How generative AI impact your business strategy
The huge question very few talks about is IF and HOW generative AI will impacy your business strategy.
The answer from Copilot is rather generic, neither so much on strategy as in day to day operations.
Generative AI has the potential to significantly impact your business strategy in several ways:
Content Creation and Innovation: Generative AI can create new content, such as marketing materials, product descriptions, and even entire articles, which can save time and resources. It can also help in generating innovative ideas for new products or services1.
Efficiency and Automation: By automating repetitive tasks, such as data entry, customer service responses, and report generation, generative AI can improve operational efficiency. This allows your team to focus on more strategic and creative tasks2.
Personalization: Generative AI can analyze customer data to create personalized experiences, such as tailored marketing campaigns and customized product recommendations. This can enhance customer satisfaction and loyalty1.
Strategic Decision-Making: AI can provide insights and predictions based on large datasets, helping you make more informed strategic decisions. This includes market trends analysis, competitor analysis, and risk assessment3.
New Business Models: Generative AI can enable the creation of entirely new business models. For example, AI-driven platforms can offer personalized services or products that were not possible before3.
Competitive Advantage: Early adoption of generative AI can give your business a competitive edge by improving efficiency, enhancing customer experiences, and enabling innovation2.
Me, as usual, I start with the business model canvas.
The first question is if your value proposition could be expanded with generative AI, and if this new value proposition is in the red or blue ocean.
Unless you sell services related to generative AI, I've got a very hard time to see how AI in it self is a value proposition to your customers. And if you would like to enter the game with your generative AI, it's a very red ocean today with all big tech players competing. I may be completely wrong, and not thinking enough outside the box.
What impact will AI have on your revenue streams? Probably nothing new here as subscriptions, etc is nothing new for most companies.
Can you reach new customer segments with generative AI? If you can lower the cost of existing value propositions, make them simpler to use, then you may grow your market to new customer segments.
Customer relations and channels are up next. Improved self-service should be the obvious case for generative AI, the next step after digitalization that all companies have succeded with. Depending on how we define channels for customer interaction, we may have an impact. The question is how much.
There is nothing like a free lunch, and generative AI will add to the cost structure. Question is if other cost will be lower, so we are up for classic business case calculations.
If generative AI is utterly important to our company, then it will be a key resource and/or provided by a key partner. Nothing odd in this respect.
Finally, key activity. Generative AI is not an activity, it's a tool that could improve your key activities, and here is the key question to which degree we can have the support and the cost benefits for those.
My conclusion is that for a huge majority of the organizations, generative AI will not impact the business strategy directly, but there may be an indirect impact that everbody need to assess.
In the end, can you offer better products and services, and/or a lower cost, than your competors? That's the important question.
For our film production company, the question is yes, generative AI & ML will impact, but you will not see it in the business model canvas.
Source: http://disruptivearchitecture.info/blog/2019/11/9/EA_Case_Study_-_Business_Model_Canvas.