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SCALED AGILE @ SYSTEMS ENGINEERING How Two Seemingly Different Approaches to Solving a Problem Create Synergies in R&D and Increase Efficiency

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SCALED AGILE @ SYSTEMS ENGINEERING How Two Seemingly Different Approaches to Solving a Problem Create Synergies in R&D and Increase Efficiency SCALED AGILE @ SYSTEMS ENGINEERING How two seemingly different approaches to solving a problem create synergies in R&D and increase efficiency. SCALED AGILE @ SYSTEMS ENGINEERING I September 2020 Content 01 Introduction 6 02 What Do We Mean by Agility? 8 03 What Do We Mean by Systems Engineering? 10 04 The Synthesis, or: The Best of Both Worlds 14 INNOVATION 05 The Agile Systems Engineering Transformation 24 06 Outlook 28 FLEXIBILITY REACTION EFFECTIVENESS ADAPTIVITY 2 3 SCALED AGILE @ SYSTEMS ENGINEERING I September 2020 01 Introduction Agility and systems engineering are an integral part of employee motivation, R&D currently favors two models – sys- We know the theory and roles – how does the (lower sickness rates, higher employer attractiveness and lower responsive, flexible product development. tems engineering (SE) or the Scaled Agile Framework (SAFe®). practical implementation work? turnover), was not included due to inconsistent measurement Both models have their own strengths, but also reveal areas How can our processes and tools be tailored to SE methods used by the companies, but is a positive side effect. In recent decades, the business world has been character- that have not yet been taken into account and where further or agile methods? The following three main topics are distinguished for the ized by volatility, uncertainty, complexity and ambiguity – or potential can be tapped. Synchronization with organization – how do we implementation of the approach and will be described in more “VUCA,” as the concept is known for short. Driven by climate solve the link to other areas? detail later in the white paper. change and the ongoing pandemic, this has recently been The aim of this white paper is to present the profitable aspects Agility has only worked in software so far – how can supplemented by an additional acronym – “BANI,” which of both models in a joint synthesis and thus present a systems we scale the model? 1) Use of agile and systems engineering methods at stands for brittle, anxious, nonlinear and incomprehensible. It engineering concept that is both agile (adaptive) and integra- team level forms a new framework in which volatility and complexity no tive. The central application for this lies in mastering techno- The consistent implementation of the system concept in the Increase in efficiency ~10 per cent longer adequately describe the current shift from events that logically complex development projects that require fast and development and organization, and the scaling of team prin- [Source: MHP project database]. are difficult to predict toward those that are entirely unpre- flexible adaptation options due to a dynamic or uncertain envi- ciples at program or portfolio level often fail due to the stan- dictable1. Together, the influencing factors of both thought ronment. The added value of this approach is also described in dard processes and structures of a functional hierarchy (orga- 2) Transformation and scaling at organizational level models present companies with the central task of adapting the standard reference work from INCOSE (International Coun- nizational structure). In practice, it is not sufficient simply to Increase in productivity ~20–50 per cent to new framework conditions. This has a particular impact on cil of Systems Engineering), which has set up its own working describe the central roles such as System Architect, Function [Source: www.scaledagileframework.com]3. the area of R&D, which is faced with the challenge of having to group to investigate agile systems engineering2. Owner or Agile Coach without enabling them to be integrated work increasingly effectively and efficiently, while at the same into the organization and incorporating them significantly into 3) Introduction of an agile (adaptive) system time, more responsive and flexible product developments are the processes. Therefore, this article will address the afore- architecture required. 1) Grabmeier, S. (2020): BANI vs. VUCA, Source: (https://stephangrabmeier.de/ mentioned questions and explain them using the combined Increase in efficiency in complex systems ~10–40 per cent bani-vs-vuca/), as at: July 22, 2020 approach as an example. [Source: MHP project database] An example of this is the increasing degree of complexity in the 2) INCOSE (2015): Systems Engineering Handbook: A Guide for System Life Cycle Processes and Activities, Fourth Edition, John Wiley & Sons development of mechatronic systems – not only is the number The potential economic benefits are also highlighted below. Before these aspects are considered in detail, a uniform under- of functional requirements increasing, but also the demand standing of agility and systems engineering should be created. for interdisciplinarity. The main drivers of this trend are digi- tal technologies and the associated pressure to innovate. The The transformation takes place at individual speeds but A balanced combination of agile process models and sys- market increasingly demands networking and data-driven traditional organizations face similar obstacles, which tems engineering allows potential savings of 10 to 50 3) Scaled Agile – SAFe 5.0 , source: (https://www.scaledagileframework.com/ safe-for-lean-enterprises/), last updated July 22, 2020 business models. For system development, this means that tra- must be overcome. per cent. ditional structures and interface-optimized processes must be fundamentally reconsidered in favor of integrative approach- In the practice of transformation, many companies have begun Three parameters are taken into account when focusing on es. Among other things, this is reflected in the change from to implement at least one of the two models. However, they potential savings: quality costs (potential savings due to elimi- hardware-oriented development to a more function-oriented are often stuck at individual stages. A non-representative sur- nation of the need for improvements), time to market / cost development. If companies have neglected this step in recent vey conducted by MHP in July 2020 of 20 clients from various of delay (revenue and competitive advantages due to earlier years, this can often now result in delays to product deliveries, sectors revealed five recurring questions with which companies market entry of the systems) and innovation revenue (revenue high reworking costs for content relevant to certification, or are confronted when implementing and anchoring agility and/ from minimum viable products or unique features with innova- even a complete lack of planned development scope. or systems engineering: tive customer benefits). Of course, the potential depends on the respective sector as well as the system complexity and the In the search for a solution to these and other challenges For what should we use SE/agility and how will we benefit market environment, and can only serve as a basic indication such as short technology cycles, regulatory requirements and from it? here. Further potential, such as higher employee satisfaction 4 5 SCALED AGILE @ SYSTEMS ENGINEERING I September 2020 Dynamic markets require dynamic companies. at regular intervals. In a competitive environment, agility is therefore the by-product of natural selection, based firstly on In the context of project and program management, the term variation and secondly on “survival of the most adaptable,” or “agility” is used to describe a wide range of approaches, meth- the most effective/efficient solution. Therefore, short iteration ods and tools, some of which are used with varying degrees of cycles enable partial solutions to be tested, developed incre- success. Used by 54% of respondents, SAFe® is the most com- mentally or rejected as unsuitable. The result is a process of 02 monly used scaling framework, ahead of LeSS and in-house continuous adaptation, improvement and learning. solutions4. Hüsselmann5 has derived the central paradigms, principles and In essence, however, agility does not describe the use of a goals of agility from the two core principles of flexibility and specific project management method, but refers to the basic adaptability (Figure 1). They can also be found in the traditional ability to respond effectively and competently to an increas- project management standards, but are often not used much ingly uncertain and unpredictable operational environment. To in practice. make this possible, two basic principles are of central impor- tance: Flexibility and adaptability. What Do 4) Komus, , A. et al. (2020): Study Status Quo (Scaled) Agile 2019/2020, Ko- blenz University of Applied Sciences February 2020 Transferred to a project, this means that changes are perceived not as a disruption, but as part of the problem-solving process. 5) Hüsselmann, C.; Maibach, M. (2020): Agilisierung des Projektportfolioman- agements (Agilization of project portfolio management).Praktiken und Rollen However, in order to avoid arbitrary reactions and to ensure für traditionelle Unternehmen (Practices and roles for traditional companies), predictable project success, agile process models have been WI [report] no. 012, Gießen/Friedberg: THM, ISSN 2568-0803 developed that reflect the work results and working methods We Mean by by means of short iteration cycles and recurring routines, and Agility? Paradigms Goals Communication Robustness Simplicity Delegation Effectiveness Adaptivity and Flexibility Innovation Rolling Planning Reflexion Reaction Figure 1: Paradigms and goals of agility according to Hüsselmann 6 7 SCALED AGILE @ SYSTEMS ENGINEERING I September
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