Artificial intelligence (AI) redefines the concept of management and improves the strategic management process while at the same time impacting organizational operations by interweaving people, strategy, and processes. AI reengineers business management and existing strategic theories enabling companies to have a competitive edge in the market and leading managers to deliver institutional targets and results with ease. There are diverse ways in which AI drives organizational strategic management processes:
Business domain proficiency
To begin with, AI facilitates the formulation of internal and external business analysis by using SWOT analysis. This involves setting strategies, analyzing these strategies, choosing the suitable strategies, and aligning them to institutional strategic planning. The situation analysis (SWOT analysis) carried out by AI is more accurate and gives a detailed chart about internal and external factors that affect organizational operations.
Moreover, AI analyses the relation of the organization with existing market trends and competitors. It indicates the external factors that may affect organizational performance and provide solutions of how to mitigate, manage and cope with emerging/existing threats while capitalizing on opportunities as strengths that influence organizational overall performance.
Balancing feasibility, investment, and value
Artificial intelligence also performs basic organizational business management roles for both internal and external functions. Categorically, AI redefines strategic management and re-evaluates the strategic planning model. It improves institutional strategic planning design by defining the organizational vision, mission, and objectives and achieves this based on available and existing data analysis from both internal and external environments.
The empirical data informs and influences top management strategic decision-making that outlines organizational goals and objectives pegged on institutional vision and mission. Fundamentally, AI can be the core of all strategic planning processes from gathering data to final reviews. It interconnects both internal and external organizational resources. Ideally, AI can be the loop between resources, process, marketing, competitors, and customers as it drives strategic planning design, implementation, and evaluation.
AI reengineers business management and existing strategic theories enabling companies to have a competitive edge in the market and leads managers to deliver institutional targets and results with ease.
At gathering facts on competition strategies that facilitate competitors’ market segments analysis, AI also collects data on stakeholders, customers, and competitors, internal and external organizational resources. Its agile data analysis capabilities assess organizational performance according to Key Intangible Performance Indicators (KIPs) for institutional success and guides managerial capacity to achieve their goals. AI evaluates each step at the strategic process and it is the key to monitoring and controlling the strategic plan process
From siloed work to interdisciplinary collaboration
Thirdly, pertaining to project management, project managers can utilize AI-based solutions to assign project tasks, acquire status updates, and provide warning signals of potential roadblocks during project implementation. Teams using agile methods can take advantage of AI chatbots that assist in task selection, scheduling daily team tasks, monitoring current tasks, and evaluating completed tasks. At the end of a sprint, bots can create reports that can be distributed to all stakeholders involved in the project.
Uninterruptedly, AI is capable of sifting through large volumes of data and aid in decision-making thus helping project managers comprehend which path will be best for efficient delivery of projects. Unquestionably, AI can automate not only simple tasks but also develop an understanding of key performance indices of projects. This can then facilitate the development of new thinking and assist to accomplish bigger tasks in addition to make recommendations for complex strategic decision making. AI makes the goal of project management impeccable on each team’s work.
Artificial Intelligence centralizes and standardizes your data
In relation to risk management, AI necessitates organizations to develop/adapt to processes and tools that give businesses the confidence that emerging/existing risks can be effectively identified and managed within the limits set by the firm’s risk culture and appetite. According to a Deloitte report on AI and risk management innovating with confidence, adapting and advancing AI requires an organization and its personnel to embrace a more scientific mindset. This implies being comfortable with a trial and error journey to the final product, accepting risks and tests that fail; and continuously testing the feasibility of the product by introducing external shocks or data and observing outcomes.
Primarily, it means creating a “sandbox” (a controlled, isolated environment representative of the business environment) across the organization. This mental shift is not just solely for heads of business or functions but it is relevant to all areas of the organization, including the board and other functions such as risk and compliance, human resources, and information technology. It is particularly important to involve all three lines of defense (business lines, risk/compliance, and internal audit). As the guardians of compliance and controls oversight, full participation in the sandbox would allow them to understand some of the critical technical aspects, and help shape, from the start, the appropriate AI governance and risk management policies.
Considering the Future
AI contributes to all steps of strategic planning, chooses the suitable strategy according to the capabilities of the organization and the risks that may have negative impacts on organizational performance. It serves as a controller and monitor to the business’ value chain; it carries out reliable and realistic analysis at each step during organizational strategy’s implementation and corrects any deviation.
AI acts to augment human capabilities to achieve organizational goals and objectives. Artificial intelligence is not a technology or a tool for managers and leaders only, it delivers as colleagues that manage and lead organizations through effective strategic management. Could we then say that the time is here for leaders to delegate some of their authorization to artificial intelligence?
