WEEK 03 — DIGITAL TRANSFORMATION

Change Management, Project Management

Agenda

  1. 1The Case of Netflix
  2. 2Describe change management
  3. 3Importance of change management in digital transformation
  4. 4Agile project management
  5. 5Scrum
  6. 6Conclusion
  7. 7Q&A
Dr. Davood WadiDigital Transformation
A staircase of three rising steps: a shop stands on the lowest step, a red arrow climbs the stairs, and the same shop sits on a framed screen on the top step

CHAPTER 01

The Case of Netflix

CASE STUDY

How Netflix Transformed The Movie Industry

Prescriptive Analytics for Strategic Decision-Making in Business

Question:

  1. 1What is Prescriptive Analytics?
  2. 2What other types of analytics do we have?
A film disc in a mailer envelope, an arrow, then a play button on a framed screen

DATA ANALYTICS

Data analytics - Four key types

One timeline in four selectable zones: 1. Descriptive (past data line), 2. Diagnostic (magnifying glass over a dip), 4. Predictive (dashed forecast in a pale blue band), and 3. Prescriptive (forking path from the forecast to two courses of action, with the optimal recommended target highlighted); 1. Descriptive is highlighted in red1. Descriptive2. Diagnostic4. Predictive3. Prescriptive

  1. 1.Descriptive: What happened?

    Descriptive Analytics

    Definition:

    Descriptive analytics is the process of summarizing historical data to understand what has happened in the past.

Exercise · Which one is it?

A city bike-share scheme analyses its trip data. Name the type of analytics each question shows.

How many trips started at each station last month?

Which concept does this case show?

CASE STUDY

Netflix Timeline

A timeline with four selectable moments: 1997, a film disc in a mailer envelope; 1999, a monthly calendar; 2003, a group of three people for 1 million subscribers; 2007, a play button on a framed screen; 1997 is highlighted in red1997199920032007

  1. 1997: Netflix founded: Pay-per-rental model

Challenges and Considerations

What Netflix needs to consider for digital transformation

What Netflix needs to consider for digital transformation: 1. Technology and 2. Business; Technology is highlighted in red1. TechnologyCloud & Encoding2. BusinessModel, Piracy, Loyalty

Technology

  • Cloud infrastructure to support demand
  • Video encoding technology (high fidelity yet lightweight)
Exercise · Sort into groups

A radio station plans to become a streaming audio app. Sort each challenge into technology or business.

      Tap a card, then tap the group it belongs to.

      CHAPTER 02

      Change Management

      CLASS DISCUSSION

      1. 1What challenges do organizations face when undergoing major changes?
      2. 2Why do employees often resist change?
      3. 3What strategies might help ensure smooth transitions during change?
      4. 4How can leaders align people and processes during transformation?
      Two people in profile face each other, each with a speech bubble, in conversation

      DEFINITION

      Change Management

      Change management ensures that organizations smoothly transition to digital transformation by aligning people, processes, and technology.

      Three rows, people (a person), processes (three linked steps) and technology (a chip), each with a red arrow pointing the same way to a shop on a framed screenPeopleProcessesTechnology

      FRAMEWORK

      Kotter's 8 Step Change Management

      Kotter's 8-Step Change Management Model is a framework developed by Dr. John Kotter, a professor at Harvard Business School, to help organizations implement successful change initiatives.

      The model outlines a step-by-step process for leading change and is widely used in various industries.

      A staircase of eight rising steps, numbered 1 to 8 and named: Create a Sense of Urgency, Build a Guiding Coalition, Form a Strategic Vision and Initiatives, Communicate the Vision, Empower Broad-Based Action, Generate Short-Term Wins, Consolidate Gains and Produce More Change, Anchor New Approaches in the Culture1Create aSense ofUrgency2Build aGuidingCoalition3Form aStrategicVision andInitiatives4Communicatethe Vision5EmpowerBroad-BasedAction6GenerateShort-TermWins7ConsolidateGains andProduceMore Change8Anchor NewApproachesin theCulture

      KOTTER'S 8 STEPS

      The Eight Steps: 1 to 4

      Kotter's Steps 1 to 4; 1. Create a Sense of Urgency is highlighted in red1. Create a Senseof Urgency2. Build a GuidingCoalition3. Form a StrategicVision & Initiatives4. Communicatethe Vision

      1.Create a Sense of Urgency:

      • Highlight the importance of change and the potential risks of not changing.
      • This step involves communicating the need for change to motivate stakeholders and create a sense of urgency.

      Question: How can leaders effectively create urgency without causing panic or resistance?

      KOTTER'S 8 STEPS

      The Eight Steps: 5 to 8

      Kotter's Steps 5 to 8; 5. Empower Broad-Based Action is highlighted in red5. EmpowerBroad-Based Action6. GenerateShort-Term Wins7. Consolidate Gains& More Change8. Anchor inthe Culture

      5.Empower Broad-Based Action:

      • Remove obstacles that may hinder change and empower employees to take action.
      • This may involve providing training, resources, and support to help individuals contribute to the change effort.

      Question: What challenges might organizations face when empowering employees to act on the change vision?

      Exercise · Put it in order

      A hospital moves from paper charts to electronic patient records. Put its change effort in the order of Kotter's eight steps.

      Tap a step, then the number where it belongs.

      CASE STUDY

      The Case of Microsoft

      1. Microsoft under CEO Satya Nadella
      2. around 2014 when he took over leadership
      3. Nadella's approach to change management aligns well with Kotter's framework
      4. He sought to shift the company's culture
      5. Focus towards cloud computing
      A software disc, a red arrow, then a cloud on a framed screen

      THE CASE OF MICROSOFT

      Microsoft’s transformation and Kotter’s 8 Steps: 1 to 4

      Microsoft's transformation across Kotter's Steps 1 to 4: selectable steps on the left and a scene on the right; 1. Create a Sense of Urgency is highlighted in red1. Create a Senseof Urgency2. Build a GuidingCoalition3. Strategic Vision& Initiatives4. Communicatethe Vision

      1.Create a Sense of Urgency:

      • Nadella's emphasis on adapting to a rapidly changing technology landscape
      • the rise of cloud computing and mobile technology
      • He communicated the urgency of evolving from a traditional software company to a cloud-first, mobile-first organization.

      THE CASE OF MICROSOFT

      Microsoft’s transformation and Kotter’s 8 Steps: 5 to 8

      5.Empower Broad-Based Action:

      • Nadella encouraged employees to take risks and innovate.
      • He removed bureaucratic obstacles and promoted a growth mindset, allowing teams to experiment and learn from failures.
      Microsoft's transformation across Kotter's Steps 5 to 8: selectable steps on the left and a scene on the right; 5. Empower Broad-Based Action is highlighted in red5. EmpowerBroad-Based Action6. GenerateShort-Term Wins7. Consolidate Gains& More Change8. Anchor inthe Culture

      FRAMEWORK

      Prosci - ADKAR Change Management Model

      • The Prosci ADKAR Model is a widely recognized framework for change management
      • Developed by Prosci, a research and training organization focused on change management practices.
      • The model is designed to help organizations manage change effectively by focusing on the individual aspects of change.
      • ADKAR is an acronym that stands for the five key outcomes that individuals need to achieve for successful change.
      The Prosci ADKAR Model as five individual outcomes; Awareness is highlighted in redAAwarenessDDesireKKnowledgeAAbilityRReinforcement

      1. Awareness – Of the need for change

      PROSCI - ADKAR

      ADKAR: Awareness, Desire, Knowledge

      ADKAR stages 1 to 3; 1. Awareness is highlighted in redA1. AwarenessD2. DesireK3. Knowledge

      1.Awareness:

      • Individuals must be aware of the need for change.
      • This involves understanding why the change is necessary and what the drivers behind it are.
      • Effective communication is crucial at this stage to ensure that everyone understands the reasons for the change.

      Question: Why is it important for employees to understand the reasons behind a change initiative?

      PROSCI - ADKAR

      ADKAR: Ability, Reinforcement

      ADKAR stages 4 and 5; 4. Ability is highlighted in redA4. AbilityR5. Reinforcement

      4. Ability:

      • Having the knowledge is not enough
      • individuals must also be able to implement the change.
      • This involves practicing new skills, overcoming obstacles

      Question: Why is practical application of skills essential for successful change implementation?

      Exercise · Which one is it?

      A bank's branch staff are moving to a new customer system. For each person, name the ADKAR outcome they have not yet reached.

      A clerk asks why the bank is replacing a system that works perfectly well.

      Which concept does this case show?

      CHAPTER 03

      Agile Project Management

      QUESTION

      Agile Project Management

      Question:Why do traditional project management methods often struggle to adapt to rapidly changing requirements?

      Traditional: one straight black arrow fired at a fixed target. Agile: a red path of short steps, each step a dot, that bends and adjusts until it reaches the same kind of targetTraditionalAgile
      • A flexible and iterative approach to managing projects
      • Particularly in software development
      • Applicable to various fields
      • Emphasizes collaboration, customer feedback, and small, rapid releases of products or features.
      • Designed to accommodate change and deliver value to customers more efficiently.
      Four small red packages released one after another along an arrow to a customer, and a black arrow of feedback running back from the speech bubble at the customer's face

      COMPARISON

      Traditional vs. Agile Project Management

      Traditional vs. Agile stages; 1. Goal Setting is highlighted in red1. Goal Setting2. Initial Steps3. Execution4. Focus

      1.Goal Setting:

      Traditional:

      • Define a fixed target
      • upfront
      • Based on detailed planning.
      • Assumes stability and clear end goals
      • Suitable for predictable environments

      Agile:

      • Define a flexible vision
      • serves as a guiding principle
      • allowing adjustments based on changing circumstances and feedback.
      Exercise · Sort into groups

      Two teams are each building a new mobile app for a gym chain. Sort what each team does into traditional or agile project management.

          Tap a card, then tap the group it belongs to.

          CHAPTER 04

          Scrum

          AGILE FRAMEWORK

          Scrum

          Question:What challenges might arise when managing complex projects with multiple stakeholders?

          • Scrum is an Agile framework
          • iterative and incremental development
          • Particularly popular in software development
          • Can be applied to various fields
          • The term "Scrum" originates from the game of rugby.
          • In rugby, a "scrum" is a method of restarting play after a minor infraction
          • players from each team pack closely together with their heads down and attempt to gain possession of the ball.
          A rugby scrum: two packs of two players bent low, one behind the other, face each other with their heads locked together, and a red ball on the ground between them

          SCRUM

          Scrum: From Rugby to Software

          1. The use of the term in the context of project management was popularized by Ken Schwaber and Jeff Sutherland,
          2. Developed the Scrum framework in the early 1990s
          3. They chose the name "Scrum" to reflect the importance of teamwork and collaboration in the development process
          4. Similar to how players in a rugby scrum must work together to succeed.
          1. In their 1995 paper titled "Scrum Development Process,"
          2. Schwaber and Sutherland drew parallels between the dynamics of a rugby scrum and the collaborative nature of Agile software development,
          3. teams should be self-organizing
          4. Iterative development, continuous feedback, and adaptability.

          PRINCIPLES OF SCRUM

          Principles of Scrum: 1 to 3

          Principles of Scrum 1 to 3; 1. Empirical Process Control is highlighted in red1. Empirical Process Control2. Self-Organization3. Collaboration

          1.Empirical Process Control:

          Definition:

          • This principle is based on the idea that knowledge comes from experience
          • decisions should be made based on what is known.

          Application in Scrum:

          • Scrum relies on three key pillars:
            • Transparency,
            • Inspection,
            • Adaptation.
          • Transparency ensures that all aspects of the process are visible to those responsible for the outcome.
          • Inspection involves regularly checking progress and performance to identify any deviations from the expected results.
          • Adaptation means adjusting processes and plans based on the insights gained from inspection.

          PRINCIPLES OF SCRUM

          Principles of Scrum: 4 to 6

          Principles of Scrum 4 to 6; 4. Value-Based Prioritization is highlighted in red4. Value-Based Prioritization5. Time Boxing6. Iterative Development

          4.Value-Based Prioritization

          Definition:

          • Work should be prioritized based on the value it delivers to the customer and the business.

          Application in Scrum:

          • The Product Owner is responsible for managing the Product Backlog and prioritizing items based on their value.
          • Ensures that the team focuses on delivering the most important features first, maximizing the return on investment and ensuring that customer needs are met.
          Exercise · Match up

          A small team builds an online shop for a bakery with Scrum. Match each principle of Scrum with what the team does.

          Principle

          What the team does

          Tap a term, then the example it goes with.

          HOW SCRUM WORKS

          Scrum Methodology

          Scrum methodology: a product backlog list feeds a shorter sprint backlog; an arrow marked sprint planning enters a large clockwise loop, the sprint of 1 to 4 weeks, with a small daily scrum loop at its top right; stops on the loop mark the sprint review and the sprint retrospective; an arrow leaves the loop to a package, the incrementProductBacklogSprintBacklogIncrementSprint1 to 4 weeksSprintPlanningDaily ScrumSprint ReviewSprint Retrospective

          Note. backlog refers to a prioritized list of work items or tasks that need to be completed for a project

          1. ROLES IN SCRUM

          Roles in Scrum

          Scrum defines three primary roles, each with specific responsibilities:

          Roles in Scrum; 1. Product Owner is highlighted in red1. Product Owner2. Scrum Master3. Development Team

          Product Owner:

          • Represents the stakeholders and the voice of the customer.
          • Responsible for defining the product vision and managing the product backlog.
          • Ensures that the team understands the items in the backlog.
          Exercise · Sort into groups

          A Scrum team builds a ticket app for a theatre. Sort each task to the role responsible for it.

                Tap a card, then tap the group it belongs to.

                2. EVENTS IN SCRUM

                Events in Scrum: Sprint and Sprint Planning

                Question:How can regular events like daily meetings improve team collaboration and accountability?

                Events (ceremonies) that structure the workflow:

                Scrum methodology: a product backlog list feeds a shorter sprint backlog; an arrow marked sprint planning enters a large clockwise loop, the sprint of 1 to 4 weeks, with a small daily scrum loop at its top right; stops on the loop mark the sprint review and the sprint retrospective; an arrow leaves the loop to a package, the increment. Sprint is highlighted in redProductBacklogSprintBacklogIncrementSprint1 to 4 weeksSprintPlanningDaily ScrumSprint ReviewSprint Retrospective

                Sprint:

                • A time-boxed iteration, usually lasting 1 to 4 weeks
                • A potentially shippable product increment is created.
                • Each sprint begins with a planning session and ends with a review and retrospective.

                2. EVENTS IN SCRUM

                Events in Scrum: Daily Scrum, Review, Retrospective

                Scrum methodology: a product backlog list feeds a shorter sprint backlog; an arrow marked sprint planning enters a large clockwise loop, the sprint of 1 to 4 weeks, with a small daily scrum loop at its top right; stops on the loop mark the sprint review and the sprint retrospective; an arrow leaves the loop to a package, the increment. Daily Scrum is highlighted in redProductBacklogSprintBacklogIncrementSprint1 to 4 weeksSprintPlanningDaily ScrumSprint ReviewSprint Retrospective

                Daily Scrum (Stand-up):

                • A short, time-boxed meeting (usually 15 minutes) held every day during the sprint.
                • Team members answer three questions:
                • The purpose is to synchronize activities and identify any impediments.
                1. What did I do yesterday?
                2. What will I do today?
                3. What obstacles are in my way?
                Exercise · Put it in order

                A team runs a two-week sprint on a food-delivery app. Put its events in order.

                Tap a step, then the number where it belongs.

                3. ARTIFACTS IN SCRUM

                Artifacts in Scrum

                Scrum uses specific artifacts to manage work and provide transparency:

                Scrum methodology: a product backlog list feeds a shorter sprint backlog; an arrow marked sprint planning enters a large clockwise loop, the sprint of 1 to 4 weeks, with a small daily scrum loop at its top right; stops on the loop mark the sprint review and the sprint retrospective; an arrow leaves the loop to a package, the increment. Product Backlog is highlighted in redProductBacklogSprintBacklogIncrementSprint1 to 4 weeksSprintPlanningDaily ScrumSprint ReviewSprint Retrospective

                Product Backlog:

                • An ordered list of all desired work on the project,features, enhancements, bug fixes, technical tasks.
                • The product owner is responsible for maintaining and prioritizing the backlog.
                Knowledge Check

                At the end of a sprint, a team has built a search bar that works but has not been tested, and a filter that is built and tested to the team's quality and acceptance criteria. What belongs in this sprint's increment?

                CONCLUSION

                Conclusion

                KEY TAKEAWAYS

                1. 1Kotter's 8 Step Change Management
                2. 2The Case of Microsoft and Essay #2 - Analyzing Change Management through Kotter's 8-Step Model
                3. 3Prosci - ADKAR Change Management Model
                4. 4Traditional vs. Agile Project Management
                5. 5Scrum principles, methodology, events, and artifacts