THE IMPACT AI (ARTIFICIAL INTELLIGENCE) ON BUSINESS

WHAT IS AI?

For years, it was thought that computers would never be more powerful than the human brain, but as development has accelerated in modern times, this has proven to be not the case.
AI as a concept refers to computing hardware being able to essentially think for itself, and make decisions based on the data it is being fed. AI systems are often hugely complex and powerful, with the ability to process unfathomable depths of information in an extremely quick time in order to come to an effective conclusion.

HISTORY OF AI. 

Artificial intelligence was founded as an academic discipline in 1956, and in the years since has experienced several waves of optimism. In the twenty-first century, AI techniques have experienced a resurgence following concurrent advances in computer power, large amounts of data, and theoretical understanding; and AI techniques have become an essential part of the technology industry, helping to solve many challenging problems in computer science, software engineering and operations research.

AI has proven itself as a valuable and effective way to perform routine tasks in a variety of industries, it has the ability to free up your times and provide accurate completion of routine skills.

HOW WILL AI AFFECT BUSINESS.

Improved Business Intelligence Analyzing businesses has become easier and more effective thanks to business intelligence. The set of data tools that makes business intelligence possible is big data. Before big data was introduced, business intelligence was somewhat limited. However, now, business intelligence is considered a legitimate career.
 
Price Optimization: Knowing what discount, if any, to give a client is always a tricky situation. You want to win the deal, but at the same time you don’t want to leave money on the table.  Today, an AI algorithm could tell you what the ideal discount rate should be for a proposal to ensure that you’re most likely to win the deal by looking at specific features of each past deal that was won or lost. Features could include: size of the deal in terms of amount, product specification compliance, number of competitors, company size, territory/region, client’s industry, client’s annual revenues, public or private company, level of decision-makers (influencers) involved, timing (e.g., Q2 vs Q4), new or existing client, etc.

Forecasting: Sales managers face the daunting challenge of trying to predict where their team’s total sales numbers will fall each quarter. Using an AI algorithm, managers are now able to predict with a high degree of accuracy next quarter’s revenue, which in turn would help a company, from an operations standpoint, to better manage inventory and resources.

Upselling and Cross-Selling:  The fastest and most economical way to grow your top-line revenue is to sell more to your existing client base. But the biggest challenge is, who is more likely to buy more?  You can spend a lot of money on marketing to those who won’t buy, or you can use an AI algorithm to help identify which of your existing clients are more likely to buy a better version of what they currently own (up-sell) and/or which are most likely to want a new product offering altogether (cross-sell). The net effect is an increase in revenue and a drop in marketing costs.


Managing for Performance: Every month, sales managers have to assess the revenue pipelines of each of their sales people with an eye towards nurturing deals that might stall, or worse, fall through. Using AI, sales managers can now use dashboards to visually see which sales people are likely to hit their quotas along with which outstanding deals stand a good chance of being closed. This will allow a manager to focus their attention on key sales people and associated deals that will help the company hit their quota.

Create a More Customized User Experience With AI on the minds of not only businesses, but also customers, it’s definitely going to become more aggressive. More businesses and brands will use AI to customize the user experience, while analyzing data, buying trends and browsing history. There will no longer be a need to ask for name, email and contact information, as this will soon all readily be available through the use of AI.

Change How We Use Social Media The biggest impact of AI will involve social media. The coming year will see a rise in real-time personalized content targeting with the aim of creating increased sales opportunities, mainly because AI can make use of effective behavioral targeting methodologies.

Predict Customer Behavior Although AI is being used to predict customer behavior to some extent, it will get a boost in the future. Businesses will use AI to detect if a customer is willing to purchase the product, seeking support or switching to another provider even before they actually approach. The focus will be on making machine learning intense so that it appears more human for better engagement and successful deals.

Enable 24/7 Customer Support With chatbots being employed to deliver 24/7 customer support, businesses can also incorporate this data into their CRM to gather more valuable customer insights. This data can then be used to optimize various touch points, including chatbot interactivity, creating a feedback loop of customer data. Ultimately, AI enables the ultimate customer experience by providing indispensable customer data.

Increase Digital Commerce and Online Marketing With the new Google Assistant, online shopping is becoming more convenient. It’s going to be much easier to tell your AI assistant to purchase something that can be delivered to your doorstep in one to two days. This means that companies will need to invest in optimizing their online product to compete with e-commerce competitors.

Hiring AI is making it more efficient for everyone, from small business owners to HR departments at large companies, to find suitable employees. Screening and research that might have taken hours in the past can be done in seconds by software programs. Of course, hiring still requires live interviews, but AI can really make the initial stages of filtering candidates much more efficient.

Help Financial Trading Decisions Machine learning algorithms are making it easier to predict future trading decisions. By recognizing patterns, they are able to create strategies and adapt much quicker than humans. There are already a number of AI-based hedge funds popping up, and this is just the beginning.

BIG DATA AND AI; THE FUTURE OF BUSINESS 

WHY IS BIG DATA KEY TO AI SUCCESS

Big Data is AI’s fuel. It is both what trains AI to become increasingly powerful and what AI systems are ultimately applied to in order to generate real-world insights. The more data AI systems can tap, the greater their intelligence and disruptive potential.

While AI as a concept has been around for more than 50 years, a shortage of structured data for much of that span and computational limits stunted AI’s growth. For example, good speech-recognition technology requires about 150,000 hours (i.e., 10 years) of audio data. Facial recognition applications require roughly 15 million images.

Only until recently was that much image and audio data readily available. In fact, 90% of the world’s data has been generated since 2015.¹ That year, the digital universe, i.e., the reservoir of data created and copied, totaled less than 10 zettabytes—that would be 10, followed by 21 zeros. By 2020, it is expected to grow more than four times to 44 zettabytes. Just five years after that, it could reach 180 zettabytes.

Much of this growth can be attributed to the increased adoption of the Internet of Things and advancements in deep learning. With more connected devices recording videos, measuring heart rates, or tracking deliveries, the world’s information is becoming increasingly digitized. Combining this data creation with advancements in deep learning for image and speech recognition, more and more information is not just saved and stored now, it is structured and analyzed by AI systems.


CONCLUSION

The future of AI will be data driven and our ability to gather, analyze and use that data. The reason people are only now looking to the future of AI, bearing in mind it is not a new concept by any means, is that companies are considering and planning their strategies given the move to, and future management of, cloud-based systems.

If you want to help your business achieve more, then embracing big data and AI is a must. The fact is, it isn't going to be long before the businesses that have failed to embrace this new technology are going to be left behind.

EFFECTIVE TURNAROUND STRATEGIES FOR A STRUGGLING BUSINESS

Every business around the world needs a combination of several factors and ingredients to succeed and maintain that success. But not each one of it manages to keep the graph going up either due to lack of funds, improper marketing, wrong people onboard or inefficient products and services.

Business turnaround or turnaround management is the process of transforming a loss-making company into a profit-making. It is simply the method to organisation renewal that is aimed at saving a troubled business and rectifying all those mistakes and wrong steps that can lead to a profit generating situation again. business turnaround is structured, well-planned and methodological approach to the revival of a company and is achieved by following a step-by-step approach that takes time, investment and the participation of people.

DOES your company needs a turnaround STRATEGY?

In order to find out whether your company needs a corporate turnaround or not, it is important to ask yourself a few questionS. 

• Is your company currently in a distressed condition and is heading towards a downward spiral?
• Is your company faltering in its efforts and going out of control?
• Is your company spending more than it’s earning and are the earnings hard to come by?
• Has your company suffered from the reputation?

Once you answer these questions, you will automatically get an idea of its current state, based on which you can take further actions.

Common causes for failure of aN enterprise

Before making your way towards a turnaround STRAGETGY, it is important to know and understand the various causes of the failure of your enterprise. In most cases, businesses focus more on the signs/symptoms of decline rather than looking into the actual reasons for it. But without knowing the reasons, the rectification remains incomplete. There can be many reasons for the decline of a business, and they are broadly divided into two types: external and internal causes. Let’s take a look at both in detail:

External causes

External causes for failure of a company or organization are those kinds of causes that result from an external event, activity, trend or happening. The trends in the industry and the economic condition outside it can greatly affect a business or organization, no matter how it functions or how well it implements changes. The following are some of the main external causes for failure of a corporate enterprise:

• New aggressive competitor – Presence of one or more aggressive competitors in the market or industry can lead to the downfall of an enterprise.
• Increase in prices of supply – Another reason for the failure of a corporation could be a sudden and unexpected increase in the prices of supply.
• Changes in the market demand – Shift in market demand and reduction in product preference too can be a major reason.
• Economic conditions – The current condition of the market or economy could be a contributing factor to the decline of a company.

Internal causes

As the name suggests, internal causes for failure of a corporation are those kinds of causes which emerge from within the company and is a result of poor people participation, inadequate efforts, improper tools, and others. The following are some of the main internal causes:

• Failures of management – Poor management of a business enterprise often leads to its downfall and can be a major reason for is a failure.
• Failures in financial decisions – Loss in budget controls, weak financial forecasting and absence of a proper costing system are just some examples of insufficient financial controls in a company that could lead to its downfall.
• Ignorance of new trends – Ignoring the new trends in the industry and failing to grow with it could also be a big reason for a business’s decline.

5 Key Phases to a Turnaround

These are the key phases for a typical turnaround project:

1.  Analyse the situation by conducting a strategic review to determine how the business got into the position in the first place, the key risks facing the business, the key issues and recommendations to mitigate them – plus strategic options for consideration.

2.  Implement a stabilisation plan including a 100 day work plan, aggressive stakeholder and working capital management, and identification of “quick wins” to develop momentum.

3.  Change management, which often involves changing key personnel due to under-performance or simply bolstering the management team by engaging a Chief Restructuring Officer to project manage the many and varied initiatives. This frees up management to stay focused on the core business.

4.  Restructure the business, whether by changing the business model, a re-branding exercise to drive revenue, changing the customer or product mix, sale of non-core assets/divisions or redundancies.

5.  Return to normal, or sell along the way if that will drive greater value for stakeholders.

EFFECTIVE CORPORATE TURNAROUND STRATEGIES

1.   Situation reevaluation

To cure a problem, a diagnosis of the initial cause is the first step that is to be followed. Same is the case with corporate turnarounds. The first step that you need to follow is to figure out whether your business is damaged beyond repair or not. If not, then you need to look within the organization to figure out what the problem is. Only when you reevaluate the situation can you decide what actions can be taken next. To achieve this, you need to focus on some key areas, which are given as follows:

• Product – A business is made by the products and services it offers and hence it is important to focus on whether the products you are offering are innovative enough, unique enough and buyable enough for the consumers.
• Customers – You need to figure out whether your consumers are satisfied with the products being offered to them and is the right target audience being targeted.
• Finance – Is the cash flow enough to sustain the business’s operations? Do you have short term financing to stabilize the situation?
• Process – You must fathom whether all your business processes and systems are in place and working effectively. Without this, business performance can go down considerably.
• People – It may be time to figure out whether your business is supported by the right people and staff. Employees can play a big role in any organization’s success and hence you may have to cut down on few who may not be providing a good output.

2.   Crisis stabilization

Once the situation has been looked into, the next step is to stabilize the situation and make sure that the emergency state can be eliminated. To stabilize the crisis, you will need to conserve the liquidity of funds so that a window of opportunity can be created. You must aim for gaining a little restructuring of both the finances as well as the business so that the next steps can be easily dealt with, without worrying about the shortage of funds or chaos in business operations.
You must, at this step track the situation, monitor it well and try to control it from going out of hand. Only when you make efforts for stabilization would you be able to experience the freedom to make necessary changes.

3.   Strategy redefining

The next step to follow in order to turnaround the business effectively is to redefine the strategy that is being followed by your company currently. Redefining the strategy means making strategic or objective changes in the approach followed by your business to reach its goals. If the corporation is on a downward spiral, then one of the biggest reasons behind this could be a gap in the strategy. This is the step where you can make all the difference for the future of the organization and give it a new direction. Revisiting the strategic approach can also make you realize the holes in the previous approach and the changes that need to be made to it.
Key areas to focus on:

• Vision – You need to create your new strategy by keeping in mind what your vision or objective is. You must know exactly what you wish to achieve and where you want to take your business.
• Purpose – Are you aware of the real purpose of your business? Your strategy must address this purpose and make sure it is fulfilling the objective for which it was created in the first place.
• Brand – Your business strategy must also address your brand value and should focus on the kind of impact you wish to have on the public as a brand.
• Mission – You must incorporate the intent to succeed in the business and how to succeed in the strategy as well.
• Values – Does your business have any principles, policies and standards that it wants to maintain and follow? If yes, make sure your strategy takes them into consideration.

 4.   Employee retention and reemployment

There is hardly any corporate turnaround without talking about the people involved in it. It is the people or employees which run a business and no matter how your finances are, how good your strategy is, if the people backing it are not performing well, there is no way for it to succeed. Now may be the right time to figure out who really is offering the best services to your organization and who isn’t performing as per expectations.
At this step, you need to take the decision of reemploying people, eliminating the weaker links and retaining those who are crucial to your business. To revive a business, it is important to retain the right people on board and politely excuse yourself of the wrong ones.

5.   Process and product improvements

Besides people and strategy, another thing that you need to focus upon is the re-innovation of the products(services) and the business operations. Without regular upgradation and innovation of products and services, customers soon tend to lose interest, and this could be the reason for your downfall. Make sure you are offering your consumers something that they cannot find anywhere else. Regular changes in the products according to the demands of the market and customers are the keys to maintaining consumer interest.
Same holds true for your business processes and operations. Have you incorporated the latest technologies or systems in your systems and processes? Do you innovate your working style, environment and principles with changing times? If not, then you should probably start doing that now!

6.   Financial restructuring

One of the main and obvious reasons for a failing business is the lack of funds. Without solving the problem of financing, all the other efforts towards a turnaround can fail miserably. If you are running out of cash, then it is a good idea that you focus on the financial restructuring of your business. While it is a great idea to look for external funding, it is even better to try to source it from within your company. Some of the ways to do so are given as follows:

• Cut down on costs wherever possible and lay off some of the unproductive staff.
• If you need to raise quick cash, consider selling some fixed assets.
• Try to take some money from your personal savings.

Only after internal funding sources have been exhausted should you opt for external funding, the best examples of which are borrowing from a friend, taking a loan from a bank and leasing, etc.

7.   Back to normal

Now the next strategy involves returning to normal. Once the company has a constant cash flow, and everyone has gotten used to the changes, it is important to go back into the same work schedule and create an atmosphere of normality. Once the company is out of the crisis situation, employees begin to gain more confidence, processes are put back into their normal speed and efforts are made to maintain the strong performance.

8.   Become digital

As the world is moving towards technological advancements and development, it is important to move ahead with it. Most consumers and customers these days look online for buying products and services and the industry demands you to go digital. Going the digital route is not just the need of the hour but also the demand of the consumers. Introduce latest systems, online technologies and online marketing in your strategy to gain the maximum in the current circumstances. Going digital also gives you an edge over your competitors and puts you in the league of those who are already gaining huge profits through online marketing and sales.
The internet offers you a superb opportunity to reinvent yourself and bounce back hard. It is no doubt that the internet has changed the world, the way businesses work and the way consumers buy. So to complete the process of your corporate turnaround, it is important to have a good website, a strong SEO centric approach, e-commerce facility as well as social media presence.

 CONCLUSION

Turnaround should be applicable only if there are chances of revival of business firm. Sometimes business may not have bright future, but the survival of such unit may be difficult in the long run.
In such cases, implementation of turnaround strategy is not viable. In short viability of business is an essential requirement of a good turnaround strategy.