Working at sd&m A physicist in the German software industry sd&m AG software design & management Carl-Wery-Str. 42 81739 München Telefon 089 63812-0 www.sdm.de Dr. Jürgen Möck Munich, 10 th November, 2003 Member of Cap Gemini Ernst & Young
Agenda sd&m AG, 20.11.2003, Seite 2 Agenda The company sd&m What makes sd&m an attractive employer? Career paths at sd&m My personal career at sd&m Software industry & science
The company sd&m sd&m AG,, Seite 3 Business Focus of the sd&m AG Large scale organizations needs individual software components, which supports their core processes. Therefore complex software projects are launched. The realization requires an excellent performance in software technology and project management.
The company sd&m sd&m AG, 20.11.2003, Seite 4 sd&m AG software design & management Area of business Development and integration of tailored information systems for business critical processes IT consulting with engineering and implementation competence Customers Major companies and organizations achieving a competitive edge by implementing custom solutions Core competence Hamburg Dusseldorf Cologne/Bonn Frankfurt Stuttgart Zurich Munich Key facts 2002 Berlin www.sdm.de Staff: 897 Revenue: 129 million Software engineering and project management Research Shareholder
The company sd&m sd&m AG, 20.11.2003, Seite 5 sd&m is a competitive player in the market for custom software solutions and IT consulting * 138 84 48 325 * * * 147 225 * Market for custom solutions in Germany in 2001 (million ) * Assumption according to Diebold: 30% of the "Project services" share of the entire revenue can be attributed to custom software solutions and IT consulting
The company sd&m Major customers in diverse sectors rely on our abilities Travel and Transport Deutsche Bahn Lufthansa Thomas Cook Automotive BMW DaimlerChrysler Volkswagen Banking Bayerische Landesbank Commerzbank HypoVereinsbank Transaktionsbank 24% 19% Utilities, General Industry Insurance E.ON Siemens ThyssenKrupp 5% 5% 14% 6% Allianz AOK Munich Re Versicherungskammer Bayern 18% 9% Telecommunications, Media Deutsche Telekom T-Mobile T-Online Vodafone CTS Eventim GEMA InFoScore Other Public AKDB Bavarian Geological Bureau State Employment Offices German Weather Bureau Status: 2002 sd&m AG, 20.11.2003, Seite 6
The company sd&m sd&m AG, 20.11.2003, Seite 7 A selection of development projects references Customer Project Warranty System (CAESAR) Worldwide warranty and goodwill management system, fully object-oriented, rule-based claims system Payment Transactions (DTA 2000) System for domestic payment traffic, efficient and fail-safe, handling 3 million transactions per hour, 100 clearing partners Global Ordering (GO) Worldwide customer order processing system for built to order, Java web clients as early as 1998, largest sd&m project (approx. 60 sd&m employees) Meteorological Visualization System (NinJo) High-performance with Java, platform-independent and flexibly configurable, many partners, leading meteorological project in the world Automatic Trading Platform (AHP) Application for bond trading, real-time link to stock exchange Java/J2EE with application server (Weblogic, Toplink) Integrated Order Management (IAB) Unification of order clarification and processing after the fusion of Thyssen and Krupp-Hoesch
The company sd&m sd&m s core competence is the ability to manage and deliver complex projects very well Project and Quality Management Estimation Planning Controlling Change management Risk management sd&m Competence 20 years of project experience Proven and new technologies sd&m research and architecture (Quasar) Cooperation with universities Rollout Maintenance Programming Testing Requirements Specification Tailored software solutions Design Customer Contribution Functional and nonfunctional requirements Customer standards Collaboration and customer-provided services Migration and Replacement Staging Data migration Parallel operation of legacy/new Adaptation of legacy systems sd&m AG, 20.11.2003, Seite 8
The company sd&m sd&m AG, 20.11.2003, Seite 9 A good working relationship and the acceptance of responsibility are key success factors Basics of cooperation Fair, good working relationship based on partnership Honest and frank attitude to issues Acceptance of responsibility for results Deliverables at a fixed price Typical project organization Steering Committee Project Management Customer sd&m Close coordination between business departments and IT Quality Management Chief Design (busin./tech.) Collaboration in mixed teams Not just body leasing Sub-team 1... Sub-team n
The company sd&m sd&m AG, 20.11.2003, Seite 10 What characterizes knowledge and experience at sd&m? Computer Science / Informatics Excellent software engineering All-rounder with overview and ability to go deeper Systematic, structured, documentoriented Mind set Target and result orientation Balance of specialist knowledge and personality Life-long learning Links to academic science Foresight and innovation sd&m Research with top-reputable advisory board Cooperation with universities, grants, donated professorship Leveraging knowledge from graduates Practice window Industrial use sd&m Maturity window Trial and piloting Research window Scientific research and development
Agenda sd&m AG, 20.11.2003, Seite 11 Agenda The company sd&m What makes sd&m an an attractive employer? Career paths at sd&m My personal career at sd&m Software industry & science
what makes sd&m an attractive employer? sd&m AG, 20.11.2003, Seite 12 Sd&m made a very good ranking 2003 in a German employer attractiveness competition Second rank after window frame company in the middle category Windows seem to be the most attractive factor for employees
what makes sd&m an attractive employer? sd&m AG, 20.11.2003, Seite 13 Special Highlights Interesting, changing projects Freedom for creativity & engagement Financial participation on personal & company success Very fair working time model unlimited holiday & extra hours account Schools, conferences, personal education Good working place conditions (see Tom DeMarcos peopleware ) sd&m Zwerge
what makes sd&m an attractive employer? sd&m AG, 20.11.2003, Seite 14 Typical working tasks at sd&m Software development (~ 30-40%) Design (technical or application) Project leading & management Quality management Consulting Coaching Knowledge broker Technical staff sd&m management
what makes sd&m an attractive employer? The team is excellently educated, and has built up outstanding practical experience The subject mix fits The experience mix fits Focus: Application Tech. Mgmt. Others Engineering, Natural sciences Physics 12% 6% 14% 10% Informatics, Business informatics 58% 7 Managing Consultants / Senior Managers 16 25 Senior Consultants / Project Managers 54 25 60 Consultants / Project Leaders 110 69 40 Senior Software Engineers 259 Software Engineers 159 Mathematics 97% have an academic degree, a quarter with Ph.D. Status: January 2003 Average age 34.5 years Average affiliation to sd&m 5 years Attrition 6% sd&m invests approx. 6.5 million in research, education and training every year sd&m AG, 20.11.2003, Seite 15
what makes sd&m an attractive employer? Employees & revenue Since 2001 staff & revenue approximately constant 900 900 900 employees revenue in Mio. 685 790 125 130 130 130 619 97 500 80 413 65 331 54 39 1995 1996 1997 1998 1999 2000 2001 2002 (approximate numbers) sd&m AG, 20.11.2003, Seite 16
what makes sd&m an attractive employer? sd&m AG, 20.11.2003, Seite 17 Why is sd&m an attractive employer for a physicist? 12 % of a successful software company are physicists (~110). There must be a reason for this fact! General motivations to leave science for sd&m salary better than in science job security (?) Interesting projects at attractive customer team work/ responsibility It s the people, who make the projects software industry is a growing service market for the next decades
what makes sd&m an attractive employer? sd&m AG, 20.11.2003, Seite 18 Why hires sd&m physicists? We do not only hire information technologists or mathematicians for our project business, but also applicants who have graduated from other fields, preferably in the area of science, economics or engineering. At any rate, the most important prerequisite is sufficient experience in creating programs (or software systems in general) acquired during work placements and internships. Is this prerequisite met, we also set great store by a persons personality and his or her ability to quickly settle into changing areas of responsibility, think logically and swiftly analyze complex problems. At the same time, we do not only look at the skills an applicant has acquired already, but also at the signs of potential for future growth when making hiring decisions official statement of sd&m web page 2003
what makes sd&m an attractive employer? sd&m AG,, Seite 19 Our team Selection of applicants Soft personal skills and IT/business knowledge of equal importance Fresh university graduates are preferred (ca. 75 %) If we are in any way unsure about a applicant we don t hire him No relation between single project needs and hiring Autumn 2003: very tough selection of applicants and only rare opportunities
what makes sd&m an attractive employer? sd&m AG, 20.11.2003, Seite 20 Newcomers at sd&m from first day in a project (training on the job) guidance by a tutor team work & helping each other is normal not only in the beginning! aim: get experience in all steps of a project cycle at sd&m in 2 years demand und encourage more responsibility step by step first Ranking after a year
Agenda sd&m AG, 20.11.2003, Seite 21 Agenda The company sd&m What makes sd&m an attractive employer? Career pathsat sd&m My personal career at sd&m Software industry & science
career paths at sd&m sd&m AG,, Seite 22 Progress in personal development at sd&m continuous personal learning interesting, changing and complex jobs get responsibility project responsibility (also technical) customer responsibility (consulting) employee responsibility (management)
career paths at sd&m Seite 23 Career paths at sd&m M-Path Management Management Softwareengineer A-Path Application Application T-Path Technique Technique Administration
career paths at sd&m Seite 24 Steps in the career paths normal start variable salary company car M1 M2 M3 SA SI SSI A1 A2 A3 Software Assistant Software Engineer Senior Software Engineer T1 T2 T3 management program step 1 step 2 step 3
career paths at sd&m Seite 25 Tasks & career paths business specification, chief design, component architecture business branches, application know-how system design, technical architecture special IT fields (DB, GUI, etc.) technical infrastructure consulting (application, process, IT) knowledge broker project leader project management organizational management coaching (could be everything) quality management M A T
career paths at sd&m sd&m AG, 20.11.2003, Seite 26 Personal skills do overlap Application A Technique T M Management
Skills & tasks in the field of career paths A Business & branch specialist. Chief design application Knowledge broker IT-Consulting Chief design system TI T Technical specialists Customer Care Software development Project leader Project management acquisition Methods VGM, QV, QM, Coaching BL, GBL M Seite 27
career paths at sd&m sd&m AG,, Seite 28 Educational program at sd&m Workshops for improving personal soft skills presentation, moderation, communication,... General technical education in sd&m Schools Programming, Design, Requirements, Test, Management,... Business education e.g. by conferences sd&m conference, Usergroups (OMG), congresses
Agenda sd&m AG, 20.11.2003, Seite 29 Agenda The company sd&m What makes sd&m an attractive employer? Career paths at sd&m My personal career at at sd&m Software industry & science
my personal career at sd&m sd&m AG, 20.11.2003, Seite 30 My personal way to sd&m 1988-1997 diploma & PhD in physics at TU Munich 1988-1997 1993-1997 diploma & PhD in experimental particle physics for H1 @ Christian Kiesling at MPI Munich Neural Network triggers & Heavy Flavour In summer 1997 I applied for a job in the industry No future feeling for a job in science Very good job opportunities in the industry in 1997 sd&m offered an interesting job for me as Software engineer Good experience from PhD, building of software absorbed most time of my thesis
my personal career at sd&m sd&m AG, 20.11.2003, Seite 31 My professional experience at sd&m GO (Daimler Chrysler) automotive global ordering very large project (>100 e.y.) software programming & design, project team leader (8p) EON technical design in an EAI Siebel/SAP-Integration (consultant) Audi business process consulting (ordering) BMW EAI product responsibility business process consulting (ordering) SI SSI A1 management consultant
Agenda sd&m AG, 20.11.2003, Seite 32 Agenda The company sd&m What makes sd&m an attractive employer? Career paths at sd&m My personal career at sd&m Software industry && science
software industry & science sd&m AG, 20.11.2003, Seite 33 Major differences between science & industry (personal view) Much less bureaucracy (administration employees at sd&m ~ 5%, and much more efficient than at MPI!) Soft skills are much, much more important Pressure of success: the factor human work is so expensive for the customer, that a project isn t really allowed to fail (see TollCollect ) A consultant has larger power than customer employees without any responsibility! (but can be fired on a day by day basis) Yearly ranking, success & salary are correlated Professional human resource management
software industry & science Seite 34 Example skill database
software industry & science sd&m AG, 20.11.2003, Seite 35 Recent Tendencies in the German Software Industry We are in a aftermath of a big boom, IT invests are currently low Long term expectations are still very good Currently employer can choose employees (in total difference to ~ 2000) Greater yearly number of graduates with Informatics in Germany Nearshore/Offshore models will cost a lot of jobs in Middle Europe in the next decade Cost effectiveness, lower day salaries, no more goodies, good old days for IT employees are over Investments concentrate on products (SAP, Siebel, ), however individual Software & consultant market & adaptations to product implementation will grow too. Standards, Standards, Standards (XML/J2EE/web services/.net/ )
Additional pages sd&m AG, 20.11.2003, Seite 37
sd&m AG, 20.11.2003, Seite 38 Proven methodology and experienced staff ensure reliable project management Project model Estimation Planning Risk mgmt.... Client requirements Requirements management & Change requests T-Stage System Development A-Stage A-Stage Cross section (PM, QM, CD, etc.) 1. 2. Parts list Item 1 Item 2 Item 3 Item 4 Item 5... Category Light Medium Heavy Heavy Medium... 5. 3. Weight in PD per category Mark-ups for Project managementx % Chief design y % Quality assurance z % Technology a % Migration b %... 7. % extrapolation for subsequent phases Net effort 4. Specification Gross effort 6. Specification Design Programming Acceptance Production Release R. 8. Gross total effort Integration and rollout Procedures and methodology Sense of realism and balance Innovative but not fashionable Tool set References from comparative projects Professionally experienced people
Seite 39 Team mix at sd&m broad diversity about 10 % female University Others Other Science ca. 25% with PhD 88,5% Fachhochschule 8,4% Business Informatics Engineers other Physics Mathematics degree 3,1% Informatics 0 10 20 30 40 50 60 project & software experience is an advantage Attrition < 10%. Ranking
Seite 40 Übergänge zwischen Pfaden und Stufen Förderkreis Führungsnachwuchs individuelle Entscheidung GL M1 M2 M3 A1 A2 A3 T1 T2 T3