Implementing an AI Opportunity Framework: A Key to Successful AI Business Transformation
Introduction
The integration of Artificial Intelligence (AI) into business processes marks a transformative era for organisations. But, navigating this transformation requires more than just a vision; it demands a strategic approach, particularly during the all important discovery phase.
We believe that one of the key critical AI Business Transformation success factors is the adoption of a well structured AI Opportunity Frameworks. It serves as a guide for organisations to identify, review, select, and adopt the most optimal AI opportunities, ensuring alignment with organisational strategic objectives and operational capabilities.
Understanding the AI Opportunity Framework
An AI Opportunity Framework is a systematic method used to evaluate potential AI Initiatives (PAI’s). It involves a thorough assessment based on criteria such as :
- Does it solve a real strategic level problem that cannot be more effectively solved without AI
- Is the AI Solution Technically Feasible – Integration Points /Risk Issue profile
- Does the opportunity deliver measurable benefits /ROAI
- Can we build use cases to explain the functionality required
- Long term sustainability
- Is it Ethical
- Does it fit with compliance requirements
This is not a definitive list looking back at real world PAI documents. These PAI’s once pumped through a governance and approval process as detailed below are then used by Project Managers to compile Project Briefs which once approved form part of an AI Project Dossier which feed directly into the AI Business Transformation Business Case the key Go /No Go document before the Execution phase is initiated.
Steps to Implement an AI Opportunity Framework
- Assessment of Organisational Goals: Align AI initiatives with the strategic objectives of the organisation. Understanding what the business aims to achieve is crucial in selecting relevant AI opportunities.
- High Level Sweep Looking for Potential AI Opportunities: Conduct an exhaustive survey across various departments to identify processes that could benefit from AI. This could include customer service enhancements, operational efficiency improvements, or data analytics enhancements.
- Stakeholder Engagement and Change Management Considerations: Engage with stakeholders from different parts of the organisation to gather insights and perspectives. This step is vital for ensuring broad support and understanding the practical implications of AI projects in terms of business process changes and impact on the Target Operating Model (TOM).
- Compile PAI’s: These documents have many components but nearly always contain use cases, off the shelf solution suggestions as well as in-house development opportunities and an assessment of the potential benefits and the ROAC as a minimum.
- Prioritisation of AI Projects: Use a scoring system to rank PAI’s opportunities based on the assessed criteria. This helps in prioritising projects that offer the most value and align closely with the organisation’s strategic goals. This ranked list once feed into Project Briefs forms our Project Dossier.
- Business Case Development: This would consist of a Business Case Brief in the first instance and if then approved form the full Business Transformation Business Case. This document will contain all the Project Briefs and all the financial and benefits analysis necessary to decide if a given AI Business Transformation is a Go or No Go decision. A key part of this document armed with the Project Dossier is a well developed roadmap which typically contains a timeline, resource allocation, and key milestones.
Conclusion
Implementing an AI Opportunity Framework during the discovery phase of AI Business Transformation is a strategic necessity. It not only aligns AI initiatives with organisational goals but also optimises resource allocation, mitigates risks, and ensures stakeholder buy-in. As AI continues to revolutionise business processes, the AI Opportunity Framework stands as a crucial tool for harnessing its potential effectively and responsibly.