Innovative digital and AI ideas are shaping business landscapes, heralding a new era of strategic growth and transformation.
Copyright: mckinsey.com – “Ten Unsung Digital And AI Ideas Shaping Business”
Keeping your eye on where value comes from is still the name of the game.
If you wanted to boil down 2023 to one concept, it would have to be generative AI (gen AI). Few of us can remember a technology that has swept through the business community with such speed and impact. Hardly a day passes without a new development hitting the headlines. While still blanketed with caveats and unknowns, gen AI stands to have a profound impact on how we live and work.
But the very excitement around gen AI is in danger of distracting business leaders from some other core business imperatives and the importance of rewiring their companies. For this reason, we thought it might be helpful to take a quick look at ten underlying ideas that might not be dominating the headlines but are shaping the modern business landscape. Some of these ideas represent significant shifts, such as the importance of architecting the business so that everything can be tested, or how to think about a workforce where everyone has their own gen AI “copilot.” Others, like keeping a tight focus on value, relate to business fundamentals that are often overlooked under the stresses of day-to-day demands and technology hype.
The 10 ideas
1. Builders are eating the world
We’re all familiar with Marc Andreessen’s frequently referenced insight, “Software is eating the world.” While that’s as true as ever, the more important focus for business leaders is how well they can use that software to build things, from businesses to digital products. The cost of building new digital products and services will continue to come down while the tools available will be easier to use, opening the door to many more citizen builders and making the build process faster and cheaper. Scaling will continue to be a challenge requiring specific focus (see Idea #2), but companies that learn to build, test, and adapt quickly will be in the best position to create value. This is especially true as AI continues to advance and costs for technology-based innovation decline, both of which will challenge not just businesses but also business models.
Key facts
We estimate that about $30 trillion in corporate revenues will arise from products that have not yet reached the market.¹ Some 70 percent of digital-transformation leaders are already building their own software in areas that drive competitive advantage, and we expect that percentage to increase as costs to build continue to fall. Meanwhile, CFOs see building new businesses as their organizations’ most likely strategic action in the next 12 months.
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About $30 trillion in corporate revenues will arise from products that have not yet reached the market.[…]
Read more: www.mckinsey.com
Innovative digital and AI ideas are shaping business landscapes, heralding a new era of strategic growth and transformation.
Copyright: mckinsey.com – “Ten Unsung Digital And AI Ideas Shaping Business”
If you wanted to boil down 2023 to one concept, it would have to be generative AI (gen AI). Few of us can remember a technology that has swept through the business community with such speed and impact. Hardly a day passes without a new development hitting the headlines. While still blanketed with caveats and unknowns, gen AI stands to have a profound impact on how we live and work.
But the very excitement around gen AI is in danger of distracting business leaders from some other core business imperatives and the importance of rewiring their companies. For this reason, we thought it might be helpful to take a quick look at ten underlying ideas that might not be dominating the headlines but are shaping the modern business landscape. Some of these ideas represent significant shifts, such as the importance of architecting the business so that everything can be tested, or how to think about a workforce where everyone has their own gen AI “copilot.” Others, like keeping a tight focus on value, relate to business fundamentals that are often overlooked under the stresses of day-to-day demands and technology hype.
The 10 ideas
1. Builders are eating the world
We’re all familiar with Marc Andreessen’s frequently referenced insight, “Software is eating the world.” While that’s as true as ever, the more important focus for business leaders is how well they can use that software to build things, from businesses to digital products. The cost of building new digital products and services will continue to come down while the tools available will be easier to use, opening the door to many more citizen builders and making the build process faster and cheaper. Scaling will continue to be a challenge requiring specific focus (see Idea #2), but companies that learn to build, test, and adapt quickly will be in the best position to create value. This is especially true as AI continues to advance and costs for technology-based innovation decline, both of which will challenge not just businesses but also business models.
Key facts
We estimate that about $30 trillion in corporate revenues will arise from products that have not yet reached the market.¹ Some 70 percent of digital-transformation leaders are already building their own software in areas that drive competitive advantage, and we expect that percentage to increase as costs to build continue to fall. Meanwhile, CFOs see building new businesses as their organizations’ most likely strategic action in the next 12 months.
Thank you for reading this post, don't forget to subscribe to our AI NAVIGATOR!
About $30 trillion in corporate revenues will arise from products that have not yet reached the market.[…]
Read more: www.mckinsey.com
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