Las Vegas 2018

Connecting IT to the Business at BMW Group

Just as mass production defined the landscape in the 20th century, mastering large-scale software delivery will define the 21st. Unfortunately, businesses and the technology leaders outside of the tech giants are woefully ill-equipped to solve the problems posed by digital transformation.


Development work is still disconnected from the business needs, and teams are burdened with decades old software architectures and substantial technical debt. A new approach is needed.


This session will discuss how BMW Group implemented a connected end-to-end value stream— from requirement to road—and how Tasktop is helping optimize the flow of business value across their entire organization.


DevOps Transformation leader with expertise in the implementation of DevOps, Lean and Agile practices to improve software delivery across all Technologies. Recently worked on the implementation of DevOps practices to accelerate delivery at a Fortune 100 company. This includes providing a continuous delivery pipeline to give Business areas the ability to deliver as fast as they need to based on their own determination of cost, risk and value. My goal is to consult with other companies to help them determine how they can drive accelerated results across their delivery value stream.


Named as one of the top 100 DevOps Leaders ( http://techbeacon.com/100-devops-leaders-enthusiasts-experts-you-should-follow-today) and one of the 25 must follow enterprise DevOps leaders (https://techbeacon.com/25-must-follow-enterprise-devops-leaders-twitter). Regularly consults with large enterprises on how to start and sustain DevOps transformations.


Co-authored "DevOps Case Studies" (https://itrevolution.com/book/devops-case-studies/) and "Expanding Pockets of Greatness" (https://itrevolution.com/book/expanding-pockets-greatness/) published by IT Revolution.


Presented at all 4 Gene Kim's DevOps Enterprise Summits 2014-2017 (see videos below) and at the IBM Innovate conferences (2012-2014), InterConnect conferences (2015-2017) and others (ITSM Fusion, DevOpsDays) on the application of DevOps to improve software development across all Technology spectrums. Contributed to white papers and webcasts for Global Rational User Community and was the 2014 GRUC Platinum Award winner. Was the keynote presenter at the initial DevOpsDays Ohio in 2015.


Previous experience at Bell Labs with a focus on high performance, highly available telecommunications and intelligent network systems and Behavioral Healthcare experience in providing billing and clinical systems at CMHC/NetSmart.


Holder of 3 patents in software engineering.

RT

Rene Te-Strote

Senior IT Project Lead, BMW Group

CD

Carmen DeArdo

Senior VSM Strategist, Tasktop

Transcript

00:00:11

Maybe the future is full of surprises. Maybe the future is personalized The future isn't just with shell, Maybe the future, The future has company

00:01:49

So thank you for being here today. Um, I'm Carmen, Diardo a VSM strategist at Tasktop and, uh, Renee is going to talk a little bit about some of the great, uh, it it's in that car that's, uh, performing like that. So Renee, take it away.

00:02:09

Yeah. I hope you can forgive me the weakness of my German accent and slightly my tech wise, uh, all the interesting conversations here already strained a bit. My, my, uh, vocal chords. Uh, so first of all, I wanted to choose a bit, uh, and the thing about BMW group at all, um, of course, BMW group is, uh, consists the brands, BMW mini and rolls Royce, and a BMW. Isn't only a car manufacturer, but also the leading motorcycle manufacturer in the world. We have a total of about 130,000 employees worldwide. And in 2017, we delivered a total of, uh, more than 2.5 million cars. And more than one of them, 180,000 motorcycles, the groups production I've worked hotel 31 locations in 14 countries. And these compromise 19 BMW group plans, five joint ventures, four partner plans, and three contract production plans, the same quality safety and sustainability standards apply for all these plants throughout the BMW group production network. Worldwide. The 19 BMW group plans compromise 13 automobile and engine plants, two plants, four BMW motorcycles, three sides for producting components, press parts and tools. And one supply central in 2017. BMW was already producing electrified vehicles at a total of nine locations. So we always talking about a worldwide network, a lot of people and a tremendous massive amount of data.

00:03:59

First of all, I want to show that the BMW group is not only a manufacturer of cars and motorcycles. BMW has a lot of services for individual premium mobility. Our premium car sharing service already has over a million customers in certain cities, a growing number of older people, families, business travelers are also using drive. Now reach now services available in the U S and since late 2017 in China, collaborating with a local partner, the beams w group is one of Europe's foremost, leasing and food service providers, the financial service segments, fleet management business under the brand of alphabet offers commercial customers and financing agreements, as well as specific services. At the end of 2017, BMW had a total of 680,000 free contracts. And a little funny thing to alphabet. This is a brand name of BMW and BMW owns all the internet domains for algebra.com. The whatever.

00:05:12

No, what? I'm right. Yeah. Okay. So finding a parking space is a problem for many drivers park. Now is a BMW group's digital parking service. It enables ticket free cashless paying via app, both at roadside and in multi-story car parks in January, 2018, BMW acquired park mobile LLC, the largest provider of mobile parking services in north America, part mobile group, Europe, which own, which also owns park group amongst its brands, a park now amongst its brands has been wholly owned the BMW group, uh, by the BMW group since April, 2016 in Europe and north America part mobile reaches over 20 million, uh, customers and offers digital parking solutions in more than 1000 towns and cities in 2015, BMW dimer and audio shop jointly acquired Nokia's maps and local services business here here's digital digital maps provide, provides the foundation for the next generation of mobility location-based services. They formed a basis for the new assistance systems rides through by fully automated driving in the future.

00:06:39

In the core business, the three areas of drivers, the system systems, autonomous driving, and as well as connected drive and all the services are precisely the fields that concerns us the most. I would like to give you some more insights. 10 million BMW group vehicles are already connected. Why are connected drive? It takes about 25 million tests kilometers to get an autonomous vehicle ready for serious production. In 2018, our fleet of autonomous BMW seven series models will continue to collect data on the roads mainly in Germany, Israel in Cali and California, in order to provide you as a customer with services such as online entertainment, each BMW has its own SIM card to guarantee network independently from your off your smartphone, all other services you have seen and will see will depend on connected drive through charge. Now, one more service. The BMW group provides easy access to constantly and growing network of publicity charging stations, which with more than 100,130,000 charging points in 29 countries charge now provides the access to the words world's largest charging network network. Customers can locate the charging stations directly. Why are the connected drive app in which is integrated into our navigation system in the car, uh, was why are the charge now app or the internet page? And of course the whole thing is not only integrated in the vehicle end of the smartphone, but also on the wearable.

00:08:24

All of which means that our vehicles contains a lot of software, which are basically moving computers. The I eight, which you can see outside is controlled with all its functions by more than 100 million lines of code, how we can handle that more than later. And then I hand over to Carmen.

00:08:46

Thanks Renee. So that was the cool part of the talk and know I did the talk. So, um, so, you know, as Renee is laid out, right, there's a lot of software, there's a lot of needs to connect that software. And so, you know, in my dealings with BMW, I'm amazed at how many products, uh, the product model they've already gone to. Right. I think it's like over 300 or some product models. So they are very advanced in what Mick talked about yesterday in terms of going from product to product, but for the rest of us, right. It's easy to look at that car and say, well, yeah, that's a product, right? If you're in an insurance industry, a financial industry, you know, some other industry, what is a product, right? That's, that's hard, right. And we've kind of gone through this journey, right, where we said, Hey, we've done cool things in it.

00:09:38

Right. We've done agile. We've done dev ops. We have all these new technologies, Docker, Kubernetes, you know, I gave it to an ITFM conference. I'd put something about server certified pro. Oh, shouldn't have said that. Um, but I love, I love that. But you know, it was mixed said, is the business really happy with this? I mean, do they really care? They really care about these things like proxy metrics. And, and, you know, if you talk in this conference and you go back to 2014, or even before, you know, what you'll find is, you know, agile is great and I'll just a great place to start. Right. You know, the nationwide journey yesterday talked about, they started agile 10, 12 years ago, and the code, the clouds you need code to cloud. However, if you don't, if you ignore that left-hand side and you can't connect back to the business and you can't flow everything from the portfolio and not just flowing it, but actually talking a language that the business understands.

00:10:40

I think you end up where Jeffrey Stover talked about, right. If you're a cost center, well, I went to reduce the costs. If I'm a profit center, I want to increase the investment. And that's the power. One of the powers I think of going to the project to product journey. And this is because otherwise, you know, this is from John smart, right? Are we agile? Yeah. We're agile. The other there's 14 steps there. One out of 14. We're agile. I don't think so. Right. He, he told this better than me cause he got a lot of laughs in London. Okay. John, I don't know, just going to use your slot, but Kevin Fisher talked yesterday about nationwide and you know, somewhere around two and a half percent of the time of their lead time of a story is spent in actual development. So I don't think this is uncommon in terms of having to approach this from a value stream perspective.

00:11:36

So what flows in a value stream, right? Where there's five kinds of element things that flow one is features, right? And I think this is where you get a stark contrast between projects and products. When you align around projects, it's typically about features, the incentive for project managers about features it's about cost, right? However, you know, there's defects, right? And certainly if you think again about a car model, right, who wants a car that has a lot of defects in it, you've got to adjust your defects. There's certainly risk. You heard Renee talk about all the autonomous capabilities. You don't think BMW is giving priority to risk, but we all have that risk. We all have the PII data. There's GDPR. We have to address risk. And it has to be a first class citizen. It can't be a security officer versus them owner trying to beg a project manager to upgrade a struts library.

00:12:34

That's not going to work. Right. It has to be looked at holistically and then you have to invest in debt. And, you know, I asked Renee, I go, well, what would you consider debt? Right. And he talked about the cable harness and the fact that at some point they realized with all that data that you saw, they had to re-engineer the cable harness, right? So those are products you have to look at and take holistically if you're really going to, to be able to succeed. As Mick said through the turning point. So what are those core flow metrics right there? How much value are we delivering? And they have to be in the customer's language. Right. So how much value are you getting for your business? And that's flow velocity, you know, how much, you know, how much time are you waiting on work? Right. I think, I think what we find is most of the time that we're sitting around teams are waiting for work, right? They're either waiting for work to come to them. They're waiting for another team to do something. They're waiting for an environment that two and a half days from nationwide shows that, you know, you may have lead times of 40 or flow times of 40, 50 days. And a lot of times that work is just waiting around to go to the next step because you're missing something. Right.

00:14:02

Um, you know, how long does it take to get from requests to actual release? I mean, that's your flow time and it's not just code to commit. Right? It's that tie, it includes that creative process from idea all the way through the entire value stream. And then, you know, this is Dominican's big talk and she's talking after this, you know, web, we know that whip is a killer. We know we learned that lesson from the Phoenix project, or we should have learned that lesson. Right. Because I think I hear people say it, I hear executives say it, but yet, do they actually go to Gamba and see all your web and do something about it? Right. I think Mick had a very compelling story yesterday about what happened at one point at Microsoft, when they said, we're just going to pay down debt, you know, for a while.

00:14:52

And then that's going to increase our velocity of delivering features and the happiness your team's going to go up. Right. And so are we actually using this information appropriately to actually make sure that we're able to deliver on that value and also deliver in a way that keeps our, our teams happy? And then finally, you know, the right capacity. And I think this really hits home from the last slide. Do you actually have a way to talk from a perspective of those four flow items and saying, okay, we're going to dedicate this much to risk or this much to defects maybe at the expense of features for a while, because that's what's most important right now. Right? And I think in a product model, it's much easier to do that. So again, here's the flow metrics. Here's an example of a dashboard, right? Which shows all those things to a team.

00:15:48

And I really saw the power of this just, just in showing flow time was very powerful and changing the mindset of, of folks because it was data, right? It was data. You could show executives, you know, it meant more because this was actually data that we were collecting. And then on the right side is you relaying it to the business in languages that they understand, right? So this is an , you're talking about the value. You're talking about the cost, right? You're talking about the quality and then key as we heard yesterday, and some of the keynotes is the happiness of the team, right? The happiness of the team is a good indicator of how well things are going, right. If your team isn't happy, they're not going to be productive. If they're not productive, they're not, it's going to get you in a spiral. So just briefly, um, you know, you've seen the flow framework, um, Nicole talk yesterday about product modeling. And here's an example of what we do with customers like BMW to model their artifacts, to make it real. I find it was very important to hang this on the wall and show people. This is what I mean when I say we want to visualize the flow of work in our value stream.

00:17:02

And then finally, again, the metrics, right? You know, the power of these metrics, the power of actually seeing this is not what we hope things are. This is not what we think things are. This is how things are, right. And they're not just from an it perspective, but how they relate to the business. So with that Renee, I'm going to let you talk about how some of this applies to what you're doing from an it perspective.

00:17:26

Thank you. Uh, based on that, what Carmen had said, and what I told before, let's take a look to the BMW challenges that we have currently, uh, today BMW as a company, faces a whole series of challenges, one of the biggest challenges and, uh, the basis for everything else is the agile transformation. And in the place, we will not longer speak about the speak of products of projects, but of products. We no longer start with the old project methods and start a project, but everything is agile. And the product in the future, a very important basis for this is the HR tool chain. We call it ATC. This allows us on a large scale to bring new products to market quickly and adopt them to customer needs to achieve this. It's not enough to have a few selected departments to something agile. It has to be agile, the whole it, but also the whole business and bring them closely together. And that, and by that, I also mean such areas as finance and controlling HR purchasing. And so on the whole company, the whole company to achieve this, um, or yeah, and to make it better, we also renovating entire office complexes so that we can better facilitate collaboration and provide the latest communication technologies for our internal and external teams. The integration of our partners is an extremely important aspect for us.

00:19:12

Then all the activities are for the development of autonomous driving, have to be integrated into the entire company because gradually everything has to be integrated into the vehicles of the future and build in large quantities. And in the end of all, this must mean that in the future, we can and will develop our products much faster and even better before let's take a, let's take a quick look where we come from in the past, we already had a project we are already, yeah. We already had the approach to automate a software development process. Even then Tasktop was a central part. Oh, the central hub for a to, and that allowed us to create the most seamless integration possible from check-in codes through the build process to test automation, we succeeded very well, but it's still was not real agile. It was not a real agile way of working.

00:20:16

Uh, we use this kind of tool chain to realize it projects, but also to drive automation and virtual vehicle development. After all types of tool chain does not care of it. Uh, Kara, Kara, Kara, if it builds tests and deploy software or trust simulation models, it doesn't matter for that tool chain. This is an output of such a tool chain, as it is to date use still today, use here's the simulation model for the calculation of, uh, where he could properties in this case, chances and tires. It's Chen, right by the already described to chain and assimilation from is created for visualization and all this completely automatically.

00:20:58

Let's talk about the ATC was out and as SDLC, the HR software development is impossible. All Def depends on the scalable, integrated high performance tool chain with that kind of tool train. We started with an adolescent based stick to find out what's best what's best for us. The ATC is constantly adapted and improved. And after, after we get to new insights, um, which led us search for new solutions, the ability to run software development on a grand scale with many teams and products over long period of time is one of the biggest challenges in the future. It must become clear whether the selected products fulfill all it expectations, whether products have to be added or, uh, something have to be eliminated. Currently we are discussing the use of octane from focus as an add-on or replacement for Chira because of the requirements in the large scale enterprise environment, a very big challenge is easier. Development is you is electronic control unit. Everything that this was electricity, it was at a car or software. Yeah. So these youth development is very big challenge today. We are at the point of having to replace the micro-focus lm.net instance, which is the largest in the world in order to be to prepared for the future tasks already mentioned. Therefore we are in the process of replacing ALM with micro-focus octane in order to make the next steps, and also to make this part of the vehicle development completely agile.

00:22:42

After the replacement of ALM octane, the next big tasks are directly for us. So we have shortly integrate the, we have to shortly integrate emerging R and D center in China into the whole process and connect the system landscape, uh, and the processes here, tasks of integration, optics over the data supply. Then it's my trip to realize a build this R and D center in China. I hope this will work.

00:23:10

We have confidence in urinate,

00:23:14

Uh, in the east coast, he wrote one of, uh, in the Eastern e-board of the future. We are talking about much larger, larger amount of data than today. Today we have about 15 millions of test cases and perhaps 500 terabyte of data in array elements, and a future. We are talking about billions of test cases and 250 megabytes per second, generating a single vehicle. Now you can calculate what thousands of vehicles produce in nonstop operations, 3,600 seconds per hour. Everything has to be managed for that. Again, we are in close contact with the Tasktop so that everything works better because it has to transport all the data.

00:24:09

I would like to briefly discuss the scenario of integration, integrating the R and D center in China, in China, we are building exactly the same landscape that exists in Germany, including the HPC cluster, HPC clusters, high-performing computer cluster, but a bit smaller than we have in Germany and in Iceland and Sweden. However, the applications that we are bringing we are being built in China initially contain no data. I think it's clear, um, only by coupling a data hub, which we realize with task of integration hub are the systems and China supplied with the data. According to what data is really needed, we call this the need-to-know principle. This goes hand in hand. It was a common software life cycle of all these applications, which is realized by a common build environment in Munich place in Munich, especially this means in Munich, there is a build environment or on Jenkins and several slaves and some more tools which controls and executes all deployments in China and in Germany. And this is done. Why a DM, CIT DM is set to China. And now I would love to hand over to Carmen for further insights.

00:25:27

So thanks Renee. So, you know, um, I want to make sure we get to the video. So I'm kind of looking at the time. So, so maybe you want to talk about, you know, how do you think this can be applied in the, in the car lifecycle? And then tell us about more about the work that we're doing in the China BBA.

00:25:47

So, uh, when we talk about the agile transformation today, um, or about something else that we want to implement or change in the business, we start by considering what output we expect, what should be the goal, what benefits should the activity have? What should be the product? What are the product B, then we try out to find, when we try to find out which quarterback next we have and how to handle them only, then we think about what the solution should look like. Um, and we do not look for existing solutions and see if we have a suitable problem for that. Um, this search of cause iteration for the best solution for a given task can be found in the flow framework perfectly because I see very quickly whether something works or not in the many discussions between people from, uh, BMW and Tasktop, uh, we found out very fast.

00:26:47

Um, yeah, and between ended discussions between people and, uh, of both companies, but also, uh, about the life sake, how it was built and how it works today, um, to build agile and, uh, uh, an extremely efficient vehicles. It has to be, it has become clear that what we call flow framework today, that exactly that what contributes a perfect companion to good product development for us at the moment. That's why I've been w and tasks, the blanched POC to find out how we can best measure the health of our products. And this requires that I have a monitoring where I can indicate depending on the needs, which float distribution I have related on my features, dis uh, defects, whatever, uh, depending on what I'm currently interested in and regarding the car life cycle in the future, our partners would have to be integrated into our vehicle development cycle even faster in order to be, to simply become much faster and total, and was an ever increasing, uh, complexity of our products and, uh, last constant, at least a constant quality. And to achieve this, we need to be able to integrate different systems, heterogeneous systems, and, and to quickly see if everything is going as intended then regarding China. I have now a video for you. Uh, okay. First of all, let's take a look at the video.

00:28:27

Um,

00:28:32

Virtual reality is a technology which enables immersive experience for user. So you enter a new virtual world and can experience different scenarios. And right now the focus is more on 3d geometry. And in future, we will also enter the field of functionality, car functionality, Latin-America simulation inside virtual reality.

00:28:57

It's a paradox that we view and analyze however, freely simulation models on to the screens. And we had this idea to look at full vehicle crash in virtual reality, because it's quite tricky to understand the kinematics and the damage to the vehicle at the first glance, normally to analyze, if we did model, you will need to perform an analysis in your pre-processor post processor and carry out a series of cross-sectional cuts. And subsequently you will create a PowerPoint presentation in which you're passing your findings to your team. This takes a lot of time in virtual reality, we can perform exactly the same actions faster and simpler for the virtual reality crushed simulation to musterbation. You use BMW five series crash data off the shelf, premium passports, sensor, VR, steam software, and typical VR hardware headset. We improved the quality of the demonstration. We ran their materials such as plastic, glass and steel in the end, by leveraging virtual reality technology, we are able to produce a fully immersive experience of a crowded vehicle. You can initially toward the car inside and outside and see the crash herself. Also collaboration aspect of virtual reality plays a big role in distributed teams, especially now, and being down, even counts in international and global company.

00:30:30

Um, one of the biggest advantage of virtual reality is the independency from your physical environment, especially in case of BMW, where we have different global locations, uh, one design team in LA engineers in Beijing or other ma engineers inside of BMW Munich. And they all are able to enter one virtual room and discuss, interact with a car model in real time together with the other colleagues and one advantages also that you can point to some car parts and the others call colleagues will see it in the virtual world, which is not possible that the 2d techniques right now.

00:31:16

So by the way, you are the first audience, okay. Okay. You are the first audience outside of BMW that had ever seen that video. So in this video, you could see what the future collaboration looks like. We are currently rehearsing what you have seen for using China in order to optimize worldwide collaborations with suppliers in our dataset deployment center in Munich, also VR is a key technology. The whole thing only works with the right data supply, the right data. It's nothing. And we always talk about deployment in, on development in a large scale and price environment with the huge amount of data. So I think we have to hurry up a bit.

00:32:00

Yeah, I apologize. Um, so, you know, Nicole talked about this tomorrow, stop by our booth to, to actually, you know, figure out how to connect, monitor your products. Certainly we could use help. I think, I think the community could and how you're going on this journey defining products, right? How are we doing this? So that as a community, we can move forward together and we'll leave you with this little video and thank you.

00:32:32

Um,

00:32:48

Thank you for your attention.