Agile at Telefonica R&D. Catalyst for innovative culture

TELEFÓNICA I+D

© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal

Germany Scrum Gathering

Gemma Hornos [email protected]ÓNICA I+D

Date: October 2009


Agile at Telefonica I+D catalyst for innovative culture

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Gemma HornosManager of Innovation and Agile Methodologies Unit

Agile Adoption Leader at Telefonica I+D and TelefonicaCorporation CSM, CSPOSpecialized in Software Engineering

[email protected]

Speaker

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01 Corporate Information

02 Agile Transition Strategy

03 Top 8 Changes

04 Top 10 Lessons Learned

05 Acknowledgments

adopting an Agile work culture …

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03 Top 8 Changes


05 Acknowledgments


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Revenues (2008): € 57.9 bn(+2.7% vs 2007)

Adjusted Net Income (2008): € 7.6 bn

(+38.0% vs 2007)*

Among the 40 largest companies in the world by market cap

�

Among the 100 largest companies in the world by revenues

�

International integrated Telco operator by customer base

�1st

European Telco operator by market capitalization

�1st

258.9 million accesses (as of Dic’08)

• 93.2 million in Europe• 158.3 million in Latin America• 7.4 million in other markets

Telefónica is now a benchmark for the global Telco sector …

(1) Plus Morocco(2) Plus U.S.A. and Puerto Rico(3) China, Italy and Portugal(4) Net Income in 2008 before adjustments (without stripping out the impact of capital gains in 2007 and Telco impairment) decreased -14.8% vs. 2007

Operations in 25 countries• 6 in Europe(1)

• 13 in Latin America(2)

• 3 through strategic and industrial alliances (3)

About 257,000 professionals• 31.9% in Europe• 67.3% in Latin America• 0.8% in others countries

Telco in Dow Jones Sustainability Index

�1st

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Argentina : 21.0 million

Brazil : 62.4 million

Central America : 6.1 million

Colombia : 11.8 million

Chile : 10.2 million

Ecuador : 3.3 million

Mexico : 16.1 million

Peru : 15.4 million

Uruguay : 1.5 million

Venezuela : 12.1 million

Wireline market rank Mobile market rank

2112

2111

22

11

12

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Notes: - Central America includes Guatemala, Panama, El Salvador and Nicaragua- Total accesses figure includes Narrowband Internet accesses of Terra Brasil and Terra Colombia, and Broadband Internet accesses of Terra Brasil, Telefónica de Argentina, Terra Guatemala and Terra México.

Data as of June ‘09

Total Accesses (as of June ‘09)160.8 million

… is a leader in the Latin American Telco market …01

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Spain: 47.0 million

UK: 21.1 million

Germany : 16.5 million

Ireland : 1.7 million

Czech Republic : 7.7 million

Slovakia : 0.4 million

Total Accesses (as of June ’09)94.6 million

1

21

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4

2

Wireline market rankMobile market rank

3

Data as of June ‘09

... enjoys a significant footprint in Europe01

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Telefónica I+D:

the R&D unit of Telefónica

01 Telefónica I+D

The mission of Telefónica I+D is to contribute to improve Telefónica Group´s competitiveness through technological innovation and applied research

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Telefónica I+D carries out all the research and a t hird of the development done within Telefónica

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(1) Under OECD definition.

Year 2008 data

TechnologicalInnovation (1)

Development of product / services / processes

(668 M€)(4,614 M€)

62 M€ (100%) 240 M€ (36% )

Applied research(62 M€)

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An international company with 1,509 people* working in our centres all over the world

Telefónica I+D is an international company with offices in Spain, Brazil and Mexico and focused on 4 major business lines

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The 4 major business lines and organization of TelefónicaI+D

Last update on December 31th, 2008 * Employees + university scholarships

IT SystemsNetworks and

PlatformsInternet &

MultimediaEnd-User Services

Technology Strategy Resources Management and Control

Executive President (CEO)

Human Resources

949272

2

225

1131838

01

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Our R&D focuses on all part of our business but especially on the new ones

New BusinessDevelopment

WhileConnected

Core Business

Stay Connected

Digital contentand services

BroadbandConnectivity

Voice

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01

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03 Top 8 Changes


05 Acknowledgments


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Agile Telefonica I+D Initiative02

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Agile Telefonica I+D Initiative

GOAL: creating an

at Telefónica I+D

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Creating an Agile Work Culture

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02

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02

Value & Market Driven

Empowered Customer

Agile change management is adaptive to changing business needs

ClientSatisfaction

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02

Motivated and

Empowered,

Self-Organized and cross-functional Teams

Cultural change

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02

High visibility and control over the project progress

Incremental delivery

Streamlined documentationReducing product and process waste

Better quality

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� Scope: limited number of departments.

� Meth.: Scrum

� Projects limited in scope and risks.

� Scope: one line involved (LA2000).

� Meth.: Scrum & XP

� Focus on formalization.

� Scope: rest of TI+D lines.

� All enterprise involvement.

I. Pilot II. Launch III. Enterprise Rollout

Agile Transition Strategy02

Jan‘08 Jun ‘08 ?

Mostly Done

An Enterprise Strategy for Introducing AgileDanube Technologies, Inc. and Kane Mar

Copyright 2006

We are here

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� Shu: learn all the principles and information

� Ha: break/adapt the (old) rules

� Ri: forget the rules, natural laws and flows

How to learn

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02ShuHaRi

MethodOrganic Growth

Viral Way

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Core BusinessNew Business Development

Stay ConnectedWhile Connected

TechnologyStrategy

Planning, control and resources

IT (BSS/OSS)

Network and Platforms

ExecutivePresident

(CEO)

Infected Telefonica I+D Lines02

Internet & Multimedia

End-UserServices

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Applied research

Experimental development

ProductDevelopment

Internet Multimedia Data mining & User modelling

Mobile Augmented Reality

Social Networks & Communities

P2P Content Distribution

3D Video

Customer Entry Point

Global Products

Social search

Mobile multimedia annotation and

search

Mobile Social

Internet & Multimedia Line 02

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03 Top 8 Changes


05 Acknowledgments


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New Team EmergedInnovation & Agile Methodologies1

1. Monitors and researches leading trends in the industry.

2. Determines the methodology and the best practices to be used and defines a frame that integrates all the disciplines involved during the course of a Project.

3. Introduces and adapts the methodology into Projects, coaching them on how to reap the benefits along its evolution.

4. Accounts for the knowledge management across the organization .

5. Assures continuous improvement innovation process .

Becoming an Innovation Methodology Reference

Innovation & Agile Methodologies , regarding innovation processes and best practices related

to project management , team organization and programming ,

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New Team Emerged

• Certified Scrum Master

• Certified Scrum Product Owner

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Agile Framework Definition2

ad

op

tio

n

line

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Framework Definition2

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Framework Definition

Approached by Sergio Vila PagèsSenior Visual & Interaction Designer at Telefonica R&D

integration of different disciplines2

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Agile Knowledge Management

� Wiki, Blog, Forum…

� Training: — Introduction (1 day)

— Product Owner (1 day)

— Scrum Master (1 day)

— Clients

� Recognition Program

� Speeches from other companies

� Knowledge Groups

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3

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Framework Definition & Knowledge Management3

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Organizational changes with two overall objectives

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Increase people empowerment

Increase the quality and impact of our products and developments

“With great power comes great responsibility ”

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Innovation Funnel and Initiatives

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External research

Internal research

Flagship Global Products & Local Products

Innovation Initiative

External Collaboration

InI@ProductInI@Research

InI@Prototype&Pilot

BASIC RESEARC

H

APPLIED RESEARC

H

FEASIBILITY

PROTOTYPE

PILOT MARKET

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FunctionalOrganization

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Kno

wle

dge

Gro

ups

Strategic Functions

Common Services

Innovation Initiatives

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Cutting the red tape5Old Waterfall Methodology Removed

Some Processes Speeded Up

‘Transformation Project’ launched

…

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Scrum Roles Adaptation6

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Scrum Roles Adaptation

Business Product Owner + Stakeholders

Internal Product Owner (proxy)

Scrum Master

Team

Agile Coach

Product O

wnership

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Defining a Tools Common Environment7

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EngineeringProductivity

Group

CENV- tools- guidelines- …

Different EnvironmentsCommon Environment

- Improve software quality of our Initiatives.

- Improve developers knowledge .

- Improve team focus on the Initiative.

- Improve agile practices adoption by automation

- Better tools support

7 Common Environment Initiative (CENV)

voluntary te am membe rs

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New Workspace

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8

isolate d from the world

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New Workspace8 all the te am togethe r

product owne r

scrum maste r

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New Workspace8information radiators

ope n space

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spontane ous me etings

vide o game console

New Workspace8

library

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Confessionals, quiet and private spaces

New Workspace8

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03 Top 8 Changes


05 Acknowledgments


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You can’t accelerateit too much…

…either slow it down

Change has its own Pace

1

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Someone has to pull…

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… do not underestimate the effort needed for the change2

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Killer sentences:

- It won’t work

- Scrum is a set of silly practices

- Scrum is not as important as agile coaches say

- Methodologies, frameworks, best practices… it’s all foolish stuff.

- This makes no sense for me, my project is so special

- I’m not attending Scrum Training because I don’t need it. I can’t bother wasting my time.

- It’s not the right moment

- …

Change is Hard…

…you need to Believe

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Super nanny 2008

…when we learn,

we get dirty

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Let the people learn by themselves, knowing that…

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… pass on the Scrum passion

spread Scrum ownership…

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Scrum way of working fosters:

- creativity, looking for new ideas

- communication

- team empowerment

- motivation

- working having fun

- avoiding fear of failure

- avoiding “analysis paralysis”

- learning experience

- innovation and user-centered best practices integration...

Scrum Boosts Innovation…

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Managing time buffers for:

Learning new technologies, new programming languages…

Clarifying requirements

Dependencies on uncertain tasks

Uncertain expectationsThe S-shaped "learning curve" typical of complex learning

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as an R&D, we need to take special care of task estimation

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� Business PO: TEF BU, O2…

� Client� Sponsor� Users� TID: Product Strategy,

Business Development…� …

an R&D internal Product Owner is needed

INTERNAL PRODUCT OWNER

(proxy)

BUSINESSPRODUCT OWNER

+STAKEHOLDERS

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Too many participants are usually the cause of:

Delays

Mediocre Backlog Prioritizing

Unclear Product Vision

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Scrum is not consensus -friendly

We need to educate our clients on:

Management of Scrum Requirements’ Changes

Providing Feedback (Sprint Review)

Avoiding bottlenecks

…

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being strict in the Scrum

practices adoption wasn’t

a must for us…

the power of the whole Scrum framework

… but we realized

we couldn’t miss out

the power of applying

them entirely10

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03 Top 8 Changes


05 Acknowledgments


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Acknowledgments

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05

Carlos DomingoDirector of the ‘Internet & Multimedia’ Lineand director of Barcelona R&D

Key people who make it possible…

Luis Ignacio VicenteManager of ‘R&D & Innovation Management’

in the ‘Technological Strategy’ Line

Ruben González BlancoHead of ‘Technology Strategy and Architecture’in the ‘Internet & Multimedia’ Line

Raúl Ortega‘Internet & Multimedia’ Director

David del ValDirector of the ‘Services for the End Customer’

Line

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Acknowledgments

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05Key people who make it possible…

all Telefonica I+D Scrum Teams

trying to do their best

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Acknowledgments

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05

� Ken Schwaber and Jeff Sutherland, Scrum founders

� Mike Cohn. Excellent Material.Web site www.mountaingoatsoftware.com“Succeeding with Agile: Software Development Using Scrum”

� Henrik Kniberg. Great publications.“Scrum and XP from the Trenches”, Scrum Cheklist, “10 ways to

screw up despite Scrum and XP”. ..

� http://blog.tastycupcakes.com/ . Excellent training ideas.

and all those who have made agile possible!

Key references…

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Thank you!

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