This document provides an overview of Philips' transformation to Agile. It discusses the starting vision to adopt Agile, the journey over time from 2012-2015, establishing an Agile Center of Excellence, key performance indicators, an Agile delivery model including scaled Agile framework implementation, the concept of delivery centers, case studies, lessons learned, and the road ahead. The presentation aims to provide insight into Philips' Agile transformation program.

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Agile: A peek into Philips Agile
transformation
Sriram Venkatasubramaniam
Sr. Director, IT Delivery
June 2015

2. Confidential2
Agenda
Philips Overview
 “Accelerate” transformation program
Agile: Philips’ journey
 The starting vision
 Our journey
 Agile Center of Excellence
 Agile Adoption and Measurement
 Agile Delivery Model
 Concept of Delivery Centers
 Case Studies
 Lessons Learnt
 The road ahead
Q&A
1
2
3

3. Confidential3
Agenda
Philips Overview
 “Accelerate” transformation program
Agile: Philips’ journey
 The starting vision
 Our journey
 Agile Center of Excellence
 Agile Adoption and Measurement
 Agile Delivery Model
 Concept of Delivery Centers
 Case Studies
 Lessons Learnt
 The road ahead
Q&A
1
2
3

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Philips
 Royal Philips of the Netherlands is a diversified technology company, focused on improving
people’s lives through meaningful innovation in the areas of
 Healthcare
 Consumer Lifestyle
 Lighting
 The company is a leader in cardiac care, acute care and home healthcare, energy efficient
lighting solutions & new lighting applications, as well as male grooming and oral healthcare
 We believe in continuously reinventing ourselves through transformation programs like
Accelerate, PIL, Gemini, etc.
2016 Health-Tech
Lighting Solutions
More than 120 years of history

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Philips Accelerate Program
Accelerate! : Our worldwide business transformation program - is about
changing the way we do business and unlocking our full potential. To become
more agile, innovative and entrepreneurial as a company

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Accelerate Program – Philips IT
ASP
ITGS
IT
Delivery

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Agenda
Philips Overview
 “Accelerate” transformation program
Agile: Philips’ journey
 The starting vision
 Our journey
 Agile Center of Excellence
 Agile Adoption and Measurement
 Agile Delivery Model
 Concept of Delivery Centers
 Case Studies
 Lessons Learnt
 The road ahead
Q&A
1
2
3

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Our starting vision
 Reduced time-to-market and increased
business relevance of technology solutions
 Agile is a mindset, not just a methodology
 Fixed Team, Fixed Budget, Fixed Release
 We adopted SCRUM methodology
 Small iteration cycles (2-4 weeks) in
collaboration with business
Network of technology partners to provide Philips access to scale, innovation and efficiency
Product Engineering approach - End-2-End Involvement via CVP from Agile development to catalogue
deployment
Agile/Output Based Delivery
If you do not succeed in the first attempt, skydiving is not for you

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Our Journey
Doing:
2012
• Know the Scrum
method
• Know how to
perform the process
• Go through the
motions neatly
Becoming:
2013 – H1
• Start to make small
variations /
improvements
• Start to understand
why things work
this way
• Able to argue why
this is better
Being:
2014
• Unable to think
different
• Transform
opposite ideas to
current values &
mindset
• Deep knowledge
internalization
Consciously
Incompetent
Consciously
Competent
Unconsciously
Competent
Excelling:
2015 onwards
• Agile all the way
• Continuous
Improvement
across areas
• Build further on
existing
knowledge and
capability
Continuously
Improving
You got to be careful if you don't know where you're going, because you might not get there

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Agile Center of Excellence (ACE)
IT
• Trainings
• Workshops
• Events
• Free books/materials
• Webcasts by senior
management
• Company-wide
program (Accelerate)
• Agile maturity
assessment
Partner
• KPIs to ensure agile
adoption
• Engagement in agile
framework
• High quality scrum
masters, agile coach
• Scrum ceremonies
• 100% use of Rally
• Agile maturity
assessment
Business
• Business involvement
through product
owner
• Communicating the
importance of agile
• Building product
backlog
• Product owner training
• Agile maturity
assessment
Knowledge is knowing tomato is a fruit, wisdom is not putting it in a fruit salad

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What gets measured gets delivered….
• Adherence to ART releases
• Offshore percentage
• Velocity increase for all active scrum
teams in rally
• Automation of test scenarios &
Regression Suites
• “Stairway To Heaven” star
The early bird might get the worm, but the second mouse gets the cheese
Some additional KPIs

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The results speak for themselves….
Yesterday is history, tomorrow is mystery, focus on today, that is why it is called “The Present”
To leverage the benefits that Agile brings to Philips, the
Agile Center of Excellence supports teams, programs, and
management in adopting the Agile way of working.
Focusing on short-cycled value delivery,
we use internal expertise and experience,
combined with outside-in views of our coaching partners.
The Agile Center of Excellence provides effective trainings,
pragmatic coaching and organizes events to ignite,
sustain, and reinforce the Agile mindset.
Unveiling the value of the Agile Center of Excellence…

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Agile Delivery Model
Prioritize &
Group Epics
Epic backlog
Per team
Business IT demand
(vision)
E2E Solution
Development
and rollouts
Product
A
Feature/Process teams
All demand is grouped into
products and the overall
product roadmap is budget
approved
Breakdown
into capabilities
& epics
Release 1
Sprint A Sprint B
Release 2
Sprint C Sprint D
Release n
Sprint n
User story User story
User story User story
User story User story
User story User story
User story User story
User story
User story
Epic Epic Epic
Team 1
Legacy & E2E
enhancements
Sprint / release planning
Product
B
Roadmap Product A
Q1 Q2 Q3 Q4
LPC LPC LPC LPC
High level demand
(Epic level) is
prioritized on a
roadmap
Team 1 Team 2 Team 3
AgileDeliveryAgilePortfolioManagement
Q2
1
2
3
4
5
6
The full process visualized from
vision to sprints
1 - Gather and review demand
2 – Cluster and approve demand
3 – Quarterly Budget Release (Fixed
Budget) and Team approval (Stable
Team) per product
4 – Demand Breakdown
5 – Demand Prioritization into team
backlogs
6 – Sprint and Release planning
Time is precious, spend (waste) it wisely

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Scaled Agile Framework Implementation
The best curve in your body is your smile, flaunt it !!!

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Concept of Delivery Centers
Technical
Design
Functional
Design
Delivery
Management
Supporting
Functions
Partner
Development
RAMPS,
Transition,
Release
Delivery Center
A wise man can learn more from a foolish question than a fool from a wise answer

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Salient Features of our Agile Delivery Model
High Offshore ratios
Continuous Improvements
Lean principles (Elimination of waste/redundancy)
Delivery Excellence
Test Factory Integration
Testing Automation
Build and Deployment/ Configuration Automation
Best Practices adoption
Follow your heart but do not forget to take your brain with you
D E VO P S

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Case-Study 2 (Foundation Platform)
How we operate
ART Planning
sessions
Hackathons
Continuous
Improvement
Testing
Automation
DevOpsPIL Cadence
• Scaled Agile Framework
• Release based cadence
• Well-defined processes
• Frameworks and Templates
• Tools and Checklists
• E-learning on-boarding course
• Work Instructions (Wow documents etc.)
Best Practices
Whenever I find the key to success, someone changes the lock

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Case Study 2 - Value Delivered - Order to
fulfillment Program
Goals Actions Achievements Lessons learned
Have feature teams that
deliver E2E functionality
Advice & coach on restructuring the
teams to from silo’ ed component to
feature teams
8/10 Build & Test teams into virtual
end2end integrated teams
Don’t accept half
solutions
Improve quality of the Team
Backlogs
Create standardize hierarchy in
epics/features and user stories,
driven by the compliance teams.
Organized Really sessions, PPTs,
movies
From 1000+ to 2 orphan user stories
in the backlogs
Start Integration early and
often
Initiated integration demo’s , coached
for continuous integration inside the
teams
Integration demo’s happen every 2
weeks
Teams need to be in the
driving seat, start small &
expand
Make teams self organize to
improve
Visualize flow of small pieces of work
going through the process
90% Velocity reliability. AVG release
velocity increase in 2014 from 21 to
41 over the teams
If only O2F was end2end
value oriented…
Engage product owners
from business in demo’s so
we have bi-weekly
interaction and feedback
Create transparency on PO
involvement, empower & coach team
decision making when PO is not
available
94% Product Owners joining demo
and prioritizing teams backlogs. On
average 85% acceptance of user
stories
Deploy early by including
NLATAM and compliance in
sprint rhythm
Simplification and increased agility
IDC process with the IDC teams
40%* decrease in throughput time in
the IDC process

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Case-Study 3 - Idea-2-Market
Agile Software Playbook’
(ASP) has been created to:
• Share common practices
across teams
• Help teams in embracing
Agile and SAFe mindset,
• Provide ‘real time
knowledge’ with ‘practical
experiences’ (“artifacts” in
Agile terminology)
The Agile transformation is
expected to touch 50 Philips
locations across the globe,
projects in 28 Businesses and
4000+ engineers across various
roles
I2M Excellence focuses on
capability building in a number
of critical areas such as digital
and aims at :
• Developing better quality
software in a predictable,
fast and agile way
• Leveraging standardized
processes, tools and
development methodologies
in I2M
To support the transformation I2M has
identified Agile methodology as a key
enabler. SCRUM practices will form the
foundational core, on which we build
SAFe practices
The most successful people have plan A at the front of their mind and plan B at the back

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Lessons Learnt
Agile should not be an IT driven initiative only. Take the business along.
Transformation agents – coaches and delivery managers play a vital role to agile
adoption and success. Gemba leadership is key.
Keep sharpening the axe. Build assets, implement incremental processes towards
Devops, pursue in-sprint testing and automation, encourage democracy and harmony
Systems Team is significant to keep enhancing the principles,
procedures, guidelines, assets and thereby keep the platform stable.
Scrum Ceremonies like ART Planning, SoS, Retro, stand-ups, etc. make a big impact in
identifying the impediments and their resolution
Experience is the name everyone gives to their mistakes

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The road ahead
Make benefits of
agile secular
Get Scaled agile to
work seamlessly
Get all to dance
to the same tune
Enhance the
coverage of Agile
I won’t be impressed with technology unless I can download food
Live the spirit of
agile
Move to Devops

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