IBM: The value of values (C)

No company can grasp the potential of AI until it has set up a data-driven culture enabling employees to create value from the insights that emerge from data analysis. This means that before setting up an AI strategy, organizations must transform and prepare their infrastructure and culture for the AI age. This case study discusses the initiatives developed and rolled out by Marianne Galvin, initially Head of Data Office and then VP of Digital Transformation, as she worked to turn Civilia Engineering into a data-driven company. The case explores what Marianne put in place over her first 22 months with the company. This included: Governance structures and an educational program that proved to be highly popular. As the initiatives took root, Marianne and her team began to gain acceptance of use cases and dashboards for data-driven decision making but there were still several challenges to overcome, in particular how to work with an IT team more focused on architecture and improving legacy systems. The case closes as Marianne looks ahead to 2024, outlining what still needs to be done to gain digital and data maturity. The case provides a comprehensive understanding of the critical aspects of building a data-driven organization, particularly focusing on the interplay between value, data, and people. Through this case, learners will develop a nuanced understanding of the three pillars that sustain data-driven organizations, how to create a data-centric culture, how to avoid pitfalls in data-science projects and the nuances of digital transformation in non-digital organizations. They will be equipped with the knowledge and skills necessary to effectively lead and contribute to the building of data-driven organizations, fostering an environment that embraces data-centric decision-making and successfully navigates the complexities of digital transformation in an increasingly data-driven world.

In 1983, Korean Air Lines Flight KE007, a Boeing 747, suffered a tragic fate that claimed the lives of all 269 passengers and crew. Against the backdrop of Cold War tensions, the aircraft experienced an autopilot failure and veered significantly off course into Soviet airspace. The crew’s missteps led to a series of misinterpretations because there was a lack of awareness of geopolitical intricacies and technological constraints. Confusion was triggered as a result of Flight KE007 entering Soviet territory during a heightened state of alert for a missile test, miscommunications, and a malfunctioning radar system. Soviet fighter jets, unable to establish communication, fired warning shots. When Flight KE007 sought altitude clearance, in accordance with its flight plan, this maneuver was misread as evasion and the Soviet military launched a missile that downed the aircraft. Post-incident, the Soviets maintained secrecy, attributing the intrusion to ongoing provocations. However, this catastrophe was the catalyst for pivotal advancements in air safety. The Reagan administration pledged to introduce GPS for civil aviation by 1988, which would afford precise global positioning. Interim measures included the extension of US military radar coverage and the establishment of a joint air traffic control system in 1986, with the Soviet Union monitoring civilian air traffic over the North Pacific. The narrative unfolds at the intersection of aviation, politics and global security in the early 1980s. Beyond technical and human factors, it underscores the profound impact of international relations and the subsequent strides in air safety emerging from this poignant chapter in aviation history.

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Peter Goldschmidt became the CEO of pharmaceuticals company STADA in 2018. He was a firm believer in culture as a driving force – and a predictor – of organizational performance and competitiveness. A year earlier, two private equity funds had become majority owners of the “old” STADA – essentially a loose, decentralized network of country operations. After taking the helm, Goldschmidt made building a growth culture one of the strategic pillars aimed at transforming the company into a leader in consumer health, global generics and specialty pharma. As a major lever to achieve that vision, the CEO put forward four core values to define the new, aspirational brand of STADA’s culture: agility, entrepreneurship, integrity and “one STADA.” In its quest for agility, resilience and speed, STADA’s leadership recognized the need for an ambitious transformation that would improve collaboration to leverage learning, talent and technology, while centralizing some processes and reducing duplication and waste. Amid the Covid pandemic, in March 2020, STADA reported the highest production output in the group’s 125-year history. By 2022, the company was well on its way to achieving the owners’ growth objectives of becoming a strong, well-run organization. In a short span of five years, between 2018 and 2023, STADA built a platform that should allow the business to scale to five times its current size.

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