Having run a logistics business for almost two decades now, I’ve learned to avoid reaching for silver bullet solutions. Often the most intransigent problems are due to busted process, misaligned incentives, muddled leadership, etc. Reaching for a technology solution without fixing the process often does one of two things – automates the mistake so you multiply the pain or fixes your problem by imposing a process and discipline that had been missing before.
I suspect that the AI improvement that is touted in marketing materials comes from either 1) companies that already had a great process (I call that being a #unicorn) or 2) companies where the process was overhauled to make way for the technology solution.
For the second case, much of what is called “AI improvement” comes from the structured approach to a company’s processes rather than the technology. Whether it’s accounting, customer service, or load booking, so much of the benefits of AI vendors claim come from process improvement that I hesitate to call these gains due to AI – they are consulting gains.
Consulting engagements differ significantly from technology implementations, which likely explains why there are so many AI failure stories out there. It’s not the technology, it’s the fact that the old process / culture fought back once the implementation team left.
My takeaway from all of this is that business leaders (like me) need to take a hard look in the mirror before we splash money into technology solutions. Before implementing new technology, take the affected process as far forward as possible. After all, we don’t want to multiply pain by automating a broken process. We’d rather be a unicorn.
These ideas are why I went to the #TIA #Technovations conference in Houston last week!