Value chains in SAFe

    Recall that the Scaled Agile Framework contains several levels of hierarchy from command management to enterprise portfolio management. And one of the levels is value chain management. Demand for this level is on the part of large organizations creating large-scale or critical systems. However, some of its elements will be quite useful and not very large enterprises.


    In order to remain competitive, a modern enterprise is undergoing serious transformations, one of the key areas of which is digitalization, or digital transformation. This comprehensive concept implies not just automation or the introduction of IT-based innovations, but something more: a major change in both business processes and business models - the foundations of an enterprise, making money and creating value for customers. Often, the products and services offered to customers change dramatically. All this is based on information technology.

    A vivid example of this is the automotive industry. According to Ford experts, more than half of the innovations introduced over the past five to seven years are associated with the use of advanced information technologies not only in design bureaus and production workshops, but also in the cars themselves. So, on-board computers have already become the de facto standard and appear even in new models of domestic brands. Increasingly, there are cars equipped with automatic parking systems, or even fully controlled by computer systems. If this goes on, in 20-30 years the profession of a driver will become as rare as, for example, the profession of a coachman, perhaps owning a car will become the same hobby and luxury as owning a live horse.

    For many enterprises that have embarked on the path of digital transformation, software development is gradually ceasing to be a non-core business, a kind of stepdaughter, and becoming one of the key areas of development. For example, in 2010-2011. IT bank representatives often claimed that they were not software developers, and development and quality management was not their task, but the task of contractors. Now it’s all the same, the direct business of banks, retail, signalmen and representatives of other industries, so that it does not turn into a heavy burden, it is necessary to conduct software development quickly (not lagging behind competitors), qualitatively (without redoing many times and not raking mountains of complaints from disappointed customers) and prudently (efficiently from a financial and economic point of view). This is precisely the purpose of the Scaled Agile Framework (SAFe)- an open, accessible online knowledge base containing proven recommendations and templates for implementing lean (Lean) and flexible (Agile) techniques for creating large software systems, including enterprise-wide ones. Famous SAFe users include Intel, Lego, BMC Software, Nordea, Accenture Technology, and HPE Software. In this knowledge base, on the one hand, the principles of lean production are implemented in relation to the development of software and engineering systems - the very one that brought glory to the Toyota automaker, on the other hand - methods such as Scrum, XP, and Agile develop and scale to the level of a large enterprise Kanban and all this is accompanied by a transformation of the culture of interaction between company departments within the framework of the DevOps approach. Scaled Agile, Inc. is responsible for development coordination and SAFe certification.

    SAFe can be used both in small and medium enterprises, and in very large companies, where both 500 and 1000 people can develop software solutions, creating very complex and large-scale systems. In relatively small enterprises, the benefits of SAFe can be achieved by managing the entire set of technical solutions in accordance with the business strategy. Of course, you need to understand that scaling comes at a price, and if you have, say, less than 5 development teams, then simpler approaches to scaling Enterprise Agile may be more successful. This, by the way, is voiced in the first principle of the SAFe framework - look at your products from an economic point of view.

    As for large companies, when it comes to creating truly complex products using lean and Agile approaches, they actually have no alternative to SAFe, because other scaling frameworks are either not designed to organize the work of so many development teams or are not well documented . These products may contain both software and hardware, including electrical and electronics, optical, mechanical, hydraulic and other components. Their creation requires versatile knowledge and efforts of hundreds, and sometimes thousands of specialists - not only full-time, but also employees of contracting companies. Failures in these systems or subsystems, which are often assigned critical tasks, can lead to unacceptable economic and social consequences.

    SAFe Levels


    SAFe distinguishes between four levels of development management: the level of portfolios, value chains, programs and teams (see Fig. 1).


    Fig. 1. SAFe levels.
    Source: Scaled Agile, Inc.

    • The command level is the lowest. These usually small (no more than 9 specialists, ideally) Agile teams work based on the ScrumXP approach, and / or including using.

    • At the program level, the second in hierarchy, virtual teams are formed, whose name - Agile Release Trains - can be translated as “trains delivering Agile releases” (hereinafter for brevity we will call them ART teams). The meaning of this metaphor is that, like trains going from station to station with different loads, these teams must act rhythmically, strictly follow the schedule and move at a predetermined speed according to the plan, delivering prototypes, models, software products, equipment to customers, documentation, etc. The specialists who are part of these virtual teams together plan their joint activities, record the commitments made and then fulfill them. The focus in planning is not on product release dates or releases, but on the rhythm and synchronization of the interaction of all interested parties. If the teams are successfully transformed into Feature teams, then with minimal synchronization such teams will successfully work as part of their sprint. At the same time, a release can go into a productive environment at any time, as, for example, an important amount of functionality is achieved.

    • The third level is the level of value chain (Value Stream Level). When creating complex solutions, when it is required to apply both scientific knowledge and practical skills, the efforts of many ART teams and contractors are required. A value chain is essentially a process that ensures the creation of a specific product or product in the interests of one of the business areas. Examples of such a chain include a bank loan conveyor or an online banking business process. Each direction will be dealt with by a separate ART team, which will include many development teams. By the way, it is at this level that the development strategy of the created products is determined.

    • Finally, the fourth level of SAFe is the level of portfolios. The portfolio contains a set of value chains, as well as a number of elements for the overall management of everything related to the creation and improvement of products, services and solutions in accordance with the business strategy of the enterprise, as well as their financing.

    Value chain


    Demand for this level is on the part of large organizations creating large-scale and often critical systems. At this level, the functions, properties and behavioral features of the new product are determined, as well as the context in which it is to be deployed, used, maintained, promoted, staffed and sold. In addition, the rules for making decisions on the economic aspects of development are formulated.

    The value chain chain appeared in the fourth version of SAFe, where it is optional. Organizations creating systems for the development of which several hundred specialists are enough can use the “truncated”, three-level version of SAFe, described in SAFe version 3.0.

    Similar to the level of programs, this level is built around the increments (increments) of programs. Increments are, in essence, Deming cycles (planning - execution - monitoring - impact, Plan-Do-Check-Action, PDCA), for which end-to-end synchronization of ART teams in value chains is ensured, which allows organizing effective and systematic interaction of many teams and contractors.


    Fig. 2. The level of value chains.
    Source: Scaled Agile, Inc.

    Key roles at this level are Solution Managers, Solution Architect / Engineering, and Value Stream Engineer (VSE).

    • Solution managers represent the interests of customers, monitor the fulfillment of their requirements and the implementation of strategic directions for portfolio development - business goals that connect the SAFe portfolio and business strategy. Together with product managers included in ART teams, they detail the properties of solutions and determine their functions and capabilities. In addition, they are responsible for maintaining a backlog of the entire solution and each team, respectively, which will reflect the plan for creating the solution, and setting priorities. He is also entrusted with the development of decision-making rules on the economic aspects of creating systems that are necessary to manage the decision-making process in ART teams and Agile teams.

    • Architects and decision engineers - a team that defines the architecture of a solution as a whole and, thus, integrates ART teams. They work closely with system architects of art groups and engineers, helping them to determine the architectural skeleton of the created products in accordance with the proposed roadmap for product development.

    • The value chain engineer is responsible for ensuring that the chain works clearly, without failures and delays, for which he must identify bottlenecks in a timely manner and eliminate them. In addition, it helps organize meetings of participants in the chain, monitors the accuracy of meeting deadlines (Kanban) and other metrics that characterize the chain.

    The cornerstone of decision is its design. It is the concept that determines the behavior of the product being created and the decisions associated with it, and is also a single “source of truth” and a repository of all requirements, including the history of their refinements.

    The main structural component of the level of value chains is the decision, because the whole chain works on its creation. Decisions should function not just in accordance with their intentions, but in their contexts - in the environment in which they have to “live” after deployment. These products must meet all the requirements of customers, and in addition, have the desired properties, be able to support the business initiatives for which they are created, and thus realize their mission.

    Management of larger initiatives is carried out on the basis of a set of smaller, but important initiatives, the implementation of which ensures the achievement of a global goal. In the process of analysis, this set is transformed into a set of decision properties. They are managed through the Kanban system (essentially “on time”) built into value chains. Kanban helps to make sure that before placing the properties in the backlog, where they will be put in the queue for implementation, they have already passed the stage of evaluation and analysis, and helps to ensure the effective and productive work of those involved in the analysis of these properties.

    Another function of the value chain chain is the coordination of ART teams working together to create a single solution. This process is based on building a certain rhythm of program increments by synchronizing iterations of Agile development. This ensures the interaction of not only ART-teams, but also contractors. At the beginning of each increment, general planning is carried out for the next period, it is carried out by the teams themselves during the “PI meetings”. In order to develop a plan that is common for all value chains and takes into account the interdependencies between the chains, these meetings are held before and after the start of increments. They are important for synchronization, but costly in involving participants, they collect each member of the ART team, therefore, it is recommended that the meeting be held every 10 weeks - after 5 sprints, if their length is 2 weeks. At the end of each increment, the solution is shown to customers and other interested parties. Then, as part of a working meeting, the effectiveness of the entire value chain is analyzed and ways to improve the existing process are determined, which is quite in the spirit of the concept of lean manufacturing.

    Note that the presence of some elements of the value chain chain is due to the peculiarities of creating large, complex solutions and, as a result, the need to organize the work of large teams of developers. However, some elements will be quite useful when using the three-level version of SAFe. In particular, this concerns the concept of the solution, management of the economic aspects of development, as well as interaction with contractors.

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