SAFe Value Chains
Recall that the Scaled Agile Framework contains several levels of hierarchy from command management to enterprise portfolio management. And one of the levels is value chain management. There is a demand for this level from large organizations that create large-scale or critical systems. However, some of its elements will be quite useful and not very large enterprises.
In order to remain competitive, a modern enterprise is undergoing major transformations, one of the key areas of which is digitalization, or digital transformation. This comprehensive concept implies not just automation or IT-based innovation, but something more: a major change in both business processes and business models — the foundations of an enterprise’s activities, making them money and creating value for customers. Often, the products and services offered to customers are changing dramatically. All of this is based on information technology.
A striking example of this - the automotive industry. According to Ford experts, more than half of the innovations implemented in the last five to seven years are connected with the use of advanced information technologies not only in the design offices and production workshops, but also in the cars themselves. So, on-board computers have already become the de facto standard and appear even in new models of domestic brands. Increasingly, there are cars equipped with automatic parking systems, or even fully controlled by computer systems. If it goes on like this, in 20-30 years the profession of a driver will become as rare as, for example, the profession of a coachman, perhaps owning a car will become the same hobby and luxury as owning a live horse.
For many enterprises that have embarked on the path of digital transformation, software development is gradually ceasing to be a non-core business, a kind of stepdaughter, and becomes one of the key areas of development. For example, in 2010-2011. Representatives of IT banks have often argued that they are not software developers and the management of development and quality is not their task, but the task of contractors. It is now all the same, the direct business of banks, retail, telecommunications and other industries, so that it does not turn into a heavy burden, it is necessary to develop software quickly (without lagging behind competitors), qualitatively (without reworking many times and not raking a mountain of reclamations from disappointed customers) and prudently (efficiently from a financial and economic point of view). This is precisely the goal of the Scaled Agile Framework (SAFe) - an open, online knowledge base containing proven guidelines and templates for implementing lean (Lean) and flexible (Agile) techniques for creating large software systems, including enterprise scale. Notable users of SAFe are Intel, Lego, BMC Software, Nordea, Accenture Technology, and HPE Software. In this knowledge base, on the one hand, lean manufacturing principles are implemented in relation to software and engineering systems development - the very thing that brought fame to the Toyota concern, on the other hand, they develop and scale to the level of a large enterprise Agile-methods, such as Scrum, XP and Kanban and all this is accompanied by a transformation of the culture of interaction between the company's divisions within the DevOps approach. Development coordination and SAFe certification matters are handled by Scaled Agile, Inc.
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SAFe can be used both in small and medium-sized enterprises and in very large companies, where 500 and 1000 people can be engaged in the development of software solutions, creating very complex and large-scale systems. In relatively small enterprises, the benefits of SAFe can be achieved by managing the entire set of technical solutions in accordance with the business strategy. Of course, you need to understand that scaling has its price, and if you have, say, less than 5 development teams, then simpler approaches to scaling Enterprise Agile can be more successful. This, by the way, is voiced in the first principle of the SAFe framework - look at your products from an economic point of view.
As for large companies, if we are talking about creating truly complex products using lean and Agile approaches, they actually have no alternative to SAFe, since other scaling frameworks are either not designed to organize the work of so many development teams or are not well documented. . These products can contain both software and hardware parts, including electrics and electronics, optical, mechanical, hydraulic and other components. To create them requires the versatile knowledge and efforts of hundreds, and sometimes thousands of professionals - not only full-time, but also employees of contractors. Failures in these systems or subsystems, which are often assigned critical tasks, can lead to unacceptable economic and social consequences.
Within SAFe, there are four levels of development management: the level of portfolios, value chains, programs, and teams (see Figure 1).
Fig. 1. SAFe levels.
Source: Scaled Agile, Inc.
There is a demand for this level from large organizations that create large-scale and often critical systems. At this level, the functions, properties and features of the behavior of a new product are determined, as well as the context in which it is to be deployed, used, maintained, promoted, completed and sold. In addition, formulated decision rules on the economic aspects of development.
The level of value chains appeared in the fourth version of SAFe, where it is not mandatory. Organizations that create systems that require only a few hundred experts to develop can use the “truncated”, three-level version of SAFe, described in SAFe version 3.0.
Similar to the level of programs, this level is built around the increments (increments) of programs. Increments are, in fact, Deming's cycles (planning - execution - control - impact, Plan-Do-Check-Action, PDCA), for which end-to-end synchronization of ART teams in value chains is ensured, which allows you to organize effective and systematic interaction of many teams and contractors.
Fig. 2. The level of value chains.
Source: Scaled Agile, Inc.
Key roles at this level are solution managers (Solution Management), architects and solution engineers (Solution Architect / Engineering), as well as Value Stream Engineer (VSE).
The cornerstone of the solution is his intention. It is the intention that determines the behavior of the product being created and related decisions, as well as being the only “source of truth” and the repository of all requirements, including the history of their clarifications.
The main structural component of the value chain level is a decision, because the whole chain is working on its creation. Solutions must function not just in accordance with their intentions, but in their contexts — in the environment in which they will “live” after deployment. These products must meet all the requirements of customers, and in addition, have the desired properties, be able to support those business initiatives for which they are created, and thus realize their mission.
Management of larger initiatives is carried out on the basis of a set of smaller but important initiatives, the implementation of which ensures the achievement of a global goal. In the process of analysis, this set is converted into a set of solution properties. They are managed through the Kanban system (in fact, “just in time”) built into the value chains. Kanban helps to ensure that the properties are placed in the backlog, where they are put in line for implementation, they have already passed the assessment and analysis stage, and helps to ensure effective and productive work of those properties participating in the analysis.
Another function of the value chain level is the coordination of ART teams working together to create a single solution. This process is based on building a certain rhythm of program increments by synchronizing the iterations of Agile development. This ensures the interaction of not only ART teams, but also contractors. At the beginning of each increment, general planning is carried out for the nearest period, it is carried out by the teams themselves during the PI planning meetings. In order to develop a plan that is common to all value chains and taking into account interdependencies between the chains, before the beginning of the increments and after their completion, these meetings are held. They are important for synchronization, but costly to involve participants, collect each member of the ART team, so it is recommended that the meeting be held once every 10 weeks - after 5 sprints, if their length is 2 weeks. Upon completion of each increment, the solution is demonstrated to customers and other interested parties. Then, within the framework of the working meeting, the efficiency of the entire value chain is analyzed and ways to improve the existing process are determined, which is quite in the spirit of the concept of lean production.
Note that the presence of some elements of the level of value chains is due to the peculiarities of creating large, complex solutions and, as a result, the need to organize the work of large development teams. However, some elements will be quite useful when using the three-level version of SAFe. In particular, this concerns the design of the solution, the management of the economic aspects of the development, and the interaction with contractors.
In order to remain competitive, a modern enterprise is undergoing major transformations, one of the key areas of which is digitalization, or digital transformation. This comprehensive concept implies not just automation or IT-based innovation, but something more: a major change in both business processes and business models — the foundations of an enterprise’s activities, making them money and creating value for customers. Often, the products and services offered to customers are changing dramatically. All of this is based on information technology.
A striking example of this - the automotive industry. According to Ford experts, more than half of the innovations implemented in the last five to seven years are connected with the use of advanced information technologies not only in the design offices and production workshops, but also in the cars themselves. So, on-board computers have already become the de facto standard and appear even in new models of domestic brands. Increasingly, there are cars equipped with automatic parking systems, or even fully controlled by computer systems. If it goes on like this, in 20-30 years the profession of a driver will become as rare as, for example, the profession of a coachman, perhaps owning a car will become the same hobby and luxury as owning a live horse.
For many enterprises that have embarked on the path of digital transformation, software development is gradually ceasing to be a non-core business, a kind of stepdaughter, and becomes one of the key areas of development. For example, in 2010-2011. Representatives of IT banks have often argued that they are not software developers and the management of development and quality is not their task, but the task of contractors. It is now all the same, the direct business of banks, retail, telecommunications and other industries, so that it does not turn into a heavy burden, it is necessary to develop software quickly (without lagging behind competitors), qualitatively (without reworking many times and not raking a mountain of reclamations from disappointed customers) and prudently (efficiently from a financial and economic point of view). This is precisely the goal of the Scaled Agile Framework (SAFe) - an open, online knowledge base containing proven guidelines and templates for implementing lean (Lean) and flexible (Agile) techniques for creating large software systems, including enterprise scale. Notable users of SAFe are Intel, Lego, BMC Software, Nordea, Accenture Technology, and HPE Software. In this knowledge base, on the one hand, lean manufacturing principles are implemented in relation to software and engineering systems development - the very thing that brought fame to the Toyota concern, on the other hand, they develop and scale to the level of a large enterprise Agile-methods, such as Scrum, XP and Kanban and all this is accompanied by a transformation of the culture of interaction between the company's divisions within the DevOps approach. Development coordination and SAFe certification matters are handled by Scaled Agile, Inc.
')
SAFe can be used both in small and medium-sized enterprises and in very large companies, where 500 and 1000 people can be engaged in the development of software solutions, creating very complex and large-scale systems. In relatively small enterprises, the benefits of SAFe can be achieved by managing the entire set of technical solutions in accordance with the business strategy. Of course, you need to understand that scaling has its price, and if you have, say, less than 5 development teams, then simpler approaches to scaling Enterprise Agile can be more successful. This, by the way, is voiced in the first principle of the SAFe framework - look at your products from an economic point of view.
As for large companies, if we are talking about creating truly complex products using lean and Agile approaches, they actually have no alternative to SAFe, since other scaling frameworks are either not designed to organize the work of so many development teams or are not well documented. . These products can contain both software and hardware parts, including electrics and electronics, optical, mechanical, hydraulic and other components. To create them requires the versatile knowledge and efforts of hundreds, and sometimes thousands of professionals - not only full-time, but also employees of contractors. Failures in these systems or subsystems, which are often assigned critical tasks, can lead to unacceptable economic and social consequences.
SAFe levels
Within SAFe, there are four levels of development management: the level of portfolios, value chains, programs, and teams (see Figure 1).
Fig. 1. SAFe levels.
Source: Scaled Agile, Inc.
- The command level is the lowest. These, as a rule, small (no more than 9 specialists, ideally) Agile-teams work on the basis of the ScrumXP approach, and / or including using.
- At the program level, the second in the hierarchy, virtual teams are formed, whose name - Agile Release Trains - can be translated as “trains delivering Agile releases” (hereafter, for brevity, we will call them ART teams). The meaning of this metaphor is that, like trains going from station to station with various cargoes, these teams must act rhythmically, strictly follow the schedule and move at a predetermined speed according to the plan, delivering customers prototypes, models, software products, equipment, documentation, etc. Specialists who are part of these virtual teams, together plan their joint activities, fix the commitments made and then fulfill them. The emphasis in planning is not on the release dates of the product or releases, but on the rhythm and synchronization of the interaction of all stakeholders. If teams are successfully transformed into Feature teams, then with minimal synchronization, such teams will successfully work within their sprint. At the same time, a release can go into a production environment at any time, as achieved, for example, an important amount of functionality.
- The third level is the level of value added value chains (Value Stream Level). When creating complex solutions, when you need to apply both scientific knowledge and practical skills, the efforts of many ART teams and contracting companies are needed. The value chain is, in fact, a process that ensures the creation of a certain product or product in the interests of one of the business areas. Examples of such a chain are bank credit lines or the online banking business process. Each direction will be handled by a separate ART team, which includes a number of development teams. By the way, it is at this level that the development strategy of the products created is determined.
- Finally, the fourth level of SAFe is the level of portfolios. The portfolio contains a set of value chains, as well as a number of elements for the overall management of everything related to the creation and improvement of products, services and solutions in accordance with the company's business strategy, as well as their financing.
Level of value chains
There is a demand for this level from large organizations that create large-scale and often critical systems. At this level, the functions, properties and features of the behavior of a new product are determined, as well as the context in which it is to be deployed, used, maintained, promoted, completed and sold. In addition, formulated decision rules on the economic aspects of development.
The level of value chains appeared in the fourth version of SAFe, where it is not mandatory. Organizations that create systems that require only a few hundred experts to develop can use the “truncated”, three-level version of SAFe, described in SAFe version 3.0.
Similar to the level of programs, this level is built around the increments (increments) of programs. Increments are, in fact, Deming's cycles (planning - execution - control - impact, Plan-Do-Check-Action, PDCA), for which end-to-end synchronization of ART teams in value chains is ensured, which allows you to organize effective and systematic interaction of many teams and contractors.
Fig. 2. The level of value chains.
Source: Scaled Agile, Inc.
Key roles at this level are solution managers (Solution Management), architects and solution engineers (Solution Architect / Engineering), as well as Value Stream Engineer (VSE).
- Managers of solutions represent the interests of customers, monitor the fulfillment of their requirements and the implementation of strategic portfolio development directions - business goals linking the SAFe portfolio and business strategy. Together with product managers belonging to ART teams, they carry out the detailing of the properties of the solutions and determine their functions and capabilities. In addition, they are responsible for maintaining the backlog of the entire solution and each team, respectively, which will reflect the plan for creating a solution, and setting priorities. They are also entrusted with the development of decision-making rules on the economic aspects of creating systems that are necessary for managing the decision-making process in ART teams and Agile teams.
- Architects and solution engineers are the team that defines the architecture of the solution as a whole and, thus, unites ART teams. They work closely with the system architects of ART teams and engineers to help them identify the architectural skeleton of the products they create in accordance with the proposed product development roadmap.
- The value chain engineer is responsible for ensuring that the chain works clearly, without failures and delays, for which he must identify and eliminate the bottlenecks in a timely manner. In addition, he helps to organize meetings of the chain participants, monitors the accuracy of meeting deadlines (Kanban) and other indicators of the metrics that characterize the chain.
The cornerstone of the solution is his intention. It is the intention that determines the behavior of the product being created and related decisions, as well as being the only “source of truth” and the repository of all requirements, including the history of their clarifications.
The main structural component of the value chain level is a decision, because the whole chain is working on its creation. Solutions must function not just in accordance with their intentions, but in their contexts — in the environment in which they will “live” after deployment. These products must meet all the requirements of customers, and in addition, have the desired properties, be able to support those business initiatives for which they are created, and thus realize their mission.
Management of larger initiatives is carried out on the basis of a set of smaller but important initiatives, the implementation of which ensures the achievement of a global goal. In the process of analysis, this set is converted into a set of solution properties. They are managed through the Kanban system (in fact, “just in time”) built into the value chains. Kanban helps to ensure that the properties are placed in the backlog, where they are put in line for implementation, they have already passed the assessment and analysis stage, and helps to ensure effective and productive work of those properties participating in the analysis.
Another function of the value chain level is the coordination of ART teams working together to create a single solution. This process is based on building a certain rhythm of program increments by synchronizing the iterations of Agile development. This ensures the interaction of not only ART teams, but also contractors. At the beginning of each increment, general planning is carried out for the nearest period, it is carried out by the teams themselves during the PI planning meetings. In order to develop a plan that is common to all value chains and taking into account interdependencies between the chains, before the beginning of the increments and after their completion, these meetings are held. They are important for synchronization, but costly to involve participants, collect each member of the ART team, so it is recommended that the meeting be held once every 10 weeks - after 5 sprints, if their length is 2 weeks. Upon completion of each increment, the solution is demonstrated to customers and other interested parties. Then, within the framework of the working meeting, the efficiency of the entire value chain is analyzed and ways to improve the existing process are determined, which is quite in the spirit of the concept of lean production.
Note that the presence of some elements of the level of value chains is due to the peculiarities of creating large, complex solutions and, as a result, the need to organize the work of large development teams. However, some elements will be quite useful when using the three-level version of SAFe. In particular, this concerns the design of the solution, the management of the economic aspects of the development, and the interaction with contractors.
Source: https://habr.com/ru/post/300036/
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