g-f(2)2883 Strategic Planning Reimagined: How CEOs Harness Gen AI for Fresh Perspectives

 

genioux Fact post by Fernando Machuca and ChatGPT

Introduction

The article "How CEOs Are Using Gen AI for Strategic Planning," published by Harvard Business Review in September 2024, explores the growing interest among business leaders in utilizing Generative AI (GenAI) for strategic planning. The article demonstrates both the potential and limitations of AI in strategic decision-making through two real-world case studies. While GenAI offers fresh perspectives and assists in overcoming human biases, its backward-looking nature rooted in historical data highlights its challenges in forecasting and scenario planning. The authors stress that GenAI should be seen as a powerful tool that augments, rather than replaces, human strategic thinking.

genioux GK Nugget

"Generative AI amplifies strategic thinking by offering fresh perspectives, but its limitations highlight the importance of human discernment and forward-looking decision-making." — Fernando Machuca and ChatGPT, September 13, 2024

genioux Foundational Fact

Generative AI (GenAI) enhances strategic planning by broadening perspectives and identifying new opportunities outside human biases. However, its backward-looking approach rooted in historical data limits its ability to forecast future scenarios and capture company-specific nuances. The key takeaway is that while GenAI can be a powerful aid, its results must be critically analyzed by human teams to make informed strategic decisions.

The 10 Most Relevant genioux Facts

1. Generative AI’s Potential in Strategy: GenAI offers valuable outside-the-box perspectives, helping leaders break out of their industry-specific biases.
2. Strategic Blind Spot Identification: GenAI can highlight overlooked strategic issues, such as technological advancements, regulatory changes, and client demand shifts.
3. GenAI’s Limitations: GenAI is primarily backward-looking, rooted in historical data, and struggles to predict future trends or incorporate company-specific challenges.
4. Human-AI Synergy: CEOs must use GenAI to augment, not replace, human decision-making, with AI offering suggestions that require human discernment.
5. Forecasting Challenges: GenAI's inability to accurately forecast future demand limits its role in planning for future market shifts and sales projections.
6. Divergent Thinking: GenAI encourages divergent thinking by surfacing factors human teams may not consider, but still requires filtering through practical and industry-relevant lenses.
7. Creative Scenario Development: While not always practical, GenAI can help with brainstorming futuristic or outlandish strategies, which can spark innovative solutions.
8. Retrieval-Augmented Generation (RAG): RAG tools offer a blend of real-time data with AI outputs, making them more suitable for scenario analysis and strategy forecasting.
9. Strategic Flexibility: Leaders can utilize GenAI’s suggestions for flexible and adaptive planning, while also ensuring the team addresses specific company challenges.
10. Cost-Effective Aid: Given its speed and cost-effectiveness, CEOs can use GenAI for quick idea generation in strategic planning, making it an accessible tool for small and large businesses alike.

Conclusion

Generative AI holds transformative potential for strategic planning, but its limitations must be acknowledged. It can uncover new opportunities and mitigate human biases, but its backward-looking nature constrains its ability to forecast and tailor strategies for specific company needs. The key to maximizing GenAI’s value lies in its integration with human insight, making it a tool that enhances, rather than replaces, strategic decision-making.

REFERENCES

The g-f GK Context

Graham Kenny, Marek Kowalkiewicz, and Kim Oosthuizen, How CEOs Are Using Gen AI for Strategic Planning, Harvard Business Review, September 11, 2024.

ABOUT THE AUTHORS

Graham Kenny is the CEO of Strategic Factors and the author of Strategy Discovery. He is a recognized expert in strategy and performance measurement who helps managers, executives, and boards create successful organizations in the private, public, and not-for-profit sectors. He has been a professor of management at universities in the U.S. and Canada.

Marek Kowalkiewicz is a Professor and Chair in Digital Economy at QUT Business School in Brisbane, Australia.  He was a Founding Research Manager of SAP’s Machine Learning lab in Singapore, a Global Research Program Lead at SAP Research, and a Research Fellow at Microsoft Research Asia. His new book is “The Economy of Algorithms: AI and the Rise of the Digital Minions“. He writes a weekly newsletter, “The Economy of Algorithms“.

Kim Oosthuizen is the Head of Artificial Intelligence Australia and New Zealand at SAP, based in Sydney, Australia.  She founded the SAP AI Council in Australia to focus on the responsible adoption, operation, and scaling of AI and lectures part-time at various business schools. You can connect with or follow her on LinkedIn.

Classical Summary of the Article

The Harvard Business Review article "How CEOs Are Using Gen AI for Strategic Planning" explores the evolving role of generative AI (Gen AI) in enhancing strategic decision-making for business leaders. The authors, Graham Kenny, Marek Kowalkiewicz, and Kim Oosthuizen, focus on how CEOs can leverage Gen AI to identify challenges and opportunities that may be overlooked due to human biases or limited perspectives. Through two case studies, the article highlights the strengths and limitations of Gen AI in strategic planning.

In the first case, Keith, the CEO of an agricultural research company, uses Gen AI to generate a broader view of his company’s strategic issues. While the AI provided fresh perspectives, such as technological advancements and regulatory changes, it missed company-specific factors like branch location and profitability, reflecting the limitations of the tool’s general data set. In the second case, Angeline, the CEO of a cemetery and crematorium business, used Gen AI to identify industry trends and alternative strategies for a land shortage issue. Gen AI offered some innovative, albeit unrealistic, ideas, showcasing its ability to prompt creative thinking but also its dependency on historical data.

The article concludes that Gen AI can augment but not replace human strategic thinking. By recognizing its limitations—such as its backward-looking nature—CEOs can use Gen AI to enhance decision-making by surfacing fresh ideas and mitigating blind spots. The key is to view Gen AI as a complementary tool, integrating human judgment with AI-driven insights to develop more robust and forward-thinking strategies.

Graham Kenny

Graham Kenny is an internationally recognized expert in strategy and performance measurement. He is the CEO of Strategic Factors, a consultancy firm that specializes in helping organizations develop and implement effective business strategies.

Graham Kenny is renowned for his contributions to the field of strategy. He has authored several books, including "Strategy Discovery: Achieving Business Resilience, Engagement, and Performance", which provides a framework for managers to navigate the complexities of modern business environments¹². His work is highly regarded, and he is a regular contributor to the Harvard Business Review, where he has published numerous articles on strategy and management².

In addition to his writing, Graham Kenny is a sought-after speaker and consultant. He has over 20 years of experience conducting seminars and workshops on strategy and performance management, helping leaders in the public, private, and not-for-profit sectors enhance their strategic capabilities². His expertise extends to developing performance scorecards and facilitating strategic planning sessions.

Graham Kenny's educational background includes a Bachelor of Engineering (BEng), a Master of Science (MSc), and a Doctor of Philosophy (PhD)². His academic achievements and practical experience make him a leading authority in his field.

Source: Conversation with Copilot, 9/13/2024

(1) Graham Kenny: books, biography, latest update - amazon.com. https://www.amazon.com/stores/Graham%20Kenny/author/B002BLV10O.

(2) Graham Kenny - Routledge & CRC Press Author Profile. https://www.routledge.com/authors/i23908-graham-kenny.

(3) Graham Kenny - Routledge & CRC Press Author Profile. https://www.routledge.com/authors/i23908-graham-kenny.

(4) Kenny Graham - Wikipedia. https://en.wikipedia.org/wiki/Kenny_Graham.

(5) Kenny Graham (American football) - Wikipedia. https://en.wikipedia.org/wiki/Kenny_Graham_%28American_football%29.

(6) Strategy Discovery Achieving Business Resilience, Engagement and .... https://www.routledge.com/Strategy-Discovery-Achieving-Business-Resilience-Engagement-and-Performance/Kenny/p/book/9781032496528.

Marek Kowalkiewicz

Marek Kowalkiewicz is a distinguished Professor and Chair in Digital Economy at the Queensland University of Technology (QUT) Business School in Brisbane, Australia. He is also the founding director of the QUT Research Centre for the Digital Economy³.

Born on July 21, 1978, in Kołobrzeg, Poland, Marek has an impressive academic background. He earned his Master of Business Information Systems from Poznań University of Economics and Business in 2002 and completed his PhD in Information Systems at the same university in 2006, graduating summa cum laude¹².

Marek's career spans various prestigious roles. Before joining QUT, he led global innovation teams in Silicon Valley and served as a Research Manager at SAP's Machine Learning Lab in Singapore. He was also a Global Research Program Lead at SAP Research Australia and a Research Fellow at Microsoft Research Asia¹².

At QUT, Marek focuses on artificial intelligence (AI) and digital transformation strategies for government and industry. He is known for pioneering the concept of 30-day "research innovation sprints," which combine the commercial philosophy of Google's five-day design sprint with the rigor of academic research¹.

Marek has been recognized as one of the Top 100 Global Thought Leaders in Artificial Intelligence by thinkers360². His upcoming book, "The Economy of Algorithms: AI and the Rise of the Digital Minions," is set to be published soon².

Source: Conversation with Copilot, 9/13/2024

(1) Marek Kowalkiewicz - The Conversation. https://theconversation.com/profiles/marek-kowalkiewicz-193061.

(2) Marek Kowalkiewicz - Wikipedia. https://en.wikipedia.org/wiki/Marek_Kowalkiewicz.

(3) QUT - Academic profiles - Professor Marek Kowalkiewicz. https://www.qut.edu.au/about/our-people/academic-profiles/marek.kowalkiewicz.

(4) QUT - Academic profiles - Professor Marek Kowalkiewicz. https://www.qut.edu.au/about/our-people/academic-profiles/marek.kowalkiewicz.

Dr. Kim Oosthuizen

Dr. Kim Oosthuizen is a prominent figure in the field of artificial intelligence (AI), currently serving as the Head of Artificial Intelligence for SAP in Australia and New Zealand. Based in Sydney, Australia, she has been with SAP for over four years, contributing significantly to the company's AI initiatives².

Originally from South Africa, Dr. Oosthuizen holds both an MBA and a PhD from Stellenbosch Business School⁵. Her academic research has led to multiple publications exploring the integration of AI into business, showcasing her expertise in the application of AI in various business contexts⁵.

At SAP, Dr. Oosthuizen is passionate about helping customers discover the potential of AI technology and demonstrating how it can transform their businesses. She focuses on guiding customers in adopting SAP Business AI, enabling them to work better, faster, and smarter². Her role involves not only technical expertise but also a strong emphasis on customer education and support.

Dr. Oosthuizen is also an advocate for diversity and inclusion in AI. She admires leaders like Dr. Fei-Fei Li and Beena Ammanath for their work in promoting ethical AI practices and paving the way for women in the field². Outside of her professional life, she enjoys sailing and scuba diving, finding joy and relaxation in the water².

Source: Conversation with Copilot, 9/13/2024

(1) SAP Super Awesome Profiles: 10 minutes with Dr Kim Oosthuizen. https://news.sap.com/australia/2024/05/16/sap-super-awesome-profiles-10-minutes-with-dr-kim-oosthuizen/.

(2) Dr. Kim Oosthuizen - Mastering SAP. https://masteringsap.com/experts/dr-kim-oosthuizen/.

(3) SAP Super Awesome Profiles: 10 minutes with Dr Kim Oosthuizen. https://news.sap.com/australia/2024/05/16/sap-super-awesome-profiles-10-minutes-with-dr-kim-oosthuizen/.

(4) Kim Oosthuizen. https://www.facebook.com/BBCLancashire/videos/kim-oosthuizen/10156486792231069/.

(5) Oosthuizen feels 'mentally strong' to win a second career major. https://www.dailymotion.com/video/x81fnao.

(6) Interview with Dr Kim Oosthuizen, Head of AI at SAP - YouTube. https://www.youtube.com/watch?v=PBevjQ7ufWs.

(7) undefined. https://event.on24.com/eventRegistrat.

(8) undefined. https://news.sap.com/australia/2024/0.

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This genioux Fact post is classified as Bombshell Knowledge which means: The game-changer that reshapes your perspective, leaving you exclaiming, "Wow, I had no idea!"

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REFERENCES

“genioux facts”: The online program on "MASTERING THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)2883, Fernando Machuca and ChatGPT, September 13, 2024, Genioux.com Corporation.

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