Round Table Lean SAP Delivery introducing the concept Presentatie en 2e deel van de SAP Lean Ronde Tafel van 2 oktober 2014

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Lean SAP Delivery ®
Introducing the concept
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Disclaimer
While every precaution has been taken in the preparation of this deck, ENSEAD Advisory assumes no responsibility for errors or omissions, or for damages resulting from the use of the information contained herein. The opinions expressed herein are subject to change without notice.
Trademarks
SAP® is a registered trademark of SAP AG, Germany. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use.
© 2014 – ENSEAD Advisory

3. Delivering SAP has its known challenges
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Topic
Cost
Change requests rejected during the project pop up again after go-live, once the solution is operational
Resources
Projects fight with Support & Operation teams over resources, especially scarce, botle-neck resources
Agility
Executive Board members expect the IT department to be able to adapt swiftly to changed circumstances
Priorities
Priorities within projects and even across projects are changed on the spur of the moment
Time-to- market
The time-to-market for a Change or a fix is is too long because of dependencies on project tests or detailed requirement specifications…
Locking
Locked objects prevent from speedy error fixing
Transports
Ping-pong between DEV and QAS systems causes too much disturbances and result in transports stuck in queues forever
…
…
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4. Recognize this?
What else do you see?
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5. Early adopters* therefore turned to Agile project approaches for SAP, eg ASAP8
-DSM
-Heineken
-Nidera
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For some good reasons, it seems:
•SAP AG adopted Agile methodologies internally back in 2009
•Gartner (2010): ‘Agile is now a mainstream, mature and proven set of development methods.’
•Gartner (2012): ‘Traditional projects need to look past the development process to find valuable practices in Agile’
-Maastricht University
-Centrica
-Philips
* SAP AG (2012) claims Agile has been used successfully in projects of various sizes / scope
© 2014 – ENSEAD Advisory

6. While SAP AG (2012) claims Agile has been used successfully in projects of various size and scope, it does not necessarily take away all the pain IT organizations have when delivering SAP solutions, like resourcing, object locking, cross-project prioritising, lead time for changes & fixes, rejected change requests popping up again after go-live, etc.
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7. “IT is the next frontier for the application of Lean in business. This powerful methodology has significant impact without being capital intensive“ - McKinsey & Company, 2014
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•IT executives often struggle to gather data needed to fine-tune productivity and performance.
•Lean approaches can provide a framework to standardize IT work practices, balance workflows, and monitor progress.
•Lean can relieve capacity constraints by prioritizing and routing incoming work and by minimizing interruptions.
•Applied across specialized IT environments, lean can give leaders clearer performance data and a better way to communicate with the business.
Source: McKinsey & Company, 2011

8. Now, what if we combine Lean and Agile into Lean SAP Delivery ® …
Lean SAP Delivery ® is about applying the principles of production logistics onto the operating model for IT. Agile development, optimising bottlenecks, and prioritization based on business value will lead to significant time-to-market reduction for projects, changes, as well as fixes, against lower cost.
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9. Okay but…
…what is Agile anyway?
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10. The Agile Manifesto
“Agile” methodologies value:
Individuals and interactions
over
Processes and tools
Working software
over
Comprehensive documentation
Customer collaboration
over
Contract negotiation
Responding to change
over
Following a plan
That is, while there is value in the items on the right, the items on the left are valued more.
© 2014 – ENSEAD Advisory

11. But Agile methodologies are many
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•‘Agile Development’ is focused on quickly producing software, on functionality that works; it is not a full-blown project methodology
•There is no off-the-shelf, one-size-fits-all Agile methodology; there’s many. ASAP 8 is based on SCRUM.
© 2014 – ENSEAD Advisory

12. How do Agile methods compare to Waterfall?
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Key characteristics of Waterfall
•Plan-Ceremony driven
•Command and control management
•Single pass waterfall (Sequential model)
•Success = compliancy predictive plan
•Progress = ‘deliverables’
–Specs/design/code/reviews/signatures
•Resisting/blocking ‘change’
Key characteristics of Agile
•End-user representative working in one multidisciplinary team with developers and tester(s); preferably co-located
•Servant-leadership Subtle control
•Iterative-incremental process, MoSCoW, continuous integration, prototyping
•Success = business value
•Progress = working software
•Progressed understanding is factored in immediately
Test
Analyse
Design
Build
T
A
D
C
T
A
D
C
T
A
D
C
T
A
D
C
Iterations or ‘sprints’
© 2014 – ENSEAD Advisory

13. What are the Agile terminology, mechanics and principles?
The core mechanics
•Roles
–Scrum Master
–Product Owner
–Agile Core Team 3-9 people
•Events
–Sprint Planning
–Daily Scrum
–Sprint Review (Demo + Retrospective)
•Artefacts
–Product Backlog
–Sprint Backlog
–Progress Trends
The core principles
•Shared Visual workspace
–Remove all physical barriers
–Transparency & Visual Management
–Face-to-face communication
•Self-organizing
–Empowered cross-functional Teams
–Incremental design and architecture
–Inspect & adapt
•Empiricism
–Closed-loop process control
–Knowledge from experience
–Detect & eliminate variances
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14. Agile in perspective: how does it complement frameworks such as COBIT 5 and Prince2?
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COBIT
Agile
delivery
Demand and Portfolio Management
Prince2- based
projects

15. So, what does it look like in ASAP 8?
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Source: SAP AG
A Sprint has a fixed time window, always the same..
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16. What do ASAP 8 based projects look like?

17. Are there Agile Accelerators in ASAP 8?

18. Finally, the concept of Lean SAP Delivery®
Agile Teams are centered around a functional domain
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19. Adopting Agile however…
… is a disruptive change
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- Gartner (2012)
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20. To know how to organize IT is… to know what happens around you.

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FURTHER QUESTIONS?

22. Best-positioned to help you get and stay in control over the SAP-rich Solution & Services Lifecycle.
Impossible is an opinion.
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