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Design
                                Dev




COMBINING DESIGN AND DEVELOPMENT

          TOBIAS HILDENBRAND | SAP AG | 28 NOVEMBER 2012
WHAT DOES SAP DO?




                    © SAP 2012 | 2
© SAP 2012 | 3
WHERE DO WE COME FROM?




                         © SAP 2012 | 4
Source: SAP

© SAP 2012 | 5   40 YEARS OF SAP…
Analyze
                 Design

                              Code

                                         Test

                                                         Fear of delivery

  Year 1           Year 2       Year 3          Year 4

© SAP 2012 | 6            THE WATERFALL – A BUREAUCRATIC APPROACH
Detailed Specification




        Idea




                 Whitepaper


© SAP 2012 | 7   SCIENTIFIC ANALYSIS – A “STRAIGHT-FORWARD” WAY
WHERE ARE WE TODAY?




                      © SAP 2012 | 8
Scrum                                  Chief Product
          Teams                                   product
                                                 team
                                                 backlog
                                  release
                                  backlog

                     sprint
                     backlog


© SAP 2012 | 9    OUR DELIVERY IS MORE RELIABLE AND EFFICIENT TODAY
Split organization            Split work
                      into teams



                                           Split time




                                 Risk
                  Deliver more
                  frequently                 Risk        Retrospectives

© SAP 2012 | 10            SCRUM REDUCES PROJECT RISKS DRAMATICALLY
2. Partnership           3. Mutual Trust




 1. Personal                   3. Shared Purpose         5. Collaboration
Responsibility                                               Mindset



© SAP 2012 | 11   SCRUM IS PEOPLE-CENTRIC AND FOSTERS COLLABORATION
© SAP 2012 | 12   SCRUM IMPLEMENTS MOST PRINCIPLES OF LEAN
© SAP 2012 | 13   …ON THE TEAM LEVEL – LARGE-SCALE LEAN MEANS MORE
(JIT = Just-in-Time)

© SAP 2012 | 14   HOW DO YOU KNOW WHETHER LEAN WORKS?
HOWEVER, “BUILDING
SOMETHING NOBODY WANTS
IS THE ULTIMATE FORM OF
WASTE.” – ERIC RIES (2008)



                         © SAP 2012 | 15
Feasibility                  Viability




                                                                 Innovation




                                      Desirability



© SAP 2012 | 16   BUT, HOW TO HIT THE “SWEET SPOT” OF INNOVATION?
‘‘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
© SAP 2012 | 18   COMPLEMENTING LEAN & AGILE WITH “DESIGN THINKING”
WHAT IS DESIGN THINKING?




                           © SAP 2012 | 19
Iterative Approach



                        Required Space




         Right People



© SAP 2012 | 20               DESIGN THINKING “PREREQUISITES”
Problem Space           Solution Space




© SAP 2012 | 21            SAP‘S ITERATIVE DESIGN THINKING APPROACH
“What innovation boils
                  down to is one per cent
                  inspiration and ninety-nine
                  per cent perspiration.”
                  – Thomas Edison


© SAP 2012 | 22
Implementation




© SAP 2012 | 23   PRODUCT INNOVATION = DESIGN AND DEVELOPMENT
© SAP 2012 | 24   ENTERPRISE SOFTWARE PRODUCT INNOVATION
Feasibility                  Viability?




                                                            Innovation




                                Desirability



© SAP 2012 | 25   …BUT WHAT ABOUT THE ECONOMIC PERSPECTIVE?
WHAT CAN LARGE ENTERPRISES
  LEARN FROM STARTUPS ?




                             © SAP 2012 | 26
Source: Ash Maurya (2012) – Running Lean


© SAP 2012 | 27   TAKE A ECONOMIC VIEW & TURN ASSUMPTIONS INTO FACTS
Iterate…




                                       …but beware of
                                      ”vanity metrics”!
                                                     Source: Eric Ries (2011) – The Lean Startup


© SAP 2012 | 28   VALIDATED LEARNING INCLUDING THE ECONOMIC VIEW
Problem Space         Solution Space




                                                Based on: Tim Brown (2009) – Change by Design


© SAP 2012 | 29   ITERATIVELY CREATING CHOICES AND MAKING CHOICES
Source: Ash Maurya (2012) – Running Lean


© SAP 2012 | 30   EVOLVE ENTIRE BUSINESS MODELS, NOT JUST PRODUCTS
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
CONCLUSIONS – AS OF TODAY…




                             © SAP 2012 | 32
Design Thinking and                     Lean and Agile
   Customer Development                  Product Development




                  Set of shared values and principles



© SAP 2012 | 33               COMBINING DESIGN AND DEVELOPMENT

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Keynote ALM Days 2012 - Combining Design and Development

  • 1. Design Dev COMBINING DESIGN AND DEVELOPMENT TOBIAS HILDENBRAND | SAP AG | 28 NOVEMBER 2012
  • 2. WHAT DOES SAP DO? © SAP 2012 | 2
  • 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