The 4 Forces Reshaping Your Business

There’s a big debate currently whether AI is overhyped or not. In my opinion, it's both. AI is overhyped in the short-term. No, ChatGPT won't double your revenue overnight. In the long run, however, AI is still massively underestimated.

The world is changing beneath your feet, so subtly that you may not even notice. The next ChatGPT moment won't just make you chuckle; it could wipe out your business.

Sitting on the sidelines isn't an option. You need to understand what's happening, what's driving the change, and how you can prepare.

Because the question isn't if AI will impact your industry, but when and how.

Let’s find out more!

Today's email features insights from my new book, Augmented Analytics. If you found this interesting, explore the full content by checking out the book:

We’ve seen transformations before

You might have heard "transformation" so often before that it now sounds like just another buzzword.

But it's not. So far, the world has seen three major industrial transformations, each driven by disruptive technology:

• Steam power in the 1760s

• Electricity and mass production in the early 1900s

• Computerization in the late 20th century

Today, we're in the fourth industrial revolution, driven by AI.

And this one is different.

The AI transformation is not just about optimizing processes and cutting costs.

It's rewriting the way labor is done. AI gives people unlimited access to not only knowledge, but also creativity, at almost zero marginal cost.

PwC estimates that AI will add $15 Trillion to the world’s economy by 2030. To put that into perspective, that’s another EU entering the world map of economic output.

So while transformation itself isn't new, the way it’s coming for us sure is.

To better understand this phenomenon, let’s take a look at the factors driving the current transformation.

The 4 Forces Driving Current AI Transformation

There are 4 key factors at play in this current transformation that separate it from everything we’ve seen before:

1. The speed of change

2. The convergence of multiple technologies

3. The importance of data

4. The changing consumer behavior and focus on customer-centricity

Let's unpack each of these and what they mean for your business.

Force 1: The Speed of Change

The current transformation is happening at lightning speed. Not overnight, but significantly faster than everything before.

Steam power took almost a century to revolutionize the economy.

Mass production about half a century, and computerization 20-30 years.

In contrast, AI transformation is reshaping industries in about a decade.

It feels like we've had the iPhone forever, but it launched just 15 years ago.

Before that, there were no smartphones, no mobile internet, and no large-scale e-commerce. Can you believe it?

Most companies aren't built for this speed. Success demands exceptional leadership and organizational agility.

Adapt fast or get left far behind.

Force 2: The Convergence of Multiple Technologies

Previous industrial transformations were driven by one or two key technologies, like steam or electricity.

But the AI revolution is characterized by the convergence of multiple disruptive technologies: cloud computing, new algorithms, architectures, networking, high-performance chips, and more.

Each of these technologies alone has the potential to disrupt entire industries.

Anticipating this intertwined future and navigating this technological landscape is extremely hard. Disruption can happen practically overnight, as in consumer electronics and retail, or it can take years, like in healthcare.

What technologies should you invest in? How do you integrate them with your existing systems and processes? In what areas should you upskill your people?

The current transformation demands answers. Fast.

Force 3: Importance of Data

In previous industrial revolutions, data "just happened": you knew how many cars you sold, how much material you needed, how many employees you had, and so on. You analyzed this data in hindsight to improve processes and operations (hopefully).

Today, data has evolved from something that happens to something that must happen.

The volume of data being created, captured, copied, and consumed is growing at an unprecedented rate. We're producing more data than ever before, and there's no end in sight. By 2025, the global economy is expected to generate the equivalent of 200 million DVDs - every day.

The challenge for businesses isn't collecting, storing or acquiring this data.

The challenge is to make sense of it and actually use it in a way that drives your business forward.

Force 4: Changing Consumer Behavior and Customer Centricity

Perhaps the most profound shift in the current transformation is the change in consumer behavior and expectations.

Consumers demand everything, everywhere all at once – while spending less. And they can do so because thanks to the global economy they often have a choice.

For businesses, this means a fundamental shift from product-centricity to customer-centricity.

It's no longer enough to have the best product or the lowest price. Because market situations can change overnight (see Force 1). To stay competitive, businesses must understand and anticipate their customers' needs, build strong relationships, and deliver experiences that delight them - every day.

This isn't limited to the B2C realm. When consumers demands change, that spills over into the B2B world as well.

You just can't explain anymore that in the consumer world we have access to the knowledge of the world at our fingertips and in a company we don't even know where to find the annual report.

Preparing for the AI transformation

The AI transformation isn't coming; it's already here. And if you're not preparing for it, you're already falling behind.

But preparing for AI doesn't mean firing your workforce and replacing them with robots. It doesn't mean investing millions in infrastructure and praying for ROI.

In fact, the key to thriving in the age of AI is to double down on your people, empower them and put them in the lead.

Workflow augmentation with AI is a prime example of this. Augmented AI means adding value by providing people access to AI technology that gives them leverage to accomplish the business task at hand in a much better way.

It's about:

• giving your sales team the insights they need to close more deals, faster,

• equipping your marketers with the predictive skills to craft campaigns that convert like crazy,

• supercharging your customer service with the ability to anticipate needs and exceed expectations.

Hiring a team of data scientists and locking them in a room for two years is the old way. The way of the past.

The only person holding you back from using AI in an augmented way is you.

So don't wait for the perfect time. It will never come.

The time to act is now.

And the easiest way to start is through Augmentation.

You can do this!

Let me know if you need any help.

Otherwise, I'll see you next Friday!

Tobias