A.I. and Achieving Real Business Differentiation – Part 2
Amplifying Business Differentiation
In the second part of a series of articles, leading business thinker and strategist Francois Contreiras provides insight into future trends that matter to those in the commercial space.
In our previous article, "A.I. and Achieving Real Business Differentiation," we emphasized the growing importance of differentiation in brand and business management within the rapidly evolving landscape of AI and automation. The idea that while AI is undeniably valuable, relying solely on it could unintentionally lead brands and businesses into a realm of sameness is a thought-provoking perspective. It underscores the vital role of human creativity and innovation.
Our emphasis is clear: human creativity and imagination represent the most potent resources for creating an emotional context that can lead to a significant transformation for a business. It's a path uncharted by others. AI, while a powerful tool, is most effective when it complements and supports human creativity and imagination, turning innovation into a collaboration between mind and machine. Brands and businesses that harness the synergy of human ingenuity and AI are poised to become industry leaders, both in terms of brand strength and commercial success.
Now, let’s delve how this combination is not limited to large corporate business but is also accessible to Small and Medium Enterprises (SMEs) with the right guidance. Some argue that SMEs have an advantage over large corporate because they often operate in an agile manner, allowing them to test, integrate, and adapt this powerful combination specifically to their niche markets in a cost-effective way when properly guided.
As mentioned previously, human cognition is incredibly complex, involving cognitive functions such as perception, reasoning, language comprehension, creativity, and emotional intelligence. These cognitive abilities enable people to understand and interpret context by considering broader circumstances while incorporating emotions, and the aspect linked to historical data to inform their decision-making. By combining the elements of common-sense judgment (which is becoming rare in today's world), personal experiences, intuition, creativity and imagination with a vision leads to problem solving approaches that creates ground-breaking innovations like the "hole in the wall" (1967, 1st ATM), the needle (around since the Stone Age), or Louis Pasteur's germ theory (1860-1864). The underpinning of all these breakthroughs lies in intuition coupled with a visionary thinking.
Looking at these three examples, one can believe that AI would have certainly accelerated Louis Pasteur's data interpretation. But, on the other hand, AI might have struggled with the other two innovations at this stage of AI's evolution. As the saying goes, "Never say never". The key lies in selecting the right AI tools tailored to your specific context and nurturing the creativity of your "human computers."
To make the most of AI in a cost-effectively way, it's crucial to ensure that people are not only proficient in using the various AI tools, but are also equipped with the skills to use critical thinking, apply common sense, and think outside the box. This encourages intuition and gut feelings, which combined with collaborative brainstorming sessions, allow ideas to flourish. If we compare SMEs with large corporations, it's evident that smaller businesses often have a limited awareness of the resources and strategies available to help them achieve differentiation in their respective markets.
As is often the case when incorporating a new technology into an existing operational organisation, businesses may find themselves faced with a myriad of concerns. These may include issues such as the initial costs of implementation, a potential lack of in-house expertise, some questions about the compatibility of AI with their current processes and technologies, considerations about employee reactions, and reflections on the security, privacy, and ethical implications of these tools. Moreover, uncertainties about a tangible benefit and various other considerations can further contribute to the complexity of the integration process.
Our experience shows that a change initiative that is primarily driven by technology is prone to failure, a pattern seen consistently over time. On the contrary, change that is people-centred, supported by processes aimed at improving the overall experience — whether internal or external — and paired with an appropriate level of technology, will consistently achieve success and yield a greater return on investment. While this might be evident to some readers, it's crucial not to underestimate the significance of prioritising people and processes over technology. This principle is widely acknowledged in change management theory but is often ignored or overlooked. It is the cornerstone of successful change programmes, and the integration of AI is no exception.
External pressures from peers, social media, and the prevailing 'trend' may influence your choice of AI tool. Choosing an external partner with broad and relevant experience is key to providing you with the right options from which to choose and ultimately which will lead you to success.
In these instances, the use of external support to accelerate the incorporation of these novel tools and methodologies, coupled with an emphasis on fostering behavioural changes, has consistently demonstrated its capacity to generate a substantial return on investment. Furthermore, a pivotal element in achieving this successful transformation involves comprehensive training and upskilling initiatives. When engaging external assistance, SMEs must also ensure that the chosen partner can offer a diverse array of expertise/services necessary for a successful journey covering all concerns. Do not restrict the choice of your partners to the technology aspect of the change, but consider the entire aspect of the change meaning, people, process, and technology.
If you want know more about transforming your organization into an environment combining human creativity and AI that encourages innovation, boosts operational efficiency, and truly makes a difference, please contact François Contreiras on +44 7473 298 853 or reach out to him via email at francois.contreiras@tinderboxbd.com.
