Strube - 2016 - Embedded goes IT. Digital capabilities for organiz.pdf

The advent of the software-defined vehicle (SDV) is more than a technical challenge - it also requires a transformation of the R&D organization, the compentences of the organization and the contributors, and a broader, software-first mind-set to understand the nature of fully connected and interacting automotive systems.

The presenation at an early stage of the industry's transformational journey describes prerequisites for those digital capabilities future R&D organizations will need to tackle the (SDV).

1. EMbeDDeD gOEs IT. DIGITAL CAPABILITIES FOR ORGANIZATIONS
Automotive E lectronics · Munich · 2016, F eb, 10th · Dominik S trube Embedded
goes IT
Digital capabilities
for organizations
Präsentation.indd 1 08.02.2016 09:42:29

2. 2EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
Executive Summary
1. Background
• Automotive business environment shaped by
volatility, uncertainty, complexity and ambiguity
• Threat of new market entrants and disruption
• Rigid and inadequate product dev processes
3. Recommendations 
• Create an agile automotive organisation as a re-
alm of opportunities to deal with the challenges
of a connected business environment.
• Align all functions to the overall goals without
cascaded rigidness.
2. Problems and need for actions
• Market and industry uncertainty requires an
adaptive and ultra-fl exible organization.
• Digital business models require the ability to co-
operate in cross-industry networks.
4. Explanations
• An agile automotive organization is a state of
mind, not an methodology driven enterprise.
• Nonetheless synchronized structures are
essential to support the transformation towards
an agile organization culture.
Präsentation.indd 2 08.02.2016 09:42:29

3. 3EMBeDDeD GOES IT. Digital CapabilitieS For organiZationS
Automotive E lectronics · munich · 2016, F eb, 10th · Dominik S trube
Dominik Strube
Kugler M aag Cie,
Kornwestheim
Dipl. I ng.,
Stuttgart U niversity
Master of B usiness Con-
sulting, HS Wismar
Coaching qualification,
ITAS, Stuttgart
Overview
1. Digital maturity: State of practice
2. Impacts of the digital transformation
3. Mastering the digital transformation
4. Outlook
Präsentation.indd 3 08.02.2016 09:42:30

4. 4EMBeDDeD GOES IT. DIgITAL CAPAbILITIEs FOR ORgANIZATIONs
Automotive E lectronics ? Munich ? 2016, F eb, 10th ? Dominik S trube
About us
Kugler Maag Cie: People. Performance. Processes
Integration of digital capabilities:
• Management consulting
• Performance improvement
• Process and project
implementation
www.kuglermaag.de
www.kuglermaag.com
Präsentation.indd 4 08.02.2016 09:42:32

5. 5EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
1. Digital maturitY
gap between digital opportunities and capabilities
Survey of 300 top
managers in germany
Self-assessment of
digital maturity
opportunities afforded
to the industry by
digitization
Source: roland berger
Strategy Consultants 03.2015
Penetration
Energy
systems
Logistics MEE E/E ChemicalsMedicalAuto- motive
gap
64%
28%
57%
18%
18%
16%
13%
12%
18%
49%
44% 43%
59%
44%
36%
39%
31%
26%
27%
46%
32%
VDI industry research 2015
Digital gap
Präsentation.indd 5 08.02.2016 09:42:32

6. 6EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
1. Digital maturitY
survey report: software Drives 2030 Advisory board
Horst Hient z
Hans - Jürgen Kugler
Bonifa z Ma ag
DoMiniK st ruBe
• meta-analysis of relevant future
studies
• trend analysis of mobility and
organizations
• Worldwide interviews of e/e-
executives inside and outside
automotive
• timeframe: 03. – 07.2015
Closing the digital capability gap in automotive
Präsentation.indd 6 08.02.2016 09:42:33

7. 7EMBeDDeD GOES IT. Digital CapabilitieS For organiZationS
Automotive E lectronics · munich · 2016, F eb, 10th · Dominik S trube
2. Impacts
Technological innovations
• Connectivity (IoT)
• Automated driving
• Alternative drives
Social & regional changes
• Urbanization
• Individualization and
social networking
• Demographic change
Business transformations
• Digitalization and
service orientation
• Service over life-time
• Open collaboration
Major drivers
Convergence evokes emergence
Changes today: Connectivity convergences domains
Technological impact of the digital transformation
Car electronicsEmbedded systems
Internet of T hings
Connectivity / C2X
World Wide WebIT infrastructure
Big data
Präsentation.indd 7 08.02.2016 09:42:33

8. 8EMBeDDeD GOES IT. Digital CapabilitieS For organiZationS
Automotive E lectronics · munich · 2016, F eb, 10th · Dominik S trube
2. Impacts
Automotive topics
Cross-industry challenge
• new mobility
paradigma
• »peak innovation«
• path-dependency
• integrated customer
experience crucial
Industrial impact of the digital transformation
Changes tomorrow: S ervices over products
Merger of traditional
industry lines
Raise of
integrated services
Creation of new customer values
Präsentation.indd 8 08.02.2016 09:42:33

9. 9EMBeDDeD GOES IT. Digital CapabilitieS For organiZationS
Automotive E lectronics · munich · 2016, F eb, 10th · Dominik S trube
2. Impacts
Organization
Business
Connectivity
ProcessesPeopleProduct
System of
systems
Service-based revenue model
Technological
innovations
Performance
Organizational impact of the digital transformation
All organizational and business aspects are adressed
Präsentation.indd 9 08.02.2016 09:42:33

10. 10EMBeDDeD GOES IT. Digital CapabilitieS For organiZationS
Automotive E lectronics · munich · 2016, F eb, 10th · Dominik S trube
2. Impacts
• Agility
 Rapid adjustment
• Adaptation
 Learning through trial and error
• Ambidexterity
 Balancing exploration and exploitation
Organizational impact of the digital transformation
Capabilities of a digital organization in the automotive sector
Präsentation.indd 10 08.02.2016 09:42:33

11. 11EMBeDDeD GOES IT. Digital CapabilitieS For organiZationS
Automotive E lectronics · munich · 2016, F eb, 10th · Dominik S trube
3. Becoming A gile
• Agile culture
• Agile evolution
• Agile organisation
• Agile development
process
• Agile planning
• Agile engineering
Automotive Agile Framework (AAF)
Organizational levels Elements
Bootstrap
Agile team
Cultural basics
Level 2
Agile projects
Level 3
Agile R&D organization
Level 1
Agile team
Level 4
Agile enterprise
Präsentation.indd 11 08.02.2016 09:42:33

12. 12EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
3. beComing agile
What
• Agile methods
• Agile roles
• Agile ceremonies
• Agile artifacts
Where Any engineering discipline (SW, HW, ME)
B e n e fi t s  
• Quality code (SW)
• Quality comp. (HW/ ME)
• Better integrated & tested artifacts
• No technical debt / build-up
Where Whole product level
What Additional roles,
ceremonies and artifacts
B e n e fi t s  
• Responsiveness to
Customer
• Continuous Delivery
• Better integrated &
better tested products
• Higher First-Pass-Yield
Where Whole
development organization
What Additional roles,
ceremonies and artifacts
B e n e fi t s
• Shorter time to market
• More integrated
innovations
Where 
Whole corporation
What Agile roles
outside R&D
(enterprise transition
community, HR,
customer journey
experiences,
infrastructure)
B e n e fi t s
• Adaptiveness/Change
responsivenes
• Learning organization
• Anti-fragility
Agile evolution. From agile team to agile organization
Level 4. Agile organization (enterprise level)
Level 3. Agile R&D
Level 2. Agile product
Level 1. Agile team
Präsentation.indd 12 08.02.2016 09:42:33

13. 13EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
3. beComing agile
Continuous Integration (CI) / Continuous Delivery (CD)
CI/CD
1.1 Sprint
1.1 Sprint
1.1 Sprint
1.1 Cadence
1.1 Cadence
1.1 Cadence
1.1 Cadence
1.1 Cadence
2.1 Cadence
2.1 Cadence
2.1 Cadence
2.1 Cadence
2.1 Cadence
1.2 Cadence
1.2 Cadence
1.2 Cadence
1.2 Cadence
1.2 Cadence
2.2 Cadence
2.2 Cadence
2.2 Cadence
2.2 Cadence
2.2 Cadence
HMI
OS
ECU
Housing
NAND
Display
Tec. dom.
Techn. domain
Common
Repository
Common
Repository
Common
Repository
Common
Repository
Common
Repository
Common
Repository
2.1 Sprint
2.1 Sprint
2.1 Sprint
1.2 Sprint
1.2 Sprint
1.2 Sprint
2.2 Sprint
2.2 Sprint
2.2 Sprint
1.3 Sprint
1.3 Sprint
1.3 Sprint
2.3 Sprint
2.3 Sprint
2.3 Sprint
1.1 IT&ST1.2 IT&ST1.3 IT&ST2.1 IT&ST2.2 IT&ST
2. ra & aD 3. ra & aD1. ra & aD
1.1 RA & AD1.1 RA & AD1.2 RA & AD2.1 RA & AD2.2 RA & AD2.3 RA & AD3.1 RA & AD
1. Sample 2. Sample
aD = architectural design
CD = Continuous delivery
Ci = Continuous integration
it = integration test
ra = requirements analysis
Characteristics
• goal-oriented and
disciplined
• orchestration of
domains: SW/HW/me
• time-boxed with
short cycles
Product development process, e.g. tier-1
system
sW
HW
MW
team
platform/
application
Präsentation.indd 13 08.02.2016 09:42:33

14. 14EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
4. outlook
Content Partnerevent organizer
15
th
and 16
th
november 2016
Le Meridien, Stuttgart, germany
agile in a utomotive 2016
Discuss tomorrow’s ideas of agility in the automotive sector
ConferenCe – TuTorials – Workshops
20+ international Speakers
130+ Participants
Good overview on
current status of Agile in
Automotive, Open
experience exchangeexperience exchange
Good overview on Good overview on
• 2015: speakers from VW, bosch, Continental
• 130+ delegates from 14 countries
• presentations and workshops
2016, November 15
th
–16
th
in stuttgart, germany
Join the agile community.
Outlook: Conference Agile in Automotive 2016
Presentation of the Agile Automotive Framework
Präsentation.indd 14 08.02.2016 09:42:34

15. 15EMBeDDeD GOES IT. Digital CapabilitieS For organiZationS
Automotive E lectronics · munich · 2016, F eb, 10th · Dominik S trube
CONTACT
Kugler Maag Cie
Leibnizstr. 11
70806 K ornwestheim
[phone]
[email protected]
www.kuglermaag.de
www.kuglermaag.com
Links
www.euroforum.de/agile-automotive www.software-drives.com
An agile automotive organization is a state of mind, not a mere methodology!
Nonetheless, synchronized
structures are essential to support
the transformation towards agility.
Präsentation.indd 15 08.02.2016 09:42:34

16. 16EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
3. beComing agile
Feature Owner, Scrum
Master, Kanban Coach,
Agile T-Shape Team
mechanics
oS Hmi eCu
Project management
Systems engineering
Systems engineering
Project management
Cr
new Cr
Cr
Cr
Product Owner,
Feature Owner, SE Team
Sys Architect/Int/Test,
Quality Product Owner,
Safety Product Owner
Product Owner,
Feature Owner
SE Team
Sys Architect/Int/Test
eu Cee apaC naftaroles
Software
Software
Software
Hardware
Hardware
Hardware
mechanics
mechanics
Cr = Customer requirements
nanD
Display Housing
Product R&D organization, e.g. tier-1
Customer / Application projects
Platform projects
Technological domains
Präsentation.indd 16 08.02.2016 09:42:34

17. 17EMbEDDED gOEs IT. Digital CapabilitieS For organiZationS
automotive electronics · munich · 2016, Feb, 10th · Dominik Strube
3. beComing agile
What
• Agile methods
• Agile roles
• Agile ceremonies
• Agile artifacts
Where Any engineering discipline (SW, HW, ME)
Where Whole product level
What Additional roles,
ceremonies and artifacts
B e n e fi t s  
• Responsiveness to
Customer
• Continuous Delivery
• Better integrated &
better tested products
• Higher First-Pass-Yield
Where Whole
development organization
What Additional roles,
ceremonies and artifacts
B e n e fi t s
• Shorter time to market
• More integrated
innovations
Where 
Whole corporation
What Agile roles
outside R&D
(enterprise transition
community, HR,
customer journey
experiences,
infrastructure)
B e n e fi t s
• Adaptiveness/Change
responsivenes
• Learning organization
• Anti-fragility
Agile evolution. From agile team to agile organization
Level 4. Agile organization (enterprise level)
Level 3. Agile R&D
Level 2. Agile product
Level 1. Agile team
bootstrap initial core
• Self-organizing teams
• Motivated teams
• Limited work-in-progress / velocity
• Bottleneck visibility / better transparency
• Fast-feedback loops
Präsentation.indd 17 08.02.2016 09:42:35