Regarding AI – learn from earlier technology changes
I have been so lucky to be working with consulting during several major technology changes over the years, and now as project manager of a center for artificial intelligence. I cannot help but draw parallels back to the dot-com era and the birth of the smart phone, and the feeling of a new klondike. Great growth in established AI companies, large growth of new AI startups, at the same time as some forward leaning established companies are fighting for the few AI heads that are out there to build their own solutions.
These technology bonanza periods where characterized by an abundance of more, or less, good ideas, an entrepreneurial boom, Investors were throwing money at the startups and many new services appeared over a short period of time. The startups that delivered real value creation grew rapidly and those that came late, was short on funding or delivered poor user value, disappeared from the radar and died. “Fail fast” became an expression.
There were also many established companies that were forward-looking and managed to adapt by offering new digital services alongside the new companies - either by developing themselves, quickly using services from the startups or even acquiring the expertise. However, established companies moved significantly slower than the startups – and it seems like the story now is about to repeat itself, within the field of AI.
The main point is that winners adopted and implemented "the new tech" and created better experiences, products, operations, or enterprises. This will also be repeated and those established companies who were out early last time will be that now as well. Industries that have a history of adopting digital technologies in the past are more likely to adopt AI as the next wave of digitization - and we are here now.
Entrepreneurship, lean canvas methodology, mobile first, design thinking, platform economics, social platforms, service design, cloud, globalization, adaptability, sustainability, and other value-creating "buzzwords" have emerged and a professionalization that makes the big difference between now and then that makes that both established companies and start-up companies today have a significantly better starting point using AI.
So, what to do? Buy Artificial Intelligence as a Service (AIaaS) and build your own AI either using own resources or consulting companies? Or, use AI startup tools?
In meeting with some of today's startups who come to us with AI as a core in their business model, meaning their business model is to make money by using your data on their algorithms and solving your problem. The paradox for established companies is that disruptive startups with AI at the core of their business model, come up with ideas that should ideally have been conceived by the existing market leaders. It is your data that is used to create the services the newcomers offer, and you find yourself dependent on their solutions for growth.
For many people, and organizations, AI is still a concept or a buzzword for something that will happen in the future. But AI has already become a part of mainstream businesses. Still, to be frank, most businesses will probably never develop artificial intelligence from the bottom up themselves, but rather buy “off the shelf” from one of the major IT platforms, or from startups that offer specialized solutions that solve more specific challenges.
The answer to the question of “what to choose?”, is most likely that you will use all of the above. The perfect way of transforming your company is to use all means necessary to achieve YOUR goal.
AI applications will be developed and used for HR, sales, marketing, production, servitization – and you will use all the tools and offerings suited for your organization.
There are at least three important lessons to be learned from previous technology shifts.
Understand that this shift is going to be critically important - also for your business. Think 10-15 years back: How many of your daily tasks where done on a mobile phone? or 20 years back: How did you order a service for your car - and how is this service being provided now?
Give employees the opportunity and time to explore and learn. Until the educational institutions comes up with structured further education, you are dependent on energetic, motivated and employees willing to educate themselves. Participate in infrastructures for shared competence and develop your developers
Meet as many startups as possible, and look for solutions that can help parts of your work processes. Challenge startup environments to look at your industry and let them build their prototypes on your data. Look at your adopted tech solutions today: How many of those vendors existed 10 or 20 years ago?
Over the next few years, we can expect a major transformation of services and processes based on AI. The most important thing is that you adopt the services available quickly to strengthen your own competitiveness, and transform products, operations, user experience or business models.
