With DX being accelerated by companies, we find that Agile development is spreading as a general methodology/approach. However, it is not an easy task to apply this approach to cultures of other professions and industries since it was originally developed as a software development methodology.

Mitsubishi Electric is currently striving to expand use of Agile. What does Mitsubishi Electric regard as value, and how will challenges and barriers be overcome?

Since Agile went out into the world 20 years ago, these two guys have been attracted by its approach and committed to introducing it to companies. We interviewed Mr. Yasuo Hosotani, General Manager of the Development/Quality Management Department, DX Innovation Center (hereinafter, “DIC”), which Mitsubishi Electric established to promote its digital platform “Serendie,” and Mr. Toshihiro Ichitani, Principal Agile Expert, DIC.

The essence of Agile development lies in the speed of response to user needs.

One of the important key concepts in Serendie, which was developed by Mitsubishi Electric, and the future transformation to a circular digital-engineering company, is Agile. First of all, would you give us a simple idea of Agile development?

IchitaniAgile development is a software development methodology and the state of such methodology. This term was first used in the field of software development more than 20 years ago.

The mainstream of conventional development was the waterfall model. This methodology is called “waterfall” because development advances sequemtially from upstream to downstream, from definition of requirements to release. However, it is difficult to anticipate all of the user needs and value to be provided at the phase of definition of requirements, and even if you continued to develop for half a year or one year after defining the requirements, there is a risk of deviating from the user needs in the end.

On the other hand, in terms of Agile development, we make software in a short span of one week or two. And we continue the development by quickly accumulating improvements while understanding users' responses. The characteristics of this methodology is the approach to make software grow by clarifying unclear points one by one based on the precondition that it may be impossible to anticipate all requirements at the phase of definition of requirements.

I usually explain that Waterfall is a strategy to bring an end (to development) while Agile is one to continue (the development).

HosotaniAs we can see that the term “Agile” comes from agility, quick response to user and social needs is a key feature in Agile development. This means that we can implement a track correction quickly while advancing toward the goal. Consequently, the speed of the entire development will be increased.

Now I see that the strongest advantage of Agile development lies in the speed of response to user and social needs rather than the speed of the entire development. By the way, I have heard that the approach of Agile is not at all new. Why is it attracting attention in these days?

IchitaniIn recent years, I think DX has had an impact on Agile. The creation of new value is required more than ever, but we are in a time when it is not clear which of the company's assets will create value, what is value anyway and what is necessary for it.

Under such circumstances, as an activity in search of value for users, Agile development has been considered effective. Further, we have observed a movement that Agile has been adopted not only in software development but also in operations other than business development and other development areas, even in the operations of organizations. We can see a trend of Agile attracting attention in areas other than development.

HosotaniDuring the times when Japan's economy was growing fast, high-performance products used to sell whenever they were manufactured. Companies had a strong leadership in the market. But now, companies must respond quickly to user and social needs, and also take actions for diversity. In addition, I agree that DX became a turning point, as Mr. Ichitani pointed out.

Agile development is indispensable for circular digital-engineering

We were told that Mitsubishi Electric has been focusing on Agile development for some time.

HosotaniI joined Mitsubishi Electric in 2001 as a mid-career professional, and in 2002 I first engaged in Agile development. After joining the company, I was assigned as Leader of Development of the Communication-related Department, and I introduced Agile at that time. After that, I used Agile in the departments and projects I got involved in to support introduction. So, we have a history of use.

In bringing Serendie forward, what are your thoughts on the significance and role of Agile?

HosotaniFirst, I will briefly explain the flow of Serendie. In 2023, Mitsubishi Electric announced its determination to transform into “a circular digital-engineering company.” Circular digital-engineering company means a company that grows by consolidating, sharing within the company and using data obtained from customers, and generating new value, which is returned to customers and used for solving social challenges. I believe this must become a major transformation for us.

The digital platform “Serendie,” which was released with the aim of accelerating such transformation, will enable us to finally provide new value by repeatedly verifying hypotheses and performing track corrections. This process will not be completed at one time and requires continuous progress. Therefore, the Agile approach is indispensable.

There may be a challenge of how the mindset of the Mitsubishi Electric employees can fit Agile development. Could you tell us about specific initiatives, if any, with respect to that point?

HosotaniLed by Mr. Ichitani, the foremost person promoting Agile development, we have started an initiative to disseminate basic knowledge of and a mindset for Agile within the company. With respect to the creation of new businesses through Serendie, we also have a plan to verify hypotheses in a short period of time together with people from various positions in the company.

On those occasions, we, the members of DIC, will move the projects forward with agile approaches while running with the participants. We expect that changes will certainly occur little by little in the company as the number of employees with actual experience of Agile increases, and we are formulating a guideline in preparation for such a situation.

IchitaniAs for me, two months have passed since I joined Mitsubishi Electric. While I had expected a certain scale of the company, now I am experiencing the larger-than-expected scale and the hierarchical structure of the organization. I have been repeating trial and error to find the way to promote changes in the mindset in such a large-scale organization.

Could you tell us what kind of things you are trying, for example?

IchitaniMy idea is to create intermediate organizations or places. I believe that we will be able to promote transformation by establishing a place serving as “a base station” for creating value and connecting management and field people.

Value creation is an activity to create new value while refining hypotheses by incorporating data and information. To that end, we need a sense of direction of not only in the field but also throughout the organization. I mean, swift search and adaptation, which are characteristics of Agile, can be realized only after management and the field cooperate, authority is delegated and the system is well organized for proactive decisions.

In order to put this idea forward, I am planning to form several intermediate places in which value will be created. I believe that the specific cases generated from each place will become important factors to proceed with the transformation of mindset. However, this is just a hypothesis, and I will continue my search and challenge going forward.

And, it is often the case that outcomes are not quickly visible after repeating the verification of hypotheses. But, I am going to emphasize that judging the tangible outcome as a success or failure is not appropriate, and the accumulation of the Agile experience through such tasks is also one of the achievements.

It sounds particularly difficult to change the midset that the tangible outcome in front of you should be considered as a success or failure to one considering it as a challenge toward the future.

IchitaniIt is. But I don't think that the outcome of Agile should be measured only by conventional criteria such as cost and productivity.

And an effective action to change such perception is “reviewing.” Rather than just moving Agile forward, I think that perception will be changed gradually by subsequently reviewing “How should we act so as to make this task more effective?” and “What is it that we discovered, and what did we learn from this?”

Transform Mitsubishi Electric into an Agile large company from the “core”

Could you tell us the future development of Agile, which you consider indispensable for Serendie?

IchitaniI wanted to transform Japanese organizations to Agile from the “core,” and used to encourage them to adopt it. And I have found that Mitsubishi Electric has three factors in place which are important for an agile organization.

The first one is that they have actual experience of Agile development. Mitsubishi Electric has already track records led by Mr. Hosotani. The second is that Mitsubishi Electric has a policy of verification of hypotheses and strong resources to search for value. The third is that the Company is equipped with a platform for data analysis which is required for the planning of hypotheses of value.

With these factors in place and Serendie in operation as a specific general initiative, I believe Mitsubishi Electric will be transformed into an agile large company from the “core.”

HosotaniI expect that Mitsubishi Electric will further increase collaboration with overseas partners and affiliated companies by converting itself into an agile company. I would be happy if the opportunity to create totally new value could be expanded, thereby giving more favorable impact on customers and society.

IchitaniCreating new value is like walking along an uncertain animal trail with few clues. Serendie is a concept that cuts its way into the domain of such trail, representing two sides of the same coin with Agile. This initiative will certainly help many companies as a reference. I hope we will be able to build the future together with everyone involved in the initiative.

Now I remember that I first met Mr. Hosotani about 20 years ago, at a study meeting for Agile development, isn't that right? At that time, I used to feel the limitations of conventional development, and I was hooked when I learned about Agile. After that, while Mr. Hosotani and I were working to disseminate Agile in each of our situations and positions, we used to see each other only sometimes in activities. But now, we are working together on challenges. This exactly represents “Serendipity (the term of origin of Serendie),” doesn't it? It's an anecdote that fits our project (laughing).

HosotaniYou have just summarized the story in a way that fits Serendie (laughing). I feel it is inevitable rather than coincident. Going forward, let us move Agile forward with enthusiasm.