Agile offshoring

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

Copyright © Siemens AG 2010. All rights reserved.

Contents

Siemens Healthcare and SYNGO – who we are

Traditional Development Setup

The Agile Change

Page 2 October 2010 Andrea Heck / Tibor Vida Healthcare / H IM SY

Contents

Siemens Healthcare and SYNGO
– who we are


The Agile Change


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


We are a leader in Imaging & IT

Healthcare IT HIS/RIS/PACS

Angio Computed Magnetic Molecular Ultrasound
and X-Ray Tomography Resonance Imaging

Leading in new equipment market share
Largest installed base Innovation leader
Best in profitability

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 Law
in 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
1 2
3 Frameworks

Runtime-system Services

Infrastructure Infrastructure

Organizations Tend To Be Distributed Over Sites

Big development organization
several hundred persons working on development
Millions lines of code
Distributed to sites along these dimensions over the world:
software layer, software topic
functional: requirements engineering, development, test

Requirements Erlangen, Slovakia
Apps-Test Germany
Apps-DEV US Hungary
Apps-DEV (SY HQ)

Example-Framework-Test
Frameworks
India
Subsystem
Services-Test
Services-DEV
Services-DEV
Subsystem Test


Supplier Strategy: Workbench Model

Cost as selection criteria
Incentives for suppliers by dates
& bug fixing rate
In case of delay add more
people, shift deadlines
HQ tells suppliers how many
people needed
Responsibility of supplier
engineer for component

Documents as interfaces
(theory)

Real Interfaces

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


Real Interfaces

Component teams Task
Unit System
create a forces
Debugging Engineer
mini-waterfall
for each feature Specialist
Contains the Unit Project
typical waste: Manager
handoffs,
work in progress, Integration
bottlenecks Manager

Feature
Too many
Responsible
interfaces
Cluster
Responsible to the supplier
Graphics: © 2009 B. Vodde / C. Larman


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 directly
to 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 Value stream with many
feature wish or handovers Delay
need Value creation step with
intermediate result


Value Stream – Customer centric organization

A
Helper
Customer with €
feature wish or value stream
need
Big help

B Helper

€
value stream


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 Team
Product Owner roles responsible
across product releases:
Chief
Chief Product Owner
Project Lead Product Lead
Owner Architect Product Owner (feature area)

Prioritze the Product Backlog
Product Owner Product Owner
Product Owner Define and plan releases
Manage defects
Product Owner
Scrum Review DONEness definition
Teams
Product Owner Early involvement of customers
Maximize value for customers
Product Owner


Scrum Teams

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

The team is responsible for
Always running software
Transparency
Continuous improvement
through retrospectives

A Scrum team is collocated on
one site


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 Owner
A tester guiding the developers
in testing issues
A team architect – working
hands on with the team and
providing system architectural
guidance


Timeline

Management Product
Proposal – Decision: Owner Team
Iterative
bottom up – Agile!
Development
to get agile General roll
Continuous training of
Train and start more Scrum out of agile
Integration pilot Scrum Teams
Teams

2006 2007 2008 2009 2010 2011

Tool Build new team
development training for rooms
with scrum Product
Train key
Owners
persons Train and start
Pilot teams at
pilot Scrum other
Teams departments

Different Off-shoring Approach:
Partnership

Selection criteria: Focus on cost
AND qualification
Cross functional teams with full value
chain responsibility
Responsibility for feature across
architecture
Interface: Product Owner Team and
Product Backlog
Increase qualification and domain
knowledge of partners
Separation 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 Headquarters

Used to be told what to do Used to tell what (… how) to do
Fear of change Fear of change
Afraid of taking own steps Afraid of letting go

Do small steps Encourage to do bigger steps
Reassuring them before walking But still holding the long leash
Management is learning to trust Management is learning to trust
empowered engineers partners

See themselves as partners with See them as partners with system
system responsibility responsibility


Supplier’s Point Of View

..Before After..

Participation Full responsibility

Defensive, contract based work Constructive, solution oriented work

Too many interfaces, Faster communication
information hell
Product know-how
Component 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


Thank you for your attention!

Andrea Heck andrea.heck@siemens.com
Tibor Vida tibor.vida@evosoft.com

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


Agile offshoring

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