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