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Robin Baldner
Senior Vice President, Quality Assurance at SAP SuccessFactors
June 2017
The Change of Project Management and Quality Assurance in the Digital Revolution
2 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Agenda
Challenges of the Digital Economy
Trends in the Software Industry
Vision
Implementation
3 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The Digital Economy Changes the Fortune 500 Landscape
Company Value or market cap
in Billion US $
Uber 70
Netflix 68
Salesforce 63
Didi Chuxing 50
AirBnB 31
Snapchat 30
Workday 21
Rank Company Market Cap
in Billion US$
1 Apple Inc. 762
2 Alphabet (Google) 682
3 Microsoft 550
4 Amazon 480
5 Facebook 449
…
10 Tencent 341
…
59 SAP 129
Data as of June 2017
World’s Top Companies by Market Capitalization Other Successful Companies in the Digital Economy
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The Three Predominant Archetypes of the Digital Revolution
1: Shift from physical to digital
2: Shift from bricks to clicks
3: Shift from automated procedures to intelligent behavior
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From old economy…
$$$ $
to digital economy
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It’s All about Speed and Rapid Iterative Experimentation
Race for survival in the fast paced
digital economy is on
Trendsetters deploy daily into the Cloud
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Agenda
Challenges of the Digital Economy
Trends in the Software Industry
Vision
Implementation
9 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
First Software Engineering Crisis Lead to the Waterfall Process
1970
Classic waterfall process
Phase-gate process
Document driven
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Agile Methodology Introduces Time-boxed Iterations
Project Success Rate Increases by More than Factor 3
1995 2001
Scrum Agile Manifesto
Project Size Method Successful Challenged Failed
Agile 39% 52% 9%
Waterfall 11% 60% 29%
Agile 18% 59% 23%
Waterfall 3% 55% 42%
Agile 27% 62% 11%
Waterfall 7% 68% 25%
Agile 58% 38% 4%
Waterfall 44% 45% 11%
All sizes
Large
Medium
Small
Standish Group 2015: based on 50.000 IT projects around the world
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But Outcome Is More than Output
Experimentation Increases Commercial Success Rate
2005
Research by Harvard Business School’s
Shikhar Ghosh shows: 75% of all start-ups fail
2011
Lean Start-up
Business Model Innovation
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7 principles for lean software development
1) Eliminate waste
2) Amplify learning
3) Decide as late as possible
4) Deliver as fast as possible
5) Empower the team
6) Build integrity in
7) See the whole
5 principles at the heart of continuous delivery
1) Build quality in
2) Work in small batches
3) Computers perform repetitive tasks, people
solve problems
Adoption of Lean Manufacturing further Evolved to Continuous Delivery
2010 2003
4) Relentlessly pursue
continuous improvement
5) Everyone is responsible
13 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Key Practices for Continuous Delivery
* TDD = test driven development (2003)
* BDD = behavior driven development (2006)
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Facebook 2015
2 deploys into production
per day
>100K commits per week
>1.000 test results per sec
5 years machine work per
day
Amazon 2014
11.6 sec mean time between
deployments (weekdays)
1079 max # of deployments in
a single hour
10.000 mean # of hosts
simultaneously receiving a
deployment
30.000 max # of hosts
simultaneously receiving a
deployment
Google 2013
40,000 code commits/day
50,000 builds/day (on
weekdays, this may exceed
90,000)
120,000 automated test
suites
75 million test cases run daily
Successful software companies apply continuous delivery at massive scale
15 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
DevOps Centers around Collaboration for Safe Delivery
2009
Velocity 09: John Allspaw and
Paul Hammond from Flickr
"10+ Deploys Per Day”
2001
Jeff Bezos:
“Each service is owned
by a cross functional
team that would build
and run the service
throughout its lifecycle”
you build it
you run it
2016
16 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Built-in Quality Is a Must-have in the Cloud
A new feature in the Cloud
instantly reaches all users worldwide
„Always On“
No planned downtimes
anymore
24 / 7
365
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Agenda
Challenges of the Digital Economy
Trends in the Software Industry
Vision
Implementation
18 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
HOW to Digitally Transform?
A Sustainable Culture of Innovation Requires Three Fundamental Shifts
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Releasing is a Non-Event
Source: Spotify engineering culture
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Innovation through rapid iterative data driven Experiments
Inspired by http://theleanstartup.com/principles
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Embrace End-to-End Responsibility
Source https://www.martinfowler.com/bliki/DevOpsCulture.html Inspired by https://blog.newrelic.com/2014/06/06/devopsbenefits/
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Vision on how to create services with Built-in Quality
Continuous delivery to
make releasing easy
Innovation through rapid iterative
data driven experiments
Embrace End-to-End responsibility
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Agenda
Challenges of the Digital Economy
Trends in the Software Industry
Vision
Implementation
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Tools and processes are less important than
culture, people and methodologies
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Methodologies for sustainable speed w/ Built-in Quality
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Methodologies for sustainable speed w/ Built-in Quality
in an efficient
way
with a BiQ
mindset
Create the right
product
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Practice Map in SAPedia (= SAP’s internal WIKIPEDIA)
Benefits:
Single point of access to processes, methodologies,
templates and tools used in a development unit
Fosters exchange of good practices and pitfalls
End-to-End consistency and flow
Links to people, expert information and training
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Best Practices Dashboard Dev team decide which KPIs to adopt to steer their experiments
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Actionable Transformation Framework
Methods for transformation
to achieve sustainable speed
w/ Built-in Quality
Cloud Manifesto
with values &
guiding principles
Practice Map
E2E map with processes
and methods encouraging
exchange of best practices
BiQ Health Check
providing best practices
on KPIs for steering
teams
31 PUBLIC © 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Thank you Contact information
Robin Baldner Senior Vice President
Quality Assurance at SuccessFactors