Husqvarna Group IT’s engagement in digitalised product IT Who we are – What we do – How we work Lars Olofsson, Husqvarna Group

1. Husqvarna Group IT’s engagement in digitalised product IT
Who we are – What we do – How we work

2. Presenter: Lars Olofsson
• Enterprise Architect
– Focuses on digitalisation, connectivity and PaaS technology
– Architects Group IoT Platform’s common services
– Provides business engagement to digitalisation projects in the
company.
• Information Systems Engineer
– 15 years of professional experience
– Developer, CTO and architect
• @a96larol

3. Husqvarna Group today
• A world leading producer of outdoor power
products including chainsaws, trimmers,
robotic lawn mowers and garden tractors
• European leader in watering products
• One of the world leaders in cutting
equipment and diamond tools for the
construction and stone industries

4. Short facts
• Net sales in 2015 SEK 36 billion
• Core brands: Husqvarna, Gardena
• Supporting brands: McCulloch, Poulan Pro, Weed
Eater, Flymo, Zenoah, Diamant Boart and more
• The Group’s products and solutions are
sold in more than 100 countries
• Main distribution channels are dealers and retailers
• More than 14,000 employees in 40 countries
• Head office is located in Stockholm, Sweden
• The share is listed on Nasdaq Stockholm (HUSQ A and
HUSQ B)
4

6. Background: Both external and internal
drivers led to the founding of DSS
Digital Solution
& Services (DSS)
External drivers Internal drivers
To keep up, we needed to
treat IoT as a start-up,
focusing on speed and
agility instead of traditional
operational excellence
Lack of standards for IoT solutions
Internet of Things (IoT) meant new
opportunities for Husqvarna group
Shift to a more digital society with new
behaviors and focus on usability
The technology change rate is
steadily increasing
Need for new ways of working
embracing agility and speed
Not used to digital solutions
interacting with end-users
Need for new technology, such
as cloud, big data
New types of skills not found
within traditional IT was required

7. Background: Bi-modal Group IT (DSS)
drivers & directives
• Appointed and supported by the CIO
• Support the business!
– Interact with and boost the product owners
– Deliver according to business requirements
– Enable Group IT to deliver “direct” business value
• Explore and start excelling on new technologies & methods
– Establish infrastructure (PaaS-based)
– Establish and deliver a Delivery Pipeline (process & tools)
– Set the standards for way of working, services, frameworks and patterns
– Develop and deliver common services (eg IDaaS, Device Registry etc)

8. DSS mission: To be an enabler for delivery
of digital solutions
Deliver digital value-adding
services to end-user with a
great user experience
Digital innovation through
prototyping and Proof-of-
Concepts
Explore new ways of
working and be cultural
pioneers
Perform design prototypes or
technical Proof of Concepts
using cutting edge technology
as a basis for decision
Explore new ways of
working, suited for rapid and
iterative development
1 2 3
Work in close relation with
business product owners in
order to develop digital
services
Support the Husqvarna group brand divisions to broaden their offerings with competitive
digital value-adding services to end-users
Implement group common digital back-end capabilities
that ensures scalable and maintainable digital services
4
Establish reusable digital building blocks that can be composed into different customer facing services

9. DSS’s digital back-end ambition (I/II):
Enable service centric digital solutions
Product
centric
Service
centric
Digitalization
1. Product 2. Smart product 3. Connected product 4. Product system 5. System of systems
4
Digital back-end
Internet of Things maturity levels
Fleet
system
Fleet
system
Constr.
Mgmt
system
Other
services
• Needs to be built to enable interoperability between
digital systems/services, this for professional end-
customer as well as consumers.
• Should be seen as one in all touchpoints, i.e. a
seamless customer experience
• Must enable partnership, alliances and continuous
evolution of our capabilities
• Master Data and information flow should be kept group
wide
5. System of system – what does it mean for our digital back-end?

10. Digital back-end’s ambition (II/II): Enable
interoperability, speed & economy of scale
• Built to scale and manage a large number of
consumers (millions of customer and devices)
• Seen as a system of innovation and thereby
allow rapid changes and development (Speed)
• Develop once and used by many. By creating
a reusable foundation, time-to-market will be
shorten
• The digital IT backend is built in partnership
and based on open standards
• Avoid lock-in effects and unique silo solutions
Guiding principles for our back-end
Open: Public interfaces that
enable interoperability toward alliances,
customer and between our solutions.
Components: By establishing
common back-end services we
maximize reuse and speed in
development and deployment of
new services.
Information: Create a group
wide information model to secure
common master data, traceability
and to fulfill privacy legislation
and interoperability. This
supported by a Big Data solution.
Infrastructure based on Cloud infrastructure to ensure economy of
scale and global presence, and by using Open source limit cost.
Security: The number one priority is to build in security by design to
secure availability as well as to prohibit intrusion.
Identity &
Access
Management
Individual
Product
Registry
Big
Data
Established components
Delivery
pipeline
4
Digital back-end

11. Innovation and delivery of services: We are
involved in projects with all divisions
Automower Connect enables you to
remotely steer and control your
Husqvarna Automower® regardless of where
you are in the world
Ongoing activities: Back-end support for
new markets and new models
Husqvarna AutoMower Connect Gardena Smart System Husqvarna Fleet Services
Gardena Smart system, a holistic
and connected automatic garden system to
the passionate gardener
Ongoing activities: Addition of new
products to the system
Husqvarna Fleet Services is a unique cloud-
based system that connects the machine-
fleet landscaping teams to an on-line portal,
enabling safer and more productive
landscaping operations
Ongoing activities: Back-end redesign to fit
our strategic platform, Real-time data
Current pipeline
• Maintenance and sales support
tools for after sales and sales
departements
• Proof-of-Concept of tools
management systems
• Pre-study of Fleet Services
for heavy industry
• New robotic mower products
1
Digital innovation
2
Deliver digital
DSS has established
and/or is running
several digital services
DSS is involved in
developing prototypes
and conducting pre-
studies

12. Our way of working: Agile, DevOps and
continuous delivery are key principles
3
Ways of working
Requirements and solutions evolve through
collaboration between self-organizing,
cross-functional teams.
Each team works closely with a business
product owner, who creates a prioritized list
of features (backlog).
The teams work iterative, in 2-3 weeks long
sprints.
Agile using Scrum DevOps teams Continuous delivery
The agile teams are responsible for
development, operations and quality
assurance, i.e. DevOps. This is possible
since we are running in a cloud environment
where infrastructure is managed as code.
Our aim is to be able to release a new
version to production after each iteration or
sprint. This is driven by high level of
automation and streamlining of our
development pipeline.
Our teams
Core AutoMower Common
Team leader
IAMSmart system Fleet services
Team member
Big data
Development
Operations Quality
Assurance
Test
Build
Deploy
Release 1
23
4
2-3
weeksBacklog
New version

13. Our technology: DSS Cloud
4
Digital back-end
• Amazon Web Services being the largest supplier
according to Gartner (70% of market, Nov 2015)
• Major acceptance and buy-in by the embedded &
product centric software engineering community
• Support for Dockers
• Direct charge-back of cost
• Enables DevOps, infrastructure in the control of the
teams and no hand-overs
• Support for infrastructure as code and immutable
infrastructure
• Support for low footprint service establishment cost,
cost in correlation to utilisation of resources and direct
charge-back of cost
Technology selection considerations Technology stack

14. Our technology: DSS Cloud - Example
4
Digital back-end
Typical system architecture
Highlights
• One AWS account per
service and instance in a
consolidated structure.
• Each team governs their
respective account estate.
• Standardised
CloudFormation and
Dockers scripts, boosts AWS
best practices
• Events based architecture,
several Kinesis instances
per service.
• Dockers based component
architecture, enables
automated testing, off-cloud
development and separation
of duties
• The BigData service taps all
services for events.

15. DSS current status:
3
Ways of working
Success!
External factors Internal factors
The DSS has established
an organisational value and
mandate of its own.
Light & scalable towards utilisation
regarding cost
Out-performance of competition,
being the best supplier
Coaching of the business, proven
leadership, proven capability to deliver
Contributing to the business in
getting personal with the end-user,
B2C, inspire new business
opportunities
Technology being new and fun, a
culture of innovation, an attractive
place to work
Clear support by CIO and
management, dedicated staff &
resources, co-location
Engagement by a strong partner
Being truly bi-modal, separating
infrastructure, governance, no
hand-over
Success!
Standardisation!

16. Lessons learned: Good & bad things,
moving on…
Design, code and operate with cost in mind.
Monitor a lot, the burn rate, the resources
and the services.
Tag the resources
Learn the PaaS:es, get into the details
Standardise upon technologies,
frameworks, libraries and patterns. Build an
internal repository.
Align on naming conventions
Promote, encourage and coach the Product
Owner
Good things Bad things Moving forward
Unused PaaS resources causing cost
The disengagement of key staff due to end
of projects, although services continue to run
Engaging information security and risk
management too late in the establishment
Not being clear on the system ownership
role when developing cross product category
services.
Align and harmonise architecture and
knowledge management by Mode 1 and
Mode 2 Group IT
Develop and establish project management
and cost allocation estates for Mode 2 IT.
Start mining business insight in big data.
Continue to build the back-end’s common
services.
Continue the recruitment of key staff on
core roles.

17. www.husqvarnagroup.com