DR. TOBIAS HILDENBRAND & DR. CHRISTIAN WIELE | SAP AG | 16 JULY 2013
THE ROAD TO INNOVATION
DESIGN THINKING AND LEAN DEVEL...
© SAP 2013 | 2
“Ich wollte Mitarbeiter so motivieren, dass sie mehr leisten
als der Durchschnitt. Freie Entfaltung und Kre...
© SAP 2013 | 3
WHAT DOES SAP DO?
© SAP 2013 | 4 A LOT MORE THAN 40 YEARS AGO WHEN WE STARTED
Cloud
HANA
Mobile
67k
Analytics
Applications
© SAP 2013 | 5
WHERE DO WE
COME FROM?
© SAP 2013 | 6 40 YEARS OF SAP, ALMOST 40 YEARS OF WATERFALL
Source: SAP
© SAP 2013 | 7 WE COULDN‘T WAIT ANOTHER 40 YEARS
1. Take an Economic View
2. Actively Manage Queues
3. Exploit Variability...
© SAP 2013 | 8 SCRUM IMPLEMENTS MOST PRINCIPLES OF LEAN
 Iterative feedback
 Empirical process
control
 Velocity unders...
© SAP 2013 | 9 WE MANAGE OUR REQUIREMENTS THE AGILE WAY
fixed
estimated
Requirements
Requirements
Resources Release Date
R...
© SAP 2013 | 10
AGILE = “QUICK AND WELL-COORDINATED”
© SAP 2013 | 11 OUR DELIVERY IS MORE RELIABLE AND EFFICIENT TODAY
Chief Product
team
release
backlog
sprint
backlog
produc...
© SAP 2013 | 12
WHAT DID WE
LEARN FROM LEAN?
© SAP 2013 | 13 SCRUM REDUCES PRODUCT RISKS DRAMATICALLY
Conduct regular
Retrospectives
Split organization
into teams
Spli...
© SAP 2013 | 14 WITH LEAN, WE LEARNED HOW TO CHANGE AND SCALE
Improve ratio of
planning and
execution
Build quality into
p...
© SAP 2013 | 15 WE LEARNED TO DELIVER MORE RELIABLY AND PREDICTABLY
© SAP 2013 | 16
WHAT ABOUT
INNOVATION?
© 2012 SAP AG. All rights reserved. 17© SAP 2013 | 17
Desirability
Feasibility
Viability
WHAT IS INNOVATION?
© 2012 SAP AG. All rights reserved. 18© SAP 2013 | 18
?
HOW TO HIT THE “SWEET SPOT” OF INNOVATION?
© 2012 SAP AG. All rights reserved. 19© SAP 2013 | 19
?
YOU START WITH YOUR END USERS
© 2012 SAP AG. All rights reserved. 20© SAP 2013 | 20 PUT YOURSELVES IN THEIR SHOES
© SAP 2013 | 21
‘‘A DEVELOPER NEEDS TO BE CURIOUS AND
ALSO DEVELOP EMPATHY FOR END USERS“
Source: interview with SAP co-fo...
© 2012 SAP AG. All rights reserved. 22© SAP 2013 | 22 YOU NEED A DIVERSE, MULTI-DISCIPLINARY TEAM
© 2012 SAP AG. All rights reserved. 23© SAP 2013 | 23 YOU ALSO NEED SPACE FOR INNOVATION
© 2012 SAP AG. All rights reserved. 25© SAP 2013 | 25 THE SIX BASIC STEPS OF DESIGN THINKING
“There Are No Facts Inside
Your Building, So Get
Outside.” – Steve Blank
© SAP 2013 | 26
© 2012 SAP AG. All rights reserved. 27© SAP 2013 | 27 DESIGN THINKING IN THE PROBLEM SPACE
© 2012 SAP AG. All rights reserved. 28© SAP 2013 | 28 DESIGN THINKING IN THE SOLUTION SPACE
“Building something nobody
wants is the ultimate form of
waste.” – Eric Ries
© SAP 2013 | 29
© SAP 2013 | 30 DESIGN THINKING INCORPORATES AGILE VALUES, TOO
Short Iterations
Incremental
Delivery
Small Cross-Functiona...
© SAP 2013 | 31 PROJECT EXAMPLE: COMBINING DESIGN THINKING & SCRUM
Product Backlog
© SAP 2013 | 32
CONCLUSION
© 2012 SAP AG. All rights reserved. 33© SAP 2013 | 33
Innovation and Effectiveness,
i.e. building the right things
 First...
© SAP 2013 | 34 OUTLOOK: INNOVATION IN LARGE ORGANIZATIONS
Intrapreneurship
Customer
Development
Agile Software
Developmen...
Thank You!
Dr. Tobias Hildenbrand
SAP AG
Dietmar-Hopp-Allee 16
69190 Walldorf
tobias.hildenbrand@sap.com
Dr. Christian Wie...
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The Road to Innovation - Design Thinking and Lean Development at SAP

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The Road to Innovation - Design Thinking and Lean Development at SAP

  1. 1. DR. TOBIAS HILDENBRAND & DR. CHRISTIAN WIELE | SAP AG | 16 JULY 2013 THE ROAD TO INNOVATION DESIGN THINKING AND LEAN DEVELOPMENT AT SAP
  2. 2. © SAP 2013 | 2 “Ich wollte Mitarbeiter so motivieren, dass sie mehr leisten als der Durchschnitt. Freie Entfaltung und Kreativität, ohne bürokratische Zwänge und Regeln. Dazu passt auch keine Stempeluhr, die mir immer zuwider war.” Dietmar Hopp (one of the founders of SAP)
  3. 3. © SAP 2013 | 3 WHAT DOES SAP DO?
  4. 4. © SAP 2013 | 4 A LOT MORE THAN 40 YEARS AGO WHEN WE STARTED Cloud HANA Mobile 67k Analytics Applications
  5. 5. © SAP 2013 | 5 WHERE DO WE COME FROM?
  6. 6. © SAP 2013 | 6 40 YEARS OF SAP, ALMOST 40 YEARS OF WATERFALL Source: SAP
  7. 7. © SAP 2013 | 7 WE COULDN‘T WAIT ANOTHER 40 YEARS 1. Take an Economic View 2. Actively Manage Queues 3. Exploit Variability 4. Reduce Batch Size 5. Apply WIP Constraints 6. Control Flow: Cadence and Synchronization 7. Apply Fast Feedback 8. Decentralize Control Source: Donald G. Reinertsen (2009) – Lean Product Development Flow The Principles of Product Development FLOW Second Generation Lean Product Development Donald G. Reinertsen
  8. 8. © SAP 2013 | 8 SCRUM IMPLEMENTS MOST PRINCIPLES OF LEAN  Iterative feedback  Empirical process control  Velocity understood  Limited team size  Iteration cycles,  Limited WIP* *) WIP = work-in-progress
  9. 9. © SAP 2013 | 9 WE MANAGE OUR REQUIREMENTS THE AGILE WAY fixed estimated Requirements Requirements Resources Release Date Resources Release Date Plan-driven (traditional) Value-driven (agile)
  10. 10. © SAP 2013 | 10 AGILE = “QUICK AND WELL-COORDINATED”
  11. 11. © SAP 2013 | 11 OUR DELIVERY IS MORE RELIABLE AND EFFICIENT TODAY Chief Product team release backlog sprint backlog product backlog Scrum Teams
  12. 12. © SAP 2013 | 12 WHAT DID WE LEARN FROM LEAN?
  13. 13. © SAP 2013 | 13 SCRUM REDUCES PRODUCT RISKS DRAMATICALLY Conduct regular Retrospectives Split organization into teams Split work Split time Deliver more frequently Risk Risk
  14. 14. © SAP 2013 | 14 WITH LEAN, WE LEARNED HOW TO CHANGE AND SCALE Improve ratio of planning and execution Build quality into products from the inside out. Incorporate feedback early Build Coaches within the organization
  15. 15. © SAP 2013 | 15 WE LEARNED TO DELIVER MORE RELIABLY AND PREDICTABLY
  16. 16. © SAP 2013 | 16 WHAT ABOUT INNOVATION?
  17. 17. © 2012 SAP AG. All rights reserved. 17© SAP 2013 | 17 Desirability Feasibility Viability WHAT IS INNOVATION?
  18. 18. © 2012 SAP AG. All rights reserved. 18© SAP 2013 | 18 ? HOW TO HIT THE “SWEET SPOT” OF INNOVATION?
  19. 19. © 2012 SAP AG. All rights reserved. 19© SAP 2013 | 19 ? YOU START WITH YOUR END USERS
  20. 20. © 2012 SAP AG. All rights reserved. 20© SAP 2013 | 20 PUT YOURSELVES IN THEIR SHOES
  21. 21. © SAP 2013 | 21 ‘‘A DEVELOPER NEEDS TO BE CURIOUS AND ALSO DEVELOP EMPATHY FOR END USERS“ Source: interview with SAP co-founder Hasso Plattner (2012)
  22. 22. © 2012 SAP AG. All rights reserved. 22© SAP 2013 | 22 YOU NEED A DIVERSE, MULTI-DISCIPLINARY TEAM
  23. 23. © 2012 SAP AG. All rights reserved. 23© SAP 2013 | 23 YOU ALSO NEED SPACE FOR INNOVATION
  24. 24. © 2012 SAP AG. All rights reserved. 25© SAP 2013 | 25 THE SIX BASIC STEPS OF DESIGN THINKING
  25. 25. “There Are No Facts Inside Your Building, So Get Outside.” – Steve Blank © SAP 2013 | 26
  26. 26. © 2012 SAP AG. All rights reserved. 27© SAP 2013 | 27 DESIGN THINKING IN THE PROBLEM SPACE
  27. 27. © 2012 SAP AG. All rights reserved. 28© SAP 2013 | 28 DESIGN THINKING IN THE SOLUTION SPACE
  28. 28. “Building something nobody wants is the ultimate form of waste.” – Eric Ries © SAP 2013 | 29
  29. 29. © SAP 2013 | 30 DESIGN THINKING INCORPORATES AGILE VALUES, TOO Short Iterations Incremental Delivery Small Cross-Functional Teams Focus on Customer Value
  30. 30. © SAP 2013 | 31 PROJECT EXAMPLE: COMBINING DESIGN THINKING & SCRUM Product Backlog
  31. 31. © SAP 2013 | 32 CONCLUSION
  32. 32. © 2012 SAP AG. All rights reserved. 33© SAP 2013 | 33 Innovation and Effectiveness, i.e. building the right things  First-hand empathy for end users  Creative solution finding (ideation)  Validation of assumptions and prototypes with end users Efficiciency and Delivery i.e. building things right  Retrospectives and continuous improvement  Process framework and engineering practices  Agile planning and estimation (backlog management) = Building the Right Things Right DESIGN THINKING AND LEAN COMPLEMENT EACH OTHER
  33. 33. © SAP 2013 | 34 OUTLOOK: INNOVATION IN LARGE ORGANIZATIONS Intrapreneurship Customer Development Agile Software Development Business Model Design
  34. 34. Thank You! Dr. Tobias Hildenbrand SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf tobias.hildenbrand@sap.com Dr. Christian Wiele SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf christian.wiele@sap.com

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