost. Security: The number one priority is to build in security by design to secure availability as well as to prohibit intrusion. Guiding principles for our back-end Built to scale and manage a large number of consumers (millions of customer and devices) Seen as a system of innovation and thereby allow rapid changes and development (Speed) Develop once and used by many. By creating a reusable foundation, time-to-market will be shorten The digital IT backend is built in partnership and based on open standards Avoid lock-in effects and unique silo solutions Established components Identity & Access Management Individual Product Registry Big Data Delivery pipeline
17 Innovation and delivery of services: We are involved in projects with all divisions 1 Digital innovation DSS is involved in developing prototypes and conducting prestudies Maintenance and sales support tools for after sales and sales departements Proof-of-Concept of tools management systems Current pipeline Pre-study of Fleet Services for heavy industry New robotic mower products 2 Deliver digital DSS has established and/or is running several digital services Husqvarna AutoMower Connect Gardena Smart System Husqvarna Fleet Services Automower Connect enables you to remotely steer and control your Husqvarna Automower regardless of where you are in the world Ongoing activities: Back-end support for new markets and new models Gardena Smart system, a holistic and connected automatic garden system to the passionate gardener Ongoing activities: Addition of new products to the system Husqvarna Fleet Services is a unique cloudbased system that connects the machinefleet landscaping teams to an on-line portal, enabling safer and more productive landscaping operations Ongoing activities: Back-end redesign to fit our strategic platform, Real-time data
18 Lessons learned: Good & bad things, moving on Good things Bad things Moving forward Design, code and operate with costin mind. Monitor a lot, the burn rate, the resources and the services. Tag the resources Learn the PaaS:es, get into the details Standardise upon technologies, frameworks, libraries and patterns. Build an internal repository. Align on naming conventions Promote, encourage and coach the Product Owner Unused PaaS resources causing cost The disengagement of key staff due to end of projects, although services continue to run Engaging information security and risk management too late in the establishment Not being clear on the system ownership role when developing cross product category services. Align and harmonise architecture and knowledge management by Mode 1 and Mode 2 Group IT Develop and establish project management and cost allocation estates for Mode 2 IT. Start mining business insight in big data. Continue to build the back-end s common services. Continue the recruitment of key staff on core roles.
19 Our way of working: Agile, DevOps and continuous delivery are key principles 3 Ways of working Agile using Scrum DevOps teams Continuous delivery Requirements and solutions evolve through collaboration between self-organizing, cross-functional teams. Each team works closely with a business product owner, who creates a prioritized list of features (backlog). The teams work iterative, in 2-3 weeks long sprints. Backlog 2-3 weeks New version The agile teams are responsible for development, operations and quality assurance, i.e. DevOps. This is possible since we are running in a cloud environment where infrastructure is managed as code. Operations Development Quality Assurance Our aim is to be able to release a new version to production after each iteration or sprint. This is driven by high level of automation and streamlining of our development pipeline. Release 4 1 Test 3 2 Build Deploy Our teams Team leader Team member Core AutoMower Smart system Fleet services Common IAM Big data
20 Our technology: DSS Cloud 4 Digital back-end Technology selection considerations Technology stack Amazon Web Services being the largest supplier according to Gartner (70% of market, Nov 2015) Major acceptance and buy-in by the embedded & product centric software engineering community Support for Dockers Direct charge-back of cost Enables DevOps, infrastructure in the control of the teams and no hand-overs Support for infrastructure as code and immutable infrastructure Support for low footprint service establishment cost, cost in correlation to utilisation of resources and direct charge-back of cost
21 Our technology: DSS Cloud - Example 4 Typical system architecture Digital back-end Highlights One AWS account per service and instance in a consolidated structure. Each team governs their respective account estate. Standardised CloudFormation and Dockers scripts, boosts AWS best practices Events based architecture, several Kinesis instances per service. Dockers based component architecture, enables automated testing, off-cloud development and separation of duties The BigData service taps all services for events.
22 DSS current status: Success! 3 Ways of working External factors Internal factors Coaching of the business, proven leadership, proven capability to deliver Out-performance of competition, being the best supplier Light & scalable towards utilisation regarding cost Contributing to the business in getting personal with the end-user, B2C, inspire new business opportunities Success! The DSS has established an organisational value and mandate of its own. Being truly bi-modal, separating infrastructure, governance, no hand-over Technology being new and fun, a culture of innovation, an attractive place to work Clear support by CIO and management, dedicated staff & resources, co-location Engagement by a strong partner Standardisation!
23
24 Munich Munich Jan Tietze CTO Germany Nordcloud Deutschland GmbH Theatinerstr München Germany
25 WE RE HIRING! Come and join #TheCloudRevolution
26 Thank you!
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