MACH Technology for Business Strategy

We often hear AI skeptics argue that Large Language Models such as ChatGPT, are merely “statistical inference machines” with no practical value. Stochastic parrots, they proclaim! A recent groundbreaking case study published in Harvard Business Review challenges this perspective by demonstrating the significant economic value that AI can bring when utilized strategically (link below). The study involved a unique experiment that compared the efficiency of AI to human intelligence in the field of business strategy. A team of INSEAD MBA students was pitted against an AI equipped with the Blue Ocean strategic framework. Their task was to develop a value proposition for a new business concept - a bagel bakery in Paris. Equipped with traditional tools and methodologies, the MBA students undertook a week-long strategic planning project. Their process involved extensive individual research, time-consuming meetings, in-depth value curve discussions, and thorough ecosystem mapping. Ultimately, their efforts culminated in a detailed PowerPoint presentation that required an estimated 150 collective man-hours to complete. In stark contrast, the AI, armed with the Blue Ocean framework and custom programming, generated a similar strategy in 60 minutes. The AI's suggestions were not only comparable to the MBA team's, but they also demonstrated originality. For example, the AI proposed transient product offerings inspired by fashion industry trends, initially deemed impractical but later recognized as innovative. This experiment highlights the amazing capabilities of AI in strategic thinking. The AI's performance proves its ability to generate original and efficient ideas, challenge conventional wisdom, and offer novel solutions. Skepticism surrounding the practical value of AI often stems from a misunderstanding of its evolving capabilities. As demonstrated by this experiment, AI has the potential to significantly enhance strategic planning by providing insights that human bias may overlook. For AI skeptics, this study highlights not just AI's strategic competence but also its ability to generate immense and tangible economic value in fields typically assumed to require human creativity and analysis. We are in the first days of this technology and based on what we’re already seeing, we would be wise to prepare ourselves for the coming wave rather than be caught off guard when it arrives. https://lnkd.in/gZAG2VEe #ai #artificialintelligence

Very good 35 min talk by Eric Siegel (hosted by Google) sharing advice on how how companies can successfully deploy, operationalize #machinelearning (his Six Step #AI Playbook). My top 4 #takeaways of his key points: 1. Prediction is central to business success. Machine learning uses data to make accurate predictions, impacting every area of business. Data can predict future outcomes by uncovering correlations, known as the "data effect." Slight improvements in prediction can significantly boost business outcomes, a concept known as the "prediction effect." 2. The real value (and hard work!) of AI lies in deployment, where predictions are integrated into decision-making. Businesses focusing on model development over deployment are missing the point. 3. A specialized framework, BizML, is needed to manage enterprise machine learning projects effectively. Success relies on collaboration between data scientists and business stakeholders, a connection that often lacks. Both need a semi-technical understanding of machine learning to collaborate effectively and make informed decisions. 4. Businesses need to prioritize business metrics like profit, revenue, and savings and demonstrate AI's real-world impact. Excessive focus on technical metrics like accuracy is missing the point. Focusing on specific problems and solutions rather than the grand idea of AI will lead to better results.

Writing for Forbes is always a thrill, especially when it revolves around my favorite topic – the anatomy of a Digital Enterprise. In this article, I've unveiled a strategic framework I developed based on my experiences in digital, technology, and business education. The piece, 'Building The Intelligent Digital Enterprise With The Five A's: A Framework For The Future,' explores a comprehensive approach to creating resilient, future-proof businesses in our digitally-driven world. The framework includes Machine Intelligence as the foundation, supported by four pivotal pillars: Architecture, Applications, Analytics, and Automation, all crowned by Agile methodologies. I'm eager to hear your thoughts on this framework and how it aligns with your experiences in the digital landscape. Let's discuss and share insights! Read the full article here: https://lnkd.in/grAmCAmD #DigitalTransformation #IntelligentEnterprise #BusinessStrategy #ForbesTechCouncil #DigitalLeadership #CIO Forbes Technology Council