g-f(2)1961 AI-Enhanced KPIs: The Future of Strategic Measurement

 

genioux Fact post by Fernando Machuca and Bing Chatbot (Copilot)

Introduction:

"The Future of Strategic Measurement: Enhancing KPIs With AI" is a report that explores how organizations are using AI to evolve their key performance indicators (KPIs) to better align with their strategies and deliver on enterprise goals¹.

genioux GK Nugget:

"AI is transforming the way organizations measure performance, making KPIs smarter, more adaptive, and predictive, thus becoming sources of strategic differentiation and value creation¹." — Fernando Machuca and Copilot

genioux Foundational Fact:

The report presents the concept of AI-enhanced KPIs, which are being used by organizations to redefine and enhance performance¹. It highlights how companies that revise their KPIs with AI are three times more likely to see greater financial benefit than those that do not¹.

10 genioux Facts:

1. Legacy KPIs often fail to deliver the information and insights leaders need to succeed¹.

2. Sophisticated organizations worldwide recognize that their KPIs need to be measurably smarter and more capable¹.

3. AI-powered KPIs become sources — not merely measures — of strategic differentiation and value creation¹.

4. AI is being used to fundamentally redefine performance as well as enhance it¹.

5. Companies that revise their KPIs with AI are three times more likely to see greater financial benefit than those that do not¹.

6. Smarter KPIs lead to better outcomes¹.

7. The report is based on a global survey of more than 3,000 managers and interviews with 17 executives¹.

8. Online furniture retailer Wayfair used AI to reexamine the fundamentals behind its lost-sales KPI¹.

9. Wayfair reengineered its lost-sales KPI into a more valuable metric¹.

10. With the new, more accurate KPI, Wayfair is able to make more effective furniture recommendations¹.

Conclusion:

The report "The Future of Strategic Measurement: Enhancing KPIs With AI" provides valuable insights into how AI is transforming strategic measurement. It emphasizes the importance of AI-enhanced KPIs in driving better performance and creating value, thus highlighting the significant role of AI in the future of strategic measurement¹.

Source: Conversation with Bing, 2/13/2024

(1) The Future of Strategic Measurement: Enhancing KPIs With AI. https://sloanreview.mit.edu/projects/the-future-of-strategic-measurement-enhancing-kpis-with-ai/.

(2) The Future of Strategic Measurement: Enhancing KPIs With AI. https://shop.sloanreview.mit.edu/the-future-of-strategic-measurement-enhancing-kpis-with-ai.

REFERENCE

The GK Article

M. Schrage, D. Kiron, F. Candelon, S. Khodabandeh, and M. Chu, “The Future of Strategic Measurement: Enhancing KPIs With AI,” MIT Sloan Management Review and Boston Consulting Group, February 2024.

ABOUT THE AUTHORS

Michael Schrage is a research fellow with the MIT Sloan School of Management’s Initiative on the Digital Economy. His research, writing, and advisory work focuses on the behavioral economics of digital media, models, and metrics as strategic resources for managing innovation opportunity and risk.

David Kiron is the editorial director, research, of MIT Sloan Management Review and program lead for its Big Ideas research initiatives.

François Candelon is a senior partner and managing director at Boston Consulting Group (BCG) and the global director of the BCG Henderson Institute, where his research focuses on the impact of technologies on business and society. He can be contacted at candelon.francois@bcg.com.

Shervin Khodabandeh is a senior partner and managing director at BCG and the coleader of BCG’s AI business in North America. He is a leader in BCG X and has over 20 years of experience driving business impact from AI and digital. He can be contacted at shervin@bcg.com.

Michael Chu is a partner and associate director at BCG, where he focuses on applying AI and machine learning to business problems in commercial functions, including optimizing pricing, promotions, sales, and marketing. He can be reached at chu.michael@bcg.com.

CONTRIBUTORS:

Kristin Burnham, Kevin Foley, Carolyn Ann Geason-Beissel, Wanming Huang, Gaurav Jha, Lisa Krayer, Michele Lee De Filippo, Allison Ryder, Barbara Spindel, David Zuluaga Martínez

Copilot's Summary

"The Future of Strategic Measurement: Enhancing KPIs With AI" is a report by Michael Schrage, David Kiron, François Candelon, Shervin Khodabandeh, and Michael Chu, published on February 13, 2024¹. The report, part of the 2024 Artificial Intelligence and Business Strategy series from MIT Sloan Management Review and Boston Consulting Group, explores how organizations are using AI to evolve their key performance indicators (KPIs) to better align with their strategies and deliver on enterprise goals¹.

Based on a global survey and executive interviews, the report offers advice on developing and using AI-enhanced KPIs to improve performance¹. It also provides steps managers can take to start benefiting from smarter KPIs¹. The report emphasizes that smart organizations need smarter KPIs and outlines how leaders can create and capture value from these smart KPIs¹.

Source: Conversation with Bing, 2/13/2024

(1) The Future of Strategic Measurement: Enhancing KPIs With AI. https://shop.sloanreview.mit.edu/the-future-of-strategic-measurement-enhancing-kpis-with-ai.

(2) New Research Reveals That 90% of Organizations Using AI to ... - ADVFN. https://uk.advfn.com/stock-market/share-news/New-Research-Reveals-That-90-of-Organizations-Usi/93260695.

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References

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)1961, Fernando Machuca and Bing Chatbot (Copilot), February 12, 2024, Genioux.com Corporation.

 

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