AI is the new trend in the industry is highly appreciated and welcomed by the smallest local company to the largest multinational companies, and they have been making substantial efforts to understand, how AI can bring the greatest contribution to the industry.
However, before one can build a detailed AI plan – in which a company tries to figure out how could an industry use AI to fuel market results – It also needs to consider what is achievable with AI or put substantial effort to understand how many businesses leverage AI.
Broadly speaking, companies utilize AI in three primary ways:
· Build more sophisticated goods
· Offering a more intelligent service experience
· Strengthening internal market processes
Due to the Internet of Things, a whole range of consumer items is getting smarter. Smartphones have now evolved to include smart TVs, smartwatches, smart speakers, and smart home thermostats – including a variety of smart eyebrow-raising items such as other nappies, other yoga mats, smart office seats, and smart toilets.
Generally, these smart devices are intended to make it better for consumers and remove the irritating bugbears from their daily lives. For instance, a customer can now get digital insoles that fit into the running shoes and capture data regarding the running style. The corresponding software will provide the customer with a real-time preview of their running results and training, helping them escape injuries and becoming a stronger athlete.
Offering Intelligent Products:
As a result of the traits of the conventional method of offering a commodity or service as a one-off purchase, more and more businesses have become keen on switching to a business model under which the product or service is offered as an ongoing subscription. Netflix is a perfect representation of the pattern in practice. Another example being the Dollar Shave Club, which periodically sends shaving blades and grooming items to their customers. And Stich Fix, a tailored fashion app that sends garments depending on the customer’s unique preference, fit, and budget.
Intelligent systems like this are focused on data and AI. Businesses like Netflix provide exposure to a variety of useful user data which allows the business to deliver more personalized service, focused on what the consumer needs.
Improving internal business process:
AI can operate in virtually every area of the business: Engineering, HR, Communications, Distribution, supply chain and logistics, customer relations, Information Technology, finance, and more.
From automated machines and cars to customer support chatbots and algorithms that identify consumer fraud, AI applications, and technology are incorporated into all sorts of business processes to optimize productivity, save time and boost business results.
Each company is different and in the same manner, their technique of using AI will be equally different from the nearest rival. For AI to bring value to the organization, it must be consistent with the company’s core strategic goals – which implies that they need to be specific on what they are aiming to accomplish before even thinking about how AI will help the company accomplish its goal.
What should be the focus:
It is worth addressing all three areas of business: goods, services, and business processes. Of course, one of the fields is likely to be more of a concern than the others, and that focus would depend on the strategic priorities of the business. But you’re not allowed to neglect the promise of certain AI uses.
For example, a product-based company may be inclined to take over the opportunity for smart services, whereas a service-based company would quickly assume that smart technologies do not apply to its business model. Most of them may think that AI-driven market processes are outside their skills at this point.
Yet the most effective, most talked-about businesses on the globe are those that apply AI in all three areas. Consider Apple as an example of this. Apple has established its credibility on producing and selling popular items like the iPad. Nowadays, though, Apple offerings create more income than iPad purchases. The business has evolved from a mere commodity organization to a service supplier with its popular goods promoting smart technology.
The business today should be aware that Apple is utilizing AI and analytics to improve its internal processes. This way, AI will allow unexpected changes and enhancements to the business model or even adapt to a whole different business model that the customers may not even have dreamt about before.
Hence, AI will be the core of all the business sooner or later. With the changes in technology, the business environment would also change abruptly providing an essential first-mover advantage to the early adapters.