Agile Development to Transform FedEx

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1 Agile Development to Transform FedEx PPAI IT Summit Xuan Liu, Managing Director, IT

2 FedEx and Promotional Products 2

3 FedEx connects people with opportunities around the world FY15 Revenue: $47.5 billion 325,000 team members 10 million average daily shipments 220 countries and territories 649 aircraft 100,000+ motorized vehicles 3

4 FedEx IT Systems Model Compete Collectively Manage Collaboratively Operate Independently 4

5 FedEx IT Complexity 5

6 FedEx Journey for IT Modernization Business Focus Introduction of the New Data Center Deferred Data Center Cost Reduced Run Cost Increased Performance Introduction of New Business Capabilities New Market Value: One Rate, Delivery Manager More Business Value, Less Cost, Faster Acquisition/Global Integration Technology Focus Infrastructure Simplification Enterprise Foundational Services Build-out Software Engineering & Architecture Business Systems Simplification New Operating Model 6

7 FedEx Waterfall Development Process 7

8 Modernization Accelerators Waterfall Agile Enables Flexibility to Respond to Market Demands Project Focused Delivery Capability Focused Delivery Enables a More Unified Experience Vertical Applications Horizontal Services Enables More Seamless Integrations 8

9 Lean and agile 9

10 14 Principles of the Toyota Way Principle #1 Base your management decisions on a long-term philosophy, even at the expense of short-term financial goals. Principle #2 Create a continuous process flow to bring problems to the surface. Principle #3 Use pull systems to avoid overproduction. Principle #4 Level out the workload (work like the tortoise, not the hare). Principle #5 Build a culture of stopping to fix problems, to get quality right the first time. Principle #6 Standardized tasks and processes are the foundation for continuous improvement and employee empowerment. Principle #7 Use visual controls so no problems are hidden. Principle #8 Use only reliable, thoroughly tested technology that serves your people and process. Principle #9 Grow leaders who thoroughly understand the work, live the philosophy, and teach it to others. Principle #10 Develop exceptional people and teams who follow your company s philosophy. Principle #11 Respect your extended network of partners and suppliers by challenging them and helping them improve. Principle #12 Go and see for yourself to thoroughly understand the situation. Principle #13 Make decisions slowly by consensus, thoroughly considering all options; implement decisions rapidly. Principle #14 Become a learning organization through relentless reflection and continuous improvement. 10

11 Agile Manifesto We are uncovering better ways of developing software by doing it and helping others do it. Through this work we have come to value: Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan That is, while there is value in the items on the right, we value the items on the left more. 11

12 Scrum Framework 12

13 Scaled Agile Framework Porfolio Program Agile Team 13

14 House of Lean 14 Respect for people and culture Flow Innovation Relentless improvement VALUE LEADERSHIP

15 Portfolio Epic Roadmap (Sample) PI-06 PI-07 PI-08 PI-09 PI-10 PI-11 PI-12 PI-13 PI-14 PI-15 PI-16 PI-17 PI-18 PI-19 PI-20 SEFS need to determine if an EDTW shall be published or masked to Shipment FUSION Support EDTW calculation for future ship data packages Provide stop data Capture actual delivery stop based on scans Make ship date available to the enterprise Consume SOE (Shipment Order Event) Finalize interface with SHARE Standardize all data and times to a GMT reference point Provide package and operational package data to enhance the support of HDTW estimation process Provide SFDS to data analytic engine Consume LPAR events Solution must be able to break container relationships Foundational CONS (PVCC and Clearance) Solution must support administration activities such as deployment, monitoring and management. SEFS must consume data additional conveyance information from FOIS Ability to manually create conveyance data if not available Manifest for Import and export Ability to transmit manifest data to internal systems Receive planned routes for shipment / piece 15

16 Product Management Feature Roadmap (Sample) Features Needed for Move to Production (MTP) Address Cache Retry Logic for BE EDTW defect L4 Split environment Production Stability Silver Fabric Deployment Active Spaces Persistence Validation Rep factor = 2 Active Spaces Fragmentation Fragmentation Production Stability/Steady State Active Spaces Replication Validation (rep factor 2) Destructive Testing Destructive Test Operational Robustness Determined to be planned and unplanned outages Monitor/Log/Alert Consistent logging J-Console Monitoring & Logging Business emars for EDTW Features Minimal feature set needed for MTP Destructive Testing catastrophic infrastructure failures Feature for implementing the monitoring solution in production MTP Technical Activities BW Connections should use remote client connection (agent proxy) to connect to Active Spaces Install and setup HAWK for monitoring all SEFS Tibco based processes BE Retry Logic data restore mechanism Knowledge share for production support including code reviews Regression Testing Integration/System Testing Features Business: Breaking Container to Container relationships Container Movement Visibility Container Disposition Visibility Capture TRIP/FOIS Conveyance Events Create Gateway engine for CONS Create BE engine for CONS Architecture Logging framework in BW Operational Robustness Silver Fabric Deployment identifying the process used to bring it over to production Read/write nulls using AS channels in BE Silver Fabric build and deploy Arch Reconcile FXG and FXE to be consistent Implement Unit Test Framework BE High Confidence Medium Confidence Marquee Features Only 16

17 Release Planning Meeting 17

18 Release Planning Event Day 1 Culture activities Program Increment Review Inspect & Adapt 18

19 Release Planning Event Day 2 Program Update Architect Vision, Program Vision, Business Vision Release Planning 19

20 Release Planning Event Day 2 20

21 Release Planning Event Day 3 Confidence Vote Survey Feedback 21

22 Early Formation of Agile Release Train 22

23 Agile Release Train (Current) 54 developers 11 QA 5 scrum masters 4 product owners Vendors: 40% 23

24 Team Formation Challenges Locations Skill sets Feature vs. Components Cranky Scrum Masters Shortage of Product Owners Part time vs. full times 24

25 Ideal Team Characteristics 5-9 Members Co-located Cross-Functional Self-organizing Dedicated Focused Ideal Team Characteristics: 5-9 Members Co-located Dedicated Focused Cross-Functional Self-organizing Note: From Agile Software Requirements by Dean Leffingwell 25

26 Ensuring Flow: Definition of Done Product backlogs: DEEP (Detailed Appropriately, Emergent, Estimated, and Prioritized) User stories: INVEST (Independent, Negotiable, Valuable, Estimable, Small, and Testable) Tasks: SMART (Specific, Measurable, Achievable, Relevant, and Time-boxed) Sufficient architecture runway 26

27 Role of Management Fashioning teams Define boundaries Form teams & change team compositions Provide a clear elevating goal Empower teams Nurturing teams Energize people Develop Competence Provide functional-area leadership Maintain team integrity Aligning & adapting the environment Promote agile values Remove organizational impediments Align internal groups Align partners Managing value-creation flows Take a systems perspective Manage economics Measure and reports Note: From Essential Scrum by Kenneth Robins 27

28 Scrum Patterns Stable Teams Yesterday s Weather Swarming: One Piece Continuous Flow Interrupt Pattern: Illigitimus Non Interruptus Daily Clean Code Emergency Procedure Scrumming the Scrum Happiness Metric Teams that Finish Early Accelerate Faster Note: From A Pattern Language for High Performing Scrum Teams 28

29 Executive & Business Expectation Business Requirement Specifications 29

30 What impedes agile adoption? Note: From VersionOne 2014 State of Agile Development Survey 30

31 Improvements from Implementing Agile Note: From VersionOne 2014 State of Agile Development Survey 31

32 Thank You!

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