What was the client’s problem?
AGCO, a global agricultural machinery manufacturer, is undergoing a comprehensive digital transformation. After a large-scale reorganization, the client has started an Agile Transformation with AdEx Partners to unite numerous heterogeneous teams in a uniform process organization.
Digital Transformation & Agile Methods
AGCO has set itself the goal of developing intelligent agricultural solutions and digital services. To achieve this, AGCO started a comprehensive digital transformation several years ago. AGCO implemented agile methods for the first time to ensure that our customers can continue to respond to global and highly volatile competition.
The “DIGITALCUSTOMEREXPERIENCE” (DCX) program aimed to efficiently develop digital products and services and bring them to market.
Problem Statement
After two years of successful development and continuous improvement, “DCX” struggled with organizational hurdles, a silo mentality, and the efficient use of agile methods.
A comprehensive reorganization of digital product management and IT structure was carried out. The aim is to overcome organizational hurdles to make product development more efficient and improve scalability.
Agile Transformation
The new organizational structure provides the framework. However, the success of the reorganization must breathe life into the new organizational structure. AdEx Partners was given the mandate to implement a holistic Agile Transformation. The goal is to establish a new process organization that promotes cross-functional collaboration and scaling the development process.
Our approach
Under the title ONE Digital, AdEx Partners jointly and co-creatively developed a holistic approach to Agile transformation with the client. The focus was to iteratively establish a uniform process organization (framework, processes, and tools) according to the Scaled Agile Framework (SAFe) and to accompany this process with a stringent project and change management.
Team Setup
Trafo Team
- Establishment of an AdEx transformation team as a single point of contact to coordinate and execute the transformation
- A Co-creation approach involving the entire organization
- Regular system demos and weekly progress reporting
Iteration
One Team
- Integration of the new organization into a Solution Train with six Agile Release Trains and 60 Scrum Teams.
- Presentation of the new structures & processes and incorporation of employee feedback
- Delivery of training and coaching to all employees.
Iteration
One Tool
- Adaptation of the central collaboration tool (Microsoft Azure DevOps) for software development in the entire organization along the newly defined structure and process organization.
- Migration of approx. 20 legacy systems to the target system
- Regular feedback loops and implementation of improvements (co-creation approach)
Fit-Gap
Trafo Blueprint
- Establishment of the agile governance based on a multi-day workshop with the Agile Transformation Office (ATO).
- The SAFe framework was used and adapted as part of a fit-gap analysis.
- AdEx Partners’ many years of experience and good networking at AGCO helped to carry out the fit-gap analysis efficiently.
Iteration
One Process
- Define and implement a common framework for the end-to-end development process to bring digital products to market faster.
- Introduction of a Program Increment Calendar in which all 60 teams launch digital products in a ten-week rhythm (use of SAFe standards)
Iteration
One Reporting
- Establishment of a real-time reporting system along the new organizational structures (Scrum Team Level, Release Train Level, and Solution Train Level)
- All data is recorded in one IT system for the first time (“single source of truth”)
Which specific improvements have been made?
- The go-to-market time has been significantly reduced. All 60 teams launch their digital products in a uniform 10-week rhythm.
- The efficiency of the entire organization has been measurably increased by 72%.
- Improved business-IT alignment, as the business now follows the entire development cycle end-to-end.
- All teams have been elevated to a standard system configured to the requirements of the new process, enabling real-time reporting.
- Knowledge building in the organization through training and coaching of 400 employees
- ONE Digital is being used as a template for other parts of the business to adopt agile ways of working and accelerate the development of digital service