“How Companies Can Use AI To Win,” Says McKinsey
And just like that, the world is changed. I bet you can remember where you were when someone first asked you if you’ve tried out ChatGPT yet. It’s fair to say, the cat’s out of the bag. Artificial Intelligence’s sculptors are pushing back, whilst the rest of the world seems to be wising up to the fact that, yes, AI is going to be worth quite a lot of money. So, if companies exist in a sector that’s likely to be degraded, it only makes they’d consider using AI to get ahead.
The genie is out of the bottle; let’s make our wishes
McKinsey partners with business leaders on the topics of strategy and net zero innovation, and their new report, titled “How Companies Can Use Digital And AI To Win: Rewired To Outcompete” presents a bevvy of business-critical moves to enable organisations to outperform in the age of digital and AI.
In the report, McKinsey’s Eric Lamarre, Kate Smaje and Rodney Zemmel posit that, how companies navigate the technology world to achieve a sustainable competitive advantage is the defining business challenge of our time. It’s not a new goal, of course, but benevolence in business is benevolence squared – the company not only does good but is seen to be doing good. The ‘optics’, as they say in marketing, are on point.
Rewired to outcompete
McKinsey research shows that while 90 per cent of companies have launched some flavour of digital transformation, only a third of the expected revenue benefits, on average, have been realised.
– Rewired to outcompete
That other two-thirds is pure potential, and McKinsey’s position is clear: digital excellence is translating into financial outperformance. So how do enterprises and organisations get there? Step one, inspire and align the top team – AKA, the C-suite. CEOs, CTOs – whoever they may be, the leaders need to be on board with an AI future. The C-suite steers the ship.
What’s more, getting the bitesize just right, in McKinsey’s words is vital, and it’s all about scope. ‘Unleash your niche’, we’ve heard 1,000 times, but many SMEs (small-to-medium-sized enterprises) start too small, believing that implementing a few use cases with lower risk is akin to playing it safe. Likewise, spreading yourself too thin with uncoordinated strikes is foolhardy… foresight dictates that digital best practices and harnessing the guidance of experts will help businesses rewire, and get ahead.
Using AI to get ahead
“Developing the right operating model to bring business, technology, and operations closer together is perhaps the most complex aspect of a digital and AI transformation.”
– Rewired to outcompete
Adopting a new operating model that can scale is, of course, vital, and puts business pioneers’ steps ahead of their competition. The world of business, it seems, will never stop evolving, and while it’s easy to chastise those of us with so-called normal jobs, it’s increasingly clear that McKinsey is the world-standard in global management consulting for a reason, and they don’t want to lose sight of the horizon.
Rewired to Outcompete is full of advice for organisations of any size. If you’re in the C-suite yourself, is this the news you needed? Putting your head in the sand could be more disastrous than ever before.
Leaders, the Fourth Industrial Revolution is here. Will you be leading the charge?
Source: “How Companies Can Use AI To Win,” Says McKinsey.
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