Scrum - Realizing business value earlier

agility accelerates ...

Scrum! Realizing Business Value Earlier

Appway Conference Zürich, 17.09.2013

hGp://www.swissagileleaders.com

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The Scrum Framework •  3 Roles •  3 Artefacts •  4 MeeUngs

How SIMPLE it is!

Swapping the Iron Triangle

value driven plan

driven

Cost Time

Scope fix

esUmated

Time

Scope

Cost

Traditional

Agile

Idea

Idea

Idea Idea Product

Development

Do the Right Thing! Do the Thing Right!

EffecUveness Efficiency

Do the Right Thing! •  Deliver Business Value

•  in the right order •  as early as possible •  conUnuously

•  Collect Customer Feedback as early as possible

•  Embrace Change •  Release when good enough

The Scrum Framework

What is good enough? Business Value

Time

Feature

Good Enough

Release 1.0

Faster Time to Market and Lower Cost

means earlier ROI

80% Business Value

20% Time

Release 1.x

Built-‐in Change Management Business Value

Time

New Feature identified during development

Good Enough

Release 1.0

Release 1.x

exchange

Different Types of Business Value Knowledge Value •  Do we have the right people

to build the right product using the right technology in Ume and cost?

•  We need Knowledge to reduce risk

Customer Value •  The right funcUonality for

our customers

agility accelerates ...

SWISS LIFE

Case Study Presented by Peter Stampfli at GOTO Zürich 2013

One million private clients (policy holder)and 38 000 corporate clients (group life)

Presented at GOTO Zürich 2013 by Peter Stampfli

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

2,000

2,100

1,900

1,800

1,600

1,500

1,700

30

2,200

35

502,300

0

40

45

100

0

Our life insurance market is shrinking

Life Insurance Market Market for Financial Security

Mia. CHF

-2% p.a.

+3% p.a.

Market for Financial Security

Life Insurance Market

Mia. CHF


Vision - Future

From monoliner«Pure Life Insurance»…

…to comprehensive financial solution provider

Emotional Level

Growth throughExtension of the Business Model

und Customer Orientation

Transformation of Swiss Life Switzerland

Rationale LevelExpand

Transform

Today


The challenge before us…

Challenge: Innovate!Challenge: Innovate!

Keep Status Quo! Keep Status Quo!

Agile & Scrum?


Agenda – Agile Transformation Roadmap

Programm

Project

Line-

Organisation

Large scaleagile

Scrum –Incubation

Integration in Line-

OrganisationSwiss Life

Initial-Position

& Business

Driver

Swiss Life

Initial-Position

& Business

Driver

2012 20132011


PoC with Scrum successfull

Process innovation Introduction of Scrum

IT - Innovation Expose services to Customer, iOS

Business innovation multi-access, mobile: anywhere, anytime

Time2Market Delivery in 7 weeks

• External Scrum Coach



Programm

Project

Line-

Organisation

Large scaleagile

Scrum –Incubation



Initial-Position

& Business

Driver

Swiss Life

Initial-Position

& Business

Driver

2012 20132011


Caramba –large scale agile program setup

4 C = Communication | Collaboration | Contact Center | CRM

P & C

Existing New

Exis

ting

Customers

Serv

ices

Health

New

Vorsorge Plus

Coope-rationen

4 C

One100

ImmoPulse

Headcount: 60+

6 Scrum-Teams

Headcount: 60+

6 Scrum-Teams


The program delivers…

3a-Attacker

Swiss LifeCRM



Programm

Project

Line-

Organisation

Large scaleagile

Scrum –Incubation



Initial-Position

& Business

Driver

Swiss Life

Initial-Position

& Business

Driver

2012 20132011


Common model for mutual understanding –product lifecyle framework

1) Wichtig: Der Markt entwickelt das Angebot von Invent nach Deploy 2) Business Sicht

Invent

• Develop new Business Opportunities

• Verification of ideas • Experiment and learn • Quick and easy

1

Deploy

• Opportunity is successful• Increased business criticality• Pressure to optimize and manage (Business und IT)

2Manage

• Standardize • Managed risks and processes

• Low unit costs (Cash-Cow)

3

Offload

• Low differentiation• Declining profitability

• Sourcing• EOL

4

Impact onImpact on

Operating-Modell

People und Skills Finance

1 2 3Steering

4

Differentiation

Ris

k

$


Deploy – the most interesting and challengingHere is the transformation happening!

EvolutionDisruptiv

Transformation

Active Transformation in Intersection

• Requirements from both worlds (line & program)

• On-going Innovation but business critical and productive

• High dependencies with regularrelease cycle

Introduction of an Release Train with Feature Portfolio

Management

Introduction of an Release Train with Feature Portfolio

Management


Swiss Life – Conclusion •  Agile @ Large works •  Agile is an accelerator for human centered design and

customer centricity •  InnovaUon needs disrupUve techniques like Scrum •  Feedback is crucial to realize business value early •  Different product lifecycles need different approaches •  Introducing Agile techniques like Scrum demand an

OrganizaUonal TransformaUon

Con$nuous'Innova$on'

Network'&'Empowerment'

Do'the'Right'Thing'

Do'the'Thing'Right'

Strategy'

Organisa$on'

Effec$veness'

Efficiency'

Culture'

Context'&'Constraints'

Delivery'Products''Services'

©'2012'I'2013'pragma$c'solu$ons'gmbh'

The'Pragma$c'Organisa$on'