Last week I gave the closing keynote in the Agile Dev Practices Conference that took place in Potsdam, Germany. SAP has been on the way to implement LEAN/Agile for a few years now and it has been a deep change in the organization, affecting e.g. the setup of teams (small cross-functional teams) , the way they work (scrum) and the roles and responsibilities. In this keynote I have: Explained why SAP introduced Agile, what does Agile mean for us and then. How we implemented it: * Organizational changes (scrum teams with new roles – PO; no more Q-Teams) * Introducing engineering practices by providing advanced trainings, e.g. for quality engineers, for developers, for teams, and show some key elements of those trainings and workshops. ** Customer focus – Design Thinking ** At the end I showed first where we are today and presented some results and learnings.

1. AGILE
SOFTWARE
ENGINEERING
@
SAP
Asaf
Saar
March
5,
2013
[1] © SAP 2013 | 1

2. ABOUT
ME
n SAP
CPO
Product
Owner
of
So;ware
Engineering
o Code
Quality
and
Test
AutomaDon
Process
Owner
and
network
lead
o Inventor,
Development
Manager
and
Chief
Product
Owner
of
various
Test
AutomaDon
and
Management
Frameworks
in
SAP
o Agile,
Quality
and
Requirement
Engineering
Trainer
and
Coach
n In
the
So;ware
Engineering
arena
since
1996
in
Israel,
USA
and
Germany
n Married
to
Merav
and
father
of
Tom,
Noam
and
Guy
n Astronomy
and
fast
cars
are
my
hobbies
n An
Israeli
in
Germany
@saarasaf
hRp://www.linkedin.com/in/asafsaar
© SAP 2013 | 2

3. SAP
TODAY
MARCH
2013
n 183,000+
customers
n 130+
countries.
n 61,000+
employees
n €
16
billion
annual
revenue
(2012)
n 40-­‐years
history
of
innovaDon
and
growth.
[2]
© SAP 2013 | 3

4. SAP’S
GLOBAL
DEVELOPMENT
ORGANIZATION
18,000
DEVELOPERS
IN
12
DEVELOPMENT
LABS
Canada Hungary
Montreal Germany
Budapest
Walldorf Bulgaria
Canada
Sofia
Vancouver Ireland China
Dublin Israel
North America Shanghai
Ra’anana
Palo Alto France
Levallois
Brazil India
Sao Leopoldo Bangalore
Canada Canada
Walldorf Palo Alto India Bulgaria, (Montreal), Hungary (Vancouver), Brazil,
China Israel France Ireland
1980 1996 2000 2004 2005 2006 2009 2010
© SAP 2013 | 4

5. WHY
AGILE?
© SAP 2013 | 5

6. ECONOMIES
OF
SCALE
Having more employees did not help us get back to economies of scale
Source: http://www.sapannualreport.com/2011/zusaetzliche-informationen/kennzahlenvergleich.html
[8] © SAP 2013 | 6

7. TYPICAL
PROBLEMS
OF
THE
SOFTWARE
MARKET
Delivered software not used. Time to market delayed.
Always
7%
O;en
13%
~2000
Development
Assembly
Never
used
45%
SomeDmes
~2005
16%
Development
&
CorrecDon
Assembly
&
ValidaDon
Rarely
19%
t
Source: Usage of Features in typical systems,
Standish Group, study of 2000 projects at 1000 companies
© SAP 2013 | 7

8. SAP’S
CHANGE
TO
AGILE
SOFTWARE
ENGINEERING
Develop
the
right
products…
…
the
right
way
Design
Thinking
LEAN
&
Agile
Thinking
© SAP 2013 | 8

9. SAP’S
LEAN
&
AGILE
APPROACH:
ORGANIZATIONAL
CHANGES
© SAP 2013 | 9

10. [3]
© SAP 2013 | 10 SCRUM
IN
DEVELOPMENT
TEAMS

11. ORGANIZATIONAL
CHANGES
INTRODUCING
SCRUM
AND
LEAN
PRINCIPLES
Split
your
organizaPon
–
small,
cross-­‐ l
Split
your
work
–
small
list,
ranked
t
ogether
with
tro customer,
effort
relaDvely
esDmatedat
h c
funcDonal,
self-­‐organizing
teams
ze
con e
b
rali uc
Red size
$$$
t
De cen $
t
Split
Pme
–
fixed
length
iteraDons
(4
weeks)
deliver
potenDally
shippable
increments,
Tak
fast
feedback
from
customer
e
-­‐
enc
April
Jan
Cad
s
Review
and
update
the
plan
–
update
ast
prioriDes
in
RetrospecPve
–
onPn e uou nt
f
collaboraDon
with
the
customer,
based
on
iply
cgained
by
nsights
a;er
each
iteraDon
C ovem
Ap dba k
inspecDng
the
release
a;er
each
iteraDon
e imp
r
Fe
© SAP 2013 | 11

12. ORGANIZATIONAL
CHANGES
SCALING
SCRUM
TO
LARGE
PROJECTS
n
ac k
o
Fe edb t
Product Team
g
rly
roduc
Program
/
Product
cklo
Delivery
Ea
Mini
release
Chief
Product
backlog
Manager
a P
planning
d
B
Product
Owner
n
Archit.
e
kreview
aPo Ran
Program
review
review
review
s
-­‐
Lean QPA
niz che
Mini
Mini
orga
Release
planning
at Release
Release
cale le
b
Ship
Ship
Ship
S Sc a internally
internally
internally
Product
area
Area Product Team
Userstory
backlog
Scrum Team
Area
Master product
Pon
Product
owners
Userstory
Userstory
a
Owner
UI Archit.
Or
KANBAN
niz
Designer QPE Userstory
Epic
1
chroEpic
2kt
Sprint
planning
Ready
Criteria
Syn of
Ta
Done
Done
Done
Criteria
Criteria
Criteria
Team
Selected
backlogs
Team
backlog
Implementation Teams
Scrum KM
(Team)
Master Dev
Product
Archit. Gradient
represents
prioriDzaDon
Owner
QE are
feature
stories
are
integraDon
stories
Adjusted from: (c) 2011 Dean Leffingwell, Agile software requirements
© SAP 2013 | 12

13. ORGANIZATIONAL
CHANGES
ASSEMBLE
CROSS-­‐FUNCTIONAL
TEAMS
n Provide
needed
skills
and
competencies
in
each
team
n Introduce
new
roles
Product
Owner,
Scrum
Master
n No
more
Quality
Assurance
teams
© SAP 2013 | 13

14. ORGANIZATIONAL
CHANGES
CHANGE
QUALITY
PEOPLE’S
ROLE
Old
QM
style
New
Q
Approach
[4] [2]
Governance
and
Control
Quality
in
the
Team
© SAP 2013 | 14

15. SAP’S
LEAN
&
AGILE
QUALITY
STRATEGY
EXCEED
OUR
CUSTOMERS’
EXPECTATIONS
DEVELOP
PEOPLE
FIRST,
THEN
DEVELOP
PRODUCTS
USABLE
SOFTWARE
EACH
TAKT
TO
AVOID
REWORK
AND
TO
ALLOW
FAST
FEEDBACK
CYCLES
EXCELLENT
PROCESSES
MEETING
COMPLIANCE
STANDARDS
AND
GOVERNANCE
NEEDS
© SAP 2013 | 15

16. SAP’S
LEAN
&
AGILE
APPROACH:
ENGINEERING
EXCELLENCE
© SAP 2013 | 16

17. ENGINEERING
EXCELLENCE
ROLE
SPECIFIC
&
TEAM
TRAININGS
Scrum
Master
Design
Training
Information
Thinking
Developer “SAP
CerDfied
QE”
Scrum Master Quality Engineer
User
Story
Mapping
Line
Product Manager
Owner Q-­‐Workshop
Product
Owner
LEAN
Leadership
Training
Program
Developer /
Architect Software Engineer
UI
AutomaDon
Agile
So;ware
Trainings
Engineering
LEAN
Awareness
Training
© SAP 2013 | 17

18. ENGINEERING
EXCELLENCE
AGILE
SOFTWARE
ENGINEERING
TRAINING
FOR
TEAMS
“In this course I really think that we
learned to build a professional high
quality piece of software.”
250+ teams trained
Scrum* Unit Test Refac-
TDD Test toring
n TRY
Engineering
PracDces
that
Isolation
enable
teams
to
work
successfully
Pair Clean Retro- Continuous
ATDD Programming Code spectives Integration
n 1
week
training
with
exercises
Team Automated Backlog
Planning Exploratory
Work UI Testing Estimation
3
week
sprints
coached
by
trainer
Testing
n
on
own
backlog
* Scrum or any other agile / iterative process
© SAP 2013 | 18

19. ENGINEERING
EXCELLENCE
“SAP
CERTIFIED
QE”
TRAINING
“Good mixture of theory
and exercises.”
1500+ trained
n 2
day
training
with
exercises
n Transfer-­‐Project
in
team
to
try
new
engineering
pracDces
n PresentaDon
to
the
QE
colleagues
to
build
a
community
of
pracDce
and
foster
knowledge
sharing
© SAP 2013 | 19

20. ENGINEERING
EXCELLENCE
QUALITY
WORKSHOP
FOR
TEAMS
“Well structured
and pragmatic.”
150+ teams trained
n 1
day
workshop
with
whole
team
n “Call
for
AcDon”
put
in
teams
backlog
Agile
TesDng
Quadrants
n Follow
up
a;er
3
takts
to
check
sustainability
© SAP 2013 | 20

21. ENGINEERING
EXCELLENCE
UI
AUTOMATION
TRAINING
FOR
DEVELOPMENT
TEAMS
“UI Test Automation is just another layer of
n Developers
and
QEs
are
trained
testing, developers should not only focus
on Unit Testing.”
on
how
to
develop
the
right
UI
Test
AutomaDon
scenarios
450+ trained
n 1-­‐3
days
training
based
on
internally
development
framework
that
are
based
on
market
leading
tools
n Focus
on
SAP
UI5
and
NaDve
Mobile
automaDon
© SAP 2013 | 21

22. Lean
helps
us
to
deliver
faster,
more
reliable
+
avoid
waste
BUT
if
the
backlog
doesn’t
address
the
end-­‐users’
needs
sufficiently
the
so;ware
will
hardly
be
desirable
or
viable
© SAP 2013 | 22 RIGHT
PRODUCTS?

23. ENGINEERING
EXCELLENCE
USER
STORY
MAPPING
WORKSHOP
FOR
TEAMS
“Good method for structuring which
enables us to agree on requirements cross
n Whole
team
understands
units and with customers.”
usage
sequence
and
personas
of
the
product
90+ teams coached
n 1-­‐3
day
coaching
with
complete
team
n User
Story
Map
as
the
skeleton
for
the
Product
Backlog
Backlog
© SAP 2013 | 23

24. SAP’S
LEAN
&
AGILE
APPROACH:
CUSTOMER
FOCUS
© SAP 2013 | 24

25. CUSTOMER
FOCUS
SAP‘S
DESIGN
THINKING
APPROACH
Feasibility Viability Understanding the needs of the
customer via multiple prototypes
Innovation
Desirability
© SAP 2013 | 25

26. CUSTOMER
FOCUS
OBSERVE
CUSTOMERS‘
NEEDS
NOT
THEIR
SOLUTIONS
„…
customers
told
us
that
they
wanted
suitcases
that
were
easy
to
carry,
and
asked
us
to
make
them
lightweight.
We
did
this,
but
they
rejected
our
elegant
alloy
designs
and
bought
the
heavier
designs
of
our
compe>tors
–
the
ones
with
wheels
on
them!“
Source:
Agile
So;ware
Requirements
by
Dean
Leffingwell
SoluPon
driven
Empathizing
the
user’s
need
As
a
traveler
I
want
alloy
suitcases
As
a
traveler
I
want
to
carry
less
so
that
the
suitcases
are
lighter.
so
that
I’m
less
exhausted.
© SAP 2013 | 26

27. CUSTOMER
FOCUS
OBSERVE
USERS
IN
THEIR
ENVIRONMENT
Go
to
the
user‘s
environment
in
order
to
get inspiration
© SAP 2013 | 27

28. CUSTOMER
FOCUS
SAP‘S
DESIGN
THINKING
PROCESS
OBSERVE IDEATE TEST
UNDERSTAND DEFINE
PROTOTYPE
POINT-OF-VIEW
Problem Space Solution Space
Source:
Design
Thinking,
Understand
–
Improve
–
Apply
Editor:
Christoph
Meinel,
Larry
Leifer,
Hasso
PlaRner
© SAP 2013 | 28

29. CUSTOMER
FOCUS
TAKE
AN
ECONOMIC
VIEW
Source:
Ash
Maurya
–
Running
Lean
(2013)
© SAP 2013 | 29

30. WHERE
ARE
WE
TODAY?
© SAP 2013 | 30

31. SAP'S
AGILE
SOFTWARE
ENGINEERING
PROGRAM
IN
THE
PRESS
n The
change
in
SAP
already
gets
noDced
outside
SAP
© SAP 2013 | 31

32. RESULTS
INCREASED
EMPLOYEE
SATISFACTION
&
BELIEF
IN
LEAN
Source: Lean Survey May 2012
© SAP 2013 | 32

33. RESULTS
IMPROVED
QUALITY
THROUGH
ENGINEERING
PRACTICES
The product has a 10x reduction in
n >50%
of
teams
adopted
TDD
and
defect-per-customer after implementing
Agile Software Engineering practices.
Pair
Programming
"The customer gave us a
9 out of 10 quality rating after
n >75%
say
Agile
So;ware
customer validation."
Engineering
PracDces
produce
beRer
quality
n 84%
thereof
say
we
produce
beRer
quality
without
speed
loss
or
even
speed
gain
Source: Agile Software engineering Practice Survey 2012
© SAP 2013 | 33

34. RESULTS
DEFECTS
FOUND
EARLIER
Agile
Mode
Before
Agile
0% 20% 40% 60% 80% 100%
# of detected errors (normalized)
Development Correction Assembly
&
Validation
© SAP 2013 | 34

35. RESULTS
FASTER
GO
TO
MARKET
Agile
Mode
Development
Assembly
&
ValidaDon
Before
Agile
© SAP 2013 | 35

36. RESULTS
KEY
FACTORS
FOR
SUCCESS
n Work
with
complete
teams
to
drive
adopDon
n Coach
towards
Engineering
Excellence
n Focus
on
Customer
through
Design
Thinking
[6]
SCRUM
IN
DEVELOPMENT
TEAMS
© SAP 2013 | 36

37. AGILE
SOFTWARE
ENGINEERING
@
SAP
[7] © Dykstra
Deliver
INNOVATION
with
ENGINEERING
EXCELLENCE
© SAP 2013 | 37

38. AGILE
SOFTWARE
ENGINEERING
@
SAP
Please
evaluate
my
presenta>on
by
using
the
evalua>on
booklets
which
you
can
find
in
your
conference
bag.
THANK
YOU!
Asaf Saar
Product Owner Software Engineering
Chief Process Office
asaf.saar@sap.com
SAP AG
Dietmar-Hopp-Allee 16, 69190 Walldorf, Tel.: +49 6227 7-47474
© SAP 2013 | 38

39. ©
2013
SAP
AG.
All
rights
reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express Google App Engine, Google Apps, Google Checkout, Google Data API, Google Maps, Google Mobile Ads,
permission of SAP AG. The information contained herein may be changed without prior notice. Google Mobile Updater, Google Mobile, Google Store, Google Sync, Google Updater, Google Voice,
Google Mail, Gmail, YouTube, Dalvik and Android are trademarks or registered trademarks of Google Inc.
Some software products marketed by SAP AG and its distributors contain proprietary software components of
other software vendors. INTERMEC is a registered trademark of Intermec Technologies Corporation.
Microsoft, Windows, Excel, Outlook, PowerPoint, Silverlight, and Visual Studio are registered trademarks of Wi-Fi is a registered trademark of Wi-Fi Alliance.
Microsoft Corporation.
Bluetooth is a registered trademark of Bluetooth SIG Inc.
IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System
Motorola is a registered trademark of Motorola Trademark Holdings LLC.
z10, z10, z/VM, z/OS, OS/390, zEnterprise, PowerVM, Power Architecture, Power Systems, POWER7,
POWER6+, POWER6, POWER, PowerHA, pureScale, PowerPC, BladeCenter, System Storage, Storwize, Computop is a registered trademark of Computop Wirtschaftsinformatik GmbH.
XIV, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, AIX, Intelligent Miner, WebSphere, Tivoli,
Informix, and Smarter Planet are trademarks or registered trademarks of IBM Corporation. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork,
SAP HANA, and other SAP products and services mentioned herein as well as their respective logos are
Linux is the registered trademark of Linus Torvalds in the United States and other countries. trademarks or registered trademarks of SAP AG in Germany and other countries.
Adobe, the Adobe logo, Acrobat, PostScript, and Reader are trademarks or registered trademarks of Adobe Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web
Systems Incorporated in the United States and other countries. Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their
respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects
Oracle and Java are registered trademarks of Oracle and its affiliates.
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UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group.
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Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc.
registered trademarks of Citrix Systems Inc. Sybase is an SAP company.
HTML, XML, XHTML, and W3C are trademarks or registered trademarks of W3C®, World Wide Web Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered trademarks of Crossgate AG
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Apple, App Store, iBooks, iPad, iPhone, iPhoto, iPod, iTunes, Multi-Touch, Objective-C, Retina, Safari, Siri, All other product and service names mentioned are the trademarks of their respective companies. Data
and Xcode are trademarks or registered trademarks of Apple Inc. contained in this document serves informational purposes only. National product specifications may vary.
IOS is a registered trademark of Cisco Systems Inc. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied,
or transmitted in any form or for any purpose without the express prior written permission of SAP AG.
RIM, BlackBerry, BBM, BlackBerry Curve, BlackBerry Bold, BlackBerry Pearl, BlackBerry Torch, BlackBerry
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40. Disclaimer
This
presenta>on
outlines
our
general
product
&
process
direc>on
and
should
not
be
relied
on
in
making
a
purchase
decision.
This
presenta>on
is
not
subject
to
your
license
agreement
or
any
other
agreement
with
SAP.
SAP
has
no
obliga>on
to
pursue
any
course
of
business
outlined
in
this
presenta>on
or
to
develop
or
release
any
func>onality
men>oned
in
this
presenta>on.
This
presenta>on
and
SAP's
strategy
and
possible
future
developments
are
subject
to
change
and
may
be
changed
by
SAP
at
any
>me
for
any
reason
without
no>ce.
This
document
is
provided
without
a
warranty
of
any
kind,
either
express
or
implied,
including
but
not
limited
to,
the
implied
warran>es
of
merchantability,
fitness
for
a
par>cular
purpose,
or
non-­‐infringement.
SAP
assumes
no
responsibility
for
errors
or
omissions
in
this
document,
except
if
such
damages
were
caused
by
SAP
inten>onally
or
grossly
negligent.

41. PICTURE
LIST
(LAST
VISITED
2.
MARCH
2013)
[1]
The
Siberian
Solar
Radio
Telescope:
hRp://www.fotopedia.com/items/flickr-­‐3706850931
(CC*
BY
2.0)
[2]
Several:
hRps://www.sapbrandtools.com/content/home.php
>
SAP
EMEA/APJ
[3]
Scrum
hRp://www.flickr.com/photos/tprzechlewski/3648102134
(CC*
BY
2.0)
[4]
Police
man
hRp://office.microso;.com/en-­‐us/images/results.aspx?qu=police%20man&ex=2#ai:MP900400393|
[5]
Team
hRps://www.sapbrandtools.com/content/home.php
>
SAP
EMEA/APJ
[6]
SAP
extreme
sail
hRp://www.sap-­‐tv.com/video/#/7882/
[7]
Sailing
Container
ship
hRp://www.treehugger.com/wind-­‐technology/hybrid-­‐container-­‐ship-­‐wind-­‐driven-­‐with-­‐automaDc-­‐
sails.html
[8]
Container
ship:
hRps://www.sapbrandtools.com/content/home.php
>
SAP
EMEA/APJ
* http://creativecommons.org/licenses/ © SAP 2013 | 41