Exploring Agile Transformation in the Hardware Space
Mid-September 2024 brought the chance to host an exciting opportunity to exchange experiences and insights on using Agile practices in hardware development. The community had the privilege of connecting with practitioners from leading companies such as Airbus, Scania, Quantum Detectors, Bosch, Vanderlande, Schneider Electric, Ariane Group, and BMW Group. As the event's program manager and co-host, Marina played a pivotal role in bringing these industry experts together to share their experiences.
Experimentation and Learning: A Shared Journey
A common theme that emerged from the discussions was that most companies are still in the experimentation phase, seeking the most effective ways to integrate Agile practices into their engineering teams. Not a single speaker claimed to have all the answers. Instead, they openly shared their successes and challenges in areas such as improving quality, accelerating product development, and reducing costs.
People at the Heart of Success
Another key takeaway was the central role of people—both in the stable Agile teams and leadership positions—in the success of these transformations. A particularly inspiring story came from a BMW speaker, who emphasized the importance of creating self-organizing teams empowered to make decisions. He referred to these teams as “speed boats”—small, agile units equipped with the necessary skills and access to the company’s validated knowledge, tasked with designing new vehicle modules. While this approach may be difficult to scale across the entire organization, even small-scale improvements have shown significant potential.
The BMW speaker also highlighted his focus on building diverse teams, specifically bringing more female engineers into his projects. This diversity of perspectives and engineering competencies, not just from a technical standpoint but also through the lens of gender, has made his teams more robust and innovative.
Agile as a Tool for Navigating Uncertainty
The application of Agile practices (i.e. iterative planning, bi-weekly technical review) to hardware is not just about changing processes—it’s a strategic response to increasingly unpredictable market conditions. Paraphrasing a speaker from Scania: "We used to know what customers needed, for instance, to make an engine more efficient or the truck lighter. Now, we can no longer predict how customer behavior and demand evolve, so we have to rethink the entire product to allow agility and fast redesign."
Learning from Failures
Applying Agile practices in a hardware environment isn’t without its hurdles. Ariane Group shared how not all experiments with Agile practices have been successful. However, these initial setbacks don’t imply that there’s no path forward. Leadership consistency and transformation momentum are key. A speaker from Quantum Detectors echoed this sentiment: "Our estimations are still far off, but we are never going back to the traditional way of working." The sentiment was shared that ‘once going Agile, we do not go back to the traditional way of working’.
Moving Forward
The stories shared during this get-together reinforce a crucial point: successful Agile transformations in hardware environments require motivated teams who actively seek and design solutions and depend on leadership who supports, trusts, and enables these teams to make decisions and learn from mistakes. Agile isn’t a one-size-fits-all solution but rather a powerful tool to help companies navigate the complex and rapidly changing landscape of hardware development.
As we continue to explore and interpret Agile in the hardware context, let’s keep these lessons and experiences in mind. It’s through sharing and collaboration that we’ll find the best path forward for each of our unique environments.
Join the conversation
Join me (Ali) at my talk and discussions about the difficulties but necessity of applying Agile in Product Engineering Processes.
The conference will be held in Berlin on December 2nd 2024. Click on the button underneath to see more details.
Further reads and sources
- McKinsey article (6 Oct 2023): The Return of Agile Hardware Product Development
- Mireille Vink: Agile Hardware Community Meetups
- Business Agility Now Podcast: SAFe for Hardware
- WikiAgile: Agile Hardware Seminar (Language: Finnish)
- Agile PEP Minds Conference (Languages: English and German)
- Whitepaper by Maarit Laanti: Business Improvement by Agile Hardware Development
