Agile Transformation in a Hardware Organization, Wärtsilä Case Study | Henna Torkkola nd Maarit Laanti

Scrum Master Toolbox Podcast: Agile storytelling from the trenches

Agile in Hardware: Agile Transformation in a Hardware Organization, Wärtsilä Case Study with Henna Torkkola nd Maarit Laanti

In this Agile in Hardware episode, Henna Torkkola and Maarit Laanti share the pioneering journey of integrating Agile practices into Wärtsilä's Marine R&D, particularly within the ambitious New Product Development (NPD) program for advanced engine technology. From fostering collaboration across the value stream to embracing simulation and hybrid Agile approaches, they offer insights into how Agile has reshaped R&D processes. Henna and Maarit explain how bringing Agile to hardware isn’t about imposing frameworks but adopting a collaborative, flexible mindset that inspires productivity and innovation across teams.

Starting with a Vision for Agile in Product Development

Henna and Maarit delve into the origins of Wärtsilä’s Agile journey, recounting how the NPD program, initiated in 2018, was envisioned to deliver faster releases, co-create with stakeholders, and establish a more satisfying work culture for program teams. Moving beyond traditional project stages, the company embraced Agile methods to accommodate real-time adjustments and maintain a competitive edge.

“Agile success in hardware starts when you focus on the values behind the practices—not just calling it Agile.”

Expanding the Agile Mindset Across the Value Stream

Originally designed as an R&D initiative, the program expanded to engage the entire value stream, including sourcing and manufacturing. Henna explains how cross-departmental collaboration was achieved through inclusive events and ceremonies, bringing in diverse stakeholders from the start. This broad integration marked a shift from isolated R&D to a holistic approach involving the entire value chain, creating a product developed with inputs from every angle.

“Cross-functional collaboration is crucial; bring everyone to the table early and celebrate wins together.”

Integrating Manufacturing for a Smooth NPD Transition

To bridge the gap between R&D and manufacturing, the team included design-for-manufacturing experts from the outset, ensuring seamless transitions and early feedback. The addition of quick real-world testing strategies like using a single-cylinder prototype and rolling-wave planning enabled the NPD program to adapt plans incrementally while collecting feedback earlier in the process compared to previous programs.

“Invite manufacturing to R&D’s early stages—you’ll tackle issues before they escalate.”

Blending Traditional and Agile Models for Hardware Innovation

The team adopted a hybrid model that merges Agile's flexibility with traditional gate-check models, evolving over time as teams moved away from rigid milestones. By focusing on early feedback and iterative adjustments, they avoided process bottlenecks and fostered a product-centric mindset.

“Don’t get stuck on milestones; prioritize feedback loops to keep product goals aligned with real-world needs.”

Simulation and Small-Scale Testing: Essential Tools for Fast Feedback

Both simulation and small-scale testing proved essential to the program's agility, facilitating rapid feedback and enabling team alignment. With testing and simulation experts working alongside designers, the process quickly highlighted practical improvements, creating a more effective pathway from R&D concepts to production-ready components.

“Invest in simulations—they give you insights much faster, aligning design with manufacturing realities.”

Synchronization and Common Planning: Enabling Transparency and Efficiency

Henna and Maarit underscore the benefits of synchronization and common planning cadences across the R&D teams, enhancing transparency and team spirit. These synchronizations empowered teams to independently manage priorities while aligning with organizational goals, creating an ecosystem where collaboration and autonomy coexist.

“A synchronized cadence empowers teams, letting them take charge of plans within a unified vision.”

Pivoting to Sustainable Fuel: Adapting Agile to Changing Requirements

As the market focus shifted towards sustainability, the NPD program swiftly integrated sustainable fuels like ammonia into development. Thanks to the Agile-inspired adaptability, the program adjusted its trajectory, positioning Wärtsilä to lead in environmentally conscious engine development with a product-first mindset that welcomed change.

“With Agile, your process adapts to change—making room for innovations like sustainable fuel in real-time.”

Resources for Agile Enthusiasts in Hardware and Product Development

For listeners eager to dive deeper, Henna and Maarit recommend:

• Flexible Product Development: Agile Hardware Development to Liberate Innovation by Preston Smith

• White papers on Agile in hardware, particularly those available on WikiAgile

About Henna Torkkola and Maarit Laanti

Henna Torkkola is an Agile coach at Wärtsilä's Marine R&D, focusing on Future Fuels and New Product Development. With expertise in banking and Agile transformations, she holds a Master’s in Human Resource Management and is passionate about the cultural impact of Agile.

You can link with Henna Torkkola on LinkedIn.

Maarit Laanti, a pioneering Agile coach and co-founder of WikiAgile, is the author of the first PhD on Agile in a scaled environment. She has led transformative Agile initiatives at Nokia and contributed to the SAFe framework. A global authority on Lean and Agile, she is recognized for advancing Agile scaling in hardware.

You can link with Maarit Laanti on LinkedIn.