During the transition between the fourth and fifth industrial revolution, strategising must go through a sea change. Intelligent platforms aided by AI/ML will transform the traditional strategy development and execution approach
In the recent period, we have seen considerable interest in the platform strategy of enterprises. However, there has been limited discussion on the "platformization of strategy." Here, our focus is on democratisation and productisation of strategy, enabled by Artificial Intelligence (AI)/Machine Learning (ML)-driven platforms.
Before companies could realise the impact of the 4th industrial revolution, the fifth industrial revolution is almost here. During the transition between the fourth and fifth revolution, strategy, one of the most loosely used words, must go through a sea change regarding how it is developed and executed. Intelligent platforms aided by AI/ML will transform the traditional strategy development and execution approach.
Often strategies are conceived with a particular vision, but during execution, we experience several bottlenecks not anticipated during the planning phase. In a world full of uncertainty, the planning horizon has significantly reduced. Often during the implementation of a strategy, we realise that the business environment and context have changed, demanding a review and iteration of the strategy.
Organisations today are experiencing fundamental changes that include shifts from traditional to non-linear modelling, business, operations, and engineering strategy all in one motion.
Therefore, a strategy should also be relooked from data and design lenses. We increasingly witness organisations launch initiatives that leverage "intelligent technologies" to accelerate innovation. Simply put, the consumerisation of technology is the new trend. And so will be the "platformization" of strategy.
Bringing all these together in a platform and creating a repeatable and scalable AI-based modelling is a unique way of creating adaptability, adoption, and change management in the organisation. The beauty is that the algorithms are standardised though the data sets may differ based on the industry problem under discussion.
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Technology-wise, advanced developments in mobility, cloud computing, AI, big data, ML, and IoT are enabling value chain partners to create a more trusted ecosystem play.
Platformation of strategy will bring various levers together like never before. The platform can bring coordination at the corporate level by supporting the overall goal and innovation plans of the company. It will cover the entire value chain, which will provide granular visibility into the business capability management as well as business process management. This will ensure transparency and interactive communication with all parties.
Chandan Chowdhury, Senior Associate Dean and Practice Professor (Operations Management and Information Systems)
and Anirban Bhattacharyya, Chairman and Board Member at Amplo Global Inc.
[This article has been reproduced with permission from the Indian School of Business, India]