Advanced agile approaches to improve engineering

Available online at www.sciencedirect.com

ScienceDirect Procedia CIRP 00 (2018) 000–000 www.elsevier.com/locate/procedia

51st CIRP Conference on Manufacturing Systems

Advanced agile approaches to improve engineering activities Carsten Burchardta, Bettina Maischb a

Siemens Industry Software GmbH, Laatzen 30880, Germany b, Siemens AG, München 81739, Germany

* Corresponding author. Tel.:+49 170 922 4647; E-mail address:[email protected]

Abstract The dynamics of digitalization are forcing companies more than ever to have customer-focused innovation in addition with short product cycles in order to increase the market success rate of new product and service developments. Enterprises question themselves how existing development and manufacturing processes could be improved through agility in the growing digital environment. There exist different variations of agility which differ about the approach, tools and methods. Businesses like to explore the field of agility for themselves, to understand which of these different approaches can be implemented in their environment. Often agility approaches are focused on programming yields. This paper describes as a literature review combined with a case study the agile approach of Design Thinking and Integrated Design Engineering which can be used in particular in the area of product development process to drive an advanced agile approach smart product and smart services. © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 51st CIRP Conference on Manufacturing Systems. Keywords: Agility; Digitalization; Integrated Design Engineering; Design Thinking; Product Development Process

1. Growing Digital Environment 1.1. Chance in the private and professional live The market for smart products and smart services is becoming more global, dynamic and transparent. Digital technologies are integrated in private and business life and will be expanded further in the future and has an impact of the engineering activities. The term digital is omnipresent, but different perspectives are connected thereto with and the intake of this technology is already present in many areas [1]. In the private sector, digital technology includes, for example, the use of cloud technology to access millions of songs via streaming portals such as Spotify, Apple Music or Amazon Music Unlimited. Accessing digital television using as example Netflix, Maxdome, or Amazon Prime instead of retrieving a pre-made sequential television program as broadcast by national television channels. Perhaps most familiar in everyday life are the computer simulation models of the atmosphere that meteorologists use to make weather forecasts for the next hours, weeks, or even months.

Furthermore, the exchange of data within seconds which supports our daily lives via the use of online banking platforms, real-time ride sharing such as example Uber, billing of train tickets via GPS services or remote control via smartphone and remote control panels for home entertainment systems such as home lighting, coffee machine, washing machine, garden irrigation or heating. Smartphone, PC or tablet connect us with social platforms with our family, friends and partners, or assist the internet search and cross-coordination of appointments and tasks. Another type of simulation becoming more and more common deals with road traffic. Online tools are available to inform drivers about the current state of the traffic and may give predictions for the coming days. Google Maps provides assessments based on past observations and will sometimes even take into account parameters like special events and road work. The use of reinventing urban mobility through autonomous driverless transport systems such as passenger transport by motor vehicles from as example IBM Watson or Google or autonomous helicopters transport such as Volocopter in Dubai [2] based on GSP tracks or the use of robots for domestic services are increasingly being used.

2212-8271 © 2018 The Authors. Published by Elsevier B.V. Peer-review under responsibility of the scientific committee of the 51st CIRP Conference on Manufacturing Systems.

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Carsten Burchardt, Bettina Maisch / Procedia CIRP 00 (2018) 000–000

In everyday professional life, digital technology is implemented in different ways. Digitization is used to support decentralized team collaboration through file sharing systems, videoconferencing and chat rooms and more. Driverless transport systems can be found in factory automation as well as in the delivery service such as Foodora in Germany [3]. Virtual reality and augmented reality reinforce planning areas, such as factory planning or building technology. Simulation technology can basically be used for all networked objects. Previous digital applications in the context of manufacturing and high value assets were only the start digitalization like integrated computer fluid dynamics simulation, stress simulation or acoustic simulation are used as part of a Digital Twin. The Digital Twin is a dynamic digital representation of an industrial asset that enables companies to better understand and predict the performance of their machines and find new revenue streams [3]. The Digital Twin enables real-time implementation to detect potential problems with the real machine, as a basis for a self-monitoring of the machine to optimize the process performance for given working cycles so that the simulation (often with a slight lead time) can run together with the real machine. Furthermore Digital Twins allows real-time education for the training of machine operators on a virtual machine to learn the real machine operation. The Digital Twins offers different fields of application for the industries and digital aspects of life, different fields of application in the B2B as well as in the B2C range are developed. An advanced future idea is to build a comprehensive, open Supra Platform to create the necessary conditions to realize a comprehensive digital added value [4]. With the current limitation of the Digital Twins concept to the B2B and B2C sectors, the full potential has not been exhausted. The range of applications of Digital Twins will be implemented beyond current production and logistics applications. The Digital Twin is expected to make a significant impact on the digital transformation of society create an additional efficiency and transparency in numerous working and living spaces.

possibilities. Anyone who deals today with digitization cannot avoid renewing their thinking. This requires new methods and styles of thinking and new forms of interdisciplinary cooperation and organization forms. It is important to take people along, as our ways of working will change. Understanding of this development becomes a key competence whereby scalable technology characteristics in connection with scalable organizational forms will be the main focus in the future [7]. In this context, forms of agility receive increased attention. Agility methods were quickly adapted, especially in the field of software programming. Srcum approaches with iterative customer-oriented approaches with short feedback cycles have often been implemented in software companies and have replaced the old method of waterfall programming with long development cycles without intermediate customer loops. Since the digital transformation the software development process was characterized by a high level of dynamics right from the start, rapid implementation which was achieved due to scrum success rate. Less in the literature or at business level are described agile methods, which move in the causal agile product development of smart products and services. But these areas represent the largest market share in product manufacturing. For this reason, the following chapters 2 agility described the advantages of agility with their properties and features. After that, the third chapter Integrated Design Engineering and forth chapter Design Thinking represents in form of a literature review the main objectives and properties of this agile approaches with case studies of industrial projects. The aim of this paper is to make the product development process even more dynamic in the future by supplementation with holistic agile approaches. To establish agility not only at pure software development process but also suggestions for the industry to change conventional product development processes through the extension of agile approaches. 2. Agility 2.1. Meaning of Agility

1.2. State of the social and structure change – scalable technology in connection with scalable organization form Considering the recent technological changes it will be readily apparent, that we are in a state of social and structural change, which does not take with the speed of normal industrial developments, but goes much faster. People are currently confronted with hyper-complex, dynamic, networked system configuration, which cannot be realized with conventional ways of thinking [5]. Digitization does not just mean the understanding of the current social technological developments of an efficient infrastructure and flexible IT systems. It affects also the thinking, understanding, experiencing and acting to question and possibly renew. Interdisciplinary problems can only be solved with a broad background knowledge. As a result the general education (generalist knowledge) becomes a future important prerequisite in the digital age to master the complexity [6]. Digitization enables many new technological

Agility is represented in the minds of many in charge of business projects in organizations as a method under the term Scrum and Kanban. It is often overlooked that a mental paradigm shift and extensively changes for structural and procedural organization are connected with it. Agility has a lot to do with mindset and corporate culture and development of self-organization and self-responsibility. Agility requires networked thinking and a multi-perspective view, combined with curiosity. For the leadership, this means acting in the field of tension of a proven basis and a need for innovation. This means that resilient agile leadership is needed to make work effective, successful, joyful and easy [8]. In the future, it is important to move confidently in dual structures, which are simultaneously characterized by hierarchy and network. In network structures, authority is often lived at eye level and at the same time an inner strength and culture in the team is built up and developed through resilience, respect and resonance.


The question is how agile leadership can be implemented in order to simultaneously innovate and build commitment in the team, in project groups and in management structures. In contrast to the central hierarchical control, the idea of selforganization is used in agile organizational forms [9]. Taking responsibility at agile processes means as example the opportunity to take risks, to bring about organizational changes, to develop and to exploit performance potential. The self-organization and self-responsibility of teams in agile processes is an essential feature that is critically viewed or rejected in some (hierarchically-oriented) corporate structures, because often the fear of loss of power in management is seen. In agile structures, self-organization takes place in predetermined areas, where the environmental conditions of the system guides the direction of development. The leadership of agile structures is to provide the self-assembly forces the direction. It should be remembered that each member of an agile organization is a leader because leadership is understood as an attitude and process, e.g. in terms of understanding group dynamics and the own role in team processes. Self-organized teams often make their decisions in a discourse that explores potential solution spaces and holds divergent opinions to find the best solutions.

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the focus on one's own corporate strengths - existing competencies within the company are identified and internal resources are activated external exchanges and networking inside the environment with suppliers, customers and stakeholders - essential contacts provide valuable input for possible company changes

This means for companies that they are different from classic patterns of change management and given problem solving. Rigid conditions can be overcome with rigid structures. If the conditions change in dynamically calculable environments, mechanistic / work-sharing management methods can still be used. At the latest in a dynamically turbulent environment - which entails digitization - mechanistic management methods are no longer effective and management of their own momentum is required. So if momentum has increased massively in recent years, and the environment for business is described as turbulent with chaotic elements then, companies need to adapt their understanding of their governance and success factors to agility, see Fig. 1.

Fig. 1. Increasing complexity causes increasing dynamics

2.2. Features of Agility An essential feature of an agile process understanding is the continuous observation and adaptation, which is understood as a continuous comparison of thinking model and reality. This learning and action is often reflected in agile processes through short delivery cycles in iterative customer-oriented process and product reviews. This implies agile processes could be considered context detached of the established processes / solutions to resolve new solutions. Sometimes the most difficult task is to re-examine already learned (and successfully applied in the past – comfort zone), because it is not successful anymore. This means to establish and defend solutions, even if they are not part of the mainstream but are successful in context, whereby the learning process itself is used to learn new things – lifelong learning. Agility is a culture and attitude that lets a team pursue its goals in a self-organizing, courageous and transparent manner. As a result, profound changes occur: More self-efficacy of employees, more engagement, greater satisfaction and more flow in the implementation of the tasks. Agility in business supports agility and quick reactions to change [10]. Features of agility: • pro-active solution-oriented thinking in future pictures - future scenarios need forward thinking and future developed plans could be can be implemented quickly if necessary • agile, scalable corporate structures are built up - the company is set by its structures for rapid response, e.g. network structures

In a highly dynamic environment, solutions to problems emerge from the power of self-organization, self-regulation, and the spirit of self-renewal. This results in an agility dynamic, which alone does not lead to a transformation of the company. The Increasing dynamics and increasing complexity require profound changes that affect all areas and levels of a company. In addition to Scrum and Kanban, often tried-and-tested strategic approaches such as Design Thinking and Business Canvas can be used to foster the first steps driving an agile organizations. But this practical agility driven methods should be implemented inside a holistic procedure to offer in a volatile and complex environment many advantages over rigid hierarchical distinct organizations [11]. One holistic procedure in this context provide the Integrated Design Engineering which bill be explained in detail. 3. Integrated Design Engineering 3.1. IDE represents a human centered, multicultural interdisciplinary and holistic approach According to increasing dynamics and increasing complexity, the most important trend driving effective production development is evolving ability to holistically model and simulate the complete product value chain. Companies must realize that they may have to fundamentally change their former attitude to work, which was characterized by competitive behavior. The constant gain in knowledge in smart products the boundaries between established disciplines are becoming increasingly merged. The challenge is to overcome the institutional and functional barriers between learning, research and industry, and to innovate through

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partnerships between industry and universities. Therefore, it is necessary to develop new development perspectives according to the dynamics of science, the expected need for training and future career opportunities. The Integrated Product Development (IPD) is one of the most famous integration approaches to support product development not industry focused specified. IPD was born out of the need to integrate all areas involved in the creation of a product (from marketing to sales) into product development through appropriate measures to overcome the division of hierarchical forms of organization and to look beyond the solution of technical problems to the associated processes. The first idea of the approach of Integrated Product Development was originally developed at Sweden by Freddy Olsson in the 1960ies at Lund University [12]. After some years of enhancements, Olsson published his approach in a Swedish book 1985 [13] naming it "Integrerard Produktutveckling". Andreasen and Hein at Denmark developed 1987 a modified model that they called “Integrated Product Development" (IPD) [14]. These works influenced the further development of different IPD approaches in the following years, like Germany 1991 Ehrlenspiel (TU Munich), 1996 Meerkamm (University Erlangen), 1997 Vajna and Burchardt (Otto-von-Guericke University Magdeburg), 1998 United Stated of America Ochs (Lehigh University, Bethlehem PA), 1998 Sweden Norl, KTH (Stockholm) and Ottosson (University Hamstadt)] at Hungary 1999 by Bercsey (TWU Budapest), 2013 at Pennsylvania USA Cagan (Carnegie Mellon, Pittsburgh PA), and so on … The IPD encompasses all steps from brainstorming or capturing market needs to the release of a product or the launch of a service. It covers the area of product development which included product planning, sales, marketing, industry-design, development, design, calculation and simulation, production preparation with focus on technological planning of production processes and resource design, prototyping and testing. The IPD is linked to the other business units through a mutual flow of information that goes from IPD to the rest of the product lifecycle and vice versa. This makes it possible to simultaneously develop accompanying objects in close cooperation with the actual product, for example equipment and packaging or maintenance and recycling aspects. The continuous flow of information from the IPD, in addition to the full product documentation at the time of release for manufacturing, includes all the requirements for the various business determinations and activities simulated and evaluated for production, distribution, delivery, for use and

maintenance as well as for the end of life of the product in terms of planning and forecasting (predictive engineering). To enable this, a continuous flow of information in form of feedback and advance information loops from the product life cycle is required. This results in a cycle of prediction (predictive engineering), reinsurance on the quality of the prediction (reverse engineering) and subsequent advancement of activities from the downstream areas into product development (front loading). With these approaches and activities, the IPD ensures the most important source for innovation in a company and is therefore causally and decisively responsible for the company's success. Customer orientation with short feedback loops through iterative prototyping (e.g. method of Design Thinking) and support of dynamic organization forms are supported. As an advantage development the Integrated Product Development was later described as Integrated Design Engineering (IDE) [15], which addresses further dynamic processes and new technology (see Fig 2) to support overlap and interaction between activities in the new product development process and, because this increases the need to coordinate, compensates through other aspects of the new product development process (e.g., integrated tools), product definitions (e.g., incremental development), organizational context (e.g., flat hierarchies, reduced task specialization), and teaming (e.g., cross-functional teams, team-coaching).

Fig. 2. Evolution and Revolution of new Technology

3.2. Education experience of an Integrated Design Engineering Master Curriculum to enable agility From the concept of Integrated Design Engineering, a master's program IDE was developed, which combines interdisciplinary offers from four faculties of mechanical engineering, human sciences, computer science, and economics of the Otto-von Guericke University Magdeburg. The IDE Curriculum concentrates on a generalistic and holistic education, which places the human being and all his needs and wishes in the focus of consideration. The aim of the program is to teach the diverse disciplines of the product development process and to train the students to formulate integrated product developers with individual profiles. To meet this requirement, students can choose from a wide range of elective courses, which consists of a broad range of modules from the four participating faculties. The acquired knowledge is tested in


practice-oriented building IDE projects of student teams with members from the various faculties on the basis of tasks from the industry in practice and implemented into innovative solutions. The students of the IDE master degree program are represented by very different bachelor study programs from all over Germany as well as from abroad and have the chance to test their knowledge for the innovation of new product solutions. The Integrated Design Engineer represents a humancentric, multicultural, interdisciplinary and holistic approach to developing any product, which can be both factual and nonobjective, as example besides physical products such as software products and services are also being developed. Themes of the IDE Project work is provided by industrial companies, non-profit organizations or public requirements. During the course of their studies, the teams develop practically usable solutions up to the pilot run, which are characterized by iterative development cycles with prototyping and feedback loops to the customer. For example, the IDE projects are developing bicycles, water sports equipment and new developments for the consumer goods and capital goods industries. A recent IDE project in the winter semester 2016 was the development of a sampling device for the construction and design of a biofilm sample removal system for closed systems for ©LAGOTEC GmbH. Lagotec develops and produces systems for monitoring biological deposits in pipelines that are used in a wide variety of industries. In the IDE case study, concepts were developed to extract biofilm samples from pipes to microbiologically analyze them and take targeted countermeasures. It was investigated how the extensive technical, microbiological and ergonomic requirements of the customers can be taken into account, see Fig. 3.

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yourself with the manifold tasks of the fields of application, research or teaching.

3.3. Combination of Integrated Design Engineering and Design Thinking

As for the truly fundamental issue, product developmentspecific methods for people to make decisions, individually and as part of a group, must be devised and implemented in collaboration systems and models. Therefore the effect of human psychology and social behavior on decision-making and process organization of the group processes in the design, planning, and operation of the development which must be properly understood. It is a fundamental element of the human orientation of the IDE that the managing and promoting of teams with innovative missions are addressed in parallel with lectures and exercise like as example team coaching, conflict management, project management and to realize the work in agile dynamic network structures. Of course the complex process about agility with working as in a corporate culture and development of self-organization and self-responsibility could not be easily realized in an education environment like a university. It requires additional stability, which arises from the review of one's own strengths and provides support and orientation in times of change – this must be realized in a university or company environment. The interaction of these factors ultimately enables a fundamental change. The way how teams work together and identify themselves as an individual and as a group member in parallel must be guided. To address agility inside the IDE the approach Design Thinking approach seems successful. 4. Design Thinking 4.1. Foster the transformation Process

Fig. 3. IDE Simple Sample © Lagotec GmbH – Bestfrom Award 2017

Through close cooperation with the target customers and using iterative process cycles in conjunction with rapid prototyping and interdisciplinary cooperation, different solution scenarios were developed and evaluated in order to place a product on the market. The project was awarded inside the “Bestfrom Award 2017” for the project “Simple Sample” with Lagotec. The students in the IDE Curriculum acquire and test scientific methods, expertise, tools, procedures / skills and abilities that can be used in product development independently and process-oriented. This makes it possible to familiarize

Design Thinking fosters the transformation process to be as rapid on the market as possible and build solutions right Design Thinking has its birthplace at Stanford University but became popular through the innovation agency IDEO and its founder Tom Kelly as well as the serious investment of the co-founder of SAP Hasso Plattner. The methodological approach follows a ‘designerly way of doing’ – with a focus on the user for whom something should be designed for and take also the context into account in which the user is going to use the solution. Based on these user needs the designer explores various alternative solutions, prototype, test them with the users and iteratively adjust them until the product/solution fit is ensured. This human-centered Innovation approach Design Thinking is applied within the B2C, B2B and Government-to-Citizens (G2C) domain for hardware, software and service innovation as well as organizational challenges.

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4.2. Use of Design Thinking within the corporate world The multinational B2B company Siemens started in 2012 setting up an industrial Design Thinking (i.DT) program to foster the skills of R&D engineers to develop technological solutions based on the needs of the users on their customer side. Siemens was focused on building processes and talents for speedy innovation to address need-driven opportunities for the local and global market. Since i.DT methodology is built on the IDEO and Stanford Universities Design Thinking approaches, Siemens start briefly with the basics of IDEO and Stanford methodology. In order to emphasize the human-centered design approach, IDEO transferred the acronyms of HCD to describe the most important aspects of the methodology [16]: • Hear (H): During the Hear phase, the design team collects stories and context information from the various stakeholders involved in the project through field research. • Create (C): In the Create phase, the team translates what they have seen and heard from the stakeholders into framework, opportunities, solutions and prototypes. During this phase, the team moves together from abstract thinking in identifying themes and opportunities to concrete solutions and prototypes. • Deliver (D): The Deliver phase begins to realize solutions, through rapid iterations of prototyping, testing and iterating as well as early revenue and cost modelling. Early testing helps to reduce risk of failure through ensuring the product-market fit the early layout of the business model aspects support the acceptance for the internal implementation process to bring this new solution to the market. The Design Thinking process (see Fig 4) that was selected [17] is focused on ways of a) uncovering and understanding relevant user needs on the customer side and b) delivering solutions that address these needs in a rapid and unique manner as well as c) which have a convincing market potential. The approach is highly adaptive and evidence based versus theory centric.

Fig. 4. The Design Thinking process

The understanding of the user needs is a critical element in Design Thinking. Getting a deep understanding of users and their contextual situation is already challenging within the business to consumer context but in the business to business context the complexity is even higher. Multiple users with

various needs are usually involved on the customer side. But not just “users” are relevant in the equation to get an innovative solutions in the market the needs of the decision makers on the customer side and their influencers are also relevant as well as internal decision makers who are deciding if the project outcome will be implemented or not. In order to foster this understanding of stakeholder needs Siemens incorporated the concept of “Job-to-be-Done” as described by Christensen et. al. 2007 [18], as a key starting point for all projects. In principle, i.DT is an integration of the best practices of existing userfocused innovation methodologies in a new way to adjust to the requirements of industry. The i.DT process typically starts when a business unit (BU) defines a project goal which is often described in terms of a product or solution. The teams’ first action item in the understand phase is to define the overall innovation challenge with the output of “Job-to-be-Done (JTBD)” in customer terms rather than as products or solutions. The power of JTBD in terms of opening up innovative thinking has been described in detail by Christensen and others in several publications [11]. In i.DT process, as we will see in subsequent discussions, starting with a good JTBD statement in user terms is critical for going beyond incremental opportunities. Then the teams visualized the project eco-system through the extraction of the various stakeholders involved and a description in which way they are connected to each other. The need finding phase includes the observation and synthesis step. In observation the teams are going on the customer side and collect qualitative field data through observation and interviews of users and other stakeholders in the project eco-system. Therefore reality is used as reference to understand the stakeholders’ behaviors and to extract their explicit and latent needs. Through the immersion in relevant experiences around the focal topic and adjacent topic areas the team is able to generate a 360°view of the project challenge. In the next step the teams are synthesizing the collected data and information to identify common patterns, possible connections that lie beneath the obvious. The goal in this step is to uncover surprising user insights and distil findings into rich areas of strategic opportunities and possibilities for innovation. To build up empathy with stakeholders involved and get a deeper understanding of their needs and wishes project teams are using different tools, e.g. they are creating personas, a described and visualize representative of a group of users/stakeholders within the project. Another tool are user/customer journeys, a visualization of the single steps a user is going through a specific task he/she is conducting usually with enrichment of additional information like touch points with various media and other stakeholders. A strategic opportunity area will emerge when an unsatisfied user need meets a business opportunity for Siemens. Just within the selected opportunity areas the project team is going to continue. In ideation the teams are generating a broad range of ideas and concepts within expert and/or customers co-creation sessions how to cover the opportunity area and delivering unique value in satisfying the uncovered user need. The


prototyping consists of several iterations of prototypes in order to solve problems as they arise with the implementation of the ideas. The prototype stages range from low-resolution, critical function to functional prototypes. Early prototypes will be executed in a rough and rapid manner that is simple, quick, cheap and effective in order to communicate an idea tangibly and to learn through building. Also the testing and feedback sessions with relevant stakeholders, especially customers should accelerate learning and help the team to stay connected to reality in the implementation process. The feedback from testing will inform further development of the ideas, which will go through several prototyping and testing cycles until a final prototype will be selected and presented. Also for these steps – ideation, prototyping and testing – keeping the empathy with stakeholders involved is essential. In the final and most crucial step - which is not part of the original IDEO/Stanford process – is implementation. In order to harnest sustainable value of the human-centered approach Design Thinking the developed and tested solutions have to provide a significant business value. This business value can only be achieved through a – if possible rapid – generation of financial benefit. 4.3. Design Thinking intensified the agile approach Due to its iterative nature and its rapid cycles of need finding, ideating, prototyping, testing and optimizing based on the test results; Design Thinking is already seen as an agile approach. But the human-centered approach demonstrates further agile elements. For example that also Design Thinking teams organize themselves within their project scope. The direction of the designed solution is determined by the data from the market, respectively by the customer as well as technical testing and not continuously controlled and steered by the management. Additionally through an early and continuous testing and encouragement rapid and flexible improvement of early prototypes can be achieved. Another important aspect of Design Thinking is working in a cross-functional team of e.g. Designers (Human Perspective), Developers (Technology Perspective) and Marketing / Sales (Business Perspective). The speed of development can also be increased by synchronizing the people involved in a development project by improving information and coordination work, and eliminating aspects such as not-invented here and difficulty in transitioning from one development level and department to the next. 5. Summary These two agile approaches Integrated Design Engineering and Design Thinking with industry case studies highlight that agility could be used not only in software product development process but also in the product and service development process in ways to shorten customer-driven product development process. Currently, tried-and-tested strategic approaches in innovation discovery and innovation design methods such as Design Thinking and Integrated Design Engineering are anchored in the overall process in various areas like banking,

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medicine, service and manufacturing process. The Integrated Design Engineering as well as Design Thinking demonstrates beneficial agile facets for the new product development process. Both approaches are suitable to deal the challenges of VUCA (volatile, uncertain, complex, and ambiguous) world, today. Both are holistic in terms are covering the ‘horizontal’ aspects of the development cycle from understanding customer needs to delivering and implementing solutions that are desirable for customer, technology feasible as well as business viable. IDE is also addressing relevant ‘vertical’ aspects of the development process, e.g. the operational, cultural and leadership requirements within organizations to fully harness the value of an agile working approach. Design Thinking – until now – is not explicitly addressing these elements. However the approach is often applied for organizational design in order to understand and address these operational challenges. But dealing with these challenges is not an integral part of the approach yet. Design Thinking is a logic holistic extension to identify the relevant challenges for customers. Within the design thinking community however further rapid formats have been developed like the Google Design Sprint and Lean StartUp. The currently associated digitalization process fosters the opportunity to try out ideas quickly, allowing mistakes to be made and learning from them so that products can be brought to market quickly and an iterative improvement is made possible. This behavioural change due to the digital transformation also leads to the development of agile approaches with decentralized units, which are networked with each other and at the same time act independently responsible, which are supported by a value-oriented, agile leadership culture. Customer-centric approach starts already with ideas and ensure the product-market-fit through cycles of build-testlearn before the validated final idea is developed in an – hopefully – agile sprint cycle to speed up the development process through sprints with shippable increments. The further combination of Integrated Design Engineering and Design Thinking guarantee the customer-centric orientation as a significant elements at agility. To anchored agility sustainable it must implemented as a culture and attitude at a company. The holistic and human-oriented approach of Integrated Design Engineering embedded this further significant element of agility and support a team pursue in a self-organizing, courageous and transparent manner. These two agile approaches with initial industry experience from implementation show that dynamic agile structures can be used successfully in product development even beyond the software product development process. In our growing digital environment the factor of speed and holistic way of thinking is becoming more and more crucial. Current estimates assume that the knowledge growth of the world doubled all 5 to 12 years and this rate will accelerate with a direct impact on the product life-cycle. Both approaches the Integrated Design Engineering and the Design Thinking have potential to design smart product and smart services to be rapid on the market as possible and build solutions right through their advanced agile elements. And more agile approaches are expected to follow, which will effectively support the current digital transformation

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