I just read a really interesting article on the McKinsey’s website ‘Artificial Intelligence meets the C-suite’, where some leading business academics discuss the implications of rapidly advancing artificial intelligence on conventional organisational structures run by senior executives. http://www.mckinsey.com/Insights/Strategy/Artificial_intelligence_meets_the_C-suite?cid=mckq50-eml-alt-mkq-mck-oth-1409
Rather than review the article, instead, here are some follow-on points to consider.
- In a future World influenced, if not dominated by AI and hyper-competition, will the strategic goal of capturing ‘sustainable competitive advantage’ instead become ‘maintain competitive advantage’, with advantage mostly gained by using data and cutting-edge analytical techniques?
- Will most future companies become more like MI5/MI6 – gathering and analysing data comprising most of the work and then acting in very specific ways, once insight is gained?
- With the rise of AI, will a growth job for human managers be to spend increasingly more time making judgements about whether to develop & deploy staff, versus commission AI to create/deliver products & services?
- Will next-generation, business process reengineering (BPR) instead become AI BPR?
- With the rise of AI, will ‘efficiency in limited-scope environments’ dominate over ‘inefficiency in wide-scope environments’, causing entrepreneurs to move their business models into that space? Some examples:
- to base their business model on data expertise (and rapidly go where the data takes them), not (staff) domain expertise,
- to simplify (value chain) negotiations,
- to simplify the challenge of motivating & leading staff,
- to simplify the need to gain political consensus,
- to balance internal data analysis (on costs, internal resources & activities) with external data analysis (on markets).