AI-Enabled Analytics for Business. Lawrence S. Maisel

applications that could add significant benefits in sales, finance, and inventory.

      The new analytics software was brought to Jimmy's attention. However, Jimmy's response was, essentially, to counsel Bert to “stay in his lane,” as requests for business improvements should be initiated from the business units.

      It is understandable that Jimmy is hesitant to drive change, since change is the hardest item to tackle; but ignoring material benefits to business performance lacks prudence and is counter to the CEO role of continuously improving his business's performance.

So, in wonderful simplicity, it is down to the CEO (or business unit executive) to make analytics a part and priority of the business. A paper from McKinsey & Company, “A CEO guide for avoiding the ten traps that derail digital transformations,” by Arun Arora et al., makes this point and tags the top three CEO mistakes: Excess Caution, Fear of Unknown, and Lack of Focus.⁶

      In Chapter 6, we will discuss the three essential responsibilities for executives to achieve an Analytics Culture: focus, budget, and bandwidth. Focus is keeping the organization on the tactical Roadmap, which executives typically derail with special projects. Budget is simply allocating sufficient funds to buy AI-enabled software and train people; but too often, executives attempt to “cheap” a solution by restricting software or training. Bandwidth is enabling staff with the time to learn the tools and apply the techniques of analytics; yet executives will not relieve staff of any responsibility, and instead, staff must work harder to incorporate a new scope without any supporting resources.

      Executives must make the jump from just seeing data and reporting information to decisions from unbiased predictions of the future. Those who react to the future when the future arrives face certain peril from those who use AI-enabled analytics to plan to make the future happen.

CONCLUSION

By being aware of myths and misconceptions about analytics, executives will be able to methodically, efficiently, and effectively implement a culture of data-driven decisions from AI and accelerate business performance.

      With few exceptions, executives are leaving at least 5 to 10% better business performance on the table due to under-optimized planning. This is often a matter of choice when an executive has an attitude that good enough is good enough. But why settle for a dime of cost avoidance when spending a dollar on analytics can gain you 10?

      Executives of the company, division, group, or department will determine the future of their business. It is up to you to lead the business into the future where AI-enabled analytics is certain to be required. The faster the adoption of AI, the more certain that you will secure a competitive position for yourself and your company.

NOTES

      1 1. BrainyQuote. (n.d.) George Orwell quotes. https://www.brainyquote.com/quotes/george_orwell_377904.

      2 2. Ritchie, E.J. (2016). Fact checking the claim of 97% consensus on anthropogenic climate change. Forbes. https://www.forbes.com/sites/uhenergy/2016/12/14/fact-checking-the-97-consensus-on-anthropogenic-climate-change/?sh=3490e7101157.

      3 3. Peres, J. (2013). No clear link between passive smoking and lung cancer. NCI: Journal of the National Cancer Institute 105 (24): 1844–1846. https://doi.org/10.1093/jnci/djt365.

      4 4. BrainyQuote. (n.d.). Albert Einstein quotes. https://www.brainyquote.com/quotes/albert_einstein_103652.

      5 5. Aurora Predictions, LLC. (2021). AI forecasting & comparisons. Unpublished work.

      6 6. Arora, A., Dahlstrom, P., Groover, P., and Wunderlich, F. (2017). A CEO guide for avoiding the ten traps that derail digital transformations. McKinsey. https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/McKinsey%20Digital/Our%20Insights/A%20CEO%20guide%20for%20avoiding%20the%20ten%20traps%20that%20derail%20digital%20transformations/A-CEO-guide-for-avoiding-ten-traps.ashx.