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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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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!
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
ENABLERS
DEVICES
APPLICATIONS
Revenue management
TV solutions
Consumer & business applications
Supporting the multimedia providers
Multimedia brokering
Billing & Customer Care
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
Ericsson’s view of Multimedia
Applications
Management & monetization
Access &distribution
Devices
Content
A very competitive landscape. High degree of customer intimicy and PULL!
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
It is (Mostly) About software!
Multimedia product development
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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.
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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%
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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.
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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.
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
Streamline Development
› Change program started 2005.› All improvement work focused towards making Streamline a reality.
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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!
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
Feb 2006: I found this!
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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.
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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)
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
Minimizing the feedback Loop
The Core Loop(the inner core of R&D)
Build
Req.Test Verdict
ModelingAutomation
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
“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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
Business Modeling,
Understanding needs and being more precise
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
2009 results
multimedia lead-time reduction
Finally, Need to continously
refine the Development Strategy
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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
AdaptabilityCost Efficiency
AdaptabilityCost Efficiency
AdaptabilityCost Efficiency
CompetenceLead
Customer
Cost Efficiency
Adaptability
InnovationLead Customer
Q&A
© Ericsson AB 2010 Ericsson Internal Streamline, Agile and Customer Responsiveness 2010-10-24
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