® PLM Europe 2018 – All rights reserved Page 1Fraunhofer IPK Siemens PLMPLM Interest Group

Presentation date: 30 October 2018Room Name: Estrel Hall C2

Presenter: Dr. – Ing. Carsten Burchardt

The Agility Approach

PLM Europe 2018Berlin

Round TableThe Agility ApproachDr. - Ing. Carsten Burchardt

Siemens Industry Software GmbH

Brief Introduction 3

Dr. -Ing. Carsten Burchardtbusiness development manager / responsible at

Siemens Industrie Software about research andacademicslecturer at various German institutes like University

Berlin, University Aachen, University Magdeburg in the field of organizational development, change management, team development/business coaching and Integrated Design Engineering

Basic: understands agility as an important corporate culture to be flexible, active, adaptable and to act with initiative in times of change and insecurity

Goal of this Presentation• overview about agility

• different methods which fosters agility

• discussion: which prerequisites areneeded to understand andimplement agility as a culture ofchange in the company in thecomplex environment

Innovations in the 21st century are created in a much more flexible environment than beforeInnovation is neccessary:• rapid prototyping• decentralized network und cluster• crowdsourcing• open knowledge exchange• support of dynamic or standard-

leanprozess structures

In the digital age, drivers for innovation are changing …..

Stacey Matrix for decision-making

far form certainty

close to certainty

Whataims/

requierements

Howtechnical realization

close from agreement

far from agreement

complicated

complicated

chaotic

simple

complex

standard & leanprozesse(waterfall principle)

agile process

On the basis of the source: Ralph Stacey, Strategic Management and Organizational Dynamics. The Challenge of Complexity, Prentice Hall 2002

Definition Agility

Agility is the willingness and ability of an organization and the people in the organization to be flexible, active, adaptable, innovative (even in times of change) and proactively to act according to the systemic principles of self-organization and to ensure the best possible adaptability to viability and sustainability.

Agility is an emergent entity made up of the interplay of relevant factors :

• strategy• structure• culture and • leadership

Source Dunja Lang, Agile Transformation, Italy Abano 2018

agility

iterative approach

dynamic control

feedback loops

roles / function instead of position

customers - and results

interactions andrelationships

viable units

Agile basic principles - self-organization

•View results from a different• (customer /other) perspective

•respect for people, living beings, the environment in

thinking and acting

• continuous knowledgebuilding

• to incorporate creativity (own / other)

• self-initiated learning

• look beyond the box• compensate strengths

/ weaknessesown/other

• networking

•self-initiative take on the goals and organization•bring in / realize your own ideas

selfcontrol

colloba-ration

senseimprovelearning

Agile competence

Source: Kienbaum Management Consultants GmbH (2015)

Essential features of an agile company

collaboration

experience-basedstrengths

iternative futuredesigns

retro-spective

pro-spective

experimental future direction

inspiration individualityand diversity

core competencedevelopment capability

internal context

standards und routinene as basis

lean project-oriented structure and process

organization

agile organisation

in and with networks

systematic design of knowledge flows

awareness of one's own

Example: Ing-DiBa… agile organisation in the future

Source: McKinsey Quarterly January 2017

Venture-approach next47

inkubation acceleration growing transfer/exit

identify and select disruptive ideas, projects and entrepreneurial people

externestart-ups

externeideea

interne idea

For »established startups«Expansion of market shares and further development into a global player

For "young start-ups" Gradual commercialization through? A targeted market launch

For »idea generator«Creation and promotion of business projects, eg. By using prototyping

next47 is established as an independent entity that creates freedoms: freedom to experiment, innovate and grow - at a very early stage of market development.«

»

Example: next47 … promotion of start-up

Example: Dream-holiday appartements… organization form with scrum and agil coach

Online Marktplace: Traum Ferienwohnungen• Feder Software GmbH (grounded 1980 von Arno Feder) at 2001

Traum-Ferienwohnungen : https://www.traum-ferienwohnungen.de/

• Aim: bringing together hosts and holiday guests• Award 2017 with the New Work Award• has been among the top 100 internet sites in Germany since

2016 and among the top ten in the tourism sector• 99 738 accommodation• at 75 countries• 40. Mill guests per year

Source: traumferienwohnungen 2018

Agile methods

Design Thinking (Innovation)

Lean Startup (business idea)

Scrum (Projektmanagement) Kanban (flow control)

Scrumban (team with services and project aims)

Less Large Scale Srum (multi team context major projects)

Lean Production (produkcion)

…………..

Scaled Agile Framework – SAFe (smaller team)

Dynamic Sytems Development Method (agile software development)

A balanced approach that starts with people and their needs

• Design Thinking is a human-centered, iterative approach for the development of new, innovative products, services, businessmodels, strategies – even organizational set-ups.

• With the focus on people and their needsDesign Thinking brings the „human factor“ in the dominantely technic- and business-driven companies.

Design Thinking – human centered development15

Design Thinking Process16

Understand

Oberve

Synthesis Ideate

Prototype

Test Implement

How Design Thinking “fosters the transformation process”

deepen the understanding of the Problem SpaceThrough visually extracting research data from a holistic perspective as well as the qualitative investigation in the project field DT fosters a more comprehensive picture of the initial situation as well as uncovering real needs of the stakeholders involved

exploration of the problem spaceUnderstanding and visualization of the problem area as well as contextual and influencing factors, focus on people and their needs

focus on the most suitable opportunitiesThrough synthesizing the information gathered as well as problems, needs and wishes identified, opportunity fields that has the hightest business relevance can be identified more effective

identifying the best-fit-solutionThrough explicit exploration of the solution space as well as continuous testing, learning and iterating the solution that fits best in the intersection of desirability, viability and feasibility

Quick and cheap learning cycles through low-resolution prototyping

Video clipsMake simulations of how your solution looks likeand how the user interact in a short video clip.

Mock-upsBuild representations of how your idea looks like(wireframes) using pictures or icons in commontools e.g. ppt animations, POP

SketchesUse simple paper sketches to quickly materialize anidea with the benefit of easily modifying concepts

StorytellingTell the story of your idea. Describe what theexperience would be like. Write down a story,visualize it with pictures or create a film.

Functional prototypesBuild more elaborated prototypes using suitableSW or HW even with real data sources e.g. Axure,Just in mind or Qlickview.

Challenges

• change of the organisation form

• support by the management

• lighthouse project

• perception and understanding

• overcome/break old structures

• small team

• location

Prerequisite of Design Thinking …. company integration

Scrum origins based on the Japanese lean management (the "Toyota Way"), application at Google, Automotive

3 colums• tranparency

everything in the project is recorded regularly and visibly for everyone

• verifiabilityresults are delivered in short sprints and thus both the product and the procedure are checked

• adaptabilitychanges in the process and in the product, plans or procedures are continuously adapted. Based on the principle of self-organizing teams and adaptive process control

Scrum

SCRUM

trans

pare

ncy

adap

tabi

lity

verif

iabi

lity

Scrum-Goals

• fast reaction to changes• early feedback and thus early detection of problems• smaller stress curves of all participants• more sense of achievement as quicker tasks are completed • greater motivation of team members with greater personal

responsibility• communication improvement

ExampleAgile

Software -Development

Scrum-Process

• Scrum owner – product owner• Scrum master- organisation• Scrum team - operation

challenges• education as Scrum Master• enable fast process response to changes• enable short feedback loops, forcing early detection

of problems• establish appreciation of the success experiences,

tasks are completed faster• motivation of team members with greater personal

responsibility• communication transparency

Prerequisite for Scrum…. company integration

Kanban is used as an evolutionary change management, kanban principle is inspired by the Toyota Production System (TPS), application for example in process control

content• a process is improved in small (evolutionary) steps• high level of transparency about project progress and

acute problems - low risk for each individual measure• shorter processing times of the work packages• implementation of continuous improvement

measures

Kanban

Kanban board

the first step in introducing Kanban is to list all to do's this happens e.g. on a so-called (mostly physical) kanban

board

planning development deliveryback log quality gate production

challenges• transparency by visualisation of the current work• limiting work in progress by limiting the number of open

packages per process step to identify bottlenecks / issues• establish workflow control and measure metrics, such as

turnaround times, to improve throughput based on the results• formulation of explicit rules for processes - only in this way

errors can be recorded and evaluated objectively• “life" of continuous improvement using proven models and

Scientific Methods (e.g., Cumulative Flow Diagram, Cycle Times)

Prerequisite of Kanban…. company integration

Similarities!How do I get to the goal….. to accelerate corporate agility?

dynamics customer orientation

innova-tion

self- guided

parallel

Organizational forms - flanking support

How things are How things should be

Principles of holocracy after Brian Robertson

dynamic self-control instead of planning and controlling

integrative decision making

purpose is in the foreground, not profit

non-dominance leaderships instead of heroic leadership

Roles/functions („instead of people“)

fractal self-organization

Fast cycles of building - testing - improving to implementation

Studie e-bookhttps://survey.unibw.de/agile-report/

contakt carsten.burchardt@siemens.com +49 170 922 4647

How do you address the topic of agility -

current & future?