AI today - The journey to realising the benefits
Firstly, let me answer a question that one of our clients asked when he wanted me to find him an expert. There is no one expert. Whatever we do will have to be a collaboration of experts and others on the journey to have real outcomes that make a difference.
With AI, even though elements like machine learning have been commercial for at least 10 years, we are still in the foothills of the Himalayas in a lot of areas. There’s a lot more than needs to be developed and learned before we start to climb mount Everest.
AI is probably the most powerful range of tools and data model usage to transform organisations and even societies - probably as big a transformation as the internet itself.
The issue now is how organisations move from innovation and experimentation to monetising the project. The various statistics – depending who is issuing them – range from ‘not good’ to ‘severely alarming’.
There are organisations with transformational AI based projects which have returned measurable ROI - they have the following characteristics:
Executive engagement – not just permission but real enthusiastic, collaborative engagement
Significant investment in finance, time and learning.
True collaboration throughout the business
Re-engineering the roles rather than large layoffs
Any transformation has four parts that need to work together if it is to be successful.
People – we are now going to move to a combination of human and augmented intelligence for roles and there are a lot of implications around that. Engaging people through all the organisation, sends the right message and builds in the continuous improvement that the AI tools foster. Engage with external experts that share your philosophy of collaboration where necessary, but the project needs to be internally led.
Processes – we will need to rethink them, if we are to get the most benefit. We should not apply AI like a bandage to something that is already there. This is probably going to be challenge because we have to move away from the ‘we have always done it this way’ mindset. We can also move away from the blueprint philosophy and build something that is truly a game changer for our organisation and customers.
Data – has never been more critical to success, and in most organisations the most messy. Finding the right data, cleaning it up, protecting it is often something that should have been done a decade ago, but is now necessary.
Technology – we have a multitude of alternatives. In some cases, the tools are changing fast. Others will not survive long. Many of them are still in their infancy, others are good at some things and not others. In many the marketing is aspirational, and it’s going to be our challenge to pick the right tools for the task now and the time now. IT does need to be in the selection loop. Unlike ERP applications, these are likely to be much more temporary.
As a Practice we work with executives and their direct reports covering strategy and leadership and we also facilitate reorganisations and business process improvement workshops. We are vendor neutral.
The road to monetisation
For AI
Our recommendation is in two major streams of work.
There is the individual use of AI, Copilot, Google Gemini, ChatGPT, Claude and many other vendor products. There can be many that will shorten individual workloads and they can make us all more efficient and more satisfied. In most organisations this will not move the ROI much and these products are changing fast.
Business focused is where the greater ROI potential is. This can range from major transformation in business processes such as Proctor and Gamble’s One Supply Transformation or Clifford Chance’s changing to their legal practice or IBM’s Client Zero:
These are major investments over time.
Collaborations with vendors who are THE subject matter experts.
Rethink the business processes – eliminating complexity
Data is the foundation.
The human side is non-negotiable. That does not mean that all jobs stay, however many change.
Continuous learning and continuous investment
Collaborating with vendors as subject matter experts or in IBMs case being the vendor using its own tools.
In a business focused programme, be clear about the objective and the business case. It does not have to be financial; innovation projects often don’t have a financial business case. Since so few of the current projects are monetised, we need to change this up. While the direction and outcome wanted from the project may change, we must get to the first milestone demonstrating a return that makes sense.
What do we need to change?
These are my recommendations.
At board and executive level
Get engaged – your enthusiasm and knowledge directly affects the outcome.
This is an endeavour – a series of projects and programmes that should deliver ROI in financial and even non- financial terms at milestones along the way. This thinking needs to become part of the executive DNA.
Unlike any past IT implementation such as ERP systems – SAP or Oracle, it’s not set and forget. If the organisation is to get benefit there needs to be a continuous look at new and changed business opportunities and new processes to capture continuing ROI.
To grow the organisation, executives will need to consider new competitors including startups as these sets of tools can reduce the cost of entry for a competitor.
There will be failures – treat them as learning opportunities. The possibilities are so vast that there may be more than one way to deliver value so you may need to change direction.
Implement risk protection – policies, procedures and ethics on AI and cyber security and ensure that they are followed rigorously. Our only defense to the regulator or to the lawsuit will be that we implemented everything that we could
Ensure that we understand the effect of the kill switch and that we have recognised any risk. If it is, and have a plan B. January 12th on Claude Fable 5, no non-American can use these products including those who development it. Anthropic had 90 minutes to react.
Learn to use the tools in your own work, make your own life easier. Eg research, writing better reports, trying out ideas before you present them.
At management level
Democratise ideas – listen to ideas from all levels.
Collaborate with developing the ideas and trying them out.
Use AI tools and be more personally productive. Model the behaviours you want others to follow.
Engage actively with business process engineering. Take waste and rework out of the process.
Ensure all the policies and procedures are in place and followed.
Continuous education investment in all staff.
Be honest about how the jobs will change and what is in it for the staff.
At employee level
Embrace AI to get more comfortable with it and to help you do your job. This is what we mean by human and augmented intelligence.
Don’t wait for your organisation to organise your training. There are YouTube videos to explain things and Coursera and other organisation’s classes to learn. Take your career into your hands.
Get onto an internal project in your business area. You will learn so much from that.
Don’t fail to ensure that you are working within your organisations’s policies and procedures – they are there to protect you as much as the organisation.
ENJOY THE JOURNEY
If you would like to discuss this topic in more detail with one of our practitioners, please do contact us by clicking the following button.