1.1 Agile working methods
Traditional working methods cannot handle the dynamical changes that digital transformation brings along. Agile working methods give the ability to be flexible in uncertain situations, which then brings a decisive competitive advantage. Agile is deeply rooted in software development. In 2001, an international community of seventeen developers formed twelve principles for agile work. The manifesto was written to uncover better ways of software development. There are four key principles the manifesto drives towards. The authors of the Agile Manifesto attach people particularly higher importance than processes and tools. Furthermore, a functioning solution is more important than its comprehensive documentation. By avoiding …show more content…
Toyota was the first to implement lean production, which helped the company to reduce costs, establish a new company culture and produce just-in-time (Zollondz, 2013, p.6). Moreover, lean means more value for the customer created with less resources, by reducing non-value creating activities. Lean Management follows five key principles, with the aim to create value without “waste”, similar to Pareto’s 20/80 percent rule.
Principle one is the voice of the customer (short VOC). Companies need to recognize customer’s need and then to examine their value creation process, as second. By learning more about their own processes along the value chain, they can reduce “waste” and create a “one-piece-flow”. The aim of the fourth principle is to reduce waiting times and simplify decision-making processes, through bottom-up-initiatives inside the organization. After fixing the initial problems, follows the push-pull confrontation. Consequently, the customer decides (pull) when he needs a product, so the value chain is demand-oriented. The last principle says: “perfection can only be aspired”, meaning companies need to upend the status quo, create uncertainty for the competitors and for themselves (Pointner & Steinhoff, 2016,
Traditional working methods cannot handle the dynamical changes that digital transformation brings along. Agile working methods give the ability to be flexible in uncertain situations, which then brings a decisive competitive advantage. Agile is deeply rooted in software development. In 2001, an international community of seventeen developers formed twelve principles for agile work. The manifesto was written to uncover better ways of software development. There are four key principles the manifesto drives towards. The authors of the Agile Manifesto attach people particularly higher importance than processes and tools. Furthermore, a functioning solution is more important than its comprehensive documentation. By avoiding …show more content…
Toyota was the first to implement lean production, which helped the company to reduce costs, establish a new company culture and produce just-in-time (Zollondz, 2013, p.6). Moreover, lean means more value for the customer created with less resources, by reducing non-value creating activities. Lean Management follows five key principles, with the aim to create value without “waste”, similar to Pareto’s 20/80 percent rule.
Principle one is the voice of the customer (short VOC). Companies need to recognize customer’s need and then to examine their value creation process, as second. By learning more about their own processes along the value chain, they can reduce “waste” and create a “one-piece-flow”. The aim of the fourth principle is to reduce waiting times and simplify decision-making processes, through bottom-up-initiatives inside the organization. After fixing the initial problems, follows the push-pull confrontation. Consequently, the customer decides (pull) when he needs a product, so the value chain is demand-oriented. The last principle says: “perfection can only be aspired”, meaning companies need to upend the status quo, create uncertainty for the competitors and for themselves (Pointner & Steinhoff, 2016,