Key Takeaways on "The Rise of the AI-Powered Company in the Postcrisis World"
AI has the power to radically transform industries, making companies more efficient, effective and flexible. Recently, BCG's Henderson Institute published an interesting article describing some of AI's applications and how companies ought to fully use the opportunities it brings. It also explains how the current crisis can provide an opportunity for companies to fully use its potential and transform their business into a data-driven company. In this article, we will highlight and expound on some key takeaways and explain how Clappform can help in making your company data-driven.
“We believe that the application of artificial intelligence will be immensely valuable in helping companies adapt to these trends. Advanced robots that can recognize objects and handle tasks that previously required humans will promote the operation of factories and other facilities 24/7, in more locations and with little added cost. AI-enabled platforms will help companies better simulate live work environments and create on-demand labor forces. Through machine learning and advanced data analytics, AI will help companies detect new consumption patterns and deliver “hyperpersonalized” products to online customers. The most successful use cases will be those that seamlessly combine AI with human judgment and experience. Some companies that are on the forefront of these trends and have already begun the AI journey will thrive in the post-COVID world. Again, history provides a guide: during the four previous global economic downturns, 14% of companies were actually able to increase both sales growth and profit margins, according to Boston Consulting Group research. The majority of companies, however, are at the very early stages of the journey—or have yet to begin.”
AI has a wide variety of potential applications. Not only does it enable more efficient production methods, it also gives companies deep insights into customer behavior. These insights will help the company adjust to changing consumer preferences and address individual consumer needs. In past crises, 14% of companies were able to actually make a profit of the crisis and permanently change for the better. A crisis can show a company what its weaknesses are, which departments and employees are redundant and how a company should make itself more flexible. Companies that successfully learn from this confrontation will be able to evolve, making them more successful in the end.
“Companies must apply AI at scale to unlock the value of data, and they must operate in an agile manner at scale to enable nimble, data-driven teams. Companies also need the right supporting IT infrastructure. They should migrate away from legacy enterprise resource planning (ERP) platforms, with modules that typically are poorly interfaced, toward data management centers of excellence that pool and provide data throughout the organization. Success in this transition will require a strong focus on change management. According to joint BCG and MIT research, to a good rule of thumb is to dedicate around 10% of AI investment to algorithms, 20% to technology, and 70% to business process transformation.”
Transitioning into a data-driven business model can be a difficult task. It requires a well-thought-out plan to transform business processes without impeding them. Hiring change management professionals can be a good idea for your company, as they have the expertise necessary to successfully implement your transition. Clappform has professionals that are specialised in integrating its software into your processes. After integration, users will be able to easily use Clappform’s intuitive UI to successfully solve even the most complex business problems.
“Transform into a human-powered AI company. Even with AI placed at the core, it is crucial to avoid a “zero-human mindset.” Indeed, the human role must be elevated to ensure that there is no area in which AI operates unchecked. Even the most autonomous algorithms and applications need humans to provide the contextual understanding and expertise that AI typically lacks, and to guard against bad judgment or biases. AI must be augmented by the imagination and interpretation of human beings. Companies should refocus its people on tasks that add the most value, such as designing algorithms, reshaping processes to implement human plus AI integration, strategically monitoring AI inputs and outputs, and engaging in holistic decision making that takes into account second-order implications. A good example of how human plus AI can work together is forecasting in the fashion industry. AI can reduce forecasting errors by 25%, but not all fashion trends can be detected by mining historical data. In our work with one company, we found that combining AI with human expertise could reduce forecasting errors by 50%.”
It is important not to ‘radicalize’ when it comes to AI. Although AI is bound to make you enthusiastic when you learn about its applications, it will not make the human factor completely redundant. It will enable you to be much more successful, but AI still needs human guidance for successful use. This is where Clappform comes in. It enables the user to easily use AI in a secure way whilst fully utilizing its potential. This is important because AI always needs a translator – Someone or something that can link complex data analytics to concrete insights and tasks for employees.
“Contain or discard legacy processes. When reinventing the company for AI, it is important to redesign legacy processes, technology, and organizational structures from the top down. Trying to augment preexisting workflows and legacy ERP platforms by “plugging in” AI is a mistake. Realizing the potential of AI requires consistent, companywide application. And while the top-down redesign of organizational structures allows for the elimination of unnecessary layers, that doesn’t mean everything has to go. Certain applications and infrastructure that have strong interfaces and are able to connect with the central data infrastructure can be retained. But these features should be assessed after the redesign, and the desire to retain them cannot be allowed to influence the transformation.”
When integrating AI into your business processes you will have to put AI first and your legacy processes second. Otherwise, you risk either not fully utilizing its potential or failing at integration completely. Fortunately, Clappform is built on a modular low-code structure. This means that Clappform is the most flexible AI application available – It is easily customized for any user and use case. Because it uses APIs, Clappform can be integrated into your business processes whilst keeping as many legacy software as possible. This allows for a smooth transition and optimal use of the available resources.
AI will radically transform many business processes. The current crisis brings an opportunity for companies to fully utilize its potential. As a company, you can gain an advantage on your competition by doing this. The Clappform team is eager to explain you what the opportunities are for your business and what to do with them. Feel free to get in touch and request a free demo!
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