This document discusses combining design and development approaches. It describes SAP's evolution from waterfall development methods to adopting agile Scrum processes to deliver more reliably and efficiently. It also discusses how design thinking principles of exploring user needs and iterating solutions can complement agile and lean approaches. Finally, it suggests large enterprises can learn from startups by taking an economic view of validating assumptions and evolving business models through customer feedback.

1. Design
Dev
COMBINING DESIGN AND DEVELOPMENT
TOBIAS HILDENBRAND | SAP AG | 28 NOVEMBER 2012

2. WHAT DOES SAP DO?
© SAP 2012 | 2

3. © SAP 2012 | 3

4. WHERE DO WE COME FROM?
© SAP 2012 | 4

5. Source: SAP
© SAP 2012 | 5 40 YEARS OF SAP…

6. Analyze
Design
Code
Test
Fear of delivery
Year 1 Year 2 Year 3 Year 4
© SAP 2012 | 6 THE WATERFALL – A BUREAUCRATIC APPROACH

7. Detailed Specification
Idea
Whitepaper
© SAP 2012 | 7 SCIENTIFIC ANALYSIS – A “STRAIGHT-FORWARD” WAY

8. WHERE ARE WE TODAY?
© SAP 2012 | 8

9. Scrum Chief Product
Teams product
team
backlog
release
backlog
sprint
backlog
© SAP 2012 | 9 OUR DELIVERY IS MORE RELIABLE AND EFFICIENT TODAY

10. Split organization Split work
into teams
Split time
Risk
Deliver more
frequently Risk Retrospectives
© SAP 2012 | 10 SCRUM REDUCES PROJECT RISKS DRAMATICALLY

11. 2. Partnership 3. Mutual Trust
1. Personal 3. Shared Purpose 5. Collaboration
Responsibility Mindset
© SAP 2012 | 11 SCRUM IS PEOPLE-CENTRIC AND FOSTERS COLLABORATION

12. © SAP 2012 | 12 SCRUM IMPLEMENTS MOST PRINCIPLES OF LEAN

13. © SAP 2012 | 13 …ON THE TEAM LEVEL – LARGE-SCALE LEAN MEANS MORE

14. (JIT = Just-in-Time)
© SAP 2012 | 14 HOW DO YOU KNOW WHETHER LEAN WORKS?

15. HOWEVER, “BUILDING
SOMETHING NOBODY WANTS
IS THE ULTIMATE FORM OF
WASTE.” – ERIC RIES (2008)
© SAP 2012 | 15

16. Feasibility Viability
Innovation
Desirability
© SAP 2012 | 16 BUT, HOW TO HIT THE “SWEET SPOT” OF INNOVATION?

17. ‘‘A DEVELOPER NEEDS TO BE CURIOUS AND
ALSO DEVELOP EMPATHY FOR END USERS“
Source: interview with SAP co-founder Hasso Plattner (2012) © SAP 2012 | 17

18. © SAP 2012 | 18 COMPLEMENTING LEAN & AGILE WITH “DESIGN THINKING”

19. WHAT IS DESIGN THINKING?
© SAP 2012 | 19

20. Iterative Approach
Required Space
Right People
© SAP 2012 | 20 DESIGN THINKING “PREREQUISITES”

21. Problem Space Solution Space
© SAP 2012 | 21 SAP‘S ITERATIVE DESIGN THINKING APPROACH

22. “What innovation boils
down to is one per cent
inspiration and ninety-nine
per cent perspiration.”
– Thomas Edison
© SAP 2012 | 22

23. Implementation
© SAP 2012 | 23 PRODUCT INNOVATION = DESIGN AND DEVELOPMENT

24. © SAP 2012 | 24 ENTERPRISE SOFTWARE PRODUCT INNOVATION

25. Feasibility Viability?
Innovation
Desirability
© SAP 2012 | 25 …BUT WHAT ABOUT THE ECONOMIC PERSPECTIVE?

26. WHAT CAN LARGE ENTERPRISES
LEARN FROM STARTUPS ?
© SAP 2012 | 26

27. Source: Ash Maurya (2012) – Running Lean
© SAP 2012 | 27 TAKE A ECONOMIC VIEW & TURN ASSUMPTIONS INTO FACTS

28. Iterate…
…but beware of
”vanity metrics”!
Source: Eric Ries (2011) – The Lean Startup
© SAP 2012 | 28 VALIDATED LEARNING INCLUDING THE ECONOMIC VIEW

29. Problem Space Solution Space
Based on: Tim Brown (2009) – Change by Design
© SAP 2012 | 29 ITERATIVELY CREATING CHOICES AND MAKING CHOICES

30. Source: Ash Maurya (2012) – Running Lean
© SAP 2012 | 30 EVOLVE ENTIRE BUSINESS MODELS, NOT JUST PRODUCTS

31. Customer Customer Customer “Company
Discovery Validation Creation Building”
Source: Steve Blank (2012) – The Startup Owners’ Manual
© SAP 2012 | 31 EVEN LARGE ENTERPRISES CAN LEARN FROM STARTUPS

32. CONCLUSIONS – AS OF TODAY…
© SAP 2012 | 32

33. Design Thinking and Lean and Agile
Customer Development Product Development
Set of shared values and principles
© SAP 2012 | 33 COMBINING DESIGN AND DEVELOPMENT