In 2009, SAP decided to implement lean management and agile software engineering practices within its global development organization. Lean and agile practices like Scrum helped us to become more efficient and more predictable in terms of delivering software. However, that did not solve the “innovator’s dilemma” almost any big company is facing after many years of success. Hence, we had to explore new ways and approaches to come up with innovative product visions and business models for our fast-changing and emerging markets. In this talk, Dr. Hildenbrand will give an overview of this innovation journey and provide insights on applying approaches like Design Thinking and Business Model Innovation in a large-scale and distributed development organization including a recent example project, SAP SportsOne. From SIEMENS Key Expert Day 2015 in Karlsruhe, Germany.

1. From Efficiency to Innovation
Design Thinking & Business Model Innovation
Dr. Tobias Hildenbrand, SAP Products & Innovation
Siemens Key Expert Day, Karlsruhe, 28 October 2015

2. Where did we come from?

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Source: SAP

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Where do we want to go?
“Back to the Roots”

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Our Goal and Approach: Customer-Centered Innovation
Approach:
Customer-
Centered
Goal: Innovation

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Conduct regular
Retrospectives
Split organization
into teams
Split work
Split time
Deliver more
frequently
Risk
Risk
Deliver more reliably
and predictably
Reducing Risk with Large-Scale Lean & Agile Development

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Putting ourselves into the Shoes of the End Users

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Design Thinking to Develop Empathy & Product Ideas

9. Why Worry about Business Models?

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Why should SAP worry about Business Models?
Industry Clouds
Business Networks Platform-as-a-Service
Internet of Things

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Design Thinking & Business Model Innovation – Time-to-Value

12. What is a Business Model for us?

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Describe your Business Model Baseline
Network & Enterprise View
http://www.youtube.com/watch?v=QoAOzMTLP5s

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SAP’s Classic Business Model – On Premise Business Suite

15. How does Business Model Innovation work?

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Recent Examples for Business Model Innovations at SAP
Organizational Setup Requires Business Model
Innovations to be Managed Across Board Areas

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Why do we need a Business Model Innovation Service Center?
Today’s Issues Business Model Innovation Services

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Business Model Innovation – Lifecycle Approach
“Business Model Library”

19. SAP’s Business Model Development & Innovation Approach

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Business Model Development & Innovation (BMDI™)
An Iterative Approach to Find the Appropriate Business Model for Products
Baseline Appropriate
Business Model
Version n Version n+1

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Analyze &
Improve
Challenge
& Change
Test & Verify
with MVPs
Evaluate
& Decide
w/ Business Case
Enterprise View = Business Model Canvas
Business Model Network View
Business Model Design with BMDI™

22. Project Example: SAP Sports One

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27. Conclusion and Q&A

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Conclusion – Innovation Culture Mix at SAP
Framework: William E. Schneider

29. Thank You !
Comments or
Questions?