CIO: 7 Steps to Become an AI-Enabled Enterprise
7 steps to become an AI-enabled enterprise
René Buest, Director of Technology Research at Arago, is published with an opinion piece on artificial intelligence (AI) enterprise strategies in CIO.com. Throughout the article Buest argues that companies need to have their own AI strategy to stay competitive.
The AI-expert issues a warning for established businesses. In his opinion, companies in all industries face multiple challenges: Next to the challenges such as the “war for talent and the inability of many large corporates to change effectively”, he is sure that the main competition will come from high-tech platform companies like Google, Amazon and Alibaba. Buest identifies three main threats to the established companies and offers a guideline with seven steps to build an AI-enabled enterprise to overcome the challenges.
As these three threats Buest identifies (1) the capability of platform companies to invest vast amounts into new projects as well as research and development, (2) the disruption of the direct customer relationship through goods being sold by platform companies and (3) the platform companies’ ability to collect big amounts of data to build AIs changing the models of interaction with customers.
To overcome these threats and stay competitive in the future, established businesses need to become exponential themselves. Buest therefore argues that companies need to build their own general AI, which is capable of problem solving and reasoning, to run processes autonomously across their organization. In this way, they would retain their knowledge. This in turn, enables them to monetize their data and experience. To achieve this goal, companies need to follow six steps: Established companies should (1) collect every piece of data within the company, (2) give the data to a secure and independent intermediary platform operating a shared data pool for the established economy, (3) get access to a shared pool of aggregated and semantically organized data, (4) use this data and the necessary technology to build their own corporate general AI, (5) develop new business models, offerings, services etc. based on corporate general AI and then (6) give back resulting data from new business models, offerings, services etc. to the shared data pool.
After building a general AI, he advises businesses to apply additional seven steps to become an “AI-enabled enterprise”: Companies should (1) create a semantic map of their data and accept continuous data flow as a foundation for their future strategy, (2) automate IT operations to receive immediate value and to collect data, (3) think about a new (exponential) business model, (4) retrain the entire organization top-down to prepare the organization for an AI-enabled enterprise and acceptance of a new business model, (5) expand autonomous operations to other business processes by using company knowledge gathered through IT automation and making more processes autonomous, (6) embrace predictive analytics by using data from the semantic map to expedite and improve business processes and future business events and finally (7) consider data-driven processes by using data and AI to generate outcome-based processes.
Buest’s final advice for business leaders is to get out of their comfort zone of their existing business model. They should think across industries and add value for customers and thus open up a new business models for themselves.
Click here to read the article.