The revolutionary change brought by Artificial Intelligence is not the “human dummy” but the invention of automated digital operating models in the world of business. These digital operating models have challenged the traditional thinking of business managers. For businesses, who are in the race to stay relevant in this digital world, Artificial Intelligence (AI) is at the core of their operating models. Apart from defining how businesses execute their operations, AI is also redefining competition.
To stay ahead of the competition, here are 4 key areas you must pay attention to while redefining your operating models:
1. Create the AI Factory
In this digital era, the core of every business is a decision factory also referred to as The AI Factory. The role of an AI factory is to present every decision-making process as a science. The data analytics of an AI factory analyze every dataset (internal or external) systematically and present it as critical insights, forecasts, and predictions that are used to lead the automated operational systems.
To create an AI factory and become a digital firm in these competitive times you only need to have digital tools or systems that can replace humans from tedious activities. Tasks that were previously performed by humans can easily be shifted to digital platforms to increase productivity. There are 4 key components to consider before creating an AI factory:
- Systematic data pipeline for collecting, cleaning, integrating, and securing data
- Algorithms for predicting future business processes and actions
- Experimentation platforms that can assess suggestions of new algorithms
- Scalable IT infrastructure that connects internal and external users to this process
2. Optimize scale, scope, and learning
By embracing AI in their operating models, modern industrial organizations have achieved greater levels of productivity at a much lower unit cost than their smaller rivals in the industry. These companies with the help of scale strive towards innovation and improvement. In this era of digital disruption, to be on top of your game “learning” is the third element you require to survive in this digitized world.
The scalability of AI-driven procedures can be improved rapidly than any traditional business process since it provides the greater scope of connecting with other digital networks for improvement and learning purposes. The digitized operating models and AI-powered process can help you respond better to the emerging threats and seek new business opportunities across industries.
3. Redesign traditional workflow
To compete and survive in this digital world of business, traditionally structured enterprises must think of redesigning their workflows. A leader needs to know that competing with their digital competitors requires more than just having a systematic data pipeline, algorithms for predicting future business status, scalable IT infrastructure, and experimenting platforms. It requires you to rebuild your whole business operating workflows and deploy AI-driven processes to optimize scale, scope, and learning.
Reshaping processing requires you to focus on data-driven procedures and analytics. It doesn’t require you to be a sophisticated software venture to impose digitization in operations but you have to build the tendency to retool your culture, enhance your capabilities and confront your legacy systems.
4. Recreate business strategies
Previously, organizations used to adhere to businesses they knew and developed strategies based on the industries they understood. Today, with the collaboration of algorithms and data flow business strategies do not follow any industrial boundaries. The competitive edge in today’s world depends on how the companies construct and control their digital networks and develop strategies to leverage customer data across industries.
Enterprises like Google, Facebook, and Alibaba who have the ability to connect AI with business, have a data-driven approach and excel in deriving crucial insights with analytics outperform their rivals at all levels of operating systems. To be an AI-driven enterprise and survive in these challenging times of digitization you need to recreate your business strategies. Develop connections across the industrial boundaries for the flow of data through your company’s networks. To compete in this new business world, you need to understand the power of data sourcing capabilities, data processing, and analytics and try to incorporate these in your operating models.
The bottom line?
The business world has moved on from specialization and core competencies that vary across industries to an era where data, analytics, and algorithms hosted by the cloud hold the power and can be used by anyone to learn, innovate and grow in this digitized world.
Therein lies a huge potential for businesses to stay relevant and survive this digitally disrupted business environment. Navigating the business opportunities and threats while adapting and competing in an AI-challenged world can certainly be testing but with these tips, you can surely up your competitiveness.
Tkxel’s Artificial intelligence services can help you drive strategic business decisions to stay ahead of the curve.