Author Lee Vinsel in a MIT article reports, “The rapidly developing field of artificial intelligence and machine learning poses a particular challenge to business decision makers. Investments in proven predictive models are increasingly seen as sound and are expected to drive an increase in spending on AI from $33 billion in 2021 to $64 billion in 2025.”
AI will change the way you do business. Though some of the leaders are in denial saying the industry had weathered similar challenges in the past, the impact of these technologies on the future of work cannot be ignored. For example, consider how digital banking is replacing bank branches, how ATM’s are making bank tellers much less relevant, how newspapers are getting obsolete with digital media.
It is far riskier to dismiss the disruption that is already happening with no strategy and no plan than having a strategy and a course of action that sets you apart from the competition.
First, it’s important to have a clear understanding about your business objectives and the business strategy to achieve those objectives. You must look at your digital strategy in the context of your overall business strategy. Technological initiatives in a vacuum, without a sense of how it fits your overall strategy are not going to go very well.
If you can’t show how the digital transformation initiative is going to support those overarching goals, executive management won’t be interested. On the contrary, if you can explain how the business will benefit, you will get their buy-in and support. Show how it will improve customer experience and help the company gain market share or how it can reduce the cost with efficiency gains or how technological innovation can help the company gain a competitive edge over others?
An excellent way to start is prioritize the initiatives that your company would like to pursue. Chose what you will do and won’t do.
Ask yourself: What do you actually want to do with this technology? How does it fit your strategic goals? What initiatives will you prioritize to achieve those goals?
I can’t emphasize this enough – Disruptive technologies like AI are only as smart as the people behind them. You might have heard of AI hallucinations. If AI is implemented without the right thought process or controls, it might do more harm than good.
Upskilling, in particular, will be essential. You won’t need as many entry-level people as the rote work might get automated, but you will need more middle-tier people with higher levels of expertise who can do a deeper level of analysis and innovative work. And there will be functions and roles where the supply is greater than the demand. In these cases, you will need to consider training those people to do a different job in the company. This way you can retain the talent and the know-how. Hence building capabilities very quickly is going to be pivotal.
It is imperative to think through and prepare yourself and your employees and make the most out of the opportunity.
Ask yourself: Where do you see the technology having the most significant impact on the people in your organization? How are you preparing for the coming changes?
When selecting the technology, you need to understand what new benefits it can offer. How can this technology give your organization the competitive edge? For instance: Will this provide your customers the level of personalization you expect? Can it automate some of your operational processes to get a leg up on your competition? Can it improve productivity and reduce cost? Can it help you launch new products quickly and gain market share?
Ask yourself: What due diligence can you put in place so you pick the right technology that would best serve your strategic goals?
A final thought – While you need to be attentive to the disruptive changes around you so you are not washed away from business, you must also engage in critical thinking, consider long and short term advantages to not allow the pressure to steer you into irrational and imprudent decisions.
I have noticed that many companies begin the transformation process with technology. Approaching it with a “technology first” mindset often doesn’t lead to success. Technology is a key enabler to gain a sustainable competitive advantage, but transformation does not begin with technology; instead begin with a strategic mindset.
Ask yourself: What would have to be true for your business strategy to be successful?
And then make sure you have the right digital strategy and team in order to achieve your organization’s goals and objectives before investing in disruptive technologies.
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