Agile offshoring

Copyright © Siemens AG 2010. All rights reserved.

Agile OffshoringAndrea Heck, Siemens AG Healthcare Tibor Vida, evosoft Hungary October 2010

Healthcare / H IM SYCopyright © Siemens AG 2010. All rights reserved.

October 2010 Andrea Heck / Tibor VidaCopyright © Siemens AG 2010. All rights reserved.

Contents

Siemens Healthcare and SYNGO – who we are

Traditional Development Setup

The Agile Change


October 2010 Andrea Heck / Tibor Vida

Siemens Healthcare

Siemens Healthcare stands for innovative products and complete solutions as well as service and consulting in the healthcare industry. We have many software-based high tech medical imaging products which enable an improved life of our customers and their patients.

www.siemens.com/healthcare

http://www.siemens.com/healthcare



We are a leader in Imaging & IT

Healthcare IT

ComputedTomography

MagneticResonance

Angioand X-Ray

MolecularImaging

Ultrasound

Innovation leaderLeading in new equipment market shareLargest installed baseBest in profitability

HIS/RIS/PACS



SYNGO

The SYNGO IT Portfolio is Living Workflow Intelligence



Partner evosoft

evosoft is a daughter company of Siemens specialized in near-shore software projects for Siemens AG in Hungary and other near-shore centrals in east Europe



Contents



The Agile Change



Organization and Architecture

Conway's Lawin short: Architecture follows Organization“...organizations which design systems ... are constrained to produce designs which are copies of the communication structures of these organizations.”Mel Conway, in: Datamation magazine, April, 1968, it got the name “Conway’s law” in Fred Brooks’famous book “The Mythical Man Month” 1975 Departments own a piece

of the architecture– a subsystem

Applications

Frameworks

Services

Infrastructure

1 23

Infrastructure

Runtime-system



Organizations Tend To Be Distributed Over Sites

Big development organizationseveral hundred persons working on development Millions lines of code

Distributed to sites along these dimensions over the world:software layer, software topicfunctional: requirements engineering, development, test

HungarySlovakia

India

Erlangen, Germany(SY HQ)US

Example-Subsystem

Framework-Test

Services-DEVServices-TestServices-DEV

Frameworks

Apps-TestApps-DEVRequirements

Subsystem Test

Apps-DEV



Supplier Strategy: Workbench Model

Cost as selection criteriaIncentives for suppliers by dates & bug fixing rateIn case of delay add more people, shift deadlinesHQ tells suppliers how many people neededResponsibility of supplier engineer for component

Documents as interfaces (theory)



Real Interfaces

Component teams create a mini-waterfall for each featureContains the typical waste: handoffs, work in progress, bottlenecks



Real Interfaces

Component teams create a mini-waterfall for each featureContains the typical waste: handoffs, work in progress, bottlenecks

Unit Debugging Specialist

Unit Project Manager

Integration Manager

Cluster Responsible

System Engineer

Task forces

Feature Responsible

Graphics: © 2009 B. Vodde / C. Larman

Too many

interfaces

to the supplier



People

Local optimization by

individuals,

component teams or

suppliers

Lack of skills (technical, domain) and over-specialization



Contents



The Agile Change



Key principles

Project organization aligned on customer (features)

Optimized around value stream

Every employee contributes directlyto customer value

Avoid waste: minimize handovers, delay, overproduction

Partners instead of Suppliers

Empowerment, active collaboration, and self-organization

Continuous learning



Value Stream - Hierarchical organization

Customer with feature wish or

need

Value stream with many handovers

€

Value creation step with intermediate result

Delay



Value Stream – Customer centric organization

Customer with feature wish or

need

A

B

value stream

value stream

Helper

Helper

Big help

€

€



Agile Transformation with Scrum

Proven and well known

Easy to teach

Experiences on scalability available

Covers mainly project management

Seeding engineering practices



Scrum Implementation at SYNGO: Product Owner Team

Product Owner roles responsible across product releases:

Chief Product Owner

Product Owner (feature area)

Prioritze the Product Backlog

Define and plan releases

Manage defects

Review DONEness definition

Early involvement of customers

Maximize value for customers

Product Owner Team

Product OwnerProduct Owner

Product Owner

Project Lead Lead Architect

Chief Product Owner

Product Owner

Product Owner

Product Owner

ScrumTeams



Scrum Implementation at SYNGO:Scrum Teams

A Scrum Team is a self-organizing, cross-functional team, in most cases a feature team

The team is responsible forAlways running softwareTransparencyContinuous improvement through retrospectives

A Scrum team is collocated on one site



Scrum Implementation at SYNGO:Scrum Teams

Team members come into the teams with different roles:

Scrum Master Developers for product development and test automation A system analyst supporting the Product OwnerA tester guiding the developers in testing issuesA team architect – working hands on with the team and providing system architectural guidance



Scrum Implementation at SYNGO: Timeline

2006 2007 2008 2009

Continuous Integration

Iterative Development

Proposal –bottom up –to get agile

Train and start pilot Scrum

Teams

Management Decision:

Agile!

Product Owner Team

General roll out of agile

training of more Scrum

Teams


Teams


Teams

2010 2011

Train key persons Train and start

pilot Scrum Teams

Tool development with scrum

Pilot teams at other

departments

Build new team roomstraining for

Product Owners



Different Off-shoring Approach: Partnership

Selection criteria: Focus on cost AND qualificationCross functional teams with full value chain responsibilityResponsibility for feature across architectureInterface: Product Owner Team and Product BacklogIncrease qualification and domain knowledge of partnersSeparation by feature areas



Agile Transition with Partners

Jointly defined cornerstones as framework for agile transition

Partners decide their own way and pace

Regular weekly exchange with Head Quarters (HQ) during transition

Support from HQ through coaches and trainings

Workshops with all partners and HQ

Encouragement to take on more system responsibility

Move them from suppliers to partners



Give And Take Responsibility

Partners

Used to be told what to doFear of changeAfraid of taking own steps

Do small stepsReassuring them before walkingManagement is learning to trust empowered engineers

See themselves as partners with system responsibility

Headquarters

Used to tell what (… how) to doFear of changeAfraid of letting go

Encourage to do bigger stepsBut still holding the long leashManagement is learning to trust partners

See them as partners with system responsibility



Supplier’s Point Of View

..Before

Participation

Defensive, contract based work

Too many interfaces, information hell

Component know-how

After..

Full responsibility

Constructive, solution oriented work

Faster communication

Product know-how



Summary

Changing mindset requires training and time

Skills need to be built up: Scrum Master, Product Owner, Team Coaching, Management

Suppliers need to get partners

Step by step: flywheel effect

‘Communities of Practice' to learn, align, and share across sites


Andrea Heck [email protected] Vida [email protected]

Thanks to Michael Kircher and Oliver Schreck for collaboration on earlier versions of this presentation.

Thank you for your attention!


mailto:[email protected]

mailto:[email protected]

Agile offshoring

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