Define an AI strategy to create business value
There's excitement stirring around AI. It's now clear that AI technologies drive substantial value to organizations and should be embraced to keep a competitive edge. However, the complexity underpinning AI may feel intimidating. Any organization needs a solid plan for AI adoption and scaling to fully benefit from AI's potential. You should consider AI as a tool to reach your business goals and incorporate it into the corporate strategy.
In Microsoft, we recommend using a holistic framework for AI strategy. This framework applies to all organizations, and provides a sensible approach to AI implementation. This AI strategy framework covers three elements: the external environment that gives you context, the value proposition that you offer to customers, and the executive capabilities of your organization.
External environment
Your starting point should be to understand the external industry environment. Right now, it involves measuring how AI is impacting your sector. This technology is shifting overall buying behavior. AI is leading and empowering new competitors. It's disrupting current business processes and opening opportunities for new business models. Governments are taking action to deliver new regulations on AI.
During the last decade, we've seen the disruptive potential of AI across industries. Now, a new generation of AI models is taking this power to the next level. Generative AI is capable of delivering content and insights with unparalleled results, and this technology changes how we work. Business leaders are already strategizing to implement generative AI to boost productivity. However, keep in mind that AI works best as a copilot, that is, as a guide to help you achieve better results. AI amplifies your expertise and skills.
Value proposition
What do you want to offer your customers? You must consider the benefits and functionalities that your AI-powered products and services will deliver to your clients. There may be opportunities to improve their customer experience by improving a service or by adding new features. AI may help you be more efficient and, allowing you to deliver your solution at a more competitive price. Perhaps it's time to embrace new business lines opened up by AI. When writing your value proposition, be realistic and take into account costs of production and delivery, since they have a direct impact on the customer experience. The overall goal is to decide how to meet external challenges and leverage key opportunities.
Organization and execution
The most powerful, disruptive value proposition will amount to nothing if you're not ready to deliver it to term. You must be sure that your organization has the capabilities and resources to embrace your AI strategy plan. Your goals will likely require deep organizational changes so everyone in the company can fulfill their new role. So, there needs to be alignment between people and processes to empower employees with the adequate AI-related competencies. This task involves growing an AI-ready culture.
Next, let's focus on this third element, organization and execution. Let's explore how to prepare your organization to embrace AI and become an AI-ready company.