Thursday, November 4, 2021

g-f(2)631 THE BIG PICTURE OF THE DIGITAL AGE (11/4/2021), MIT SMR + BCG, The Cultural Benefits of Artificial Intelligence in the Enterprise

ULTRA-condensed knowledge

"g-f" fishing of golden knowledge (GK) of the fabulous treasure of the digital ageDigital Transformation, Cultural Benefits of Artificial Intelligence (11/4/2021)  g-f(2)426 


          • The report of MIT SMR + BCG, “The Cultural Benefits of Artificial Intelligence in the Enterprise”, is an EXCEPTIONAL Full Pack Golden Knowledge Container because its research and results are of extraordinary importance and quality. g-f(2)629, g-f(2)626
          • When conducting our research, we heard story after story from executives familiar with AI implementations in their organizations. The overarching message was clear and backed up by survey data: Business culture affects AI deployments, and AI deployments affect business culture.
          • This MIT SMR-BCG report — based on a global survey of 2,197 managers and interviews with 18 executives — identifies a wide range of AI-related cultural benefits at both the team and organizational levels. Among survey respondents with AI implementations that improved efficiency and decision-making, for example, more than 75% also saw improvements in team morale, collaboration, and collective learning. Culture change from using AI transcends the legitimate, but myopic, promise that AI will liberate workers from drudgery.
          • These cultural changes are more than a side benefit. AI-related cultural and financial benefits build on each other. Survey respondents who saw significant financial benefits from their AI initiatives were 10 times more likely to change how they measure success than those who saw no such benefits.

          Genioux knowledge fact condensed as an image



          • Sam Ransbotham is a professor in the information systems department at the Carroll School of Management at Boston College, as well as guest editor for MIT Sloan Management Review’s Artificial Intelligence and Business Strategy Big Ideas initiative.
          • François Candelon is a senior partner and managing director at BCG and the global director of the BCG Henderson Institute. He can be contacted at
          • David Kiron is the editorial director of MIT Sloan Management Review and is program lead for its Future of the Workforce and Artificial Intelligence and Business Strategy projects. He can be contacted at
          • Shervin Khodabandeh is a senior partner and managing director at BCG and the coleader of BCG GAMMA (BCG’s AI practice) in North America. He can be contacted at
          • Burt LaFountain is a partner and managing director at BCG and a core member of BCG GAMMA. He can be reached at

          Extra-condensed knowledge

          g-f(2)626, OPPORTUNITIES, MIT SMR + BCG

          • The 2021 MIT SMR-BCG report identifies a wide range of AI-related cultural benefits at both the team and organizational levels. Whether it’s reconsidering business assumptions or empowering teams, managing the dynamics across culture, AI use, and organizational effectiveness is critical to increasing AI’s value to an organization. This report offers a detailed analysis of a dynamic between culture, AI use, and organizational effectiveness.
          • Our research demonstrates a strong, multidimensional link between AI use and organizational culture. Clearly, AI use depends on company leaders establishing a culture that allows AI solutions to thrive. But it’s also clear that flourishing AI solutions can strengthen organizational culture at both the team and organizational levels. As more companies look to build strategies around AI, understanding and managing the interplay between culture, AI use, and organizational effectiveness (the C-U-E dynamic) becomes critical to their success.


          • This report presents findings from the fifth annual research effort between MIT Sloan Management Review and Boston Consulting Group on artificial intelligence and business strategy. In the spring of 2021, we fielded a global survey and analyzed records from 2,197 total respondents representing 29 industries and 112 countries. We then interviewed 18 executives researching or leading AI initiatives in large organizations in a broad range of industries, including financial services, media and entertainment, retail, travel and transportation, and life sciences. Our research offers a detailed analysis of a dynamic between culture, AI use, and organizational effectiveness. In addition to our own field research, we used existing organizational culture research to inform our use of the term “culture.”

          Condensed knowledge

          Lessons learned, MIT SMR + BCG

                • Pierre-Yves Calloc’h, chief digital officer at Pernod Ricard, the world’s second-largest seller of wine and spirits, offers a case in point. The company began using AI technology to optimize salespeople’s store visits. Historically, the sales staff had relied heavily on their own experience to decide which stores to visit. The company expected that its new AI-based system of digital assistants, which uses data to prioritize stores, would encounter resistance. However, salespeople embraced the technology, which augments rather than replaces their own knowledge.
                  • Calloc’h fostered trust in the system by involving recognized business experts in the tool’s design and gathering extensive feedback from pilot users. His team ensured that the reasons for the AI system’s recommendations were clear, and clearly communicated, to the salespeople.
                • Our global survey attests that Pernod Ricard isn’t alone in experiencing AI’s effect on team culture: Many respondents who saw improvements in efficiency and decision quality because of AI also saw team-level improvements in morale (79%) and other cultural areas.
                • Radha Subramanyam, president and chief research and analytics officer at CBS, describes the broadcast network’s efforts to critically assess long-standing organizational assumptions about how it measures the success of TV shows. “I gave our AI teams 50 years of KPIs [key performance indicators] and 50 years of consumer research,” she recalls. “I said, ‘Here are the things that we believe are important in this consumer research — quantitative and qualitative. I’m giving you all the raw data. Are the things that I habitually look at the right KPIs to drive my mega-KPI, or are they wrong?’”
                  • The analysis affirmed the utility of two historical KPIs but also added two new KPIs to the set. “We got better by going through this AI exercise,” Subramanyam noted. “The analysis changed what we were looking for and helped improve our performance.” For CBS, AI provided both the opportunity and the means for reexamining fundamental assumptions about business operations and organizational effectiveness. The assumptions that guide team behaviors and enterprise goals are central to organizational culture.

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                • Category 2: The Big Picture of the Digital Age
                • [genioux fact deduced or extracted from MIT SMR + BCG]
                • This is a “genioux fact fast solution.”
                • Tag Opportunities those travelling at high speed on GKPath
                • Type of essential knowledge of this “genioux fact”: Essential Analyzed Knowledge (EAK).
                • Type of validity of the "genioux fact". 

                  • Inherited from sources + Supported by the knowledge of one or more experts + Supported by research.


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