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W12
Tertulia:…

Lecture: Implementation in Digital Transformation

Class activity: None

Class discussion: Your Workforce Is More Adaptable Than You Think

Case Presentation: La Presse (part B) Implementing the Digital Strategy

Python workshop: None

1
• Have you designed a product before? Have you built one? Deployed it?
• Have you led a change project?
• What are the characteristics of a successful program of change?

2
3
4
 • Your Workforce Is More Adaptable Than You Think
by Joseph B. Fuller, Judith K. Wallenstein, Manjari Raman, and Alice de Chalendar

5
 Brazil China France

The two groups perceived the future

in significantly different ways.
Germany India Indonesia
11,000 lower-income and
middle-skills workers 6,500 Business
(most vulnerable to leaders from 8
changing dynamics) from countries
11 countries Japan Spain Sweden

800 from each

1,000 in each country
country
UK US 6
Workers seem to recognize more clearly than leaders do that their
organizations are contending with multiple forces of disruption,
each of which will affect how companies work differently.

Workers seem to be more adaptive and optimistic about the future

than their leaders recognize.

Workers are seeking more support and guidance to prepare

themselves for future employment than management is providing.

7
Accelerating Technological Change
Growing Demand for Skills
Changing Employee Expectations
Shifting Labor Demographics
Transitioning Work Models
Evolving Business Environment

8
Accelerating Technological Change
New technologies New technologies that Sudden technology- Technology-enabled
that replace human augment or supplement based shifts in opportunities to monetize free
labor human labor customer needs services or underutilized assets

Growing Demand for Skills

Changing Employee Expectations
Shifting Labor Demographics
Transitioning Work Models
Evolving Business Environment
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Accelerating Technological Change
Growing Demand for Skills

General increase in the skills, technical knowledge, Growing shortage of workers with the skills for
and formal education required to perform work rapidly evolving jobs

Changing Employee Expectations

Shifting Labor Demographics
Transitioning Work Models
Evolving Business Environment
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Accelerating Technological Change
Growing Demand for Skills
Changing Employee Expectations
More widespread desire for work with a purpose
Increased popularity of flexible, self-directed forms
and opportunities to influence the way it is
of work that allow better work-life balance
delivered

Shifting Labor Demographics

Transitioning Work Models
Evolving Business Environment
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Accelerating Technological Change
Growing Demand for Skills
Changing Employee Expectations
Shifting Labor Demographics

Need to increase workforce participation of underrepresented populations, such as elderly

workers, women, immigrants, and rural workers

Transitioning Work Models

Evolving Business Environment
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Accelerating Technological Change
Growing Demand for Skills
Changing Employee Expectations
Shifting Labor Demographics
Transitioning Work Models
Growth of Freelancing and labor- Delivery of work through complex
Rise of
contingent forms sharing platforms that partner ecosystems, rather than
remote work
of work provide access to talent within a single organization

Evolving Business Environment

13
Accelerating Technological Change
Growing Demand for Skills
Changing Employee Expectations
Shifting Labor Demographics
Transitioning Work Models
Evolving Business Environment
New regulation Regulatory changes Regulatory shifts affecting cross- Greater economic and political
aimed at controlling that affect wage border flow of goods, services, volatility as members of society
technology use levels and capital feel left behind

14
Don’t just set up training programs—create a learning culture

Engage employees in the transition instead of herding them through it

Look beyond the “spot market” for talent

Collaborate to deepen the talent pool

Find ways to manage chronic uncertainty

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16
• Implementation in Digital Transformation

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 OF DATA SCIENCE
Success PROJECTS NEVER
MAKE IT TO
13%

PRODUCTION!
Failure
87%

Source: VentureBeat | Transformative tech coverage that matters 18

 Modules
Solving the Not delivering Not using the Not having the
Module ONE THREE, FOUR, Module TWO
wrong problem right value right data right talent
and FIVE

Thinking that Applying the Overlooking

Module ONE
Forgetting
deployment is wrong (or no) Module ONE
organizational
and THREE
ethics
the last step process culture

19

Source: VentureBeat | Transformative tech coverage that matters

20
• With n people in your team you
𝑛 𝑛 1
need to manage different
2
Relationships
• Complexity is in the order of O(n2)
• Two pizza rule

https://blog.nuclino.com/two-pizza-teams-the-
science-behind-jeff-bezos-rule
21
 Project
Manager

Product Engineering
Design Team
Team Team

System Product Product Software Data

Architect Owner Manager Engineer Engineer

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 You as the entrepreneur
Workload

Product Team

Project timeline
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24
 Tech
teams
and
maximum
velocity

Gothelf, J. (2017). Lean vs. Agile vs. Design thinking: what you really need to know
25
to build high-performing digital product teams. Sense & Respond Press LLC.
 Designers
Accurate description
of customer’s need

AND EACH
TIME WE Timely,
Useful,
HAVE NEW Product and Useable
CHALLENGES! Managers
On-time Product
Product

Delivery Unusable Developers

Product New features

26
 AGILE
LANDSCAPE
BY DELOITTE

27
 Manifesto for Agile
Software Development

Manifesto for Agile

Software Development

28
Agile Development values:

Individuals and Working Customer Responding to

interactions software collaboration change
over over over over
Processes and Comprehensive Contract Following a
tools documentation negotiation plan

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 GOAL: Highest Quality, Lowest Cost, Shortest Lead Time
Just In Time High Quality Jidohka
Minimum resource required Mudi Muri Mura
to constantly deliver: Process • Detect abnormality
• Just what is needed min input max output • Stop and Respond
• In just the required amount • Harmonize humans and
• Just where it is needed Method machines
• Just when it is needed Minimum Lead Time

Heijunka Standardized Work Kaizen

Stability
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• FIFA World Cup 2022
• Which team should
win?

26 Shots 12 6 Shots 12
9 Shots on target 4 3 Shots on target 5
74% Possession 26% 17% Possession 83%
771 Passes 269 228 Passes 1,058
88% Pass accuracy 70% 67% Pass accuracy 91%
6 Fouls 14 9 Fouls 6

GAME TWO GAME ONE 31

Every project us an experiment

The primary question is not: Can we build the product?

The primary question is: Should we build the product?

The secondary question is: Can we build a sustainable business model around the product?

Work in short cycles to choose whether to Continue, Pivot, Or Kill, based on customer feedback.

Ries, E. (2011). The lean startup: How today's entrepreneurs use continuous innovation to create radically 32
successful businesses. Currency.
 Because of the force from
A tool of Lean Startup, which
tech team and demand for
clarifies two things:
high velocity
• What is the most critical • MVP has been transformed
things we must learn first on into product phase one
the project? (fewest number of features
• What is the least amount of for being ready to be
work we must do to learn it? shipped)

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 DESIGN THINKING
• Design thinking is a human-
centered approach to innovation
that draws from the designer’s
toolkit to integrate the needs of
people, the possibilities of
technology, and the requirements
for business success.
• TIM BROWN, EXECUTIVE CHAIR OF
IDEO

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 Design a (series
Clearly articulate
of) prototype(s) to
the problem you
test all or part of
want to solve
your solution Engage in
continuous short-
cycle innovation
Empathize Ideate process to
continually
improve your
design

Define Prototype

Brainstorm
Develop a deep
potential solutions;
understanding of
select and develop Test
the challenge
your solution

35
 Integrate the
principles

Do not integrate
the processes

Gothelf, J. (2017). Lean vs. Agile vs. Design thinking: what you really need to know 36
to build high-performing digital product teams. Sense & Respond Press LLC.
 PRINCIPLE ONE:
ALWAYS WORK IN SHORT CYCLES
Evidence based decision making.
Constant feedback and adjustment.
What is the next minimum viable product?
 PRINCIPLE TWO:
HOLD REGULAR RETROSPECTIVE
Continuous process improvement.
What did you Like, Learn, Lack, and Long for?
 PRINCIPLE THREE:
CUSTOMER VALUES ARE THE SAME AS BUSINESS
VALUES
Take user-centered perspective
You are done when your customer is done
PRINCIPLE FOUR:
GO AND SEE
Managing by walking around
Managing by facilitating the good pattern
 PRINCIPLE FIVE:
ONLY TEST HIGH-RISK AND HIGH-VALUE
HYPOTHESES
Balancing product discovery with delivery work
 Strategic
Easy wins 

High
initiatives?

High Value High Value

Low Complexity High Complexity
RISK-VALUE Implementation Complexity
High

MATRIX Low

Business Value
Low Value Low Value
Low Complexity High Complexity

Low
Maybe Later! Deprioritize 

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 PRINCIPLE SIX:
DO LESS, MORE OFTEN
Traditional research can become wasteful
Find the fastest way to learn the most important thing.
 PRINCIPLE SEVEN:
WORK AS ONE BALANCED TEAM
Small (six to ten people), Dedicated (working on one thing at a time), Co-located,
Cross-functional, Autonomous, empowered teams
 PRINCIPLE EIGHT:
RADICAL TRANSPARENCY
What is the project, why does the team work on it, How the work should be done, What
is the success look like.
Access to customer
Access to data
 PRINCIPLE NINE:
REVIEW INCENTIVE STRUCTURE AND
PERFORMANCE MANAGEMENT CRITERIA
What are you being asked to do? vs. What are you incentivized to do?
 PRINCIPLE TEN:
MAKE LEARNING A FIRST-CLASS CITIZEN OF
YOUR BACKLOG
Prioritize learning over delivery
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•Domain expertise and statistics •Software engineering
•Familiarity with programming •Developing models and data pipelines
•Creating insight from data Project •Working with Software engineering
•Making decisions on Machine Manager team on model integration and
Learning approach & prototyping deployment

Product Data science Engineering

Design Team
Team Team Team

Machine
System Product Product Data Software Data
Learning
Architect Owner Manager Scientist Engineer Engineer
Engineer

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Workload

Product Team

Project timeline
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 What does the What data do we How do we
business need? have / need? Is it organize the data
clean? for modeling?
Business Data
Understanding Understanding Business Data Data
Understanding Understanding Preparation
Data
Deployment Preparation
What modeling Which model How do
Evaluation Modeling techniques best meets the stakeholders
should we apply? business access the
objectives? results?

Modeling Evaluation Deployment

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52

A strategic initiative with marketing, branding, sales,

and operation components
 1 2 3 4
Determining Assessing the Determining Producing a
Business Situation Machine Project Plan
Objectives Learning/ Data
Mining Goals

53
To increase from To position as the To optimize
12.7% to more than healthy diet competitive prices
20%. promoting grocery and boost revenue. Business Data
store. Understanding Understanding

Market share Branding Pricing Data

Deployment Preparation
To tailor healthy To redesign To increase per
product offers to grocery stores and capita consumption Evaluation Modeling
wide range of increase healthy of vegetables by
customers. purchases. 15%, in two years.
Phase one
Marketing Operation
objective

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 Per capita consumption of vegetables
Business Data
Understanding Understanding
155.92

Data
155.8

Deployment Preparation
148.8

142.1

140.4
Evaluation Modeling

139.8

2016 2017 2018 2019 2020 2021

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Source: Statista
Collecting Describing Exploring Verifying Data
Initial Data Data Data Quality

56
Store’s Masterfile Transaction database
17,774 food items 1.5B transactions
• Item name • Item code
• Class (fruit, vegetables, • Amount purchased Business Data
Understanding Understanding
meat, …) • Unit (weight, volume, …)
• Type (Spinach, Kale, …) • Price Data
• Form (fresh, frozen, …) • Customer code Deployment Preparation
• Unit of measurement • Date of purchase
Evaluation Modeling
FNDDS 13,829 Customers
• Demographics
• Food description •
Food and Nutrient Database
Socioeconomic condition
for Dietary Studies
• Nutrients (vitamins, • Size of household
protein, minerals, …) • Contact information
• Address 57
 Selecting Data

Cleaning Data

Constructing New
Data

Integrating Data

Formatting Data
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Store’s Masterfile Transaction database
17,774 food items 1.5B transactions
• Item name • Item code
• Class (fruit, vegetables, • Amount purchased Business Data
Understanding Understanding
meat, …) • Price
• Type (Spinach, Kale, …) • Customer code Data
• Form (fresh, frozen, …) • Date of purchase Deployment Preparation
• Unit of measurement • Store Code
Evaluation Modeling
FNDDS 13,829 Customers
• Demographics
• Food description • Socioeconomic condition
• Nutrients (vitamins, • Size of household
protein, minerals, …) • Contact information
• Address 59
Selecting Modeling Generating a Test
Techniques Design

Building the Models Assessing the Model

60
Evaluating the Results Review Process

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Customers with annual per capita vegetable
consumption
More than Between 240lb Business Data
Less than 80lb Understanding Understanding
240lb and 80lb
Data
Deployment Preparation
60 association rules for
different vegetables
Evaluation Modeling
• Min support = 30%
• Min Confidence = 90%
• Min Lift = 4

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 Business Data
Increase in vegetable sales per Understanding Understanding
customer (compared to previous year)
Data
Deployment Preparation
Store one:1.2% Store two: 1.4%
Evaluation Modeling
Store three: 1.9% Store four: 0.8%

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THE SCIENCE OF
EVALUATION: A
REALIST
MANIFESTO
BY RAY PAWSON

64
 Context Mechanism
1 •
•
Current situation
Resources and infrastructures
3 • Emerging challenges and
opportunities
• Stakeholders • Change management
• Culture • Ethical considerations

Program
2 • Design
• Development
• Right problem
• Right data
• Right value
• Right process
• Right deployment
strategy
• Implementation

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 Context
The question is not: what Population
works, or does it work? Program Black Box Outcome

Mechanism
The question is: what works,
for whom, why, under what
circumstances, and how? Context Mechanism Outcome

CMO Configuration

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SO, SOME OF US
ARE NOT THATWhat do you think?
INTO Why do people eat less vegetables?
VEGETABLES??!

67
THE HEART OF
CHANGE
REAL-LIFE
STORIES OF HOW
PEOPLE CHANGE
THEIR
ORGANIZATIONS
BY JOHN P. KOTTER
68
Vegetables are too expensive.

Vegetables are not tasty.

I don’t know how to use vegetables in everyday

meals.

I don’t have enough time to plan for food

preparation with vegetables.

Coupons are very impersonal, with no information

about vegetables’ nutritional value.

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Planning for Deployment

Planning Monitoring and Maintenance

Producing a Final Report

Conducting a Final Project Review

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 Customers with annual per capita vegetable Customers with annual per capita vegetable
consumption consumption
More than Between 240lb More than Between 240lb
Less than 80lb Less than 80lb
240lb and 80lb 240lb and 80lb

60 association rules for 60 association rules for

different fresh different frozen, dried
vegetables and canned vegetables

Annual household income more than $24K Annual household income less than $24K

Added a chef to the project team to prepare recipes for bundles.

Utilized client’s m-Commerce infrastructure to communicate benefits of healthy diet.

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Before applying customers’ feedback After applying customers’ feedback

Increase in vegetable sales per Increase in vegetable sales per

customer (compared to year before) customer (compared to year before)

Store one: 1.2% Store two: 1.4% Store one: 2.3% Store two: 2.4%

Store three: 1.9% Store four: 0.8% Store three: 2.1% Store four: 2.1%

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 Intended
Strategy • No Learning
Unrealized • No Control
Strategy

Deliberate Realized Emergent

Strategy Strategy Strategy
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 Control
(Strategy as a Plan)

Learning
(Strategy as a Pattern)

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STRATEGY
SAFARI A GUIDED
TOUR THROUGH
THE WILDS OF
STRATEGIC
MANAGEMENT
BY HENRY MINTZBERG

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DIGITAL TRANSFORMATION
COMES DOWN TO TALENT
IN FOUR KEY AREAS
By: Thomos H. Davenport and Thomas C. Redman

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Technology Data Process Change

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 • Emerging technologies like IoT,
blockchain, AI, and data lakes hold
transformative potential.
• Companies face challenges from
legacy systems (technical debt)
and skepticism about IT
departments' ability to lead
change.
Technology • Leaders need technical depth,
strategic foresight, and strong
Data Process Change

communication skills to rebuild

trust and deliver business value.

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 • Data quality is often poor, and
companies need to address this for
transformation to succeed.
• Transformation requires managing
new types of data (e.g.,
unstructured data) and integrating
massive amounts of proprietary
and external data.
Technology Data • Employees at all levels must
embrace roles as data creators and
Process Change

data consumers, which requires

clear communication and support.

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 • Transformation requires rethinking
end-to-end customer processes
and breaking down silos.
• Effective process management
demands the ability to align teams,
improve workflows, and know
when to pursue radical change
versus incremental improvements.
Technology Data Process Change

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 • Leadership, teamwork, emotional
intelligence, and change
management are crucial for
navigating transformations.
• Teams must integrate "purple
people"—those who can bridge
technical and human-centric
elements—to ensure alignment.
Technology Data Process Change

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 Module THREE: Module TWO: Module TWO: Module ONE:
• Database • Data Strategy • Data Strategy • Social Impact of
• Big Data • Data and Bias Technology
• IoT • Data visualization Module FIVE: • Digital Transformation
• Cybersecurity and Organizational
• Cloud Computing Module THREE: • Data-Driven Strategy Culture
• 3D Printing • Digital Strategy
• Database • Platform Strategy Module SIX:
•
Technology
Blockchain
Data
• Big Data Process •
Change
Design Thinking
Module FOUR: Module SIX:
• Agile Development
Module FOUR:
• Machine Learning • Implementation • Lean
• Artificial Intelligence • Machine Learning • CRISP-DM • Context, Mechanism,
• Artificial Intelligence and Strategy

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 ANY QUESTION? W12