Cultural and Organisational Transformation as a Multiplier of Cloud Value

Jens Greiner, SKFSteffen Leistner, NordcloudThomas Baus, Nordcloud

Date

WHO’S TALKING TO YOUThe Speakers

Cloud Application Architect at Nordlcoud SKF Global Manager IoT Development Delivery Lead at Nordcloud

STEFFEN LEISTNER JENS GREINER THOMAS BAUS

• Established 1907

• Sales 2017 SEK 77,938 million

• Employees 45,678

• Manufacturing units 103

• SKF presence 130 countries

• Distributors/dealers 17,000 locations

• Global certificates ISO 9001 – QualityISO 14001 – EnvironmentISO 50001 – EnergyOHSAS 18001 – Health and safety

A TRULY GLOBAL COMPANYSKF Introduction

A TRULY GLOBAL COMPANYSKF Introduction

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Product

THE SKF CLOUD EVOLUTION

FROM SERVERS TO DIGITAL PLATFORMSThe SKF Cloud Evolution

Server Private Cloud

Public Cloud

Digital Platform

• Dedicated people• Single server

• Dedicated team• Virtualized servers• Single SaaS

• Dedicated global team of experts

• Single SaaS

• Cloud CoE set up• Distributed teams• Micro services• Serverless

20002004

20122015

CLOUD ENABLES A DIGITAL BUSINESS MODELThe SKF Cloud Evolution

User Value• Smart Services

Service Layer• Scalable• Secure, reliable• Cost efficient

Asset Layer• Smart Products• Industry 4.0

Digital Platform

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“AGILE IT” - A WAY TO UNLOCK CLOUD VALUEThe SKF Cloud Evolution

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Steering Group Product Owner

Project Management Scrum Master

Development Team Scrum Team

Digital Platform Reference Architecture & Cloud Governance

DEVOPS ENABLES RAPID PROTOTYPINGThe SKF Cloud Evolution

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PARTNER-ENABLED DEVOPS AT SCALEThe SKF Cloud Evolution

SKF & Nordcloud

DevSKFOps

NordcloudOps

PARTNER-ENABLED DEVOPS AT SCALEThe SKF Cloud Evolution

SKF & Nordcloud

DevSKFOps

NordcloudOps

Scalabilityand Security

Valueand Velocity

INTRODUCING SQUADSThe SKF Cloud Evolution

• The squad teams should run at their own "max speed"

• The alignment is done by the strategic direction and prioritization within the squad product owner meetings

• The alignment and autonomy results in a better "time to market"

ENABLING FULL ALIGNED AUTONOMYIntroducing Squads

• Each Squad has a scrum master, a product owner and developers

• Backlog filled by business or by product owners

• Regular meetings to run backlog grooming session on leaders level

• A groomed backlog issue is taken by one product owner within the squad’s grooming session

• User stories are enhanced with sub tasks and acceptance criterias

ENABLING FULL ALIGNED AUTONOMYIntroducing Squads

• When Why and What is defined, but the how is a question, ensure to set-up a technical expert team to define "current best approach"

• The experts have the goal to come up with a technical architecture design, agreed by the teams

• The implementation should be dedicated to a single team with a clear product ownership for each defined micro service

DEEP KNOWLEDGE & STRONG COMMITMENTIntroducing Squads

LEARNINGS

• We spent most time to establish a culture that allows innovation and enable people to feel confident to innovate

• The smart utilization of AWS Cloud needs a change in the mindset and team culture

• Start doing, fail and improve and do not have developers wait for “manager” to decide on what to innovate

THE LESSONS WE LEARNEDIntroducing Squads

IMPROVEMENTS

• From 4 to 12 rapid prototype projects in 2018 for the same team

• Customer satisfaction improved significantly by delivering first prototypes after 6 weeks

• Based on prototyping learnings, the MVP development time is reduced by ~30%

• Time to get a project scoped for prototyping decreased from weeks to a one day workshop

Agility is not just managing projects agile, it’s about the culture to adopt to new learnings continuously -with fun!

TODAY IS TOMORROW’S GOOD OLD DAYS

FUTURE OUTLOOK - OUR NEXT STEPS

Governance Automation

Fullstack Security Embedded everywhere (DevSecOps)

Software Test Automation

Production Support Service Automation

Our Cloud Journey

UNIT TESTSAutomated test execution in isolated pipeline containers

alongside code reviews.

INTEGRATION TESTSAutomated test execution through disposable cloud environments.

END TO END TESTS

MANUAL TESTING

TEST AUTOMATION PYRAMIDOur Cloud Journey

OUR EVOLVING SOFTWARE RELEASE PROCESSOur Cloud Journey

ProductionTestBuildSource

Continuous integration

Continuous delivery

Continuous deployment

CLOUD EVOLUTIONA PATTERN IN DACH

YOU ARE NEVER DONE. IT’S ALWAYS DAY ONE. No organisation can survive in the long term without evolution

If Software is the future, you need to become great at writing and maintaining it

AWS enables companies to focus on what matters and be truly modular, innovative and agile

Let the best models prevail and the dysfunctional ones die; evolution means acceptance of failure

You compete with (the skills of) your people, enable them to enjoy AWS the best possible way

Cloud Evolution Patterns

IF YOU COMPETE WITH SOFTWARE

YOU NEED TO BE GREAT WRITING IT

MEET US AT OUR BOOTH

Twitter: @nordcloudHQ

Email: thomas.baus@nordcloud.com