Agile at Telefonica I+D: Catalyst for Innovative Culture

TELEFÓNICA I+D
© 2009 Telefónica Investigación y Desarrollo, S.A. Unipersonal
Germany Scrum Gathering
Gemma Hornos ghc@tid.es
TELEFÓNICA I+D
Date: October 2009
Agile at Telefonica I+D
catalyst for innovative culture

TELEFÓNICA I+D
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Gemma Hornos
Manager of Innovation and Agile Methodologies Unit
Agile Adoption Leader at Telefonica I+D and Telefonica
Corporation
CSM, CSPO
Specialized in Software Engineering
gemma.hornos@gmail.com
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…

TELEFÓNICA I+D
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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 40largest
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
01

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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
21
12
21
11
2
2
11
1
2
2
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
11
4
2
Wireline market rank
Mobile 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 third
of the development done within Telefónica
9
(1) Under OECD definition.
Year 2008
data
Technological
Innovation (1)
Development of product /
services / processes
(668 M€)
(4,614 M€)
62 M€ (100%) 240 M€ (36% )
Applied
research(62 M€)
01

TELEFÓNICA I+D
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
10
The 4 major business lines and organization of Telefónica
I+D
Last update on December 31th, 2008* Employees + university scholarships
IT Systems
Networks and
Platforms
Internet &
Multimedia
End-User
Services
Technology Strategy
Resources Management
and Control
Executive President
(CEO)
Human
Resources
949272
2
225
1131838
01

TELEFÓNICA I+D
Our R&D focuses on all part of our business but
especially on the new ones
New Business
Development
While
Connected
Core Business
Stay Connected
Digital content
and services
Broadband
Connectivity
Voice
11
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
02
14

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Creating an Agile Work Culture
15
02

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02
Value & Market
Driven
Empowered
Customer
Agile change management
is adaptive to changing
business needs
Client
Satisfaction

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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 documentation
Reducing 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 Agile
Danube 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
20
02
ShuHaRi
Method
Organic Growth
Viral Way

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Core BusinessNew Business Development
Stay ConnectedWhile Connected
Technology
Strategy
Planning,
control and
resources
IT
(BSS/OSS)
Network and
Platforms
Executive
President
(CEO)
Infected Telefonica I+D Lines02
Internet &
Multimedia
End-User
Services

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Applied
research
Experimental
development
Product
Development
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 Line02

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03 Top 8 Changes
05 Acknowledgments

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New Team Emerged
Innovation & 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
1

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Agile Framework Definition
2
adoptionline

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Framework Definition
2

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Framework Definition
Approached by Sergio Vila Pagès
Senior Visual & Interaction Designer at Telefonica R&D
integration of different disciplines
2

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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
29
3

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Framework Definition & Knowledge Management
3

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Organizational changes with two overall objectives
31
Increase people
empowerment
Increase the quality and impact
of our products and
developments
“With great power
comes great
responsibility ”
4

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Innovation Funnel and Initiatives
32
External research
Internal research
Flagship
Global
Products &
Local
Products
Innovation Initiative
External Collaboration
InI@Product
InI@Research
InI@Prototype&Pilot
BASIC
RESEARC
H
APPLIED
RESEARC
H
FEASIBILI
TY
PROTOTY
PE
PILOT MARKET
4

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Functional
Organization
33
Knowledge
Groups
Strategic Functions
Common Services
Innovation Initiatives
4

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Cutting the red tape5
Old Waterfall Methodology Removed
Some Processes Speeded Up
‘Transformation Project’ launched
…

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Scrum Roles Adaptation
6

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03 Top 8 Changes
05 Acknowledgments

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Defining a Tools Common Environment
7

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Engineering
Productivity
Group
CENV
- tools
- guidelines
- …
Different Environments
Common 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 me mbe rs

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New Workspace
39
8
isolate d
from the world

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New Workspace
8 all the te am togethe r
product owne r
scrum maste r

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New Workspace
8
information
radiators
ope n space

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spontane ous me etings
vide o game
console
New Workspace
8
library

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Confessionals,
quiet and private spaces
New Workspace
8

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03 Top 8 Changes
05 Acknowledgments

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You can’t accelerate
it too much…
…either slow it down
Change has its
own Pace
1

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Someone has to pull…
46
… 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
3

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Super nanny
2008
…when we
learn,
we get dirty
4
Let the people learn by themselves,
knowing that…

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… pass on the Scrum
passion
spread Scrum
ownership…
5

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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…
6

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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
7
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)
BUSINESS
PRODUCT OWNER
+
STAKEHOLDERS
8

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Too many participants are usually
the cause of:
Delays
Mediocre Backlog Prioritizing
Unclear Product Vision
9
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 entirely
10

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03 Top 8 Changes
05 Acknowledgments

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Acknowledgments
58
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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Agile at Telefonica I+D: Catalyst for Innovative Culture

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