When Steven Jobs returned to Apple in 1997 he faced a company on the brink of bankruptcy. That story has become a business legend by now. It is not always mentioned how he approached his task coming back to Apple. Initially, Jobs set his sight on cleaning the house (inventory reduction, consolidation etc) and then was asked what he was going to do next. Jobs sat down and smiled: “I am going to wait for the next big thing.”
3+5 shifts that AI brings to your organization
02/ A short recap of shifts to organizations
When most people think of AI they think of data terminals, algorithms, mathematics and business processes. While the AI revolution is driven by the convergence of data, processing power and algorithms there is something more going on. AI introduces a shift in not only value creation and delivery but to the core of organizations themselves. And it is not the first technology shift that affected the way people work. Let us take a look at three world-altering shifts in the past and how they changed organizations.
Henry Ford rode the wave of the second industrial revolution powered by revolutionary technologies such as mass-produced steel, electricity and availability of machine tools. His Model T was built on the back of these technologies and changed society by ushering in personal mobility for everyone. All of this happened because one more ingredient was mixed in: Frederik Taylor’s ideas on management. In 1911, Tayler published his landmark book “The Principles of Scientific Management” and introduced concepts of breaking work down into small repeatable tasks, in control of the system and standardizing for quality. This framework of standardization and scale added social innovation to technological powers. Soon, most people could afford and drive a car.
Over the last 40 years, the IT revolution is changing industries. The software-driven change in many businesses comes with a new set of management ideas, often around the key idea of agility: decentralized decision making, early customer involvement, and a short-cycled priority setting. Social innovations again make tech innovations show their power. Today, software changes many industries and everyday experiences across the world.
03/ Three minor shifts when bringing AI to your organization
04/ Five major shifts when embracing AI in your organization
We echo Jeff Bezos that AI has the power to transform every industry and every organization. This enormous potential needs action today. Speaking of Bezos, Amazon did not just run a bookstore with an ordering process on the internet - he built a whole different approach to discovery, order, fulfillment and review powered around internet technologies. So, AI will not just be your business with a few steps data-empowered. AI ushers in a shift in a new way business can be done. The benefits will be enormous. Probably, it will be a winner-takes-most in many industries. The shifts to your operating model, organization and management are not trivial. But the journey will be worth it to reap the benefits that AI will bring to your business, your customers and, ultimately, society.