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SAP's Road to Innovation - Design Thinking and Lean Develompent in Practice

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SAP as standard software vendor for large corporations started a long journey five years ago: lean management and agile software development were supposed to make the development organization faster and deliveries more predictable. In addition the SAP needed a way to innovate more reliably. The session highlights the major insights gained on this journey so far and provides some background on the methods and approach applied in practice.

Published in: Design

SAP's Road to Innovation - Design Thinking and Lean Develompent in Practice

  1. 1. SAP’S ROAD TO INNOVATION DESIGN THINKING AND LEAN DEVELOPMENT IN PRACTICE DR. TOBIAS HILDENBRAND | SAP AG | 3 FEBRUARY 2014
  2. 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) © SAP 2013 | 2
  3. 3. WHAT DOES SAP DO? © SAP 2013 | 3
  4. 4. HANA Applications Cloud Mobile Analytics 67k © SAP 2013 | 4 A LOT MORE THAN 40 YEARS AGO WHEN WE STARTED
  5. 5. WHERE DO WE COME FROM? © SAP 2013 | 5
  6. 6. Source: SAP © SAP 2013 | 6 40 YEARS OF SAP, ALMOST 40 YEARS OF WATERFALL
  7. 7. The Principles of Product Development FLOW Second Generation Lean Product Development Donald G. Reinertsen 1. 2. 3. 4. 5. 6. Take an Economic View Actively Manage Queues Exploit Variability Reduce Batch Size Apply WIP Constraints Control Flow: Cadence and Synchronization 7. Apply Fast Feedback 8. Decentralize Control Source: Donald G. Reinertsen (2009) – Lean Product Development Flow © SAP 2013 | 7 WE COULDN‘T WAIT ANOTHER 40 YEARS
  8. 8.  Limited team size  Iteration cycles,  Limited WIP*  Iterative feedback  Empirical process control  Velocity understood *) WIP = work-in-progress © SAP 2013 | 8 SCRUM IMPLEMENTS MOST PRINCIPLES OF LEAN
  9. 9. Value-driven (agile) Plan-driven (traditional) Requirements Resources Release Date fixed estimated Resources © SAP 2013 | 9 Release Date Requirements WE MANAGE OUR REQUIREMENTS THE AGILE WAY
  10. 10. AGILE = “QUICK AND WELL-COORDINATED” © SAP 2013 | 10
  11. 11. Scrum Teams Chief Product product team backlog release backlog sprint backlog © SAP 2013 | 11 OUR DELIVERY IS MORE RELIABLE AND EFFICIENT TODAY
  12. 12. WHAT DID WE LEARN FROM LEAN? © SAP 2013 | 12
  13. 13. Split organization into teams Split work Split time Deliver more frequently © SAP 2013 | 13 Risk Risk Conduct regular Retrospectives SCRUM REDUCES PRODUCT RISKS DRAMATICALLY
  14. 14. Improve ratio of planning and execution Incorporate feedback early Build quality into products from the inside out. Build Coaches within the organization © SAP 2013 | 14 WITH LEAN, WE LEARNED HOW TO CHANGE AND SCALE
  15. 15. © SAP 2013 | 15 WE LEARNED TO DELIVER MORE RELIABLY AND PREDICTABLY
  16. 16. WHAT ABOUT INNOVATION? © SAP 2013 | 16
  17. 17. Desirability Feasibility Viability © 2012 SAP 17 © SAP 2013 |AG. All rights reserved. WHAT IS INNOVATION? 17
  18. 18. ? HOW TO HIT THE “SWEET SPOT” OF INNOVATION? © 2012 SAP 18 © SAP 2013 |AG. All rights reserved. 18
  19. 19. ? © 2012 SAP 19 © SAP 2013 |AG. All rights reserved. YOU START WITH YOUR END USERS 19
  20. 20. © 2012 SAP 20 © SAP 2013 |AG. All rights reserved. PUT YOURSELVES IN THEIR SHOES 20
  21. 21. ‘‘A DEVELOPER NEEDS TO BE CURIOUS AND ALSO DEVELOP EMPATHY FOR END USERS“ Source: interview with SAP co-founder Hasso Plattner (2012) © SAP 2013 | 21
  22. 22. YOU NEED A DIVERSE, MULTI-DISCIPLINARY TEAM © 2012 SAP 22 © SAP 2013 |AG. All rights reserved. 22
  23. 23. © 2012 SAP 23 © SAP 2013 |AG. All rights reserved. YOU ALSO NEED SPACE FOR INNOVATION 23
  24. 24. © 2012 SAP 25 © SAP 2013 |AG. All rights reserved. THE SIX BASIC STEPS OF DESIGN THINKING 25
  25. 25. “There Are No Facts Inside Your Building, So Get Outside.” – Steve Blank © SAP 2013 | 26
  26. 26. © 2012 SAP 27 © SAP 2013 |AG. All rights reserved. DESIGN THINKING IN THE PROBLEM SPACE 27
  27. 27. © 2012 SAP 28 © SAP 2013 |AG. All rights reserved. DESIGN THINKING IN THE SOLUTION SPACE 28
  28. 28. “Building something nobody wants is the ultimate form of waste.” – Eric Ries © SAP 2013 | 29
  29. 29. Focus on Customer Value Short Iterations Small Cross-Functional Teams © SAP 2013 | 30 Continuous Improvement Incremental Delivery and Fast Feedback DESIGN THINKING INCORPORATES AGILE VALUES, TOO
  30. 30. Product Backlog © SAP 2013 | 31 PROJECT EXAMPLE 1: DESIGN THINKING & SCRUM
  31. 31. Common Roadmap © SAP 2013 | 32 PROJECT EXAMPLE 2: CO-INNOVATION SETUP
  32. 32. CONCLUSION © SAP 2013 | 33
  33. 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 © 2012 SAP 34 © SAP 2013 |AG. All rights reserved. DESIGN THINKING AND LEAN COMPLEMENT EACH OTHER 34
  34. 34. Customer Development Agile Software Development Team with Intrapreneurship Attitude Business Model Design © SAP 2013 | 35 OUTLOOK: INNOVATION IN LARGE ORGANIZATIONS
  35. 35. Thank You! Dr. Tobias Hildenbrand SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf tobias.hildenbrand@sap.com

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