Husqvarna Group

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)

4

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 new

behaviors 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 capabilities

that ensures scalable and maintainable digital services

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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 centric

Digitalization

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 operations

Ongoing 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 Services

for 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

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

OperationsQuality

Assurance

Test

Build

Deploy

Release 1

23

4

2-3 weeksBacklog

New version

Our technology: DSS Cloud

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Digital back-end

• Amazon Web Services being the largest supplier

according 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 - Example

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Digital back-end

Typical system architecture

Highlights

• One AWS account per

service and instance in a

consolidated structure.

• Each team governs their

respective account estate.

• Standardised

CloudFormation and

Dockers scripts, boosts AWS

best practices

• Events based architecture,

several Kinesis instances

per service.

• Dockers based component

architecture, enables

automated testing, off-cloud

development 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 utilisation

regarding 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!

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 ownership

role when developing cross product category

services.

Align and harmonise architecture and knowledge management by Mode 1 and Mode 2 Group IT

Develop 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.

www.husqvarnagroup.com