Why speed is no substitute for long-term value on the path to AI
Over the last 20 months, we have seen a growing sense that speed is more important than perfection. As we rapidly moved to working from home, and needed ways to stay in touch or manage work remotely, companies increasingly looked for something that was ‘good enough’. This has driven a huge acceleration in the practical use of analytics and artificial intelligence (AI). Conversations about digital transformation have become more pragmatic as companies recognised that sometimes ‘a solution’ was more important than ‘the perfect solution’.
Getting things right, or getting things done?
However, as we start to emerge from the shadow of the COVID-19 pandemic, is this the future? Should we move away from the old focus on ‘getting things right’ and simply focus on ‘getting things done’? Frank Dietvorst, Director at Business Analytics specialist PW Consulting (headquartered in The Netherlands) thinks there may be a danger in that.
“We have definitely seen a more pragmatic approach to digital transformation during the pandemic. The key difference is that it has become operationalised. We have therefore seen a big expansion in digital activity. However, we are also seeing a lot of opportunism, and that is leading to a more superficial approach. I think there are risks to that.”
Frank Dietvorst comments that he has seen a difference in approach between regulated and unregulated industries. He believes that this may hold lessons for the future.
“Overall, I would say that organisations are not very digitally mature. In particular, they are not focused on governance, and ensuring that the digital transformation is in line with organisational objectives.”
“When there is external pressure, for example, from regulators, then ethics, transparency and explainability all become a lot more important. You also see more scrutiny, requiring companies to deliver better results, with more attention to detail. I think we are likely to see this approach adopted across other industries in future. We are spending a lot of time with customers looking at transparency and governance. Our focus is on persuading them that speed is not a substitute for long term value, especially when you are trying to embed these complex analytical systems. Top-down is fine, but you need to think about organisational value.”
He believes that part of the problem may be the hype surrounding artificial intelligence.
“There is still a lot of hype around AI and machine learning. It is very much the shiny new option. We try to convince customers that they should focus on long-term value, but sometimes vendors who showcase shiny new tools win them over. We emphasise that AI is a means, not an end in itself, but companies often don’t really understand even what we mean by the phrase ‘data-driven’. You always have to ask yourself whether AI is the right solution. More importantly, you also need to consider whether it can be properly controlled. If not, then it can reduce governance, not improve it.”
A question of digital maturity
This may be a question of the level of digital maturity. When digital maturity is low, companies tend to go for a more tactical use of AI, to address particular projects. It is only as digital maturity increases that AI use becomes more strategic. Frank Dietvorst agrees.
“When we accelerate change, ethics and governance often get left behind. Technically, anything is possible, and that creates a lot of tension. Instead, I think we need to take time to develop norms and rules around AI. We need to think beyond the quick capability set. This comes back to regulated industries. They are in a better place to find the balance between control and capability.”
“Overall, I would say that organisations are not very digitally mature. In particular, they are not focused on governance, and ensuring that the digital transformation is in line with organisational objectives. Transformation must be aligned between departments, rather than be a gimmick that competes for resources, and takes away time and money from essential projects.”
He believes that this low level of digital maturity results in a low conversion rate for projects. Most initiatives remain small, and there are few that are truly transformative, despite plenty of willingness. He suggests that this may be a matter of organisations not taking enough time to ensure that data are fully usable, and that projects are aligned with company objectives. He also comments that moving more slowly would allow more time to consider the ethics of digital transformation and AI projects.
“When we accelerate change, ethics and governance often get left behind. Technically, anything is possible, and that creates a lot of tension. Instead, I think we need to take time to develop norms and rules around AI. We need to think beyond the quick capability set. This comes back to regulated industries. They are in a better place to find the balance between control and capability. If we recognise both the positive and negative power of AI, we can generate more societal value. Respecting that will make companies more governed, and better aligned with ethical norms. I believe that this will drive more business and societal value in the long term.”
A call to action
Frank brings a call to action forward — “for a successful application of AI that brings it to adulthood, it is important to combine the urge for innovation with the “lessons learned” of past projects. AI is not different than past technology innovations in that insights and experiences for increasing productivity and contributing to business and societal value can be used.”
“A good example is the experience and knowledge developed in the pharmaceutical world around the use of analytics, where it is custom to deal responsibly with data, insights and ensure that technology innovation doesn’t get in the way of high norms for quality control. Let’s find the right balance, and on a detailed level that is different for every organization. My advice is clear : uncover energy in creativity and originality, and work with the right partners. For us, that is SAS, as they have the decade-long experience and bring the experience and insights mentioned earlier. And thanks to individuals like yourself, we were able to think bigger and realise higher ambitions for our customers”.
Find more information about PW Consulting and their advisory services here https://www.linkedin.com/company/pw-consulting/?originalSubdomain=en
More information about SAS “Innovation at Scale” study can be found here : https://www.sas.com/sas/offers/innovation-at-scale-expert-study.html
