The Road to Innovation - Design Thinking and Lean Development at SAP
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This document discusses how SAP has adopted design thinking and lean development practices to improve innovation and delivery. It describes SAP's transition from waterfall development to agile Scrum practices to deliver products more reliably. Design thinking principles like empathy for end users and iterative prototyping are highlighted as ways to hit the "sweet spot" of innovation. The conclusion states that design thinking and lean complement each other by helping SAP build the right things through user empathy while agile and continuous improvement help build things right efficiently.
The Road to Innovation - Design Thinking and Lean Development at SAP
- 1. DR. TOBIAS HILDENBRAND & DR. CHRISTIAN WIELE | SAP AG | 16 JULY 2013 THE ROAD TO INNOVATION DESIGN THINKING AND LEAN DEVELOPMENT AT SAP
- 2. © SAP 2013 | 2 “Ich wollte Mitarbeiter so motivieren, dass sie mehr leisten als der Durchschnitt. Freie Entfaltung und Kreativität, ohne bürokratische Zwänge und Regeln. Dazu passt auch keine Stempeluhr, die mir immer zuwider war.” Dietmar Hopp (one of the founders of SAP)
- 3. © SAP 2013 | 3 WHAT DOES SAP DO?
- 4. © SAP 2013 | 4 A LOT MORE THAN 40 YEARS AGO WHEN WE STARTED Cloud HANA Mobile 67k Analytics Applications
- 5. © SAP 2013 | 5 WHERE DO WE COME FROM?
- 6. © SAP 2013 | 6 40 YEARS OF SAP, ALMOST 40 YEARS OF WATERFALL Source: SAP
- 7. © SAP 2013 | 7 WE COULDN‘T WAIT ANOTHER 40 YEARS 1. Take an Economic View 2. Actively Manage Queues 3. Exploit Variability 4. Reduce Batch Size 5. Apply WIP Constraints 6. Control Flow: Cadence and Synchronization 7. Apply Fast Feedback 8. Decentralize Control Source: Donald G. Reinertsen (2009) – Lean Product Development Flow The Principles of Product Development FLOW Second Generation Lean Product Development Donald G. Reinertsen
- 8. © SAP 2013 | 8 SCRUM IMPLEMENTS MOST PRINCIPLES OF LEAN Iterative feedback Empirical process control Velocity understood Limited team size Iteration cycles, Limited WIP* *) WIP = work-in-progress
- 9. © SAP 2013 | 9 WE MANAGE OUR REQUIREMENTS THE AGILE WAY fixed estimated Requirements Requirements Resources Release Date Resources Release Date Plan-driven (traditional) Value-driven (agile)
- 10. © SAP 2013 | 10 AGILE = “QUICK AND WELL-COORDINATED”
- 11. © SAP 2013 | 11 OUR DELIVERY IS MORE RELIABLE AND EFFICIENT TODAY Chief Product team release backlog sprint backlog product backlog Scrum Teams
- 12. © SAP 2013 | 12 WHAT DID WE LEARN FROM LEAN?
- 13. © SAP 2013 | 13 SCRUM REDUCES PRODUCT RISKS DRAMATICALLY Conduct regular Retrospectives Split organization into teams Split work Split time Deliver more frequently Risk Risk
- 14. © SAP 2013 | 14 WITH LEAN, WE LEARNED HOW TO CHANGE AND SCALE Improve ratio of planning and execution Build quality into products from the inside out. Incorporate feedback early Build Coaches within the organization
- 15. © SAP 2013 | 15 WE LEARNED TO DELIVER MORE RELIABLY AND PREDICTABLY
- 16. © SAP 2013 | 16 WHAT ABOUT INNOVATION?
- 17. © 2012 SAP AG. All rights reserved. 17© SAP 2013 | 17 Desirability Feasibility Viability WHAT IS INNOVATION?
- 18. © 2012 SAP AG. All rights reserved. 18© SAP 2013 | 18 ? HOW TO HIT THE “SWEET SPOT” OF INNOVATION?
- 19. © 2012 SAP AG. All rights reserved. 19© SAP 2013 | 19 ? YOU START WITH YOUR END USERS
- 20. © 2012 SAP AG. All rights reserved. 20© SAP 2013 | 20 PUT YOURSELVES IN THEIR SHOES
- 21. © SAP 2013 | 21 ‘‘A DEVELOPER NEEDS TO BE CURIOUS AND ALSO DEVELOP EMPATHY FOR END USERS“ Source: interview with SAP co-founder Hasso Plattner (2012)
- 22. © 2012 SAP AG. All rights reserved. 22© SAP 2013 | 22 YOU NEED A DIVERSE, MULTI-DISCIPLINARY TEAM
- 23. © 2012 SAP AG. All rights reserved. 23© SAP 2013 | 23 YOU ALSO NEED SPACE FOR INNOVATION
- 24. © 2012 SAP AG. All rights reserved. 25© SAP 2013 | 25 THE SIX BASIC STEPS OF DESIGN THINKING
- 25. “There Are No Facts Inside Your Building, So Get Outside.” – Steve Blank © SAP 2013 | 26
- 26. © 2012 SAP AG. All rights reserved. 27© SAP 2013 | 27 DESIGN THINKING IN THE PROBLEM SPACE
- 27. © 2012 SAP AG. All rights reserved. 28© SAP 2013 | 28 DESIGN THINKING IN THE SOLUTION SPACE
- 28. “Building something nobody wants is the ultimate form of waste.” – Eric Ries © SAP 2013 | 29
- 29. © SAP 2013 | 30 DESIGN THINKING INCORPORATES AGILE VALUES, TOO Short Iterations Incremental Delivery Small Cross-Functional Teams Focus on Customer Value
- 30. © SAP 2013 | 31 PROJECT EXAMPLE: COMBINING DESIGN THINKING & SCRUM Product Backlog
- 31. © SAP 2013 | 32 CONCLUSION
- 32. © 2012 SAP AG. All rights reserved. 33© SAP 2013 | 33 Innovation and Effectiveness, i.e. building the right things First-hand empathy for end users Creative solution finding (ideation) Validation of assumptions and prototypes with end users Efficiciency and Delivery i.e. building things right Retrospectives and continuous improvement Process framework and engineering practices Agile planning and estimation (backlog management) = Building the Right Things Right DESIGN THINKING AND LEAN COMPLEMENT EACH OTHER
- 33. © SAP 2013 | 34 OUTLOOK: INNOVATION IN LARGE ORGANIZATIONS Intrapreneurship Customer Development Agile Software Development Business Model Design
- 34. Thank You! Dr. Tobias Hildenbrand SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf tobias.hildenbrand@sap.com Dr. Christian Wiele SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf christian.wiele@sap.com