Management Consulting

Lecture 1

Machine learning is Y = f(X)


How is analytics applied in business and industry?
- Control existing processes / services more efficiently
- Improve product and service designs
- Augment products with data-driven services
- Move towards data-driven business models

Data sources → Analytics → Business value


Innovation on three horizons

Horizon 1
Incremental innovation
- Improve quality, reliability, efficiency of current services
- Focus on exploitation (deliver value)

Horizon 2
Rapid scaling
- Growing new concepts into mature businesses
- Focus on growth

Horizon 3
Disruptive innovation
- Create entirely new possibilities and competencies
- Focus on exploration (learning)


Predictive models: correlational vs. causal


Causal
- Y = f(X) is a cause-and-effect relation
- If we change X, then Y will change as a consequence (“intervention”)
Correlational
- X and Y are correlated, but they are not cause-and-effect
- Correlational models cannot predict the effects of interventions


Data-Analytics Problem Structure (DAPS)

Models for analytical problem solving


 CRISP-DM
- CRoss-Industry Standard Process for Data Mining
- De-facto standard in machine learning



 DMAIC (“Six Sigma”)
- Define / Measure / Analyze / Improve / Control
- Standard in operations and process improvement

Lecture 2

Value proposition: How to sell a good idea

Not: explain how powerful, good, interesting, ..., the idea is
But:
- Who’s the audience? (your “clients”)
- What sort of things do they want to achieve?
- What are they struggling with?
→ Show how your idea helps them achieve what they want, or helps them overcome the obstacles they’re struggling with.


A good value proposition answers these questions:
- Client (segment): who are your “clients”?
To whom are you trying to sell your idea?
- Jobs: what are these clients trying to accomplish?
- Pains: how are clients struggling with current
ways of working and current solutions?
- Gains: do we see opportunities that they don’t see
themselves yet?

Business-model development: How to develop a good idea into a business plan

Issues in developing a new business model:

  • do people actually want it?(and pay realistic price)

  • uncertainty (new ideas are based on many assumptions)

    “Validated learning”: develop your ideas in steps


Four milestones

  1. Validated problem (we verified that there is a customer with a burning problem that they want to fix)

    Validation: On a scale of 0 to 10, how big of a pain is this for you?”

  2. Validated solution/problem fit (we verified a solution to the problem)

    Validation: MVP (minimum viable product)

  3. Validated sales channel and customer acquisition (We have verified a channel to reach customers for sale and delivery of the proposed solution)

    Validation: Strong sales figures in the chosen channel

  4. Validated that business can be scaled profitably and sustainably (We can scale activities and partners such that we deliver the solution at the right volume against acceptable cost)
    Validation: metrics comparing conversion rates and cost efficiency against competition


Logic models: How to explain the rationale of an initiative?
(and why they should give you funding)

Lecture 3

Personal interests

  • Position and influence

    What you do may come across with their influence

  • Status, pride and recognition

    what you do can come across as loss of face, make them look foolish, contribution is ignored, admit that they’re wrong

  • Realizing one’s ambition

    what you do can hamper their ambition, may have conflicting plans

  • Security

    they need to feel certain control over situation, sense of order

  • Fellowship

    they want to be appreciated, liked, be a part of a group

Levels of communication

  • Subject matter

    talking about the project, deliverables etc

  • Procedure

    talking about the agenda and logistics of a meeting

  • Interaction

    communicate about your mutual relationship

  • Emotion

    communicate what you feel

Issues at the interaction level

  • Animosity

    is the other hostile or friendly

  • Power dynamics

    does the other accept you as an equal? do you accept domination or fight back?

  • Respect

    does the other take you seriously and with respect

  • Roles

    does the other accept your role

  • Trust

    do you trust them, do they trust you

Lecture 4

Stakeholder - any person affected by your initiative, and who can in turn affect your initiative’s success.


Why are people uncooperative?

Cliché: resistance to change


More realistically:

  • No ability (don’t know how to implement)

  • No acceptation (don’t recognize their role and reason)

  • No understanding (don’t understand the necessity)

  • don’t care

Building commitment

  1. get people to care about the issue

  2. explain what you propose and why(understanding)

  3. they need to see how they fit (acceptance)

  4. overcoming practical hurdles (ability)