Lecture 8: AI, IoT and Business Models Flashcards
What is Artificial Intelligence (ALI?
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think like humans and mimic their actions (Investopedia source) .
Flexible, adaptable, purposeful, unclear, biased (possibly)
Ramsbotham et al., (2017)
What is the reasons for adopting AI?
1) AI will allow us to obtain or sustain a competitive advantages
2) AI will allow us to move into new businesses
3) New organisations using AI will enter our market
Ramsbotham et al., (2017)
What is the four distinct organizational maturity clusters when adopting AI?
Pioneers (19%): Organizations that both understand and have adopted AI. These organizations are on the leading edge of incorporating AI into both their organization’s offerings and internal processes.
Investigators (32%): Organizations that understand AI but are not deploying it beyond the pilot stage. Their investigation into what AI may offer emphasizes looking before leaping.
Experimenters (13%): Organizations that are piloting or adopting AI without deep understanding. These organizations are learning by doing.
Passives (36%): Organizations with no adoption or much understanding of AI.
Ramsbotham et al., (2017)
What are the barriers to AI adoption?
- Attracking, acquiring, and developing the right AI talent
- Limited or no general technology capabilities
- Lack of leadership support for AI initiatives
- Unclear or no business case for AI applications
Ramsbotham et al., (2017)
What are the three main challenges of AI?
(1) learn more about AI;
- Develop an Intuitive Understanding of AI
- managers should take some time to learn the basics, possibly starting with simple online courses or online tools.
(2) deepen their perspective on how to organize their business around AI
- Organize for AI
- Adopting AI broadly across the enterprise will likely place a premium on soft skills and organizational flexibility that enable new forms of collaboration, including project teams composed of humans and machines.
(3) develop a more expansive view of the competitive landscape in which their business operates.
- Re-think the competitive landscape
Ramsbotham et al., (2017)
What are the AI’s distinct features?
- Ensure customer trust (ensure that AI is trustworthy)
- Perform an AI health check
- An assessment of the skills necessary to properly execute the training of AI, from first nurturing the system to becoming intelligent all the way to continue to learn after deployment - Brace uncertainty
- Adopt scenario-based planning
5- Add a workface focus
- Create a work plan for AI initiatives including communication, education, and training.
Ramsbotham et al., (2017)
What is the cognitive generation of decision support?
Cognitive generation is an evolution of computer-based decision support and came forward much of which emerged in the previous generation
There are both high-level and specific actions that must be taken. At the high-level there should be a business-driven strategy planning process that ensures the company’s business strategy is supported by the new generation.
Hugh J. Watson
What are the ten recommendations for moving forward into cognitive generation? (Name three of them)
- Start small, with a specific business problem or opportunity
- Understand the potential benefits of cognitive computing but begin with small projects with specific, attainable and potentially high business value - Prepare use case
- Illustrate how the applications will be employed force an organization to think carefully about the application, which drives thinking about what data should be captured and analyzed - Create cognitive generation Architecture.
Hugh J. Watson
