Road2Lean. Agile Software Product Development at SAP in the Context of Lean. Christian Schmidkonz Chief Development Architect, SAP AG CSM, CSPO, CSP

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Products & Solutions LEAN Center Agile Center of Expertise Dr.

1 Road2Lean Agile Software Product Development at SAP in the Context of Lean Christian Schmidkonz Chief Development Architect, SAP AG CSM, CSPO, CSP Products & Solutions LEAN Center Agile Center of Expertise Dr. Alexander Gerber Development Project Manager, SAP AG CSM, CSP TIP CORE Lean/Agile Core Team TIP CORE LM

2 Content The Why and What of our lean transformation How did we do it? Results, challenges and outlook Questions SAP AG 2011, C.Schmidkonz, A.Gerber Page 1

3 Connection to the topic: Myth or fact about Lean and Agile at SAP SAP has external support for it s Lean implementation Lean at SAP is implemented on the whole product value chain After two years Lean implementation at SAP, goals are almost met Agile and Scrum enabled SAP for the implementation of Lean SAP uses Scrum as standard prouct development approach Communities at SAP enable sustainable Implementation of Lean & Agile SAP managed to implement a consistent Lean approach Change and Communication are key success factors for Lean at SAP SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 2

4 Content The Why and What of our lean transformation How did we do it? Results, challenges and outlook Questions SAP AG 2011, C.Schmidkonz, A.Gerber Page 3

5 Bla SAP Corporate Profile Facts & Figures SAP Development Locations Canada Germany USA France Israel Hungary Bulgaria India China SAP AG employees Presence in 50+ countries customers in 120+ countries 12,00 billion revenue in 2010 Products/Solutions 150+ Products and 40+ Solutions More than 25 Industry Solutions 30+ languages supported Approx. 500 developers work in parallel on a new release of a solution SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 4

6 With Lean and Scrum, we want to tackle the root causes of some issues in our development process Integration of team results very cumbersome Quality issues Very long release cycles, split into phases Perception in the development teams: everybody works like crazy, output comparatively poor Stakeholders do not consume deliveries Shipments late, not fitting to customer needs, operation costs too high New initiatives every year which tried to address these issues... and we soon found out that with some agile development teams here and there, you won t change the big picture SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 5

7 In order to get where we are, we had to involve many people in our organization *number of employees estimated SAP AG 2011, C.Schmidkonz, A.Gerber Page 6

The Lean Thinking House outlines the complete picture of Lean@SAP empowering our PEOPLE. by example. Respect for People COACH.

8 The Lean Thinking House outlines the complete picture of empowering our PEOPLE. by example. Respect for People COACH. Maximize Customer Value and Speed Employee Empowerm ent Q/C/D in One Hand Cross Functional Team Prioritized Backlog at All Times Takt Standard Process Usable Software each Takt Transparency on Processes and Product Maturity Continuous improvement Process and Sructure JIT principles (flow, takt, pull, zero defects) Eliminate waste STANDARDS. CONTINUOUSLY KAIZEN/ Continuous IMPROVING. Improvement LEAN Leadership SAP AG 2011, C.Schmidkonz, A.Gerber Page 7

9 Scrum addresses the team level, Lean gives you a perspective on the whole value stream Product Owner Cross-Functional Team SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 8

Scrum at a Glance Team-based organization Input from Portfolio Process Release Backlog Adjustment and Refinement Scrum Master Daily Scrum Meeting and Artifacts Update Solution Owner Product Owner

10 Scrum at a Glance Team-based organization Input from Portfolio Process Release Backlog Adjustment and Refinement Scrum Master Daily Scrum Meeting and Artifacts Update Solution Owner Product Owner Cross-Functional Team Sprint Team selects how much to commit to each sprint Review Potentially Shippable Product Increment Release Backlog of Features Sprint Planning Meeting Sprint Backlog of Tasks Retrospective SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 9

Define Accept & Integrate CPO Release Burndown Define Accept & Integrate APO Area Release Burndown

11 Product accountability The SAP Lean Development Model shows the core structure of the new approach Stakeholder Customer Planning Phase Mini Release Mini Release Production and Reamp- Demand Consume Up Define Accept & Integrate CPO Release Burndown Define Accept & Integrate APO Area Release Burndown Define Accept PO Develop & Test Sprint Burndown SAP AG 2011, C.Schmidkonz, A.Gerber Page 10

12 Flexibility The Lean Development Model is instantiaded by a matrix of line of business and products Generic organizational structure Balance product vs. component interests Product Unit Head Component axis = SUPPLY People and skills incl. staffing of implementation teams Sustainable technical and functional excellence Quality of the component or technology Line Manager teams Product axis = DEMAND Customer view Product demand Product Team PO Product Teams PO PO PO Stability Budget PO PO PO PO PO Scrum Product Owner (PO) Teams belonging to Product Team Optional, depending on size of product and product unit SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 11

13 This is how the Continuous Improvement Process will look like in the near future (by end of 2011) Managers as CI Specialists The majority of impediments will be handled close to the value stream Cross Product Group Level SAP AG 2011, C.Schmidkonz, A.Gerber Page 12

14 Recap: The Why and What of our lean transformation Let s try and come up (as a group) with 10 important facts about the why and what of SAPs lean transformation (5 minutes) SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 13

15 Content The Why and What of our lean transformation How did we do it? Results, challenges and outlook Questions SAP AG 2011, C.Schmidkonz, A.Gerber Page 14

The Lean transformation is driven by teams

Implementation Team 2 Lean Implementation Team

16 The Lean transformation is driven by teams which use the process model they want to implement Lean Center Lean Transition Team Lean Core Team Lean Implementation Team 1 Lean Implementation Team 2 Lean Implementation Team n SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 15

The 9 Core Elements of Lean serve as the common framework for implementing Lean Prioritized backlog at all times Employee empowerment Q/C/D in one hand Cross functional Team Team of ten Cross

17 The 9 Core Elements of Lean serve as the common framework for implementing Lean Prioritized backlog at all times Employee empowerment Q/C/D in one hand Cross functional Team Team of ten Cross functional Team Team of ten Takt Standard process Usable software each Takt Transparency on product/ process maturity Continuous improvement process SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 16

be assigned to two projects at maximum Standard An employee can only be

18 Bla We used the 9 Lean Core Elements document for structuring our LIT backlogs Example Element: Cross Functional Teams ( Team of Ten ) Minimum An employee can be assigned to two projects at maximum Standard An employee can only be assigned to one project at a time Future... SAP AG All rights reserved. / Page 17

day Q-workshop for Scrum teams Story mapping workshops Agile Software Engineering program in pilot phase (for Java and ABAP) Important: we

19 Bla We have a mix of generic Lean/Scrum trainings, as well as training for specific topics 1 day lean awareness for everybody 1 day Scrum Basic for Scrum teams 2 days ScrumMaster 2 days Produt Owner 2 day Continuous Improvement specialist training and coaching for managers 1 day Q-workshop for Scrum teams Story mapping workshops Agile Software Engineering program in pilot phase (for Java and ABAP) Important: we follow the Hilfe zur Selbsthilfe principle (with TTTs*), whenever appropriate *Train-the-Trainer SAP AG All rights reserved. / Page 18

22 Bla Communities and other topic related events enable participation Pow Wows with top mgmt. Coffee Corner Sessions Lean Round Tables Community Platform Open Space meetings Events with Externals SAP AG 2011, C.Schmidkonz, A.Gerber Page 21

23 SAP AG 2011, C.Schmidkonz, A.Gerber Page 22

24 Recap: How did we do the transformation? Think about what you have learned in the last chapter (the how ). If you had to make up a test question about it, what would you ask? Be prepared to let the group know what your question is. (If you are not comfortable with writing the question in English, use German, we ll translate for you, if necessary.) SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 23

25 Content The Why and What of our lean transformation How did we do it? Results, challenges and outlook Questions SAP AG 2011, C.Schmidkonz, A.Gerber Page 24

26 We start to see some encouraging results Perception of LEAN is positive People expect increasing productivity and a positive impact on SAP Results New Business by Design release successfully delivered in good quality on time Regular taktbased delivery Bugs are found earlier SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 25

27 Page 26 There are some challenges with properly establishing the ScrumMaster role

We don t yet have a standardized lean development model for scaled development Some of our challenges are: A local optimization culture We do not document and roll-out proven approaches Getting

28 We don t yet have a standardized lean development model for scaled development Some of our challenges are: A local optimization culture We do not document and roll-out proven approaches Getting to an aligned standard model just wasn t the focus of our work The standard would have to fit to a huge variety of different contexts (e.g. Product organization between 50 and 500 people) Page 27

29 Bla We thought establishing a continuous improvement process would be easier... Poor follow up after workshops Standards missing for CI Summary: CI not yet part of culture

30 One size fits all? Bla One Scrum is a perfect fit for real development teams But is it the best approach for service teams or teams with a high maintenance load? Or do we have to try something else? How about Kanban (actually a combination of Scrum and Kanban)? Page 29

31 We have to be clear about whether what we invested pays off: lean business goals Optimize time to market Increase value for customers Foster employee Text satisfaction Improve development efficiency Improve quality Page 30

An Outlook on our next steps Outlook CIP Implementation Establish standard lean development model Improve communication about lean Work on agile method for service teams

32 An Outlook on our next steps Outlook CIP Implementation Establish standard lean development model Improve communication about lean Work on agile method for service teams Define and measure lean business goals Reduce stress level for employees Expand usage of agile engineering practices SAP AG 2011, C.Schmidkonz, A.Gerber Page 31

33 Recap: Results, challenges and outlook Write a one-sentence summary of the information we have covered in the last section of our presentation. Compare your summary with someone seated near you. Are your summaries similar or different? Be prepared to read out your sumary. (Again, if you prefer to write it down in German, do so. We ll translate for you, in case you want to read it out.) SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 32

34 Questions SAP AG 2011, C.Schmidkonz, A.Gerber Page 33

35 Action Plan: What are YOUR next steps?!? SAP AG 2011, C.Schmidkonz, A.Gerber Page 34

Dietmar-Hopp-Allee 16 69190 Walldorf christian.schmidkonz@sap.com www.sap.com Dr.

36 Thank you! Christian Schmidkonz Products & Solutions LEAN Center Agile Center of Expertise Dietmar-Hopp-Allee Walldorf Dr. Alexander Gerber TIP CORE Lean/Agile Core Team SAP AG 2009, C.Schmidkonz / Page 35 Dietmar-Hopp-Allee Walldorf alexander.gerber@sap.com SAP AG 2011, C.Schmidkonz, A.Gerber Agile&Lean@SAP/ Page 35

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