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Husqvarna Group IT’s engagement in digitalised product IT

Lars Olofsson, Husqvarna GroupJan Tietze, Nordcloud

Husqvarna Group IT’sengagement in digitalised product IT

06|30|2016www.nordcloud.com

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

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

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

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)

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 newbehaviors 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

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)

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 capabilitiesthat ensures scalable and maintainable digital services

4

Establish reusable digital building blocks that can be composed into different customer facing services

DSS’s digital back-end ambition (I/II): Enable service centric digital solutions

Product centric

Service centricDigitalization

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?

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-endOpen: 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

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 operationsOngoing 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 Servicesfor 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

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 ownershiprole when developing cross product category services.

Align and harmonise architecture and knowledge management by Mode 1 and Mode 2 Group ITDevelop 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.

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 QualityAssurance

Test

Build

Deploy

Release 1

23

4

2-3 weeksBacklog

New version

Our technology: DSS Cloud4

Digital back-end

• Amazon Web Services being the largest supplieraccording 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

Our technology: DSS Cloud - Example4

Digital back-end

Typical system architecture

Highlights

• One AWS account per service and instance in a consolidated structure.

• Each team governs theirrespective account estate.

• StandardisedCloudFormation and Dockers scripts, boosts AWS best practices

• Events based architecture, several Kinesis instancesper service.

• Dockers based componentarchitecture, enablesautomated testing, off-clouddevelopment and separation of duties

• The BigData service taps all services for events.

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 utilisationregarding 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!

www.husqvarnagroup.com

Munich

Nordcloud Deutschland GmbHTheatinerstr. 1180333 MünchenGermany

Jan TietzeCTO Germanyjan.tietze@nordcloud.com

Munich

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