the journey towards agile e2e - smart-labsesam.smart-lab.se/seminarier/hostsem10/ericsson.pdf1875...

The Journey

towards

Agile E2E Streamline, Agile and Customer Responsiveness

Gunnar Heldebro

VP & Head of R&D

business unit multimedia

© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24

Agenda

› Multimedia & Multimedia Product Development› On the road to Agile End to End.› Innovation› Doing the right things right, with speed


inflection

points

driving

The Ericsson

business

1875 1900 1925 1950 1975 2000 2025

50 B

5.0 B

~0.5 BPLACES

PEOPLE

THINGS

Inflection points

Global Connectivity

Personal Mobile

Digital Society Sustainable World

Source: Ericsson


The Journey continues2000 2010 2020

Voice + SMS

700 million subs

1x business model

Voice + Apps + Data

4.8 billion subs

2-3x business models

Digital society

50b connected devices

Various models

Mobile operators

Telecom

Build own networks

Mobile/Converged Ops

Telecom and IP

Transform and share

Operators and verticals

Telecom grade IP

Upgrade and open

Many vendors

Equipment

HW

Fewer, newer vendors

Equipment and Service

HW and SW

New vendors landscape

Service and SW

Less HW, more SW

MARKET

CUSTOMER

INDUSTRY


The changing world of multimedia

Changing consumer behavior, social networking and online communities, user generated content, Generation C

Users

Mobile device evolution and convergence, increasing multimedia capabilities on devices

DevicesPlayersNew multimedia business opportunities, evolving business strategies and models, digital advertising

Digitization of media, high speed broadband, Web 2.0 applications, convergence of networks and services, SDPs

Technologies

Power of consumers => Outside in! PULL!


ENABLERS

DEVICES

APPLICATIONS

Revenue management

TV solutions

Consumer & business applications

Supporting the multimedia providers

Multimedia brokering

Billing & Customer Care


Ericsson’s view of Multimedia

Applications

Management & monetization

Access &distribution

Devices

Content

A very competitive landscape. High degree of customer intimicy and PULL!

http://www.motorola.com/


Business support systems

Consumer & Business applicationsTelevision & media

Multimedia -

strategic focusWanted position 2015

#1 in TV solutions

#1 in BSS for operators

Top 3 in Applications


It is (Mostly) About software!

Multimedia product development


Stockholm

Guangzhou

Shanghai

Chennai & Delhi

Budapest

Montreal

Karlskrona

Sao Paulo

Frankfurt

Atlanta

Southampton

Rijen

Göteborg

KL

TV

BMUM R&D Development sites

Personnel

~2,800

On the road to Agile End to End


Looking in the rear-view mirror,

our legacy

› Heavyweight player in telecom equipment› Gradual shift towards developing software in late 70’s› Functional set-up in product development › Assumed to be predictable manufacturing› Strong at managing complexity

Standards driven => technology push


Long 15-18 months projects, often delayed Long pre-study to cover scope not needed or implemented Many changes in scope, a lot of rework and some waste High cost, quality problems, very long test phases

12

18

13

22

26

22

9

27

10

3

0 20 40 60 80 100

Industrybenchmark

TypicalEricsson

Weeks

Concept Feasability Development Test Launch

before Streamline (bfr

2005). How it all started.


EFFECTIVE

Value

Cost

PDE

Connecting R&D with the Business

Responsiveness

SCALE

revenues

Cost

We were here.

The journey triggered by the target to reduce TTM Leadtime by 50%


Multimedia (Service Layer)

R&D 2004

› 72 Week Lead-time for Main Releases in average–

Long waterfall projects, Administrative overhead

› Very costly back end. Testing in quality.

› Poor Quality. Problems with In Service Performance

We decided that this has to stop!

Whole management team committed and worked together to set the direction.


Highest prioritized requirementfirst to meet customer needs

Small self-organizing teams to facilitate communication and

boost learning

Anatomies to manage complexity

Continuous and integration centric dev.

Responsiveness,Throughput, TTM

Our approach => Streamline Dev.

The basic principles

Deliver a complete product at any time

De-couple development from release => A continuously ongoing Dev. Machine.


Streamline Development

› Change program started 2005.› All improvement work focused towards making Streamline a reality.


Cost of Poor Quality

Project Planning and Portfolio Mgmt

Efficiency Drive & Cost Savings(Sites, Suppliers, STP, Tools, FOA, Maintenance & CPH)

Streamline Development Program

Robustness Program

Joint SI/R&D Delivery Capability

Test Automation

Fault Slip Through

SW Quality Rank

Customer Driven Offering & Dev.

2005 2006 2007 2008

Innovation

Modeling

2009

Enhanced Streamline

Customer Responsiveness

Efficiency Drive & Cost Savings(Sites, Suppliers, STP, Tools, FOA, Maintenance & CPH, IT)

Modeling

Innovation

Efficiency roadmap 2005–

Pick up every rock!


Feb 2006: I found this!


Going Agile

› Global network of local agile coaches› Development of agile training packages› Internal online agile community› > 100 teams in AgileManagement needs to show that this is important!Leadership is required to make the change.

2007

Successful Agile pilots in several countries

Management go-ahead

Initial Agile readiness assessment

Spring Summer Fall


Our Agile Practices

› Prioritized Requirements› Planning Game› Daily stand-up meeting› Pair Programming

› Test Driven Development› Demo› Retrospective

An environment where the teams have intellectual control.


QD0

SD Release Project / Feature Delivery

Project Planning Board (PPB)

Latest System Version (LSV)

Pre-QD0

System Architecture Team (SAT)

Product Line Maintenance (PLM)/Design Maintenance (DM)

Service Development Team (BUGS)

Streamlined Development Projects (DP)

QD1 QD2 QD5

DFUQD0

QD1 QD2 QD5

DFUQD0

TG0 TG1 TG2 TG3 TG4 GA TG5

Plan & Control Product Life CyclePD4PD3PD2PD1PD0

QD6 QD6 QD6

Product Packaging & Supply TeamPRM,PRT,RFO updatesPRM PRT

QD1 QD2QD0

QD1 QD2QD0

QD1 QD2 QD5

DFUQD0

RFO PRA

Streamline Iterations

One 3-month development project

Synchronization with other projects

Delivery +Planning

Planning Delivery +Planning

Delivery +Planning

Delivery +Planning

Delivery +Planning

2 weeksdevelopment

2 weeksdevelopment

2 weeksdevelopment

2 weeksdevelopment

2 weeksdevelopment

http://cdmweb.ericsson.se:7045/TeamCenter/controller/ViewDocs?DocumentName=EAB/L-06%3A1624&Latest=true

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Streamline Dev. The principles

Highest prioritized requirementfirst to meet customer needs

Small self-organizing teams to facilitate communication and boost

learning

Anatomies to manage complexity

Continuous and integration

centric dev.

Responsiveness,Throughput, TTM

Deliver a complete product at any time

› Prioritized Requirements› Planning Game› Daily stand-up meeting› Pair Programming

› Test Driven Development› Demo› Retrospective

Semi permanent teams


Result OverviewR&D Improvements

70 w

56 w

36 w

27 w

0

10

20

30

40

50

60

70

Weeks

2005 2006 2007 2008

Lead-time (TTM) Main releases

61%reduction

Releases reaching PP-PRA

0

5

10

15

20

25

30

35

40

2006 2007 2008 2009

Feature deliveryMain release

Cost of poor quality

100% 99% 99% 95% 98%

100%92%

65%

52%48%

80%

100%

120%

140%

160%

180%

200%

220%

2005 2006 2007 2008 2009-20%

0%

20%

40%

60%

80%

100%

Rela

tive

cost

per

nod

e

2005 cost baselineActualRelative cost per node

Before SD 2006 Using SD 2008

Waste of analyzed requirements


Summary of Achievements (Clear trend already mid 2008 and continues)

› Cost Reduced› Quality Improved› TTM Lead-time reduction target achieved› Waste (as per our definition) reduced› Throughput increased.

BUT....› Competition is getting fiercer. Telecom & Internet are converging!

And...are we really doing the right things right?

INNOVATION (COMPETITION)


From Pure R&D Event to Global participation and CEO

involvement

› Awards, recognition and business for Top Inventors–

Awards (Money)–

recognition (by CEO)–

New Revenue for Ericsson (ultimate Recognition)› From Internal event to customer evaluation› Concept enhanced Every year but Basic Idea Remain› long term goal 1000 Ideas/Year

–

Quality v.s. quantity–

Strategic Requirements on input› Global teams formed by innovators with similar ideas


HistorY

Year Proposals FinalistsSelected

Categories

2006 31 5 1

2007 124 10 2

2008 233 12 2

2009 1280 14 3

It started 2006. A bit lower profile than

previous slide


TV and MediaTV and Media

MULTIMEDIA INNOVATION COMPETITIONGenerate innovative ideas to increase future revenues and profitability of the Multimedia Portfolio. Encourage creativity within multimedia and involve all employees.

Revenue GrowthRevenue Growth

BSSBSS

Monthly Themes on rotating scheme Focus on BU strategy and new opportunities by availability of Long Term Evolution

Monthly Awards 2-4 ideas per theme win 10000 SEK and nomination for the final

Every employee can comment and experts help enhance short listed ideas after the one month submission period


MULTIMEDIA INNOVATION COMPETITIONGenerate innovative ideas to increase future revenues and profitability of the Multimedia Portfolio. Encourage creativity within multimedia and involve all employees.

Final held at Multimedia Innovation Day in December

3 Final winners will each receive a 50000 SEK cash prize

Management, Business and Expert support in order to enhance the finalists towards the final

Validation of concepts through Customer Interactions

Doing the right things Right, with speed


Minimizing the feedback Loop

The Core Loop(the inner core of R&D)

Build

Req.Test Verdict

ModelingAutomation


Moving R&D Closer to Business.

BAPO (from philips)

Portfolio and Architecture aligned With Business

A/PArchitecture/

Portfolio

A clear view of the business we are going after

Mapping of activities , roles and dependencies to organisational structures

OOrganisation

Activities, roles and dependencies during development

PProcess

BBusiness

Other connections


“We have to leverage our assets and combine solutions and services in ways that best suit our customers”

“We also have to be stronger in providing innovative business models for our customers and we must be better at value

argumentation.”

Hans Vestberg

2010-11-1135

Increasing our competitiveness by better understanding our customers Business Models

35


Business Modeling,

Understanding needs and being more precise


The Software Challenge

Increasing SW size per product

More costly and fewer products

Increasing variability requirements

Less costly and more products

Software Product Lines - Autonomous SW components

LateBinding

ParallelDevelopment


Streamline Development Core Process

New process: SW/HW decoupled

Software Product Dev. ”Most popular AS & Platform”

Main Software Product Line ”Most popular AS & Platforms”

Optional HW Product Line

”SW on Most popular Platforms”PK SW HW

PK

SW

HW

Non-commercial porting kits, STC-0010

Commercial software releases (own life-cycle and support)

Commercial pre-integrated hardware releases (own life-cycle and support)

Generic software requirements

Platform dependent requirements

Hardware dependent requirements

3-6 months 3-6 months2-4 weeks


BMUM wanted position

product packaging

ConfigurablePP objects

Re-useable OEM model

Re-usable feature models

Iterative Product Packaging and verification in Business Systems

1.Re-use 2.Generation of code

for business system

3. Additions

Iterative Product Development

Incremental productification and upload of material

Product Management

Product Package Modelling

Configuration Data

BUSINESS AND SYSTEM MODELING

ITERATIVE AND AGILE E2E DEVELOPMENT RELEASE ANYTIME


ELISPortalWeb shopELISPortal

Local/regional HW Supplier

SW distr.

License db

Easy Order/call-off of SW, licenses & keys

Instant access and delivery of SW code, licenses & keys

Contract & PO:s

Products andServices

BMUM wanted position

Supply

NO TOUCH

1 minute


2009 results

multimedia lead-time reduction

Finally, Need to continously

refine the Development Strategy


Streamline Development is our continuously improved methodology tailored to help us reach our way of working (WoW) vision.

Each step towards our vision is a well defined and measurable business requirement, and of course reflected inStreamline Development

Level 2 – Core Loop

Level 3 – Agile Practices

Level 4 - Customer Responsiveness

Level N

2008

WoWVision

Level 1 – Formal Process

Leve

l of c

ompl

ianc

e

20092005 Time

Self-OrganizingSmall Teams

Latest System Version

Prioritizationof Requirements

Anatomies PullReleases

Modeling Quality Automation Traceability UnifiedToolbox

Leadership Test Driven

Iterative ContinuousLearning

Patterns

Commitments

Build

Req.Test

Create

Sell

Manage

PLCM

Ways of working –

roadmap


BMUM R&D Strategy -

Summary

Strategy

BMUM R&D Management Balanced Scorecard 2010

Vital Focus Areas (VFA)

Focus innovation to extend BMUM business

Work directtly with lead customers through cross functional expert teams

Excel in adaptability Secure core domain competencies

Excel in cost efficiency

R e v e n u e s

C o s t

T e lec om t re n d :M ar g in s ar e g o in g do w n

Reduced cost of purchased products

Excel in re-use of assets

Establish cost leadership

Improve customer responsiveness

Drive high performance culture

Secure technology leadership in core domains

Strengthen leadership in BSS

Innovations with GCA customer in Western Europe

Excellence in Total Cost of Ownership

Excel in SW business

FINANCIAL CUSTOMER INTERNAL EFFICIENCY EMPLOYEECOMPETITIVE

POSITION

AdaptabilityCost Efficiency

Cost Efficiency




CompetenceLead

Customer

Cost Efficiency

Adaptability

InnovationLead Customer

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