Every small business aspires to grow as big as a Fortune 500 company one fine day. In fact, any business would want to keep advancing in an incremental way to scale new heights. Besides, this is what makes the enterprise world highly competitive. The ultimate objective of every business is to penetrate its market to dominate the market share in its own exemplary way. This explains why businesses lay great emphasis on market penetration strategies.
The fact of the matter is that business advancement strategies cannot exist without market penetration tactics. The market share of a company will always be a key performance indicator of its advancement and authority.
Probing further, in every industry, we identify the top performers in terms of their market share. For instance, if we talk about the smartphone industry, Samsung and Apple are the biggest players with dominating market shares. They have always had fierce competition in dominating the industry. Still, due to some extraordinary market penetration strategies, Samsung dominated the smartphone industry by leaving Apple in the second spot.
To substantiate, in the second quarter of 2022, Samsung made it to the top spot with a market share of 21.8. Whereas Apple bagged the second position with a market share of 15.6%. We can largely attribute the success of Samsung to its market penetration strategies. This example makes a clear case for paying heed to the need for a firm market penetration plan. However, what does the term market penetration exactly imply? Let us find out.
What is market penetration?
Market penetration is a measure of how much share a company holds in the overall market for a product. To elaborate, it defines how much a product is used by consumers relative to the total estimated market size for that product. For service businesses, it will be a measure of how much a service is used by consumers relative to the total market size for that service.
Now, let us also look at the definition of market penetration strategies. It is the course of action that a company initiates to increase its market share in the overall market. Besides, market penetration is one of the four elements of the Ansoff Matrix. To explain, Ansoff Matrix is one of the widely applied strategic models used by companies. A company’s market penetration strategy is the set of tactics aimed at increasing its market share.
Let us understand the same through an example. Currently, Tesla has over 70 percent market share in the US EV market. Now, let’s say the company sets a target for attaining a market share of 90 percent in the next three years. For that, the company will need to frame an effective market penetration strategy. The KPIs of its penetration strategy will determine whether the company meets its business objectives.
Now we know all about what market penetration is and what is a market penetration plan. For successful market penetration, companies need actionable strategies. This is what this meticulous blog is all about. The next section puts forth some incredible strategies for market penetration.
5 Business Strategies For Successful Market Penetration
1. Revolutionize Your Promotional Practices
Marketing and promotional strategies have nowadays become a major pillar on which the growth of every business majorly depends. Statistical data (vtldesign dotcom) states that big names like Salesforce and Oracle dedicate 20% or even more of revenue to marketing. Besides, the same reports validate that marketing is eventually responsible for generating companies’ revenue growth of 38.4%. This brings us to the very first marketing penetration strategy. In this, you have to ensure that you need to revamp your promotional practices.
To elaborate, thanks to technological advancements, we have tremendous marketing sources like affiliate marketing, social media marketing, and so on. Apart from the sources, technological advancements even revolutionized the way marketing was done before. For example, technologies like artificial intelligence (AI), VR, and AR (augmented and virtual reality), have also contributed to the same. They have assisted in presenting even simple messages of brands in the most impressive form to attract more potential consumers.
Hence, revolutionizing the form of promotional practices will assist you in enhancing the awareness and brand visibility of your business. This greater brand awareness will assist you in attracting more customers. Besides, this will assist you in acquiring a bigger share of the market effectively.
2. Enhance Your Business Territories
Business territories here include all of your distribution channels through which you deliver your product or service in the market. Distribution channels play a major role in penetrating the market effectively. The success mantra is simple, the more distribution channels you have, the more accessible you are to your target audience.
Hence, in order to effectively penetrate your target market, you need to enhance the territories of your business. For online mediums, you can enhance the distribution channels by
- Creating websites
- Selling features of different social media
- Collaborating with e-commerce websites
- Creating separate apps
For offline mediums, you can invest in building up more brick-and-mortar stores. Other than that, you can also dig out the opportunities to give the franchises to other people. Rather than handling it all at once yourself, you can let your other franchise partners handle it. This will assist you in expanding your business networks in terms of your business partners as well as your customers.
This way, you will be able to take advantage of different distribution channels to get more customers to your business. Hence, you will get successful in acquiring more market share for your business.
3. Acquire or Partner With Other Businesses
Jim Henson once correctly said, “when you can’t beat them, join them.” The most prominent and perfect example that fits the above-given quote is Facebook, now called Meta. This happened when Meta acquired Instagram and Whatsapp, which were some of its biggest competitors. With this comes another tremendous strategy that can assist you in penetrating your business effectively.
To elaborate, while acquiring, you can always target your competitors like Meta or go for acquiring small businesses. When you acquire any business, you will automatically get control of its existing clientele base. This will ultimately add up to your clientele base and will assist you in having more market share under your wing. Besides, when you go for partnering with other businesses, there is also a major consideration. You should always go for businesses that complement your business in one way or another.
For example, recently, an Italian MNC, Ferrero Group, or simply Ferrero’s subsidiary brand Kinderjoy ‘Nations’ has announced its expansion in India. Along with its expansion, the company joined hands with Discovery Channel. The main aim of this partnership is to promote their unique animal collection in order to encourage kids to gain effective knowledge of wildlife. Now, as Kinderjoy is a specific product created for kids, partnering with an educating medium enhances the value of both partners. Additionally, it also gave them the opportunity to totally tap into their partner’s target market to acquire new customers or audiences.
Hence, both partnering and acquiring are both great ways to penetrate the market. The only need is to identify which form of market penetration of these two goes best for your business.
4. Acquire customers through cost leadership
As per the cost leadership strategy, companies look to develop a competitive advantage by offering a product or service at the lowest price. It is a strategic advantage that companies look to gain over their competitors. To explain, when companies offer the highest quality products at the lowest price, they attract new customers.
In such cases, businesses often try to become the price leader in the market. To define, a pricing leader refers to the dominating firm of the market that sets the price and the rest of other firms the competition follows. Businesses become the price leader by lowering their profit margins and grabbing the attention of their customers towards them. One of the biggest examples of effective cost leadership in the aviation industry is RyanAir. The company used a dynamic pricing strategy and became the cost leader in the aviation industry.
However, in the race to become a cost leader, you also have to ensure that you can not make your prices too low. This will directly impact the profitability of your business, or people can also doubt your quality. Besides, being a cost leader cannot be a long-term pricing strategy. Once you acquire a substantial share of the market, you can change the pricing strategy. The foundation for that would, of course, be excellent customer service. When businesses offer great customer experiences, customers are even happy to pay premium princess.
This way, dynamic pricing will assist you in attracting more and more customers from different social groups. This will ultimately assist in gathering a larger share of the market.
5. Embrace Product Diversification
Last but not least, a strategy that can assist in enhancing your market penetration rate is product diversification. For those who are not aware of the term, let us explain it to you. Companies apply product diversification by introducing new product lines or services to attain a greater market share. The underlying objective of diversification is to amplify business profitability.
In fact, there are a host of successful product diversification examples to look at. Disney went on to introduce its own OTT platform and cruises after starting with cartoons. Similarly, Coca-Cola ventured into the healthy drinks market after starting with carbonated drinks. When businesses expand, they can tap into more markets and acquire more customers.
As diversification allows you to add more variety of products to your business. By implementing this, you will easily be able to capture the largest share of the industry. However, every diversification strategy should be accompanied by a clear change management strategy. An effective change management approach ensures better integration of transformations in a business.
However, one of the biggest challenges that might occur in product diversification is failing to identify the potential of the target market. Hence, it is really essential to rectify the attractiveness of your target market before investing a huge amount in it. This is where the analysis of the business macroenvironment and microenvironment becomes essential.
To encapsulate, with the increasing competition in the business world, it often gets difficult for businesses to enhance their market penetration rate. Hence, the need is to effectively understand the market and utilize some of the effective market penetration strategies in order to enhance the growth of your business.
Besides, the above-given strategies will effectively assist you in skyrocketing your market penetration rate. So what are you waiting for? Utilize them and experience the difference yourself.
Featured Image Credit: Gustavo Fring; Pexels; Thank you!
The Power of Human Touch in Software Development and AI Environments
Necessity is the mother of invention — a principle that has defined technological advancement and design for generations. We innovate and create new products, services, and processes based on human needs that arise. Just as these needs evolve with each generation, so too must the way we approach the innovation required to address them, and that requires a human touch in software development.
Digitalization Driving Productivity and Collaboration
In today’s era of digitalization, companies are turning to new technologies, specifically software applications, to drive efficiency, productivity, lowered costs, and smarter collaboration. As the adoption of digital transformation has increased, so has the number of software solutions enabling and supporting it.
Companies are looking to software developers for new ways to integrate technology. Operations demand process automation, improved communications, and the delivery of more value to their customers.
Artificial Intelligence (AI) has been an influential part of this progression and an enabler for many capabilities today; however, we must exercise restraint in relying too much on technology alone to reach business goals.
Restraint With AI Makes Better Sense Today
There’s power in the human touch that can set the stage for meaningful transformation when embraced during the software development process. As we continue to integrate digital technology into nearly every facet of work and life, we need intelligent software design to incorporate more of the human experience to thrive.
The key is finding a measured balance between purpose-driven software design and human touch and understanding how to execute this collaboration successfully and ethically.
AI’s Role in the Consumerization of Software
Historically, enterprise software was initially designed with a particular persona and a very specific set of requirements in mind. As a result, it was built to serve simply as a tool with no focus on the user’s experience, behavior, or even the potential ability of the user to change behaviors.
For example, if a person were using a software program to search for fruit, that software would need to be coded to show each specific fruit. Then, if a user searched for a peach, the software would display a peach. If they wanted to search for an orange instead, the software would need to be hard-coded to show an orange. This is a very cut-and-dry process leaves little room for interpretation.
Software Designed to Consider User’s Behavior
Today, AI-powered software is designed with realistic human values in mind, defining a set of user stories and use cases that proactively adjust to potential user behavior, with a strict focus on providing and maximizing end-user value and experience. Explained differently, rather than designing software around who a user is or what they do, the software is designed to consider the user’s behavior and the value the product can provide for an optimum user experience.
Revisiting the example above, if a user in Florida is seeking “fruit,” the initial result the software is likely to show them would be an orange. Alternatively, if the user lives in Georgia, it would likely show them a peach — since these fruits are indigenous to their respective regions.
Software Built With Human Touch Provides an Experience
In this example, the software was built to look for an outcome and design an experience that considers several factors to present the most likely desired result. This is how AI algorithms are used to design an environment meant to improve the customer experience by anticipating needs based on trends. This is also how software developers automate an experience.
Several different inputs are analyzed to the point where an assumption can be made based on a person’s behavior over time. Content is then populated, or an action taken that the program deems would be most useful for that person, all in the name of improving the user experience. But what if the person in Florida doesn’t like oranges and the person in Georgia doesn’t like peaches? This is where the human touch comes into play
Finding the Ethical Balance Between Smart Personalization and Human Privacy
AI algorithms require and collect personal user data to customize the experience in a unique and valuable way for a specific user. However, they can sometimes be too rigid when analyzing only the data without considering personal preference, free will, or choice.
AI alone, without any oversight, can also go too far, as there’s a fine line between personalization and privacy, and AI can’t make the distinction on its own. A human developer addresses this issue by providing the guardrails necessary to ensure ethical design and desired behavior while also incorporating the flexibility needed to give users a greater sense of choice.
How Do You Protect Your Customers?
Software must be built so the user can determine what data they want to provide to improve their life or minimize evasiveness. On the front end, as software is being designed, developers can build flexible architecture with certain constraints in mind to provide an ethical and secure framework around how the AI algorithm works. This allows users to define where the line is or how much personal data they allow into the architecture or the cloud.
Ultimately, users want AI to optimize the tasks they need to perform but don’t want the AI to make decisions for them without approval. This idea of choice is another critical element of why the human touch is so imperative in the development process, even as the industry has sought faster and more efficient ways of writing software programs.
The Artistry of Software Engineering From the Human Touch
As a means of automating code writing, code generators were introduced several decades ago to quickly write new code and get applications to market faster. Requiring minimal human intervention, the developer would simply set what it needed the app to do, and then code was generated for that specific purpose. It was easy to write code that would solve a particular problem and take the user from point A to point B in the most efficient way possible.
However, the lack of human touch is the issue with this model. There’s no consideration for the user experience or innovation that excites and delights; the software is simply working to solve the problem without room for interpretation. Alternatively, the human coder can push boundaries and determine how to interpret the user requirements to decide the best path between the two points.
Flexible Code Environments Make Efficient Programming
For example, if a program were coded to simply draw a tree, a code generator would produce the same tree over and over with no differentiation in color, leaf type, size, etc. There would be no artistry behind it, and users wouldn’t have the ability to choose from various tree designs. Instead, they’d have to accept the tree the generator produced. But when an engineer has the ability to integrate their personal touch, the artistry of software design is unveiled, and the experience becomes something very different.
Today, our industry has evolved even further, and low-code/no-code environments have emerged as the next generation of modern and efficient programming. Developers can now quickly build the foundation of a program from existing services and functions that have already been written by other coders, easily defining the path the user takes to get from point A to B.
This type of coding is a much more flexible way of designing software that allows engineers to adopt the preferences of the end-user and change functions as the end user changes. However, the various functions are still being coded by an individual and, thus, are constrained to the preferences of that person.
Reusable Templates Boost Productivity
So, to revisit the previous “tree” example, software developer A designs a single tree which developer B can now take and, in about the same amount of time as it took to create just one original tree, reuses as a copy over and over but in different ways.
Several copies can be placed side by side to depict a forest, or a single copy can be placed in front of an abandoned building or on a deserted island to create different applications entirely. However, because they’re all using the same original tree design, all of the trees in each environment still look the same — the artistry is limited to that of the person who originally designed the tree.
Decide and Improve the End Product to Customize
Where the human element comes into play is when the software engineer can have the ability to decide how they want their tree to look and can add features along the entire design process to augment it.
Then, the next engineer can come in and change or improve it to meet the needs of their users, and so on. Now, instead of one tree that everyone has to use repeatedly in different ways, there are hundreds of different trees that all came from the same initial version but have been customized and improved upon.
How Does AI Build a Tree?
If we relied on AI to build the perfect tree, it would calculate only one way to do so, but what if you don’t like it? It’s no longer perfect for you. So, rather than relying on AI completely, developers can choose how to embed AI capabilities into their programs to drive the best customer experience.
These AI integrations have to be customized to fit the environment, however, and this requires an actual engineer to be part of the process, which ensures the human element is preserved.
Ultimately, software engineers have to find the right balance of enabling smarter technology that can proactively anticipate and solve our problems while also ensuring end users have the ability to exercise their right to choose and decide what’s right for them based on the facts presented.
Human Touch at the Heart of Modern Software Design
No longer are software solutions built for a single defined purpose. Instead, they are built to learn and evolve based on the creativity, artistry, and ethics of the human touch. As emerging technologies have helped enable modern innovation with unprecedented speed, and invention can now be born out of demand and pursuit of progress rather than out of necessity.
As AI continues to be integrated into the software development process, the human touch will play an integral role in teaching the software how to adapt to each user’s needs, values, behavior, and privacy priorities.
Featured Image Credit: Photo by Andrea Piacquadio; Pexels; Thank you!
5 Ways to Find Balance at a Startup
Startup founders and employees find that achieving work-life balance can be challenging. 43% of entrepreneurs agree that work-life balance is one of their biggest challenges. As the start-up grows, demands will also grow. Founders and employees need constant motivation and fresh ideas to keep up.
As challenging as a good work-life balance is to achieve, it is very important for your personal and professional lives. It can be as important as a business plan for your startup. This article gives a better understanding of work-life balance, what it means, and why it is important. It also highlights a few ways to find work-life balance at a startup.
Work-life balance meaning
So what is work-life balance all about? In simple words, the term work-life balance is about how you manage your time between work and outside of work. It gives you the flexibility to get things done in your professional life while still having time and energy to enjoy your personal life.
There is no perfect work-life balance template to follow. We are all different, and so what a healthy work-life balance looks like will differ between us. However, the primary goal of a better balance is that you should have a greater sense of well-being and lead a better quality of life.
Why work-life balance is important
Work-life balance is important for many reasons. Some people are willing to give up money for a better work-life balance. This is a true testament to the stress levels of the modern workplace. In a 2020 Deloitte survey, it was found that 44% of millennials say they are stressed all or most of the time. Companies that help their employees have a good work-life balance in their professional and personal lives have higher retention rates.
A good work-life balance has many perks. Some of these include:
- Fewer health issues
- Higher productivity levels
- Fewer burnouts
- More mindfulness
Poor work-life balance has some dire consequences. It can wreak havoc on your health, home life, and personal relationships. Some of the drawbacks include:
- High-stress levels
- Feelings of dissatisfaction with life
- Increased rates of family issues and divorces
- Escalation of substance abuse
- Low productivity levels
- Dissatisfaction at work
- Lower levels of motivation, commitment, and loyalty.
5 ways to find balance at a startup
To create a better work-life balance, think about how you can achieve balance in your personal and professional life. What works for someone else may not work for you. However, here are some tips you can try to improve your work-life balance.
Develop some time management skills
Many entrepreneurs struggle to manage their time correctly. This is because they spend most of their time working long hours to complete their to-do list. There are only 24 hours in a day, so prioritizing may be the best way to manage your time better.
Create a daily, weekly, and monthly to-do list. Try focusing on the most important tasks on your priority list. Doing so can increase the chances of things being done with greater care and focus.
Another thing you can try to do is to say no to the less important stuff. You can simplify your work and delegate the less important stuff. Also, turn off your phone and email notifications. Set a scheduled time to respond to emails and make phone calls. Replying to emails and checking messages as they come in can be distracting. It can make you lose focus and mess with your productivity.
Try to leave work at work
How often do you find yourself taking work home and working remotely from home? The answer is probably too often. You may find yourself working on weekends and holidays. This leaves you with little to no time to relax or spend with loved ones. Try to do work during work hours and stop once those hours are up.
It is important to have a strict policy when it comes to work and other areas of your life. You can try having a no-work-on-the-weekend rule. Having the rule is one thing, but sticking to it can be hard. Try your best to follow this rule and make no exceptions. The weekend can help to reduce stress from all the issues you dealt with during the week. It can even give you time for ideas and solutions to emerge. It is vital to give your body and mind a chance to rest and recover.
Set aside family time
Making time for your family with a busy schedule can be hard. However, you need to remember that your family is your main support system. When things aren’t going smoothly at the startup, your need for support is greater. This is where your family comes in.
Work decisions and responsibilities become easier to manage with your family’s support. Spending quality time with family members can relieve stress, nurture positive behaviors and promote a healthy lifestyle. Time spent with family can improve both your professional and personal life. Plan family trips, game nights, and other activities. These can help build quality relationships with your family.
Schedule personal time
In today’s fast-paced world, it can be hard to find time to indulge in personal interests. However, one’s personal life is as important as one’s professional life. When you unplug and take a step back, you will experience a whole new perspective.
If you feel overwhelmed with everyday life, it may be time to take some time off work. Take your vacation time to rest and recover. Choose an activity that you love and one that relaxes and rejuvenates you.
You can try to make time to meditate, travel and do things you love. Personal time is best for self-reflection and setting goals. Self-care is also essential for your mental health.
If you cannot get much time off, simply ensuring you sleep and eat well can help. The American Academy of Sleep Medicine (AASM) and the Sleep Research Society (SRS) say to aim for at least six to seven hours of sleep. You should also be mindful of what you’re putting into your body. Constantly chugging coffee and eating junk food will eventually affect your health. Try to eat at least one or two healthy meals a day.
Outsource when possible
Technology has come a long way. It has gone to great lengths that we can now replace much of the work necessary to run a business. Try to outsource repetitive tasks that take up too much of your time. This can allow you to focus on your goals and have more time to deal with personal matters. For your personal reading, here are 10 reasons you should be outsourcing your marketing.
SET FLEXIBLE HOURS
A flexible work environment can lead to a healthier work-life balance. Flexible hours, telecommuting opportunities, and other systems can relieve stress. They also allow you to attend to personal matters and spend time with your family. At the same time, it can also help to increase your productivity levels and effectiveness.
Exercise can improve your physical health and mental health. It can also help to improve your productivity. Exercising for just 30 minutes a day can keep your body and mind active and fresh. This can lead to higher energy levels, increased focus, and completion of tasks faster. Exercise can also help with creativity, so when you’re faced with a challenge, exercise. It doesn’t have to be anything too intense; a simple 30-minute walk may help.
MAKE WORK FUN
The only way to make an 80-hour work week bearable is to integrate some fun. Play is crucial when it comes to working. It can improve employees’ work-life balance as well as founders. Some fun can make you both more productive and lead to a more engaged workforce. It can keep everybody motivated and happier. Try to keep the happy spirit alive as much as possible. You can do this by promoting play, encouraging hobbies at work, etc.
A change in scenery can work wonders. It is great for your mental and emotional well-being. Traveling to new places can free your mind, body, and soul from stress. It can help you reflect on personal goals and interests. Aside from these, it can enrich and transform your perspective on life. Traveling can also improve productivity, sharpen problem-solving skills and increase creativity.
Staying positive when dealing with entrepreneurial failures and threats can be hard. However, a positive mindset may be able to help you pull through. It allows you to focus on the positives of the situation and help you visualize your goals. Focusing on the positives and having a clear idea of your goals can result in you meeting them. A positive attitude is awesome, even though it can be tough to maintain.
Inner Image and Featured Image Credits: Provided by the Author; Pexels; Thank you!
The Impact of AI as Companies Address the Skilled Labor Shortage
Due to a combination of Baby Boomer retirements and a declining birthrate leading to smaller subsequent generations like Gen Z — employment firms predict that the talent shortage we’re experiencing now is likely to last for years to come. While this has the potential to be disastrous news for the economy, it doesn’t have to be, thanks to another growing trend in business: AI acceleration.
We’re currently seeing an increase in the application of AI in the workplace that moves beyond typical machines and into areas of law, medicine, software, and even art. While many have predicted that the acceleration of AI would lead to the demise of human labor, it may very well be this technology that solves the labor problem — at least for those willing to work in tandem with these AI solutions.
Taking Advantage of AI
So what does working with these AI solutions look like? What challenges are businesses facing due to this labor shortage, and how can AI help solve them? I’ll answer these questions and offer some strategies on how organizations can best position themselves to take advantage of AI and combat the continued labor shortage.
Bridging the Gap
The growing skilled labor shortage is already baked into the next 15 to 20 years, thanks to existing and continuing demographic trends. However, the opportunities to innovate within the labor shortage space are massive in the areas of cloud computing, AI, and robotics. Investment in these areas can help U.S. companies compete in a world that’s increasingly fractured and regional.
Robotics and AI systems have already proven reliable in repetitive, precise, and dangerous tasks. Businesses transitioning their supply chain away from globalization and toward more regional approaches can use AI to automate many of the tasks necessary in warehouse and factory environments.
Plenty of Use Cases
In construction, AI is being adopted to complete tasks such as drywall installation and painting, allowing humans to focus on more complex jobs such as plumbing and electrical installation.
In industrial projects, remote-controlled machines handle the more dangerous duties, like demolition and movement of heavy materials. For office environments, artificial intelligence and automation are handling repetitive occupations — taking over tasks like data gathering, clean up, and prep.
More Than Mundane
However, repetitive tasks aren’t the only places in which AI prioritization is making a difference. It is being employed to help existing workers do their jobs more effectively and efficiently.
A great example of this is OpenAI’s Codex. Codex is an AI solution that scans and analyzes petabytes of code, questions, and answers from websites like Stack Overflow. With this tool, developers no longer need to search for answers or examples of code. Instead, Codex is directly integrated into the code completion of their IDE, saving them hundreds of hours of searching and increasing their productivity.
Creating More Creative AI
Meanwhile, systems such as Stable Diffusion and ChatGPT show how AI can take over, creating more derivative works and freeing employees up to tackle creative tasks that are still well out of reach of AI.
This isn’t to suggest that AI is an eternal solution to the skilled labor shortage. But it is a critical stop-gap that can be leaned on until the workforce grows again — something that’s projected to happen sometime in the early 2040s.
In the meantime, for organizations to maintain competitiveness as the talent shortage continues, it will be necessary to strategically integrate AI into the labor force wherever possible.
1. Don’t build your entire strategy on top of a third-party AI platform.
While there are speed-to-market benefits to third-party solutions, using the same platforms as your competitors means you’re relying on the same data and, consequently, will wind up with the same business model as everyone else.
By developing your own platform — at least in some use cases — and focusing on the data within your niche instead, you can create a cone of differentiation that protects your business and creates long-term opportunities within your niche market. This will also ensure you don’t get trapped within the vision of a third-party company rather than following your own.
2. Invest in skills acquisition over education.
To combat the skilled labor shortage, you don’t need more employees with general education. Instead, you need candidates with specific skills who can help you close the widening skills gap. Technology certifications such as AWS, Azure, and GCP are great examples of the skills required to build the necessary cloud solutions and AI platforms you’ll need to compete.
This focus on skills isn’t just about hiring. It’s also about changing your focus on internal employee training. Apprentice and licensing approaches like those used for electricians and plumbers are great models for training people in new skills as they’re needed.
3. Align your investments with global shifts in geopolitics, economy, supply chain, and demographics.
As the U.S. and the rest of the world move toward more regionalized supply chains and manufacturing, the combination of human creativity and advanced technology, such as AI and robotics, will be critical. But that will only be true if this combination is pointed in the right direction.
Make sure that your investments in AI and skills acquisition are guided by your environment rather than a desire to invest in technology for technology’s sake.
The Necessary Human Touch
In summary, labor shortages, the current supply chain crisis, and inflation that organizations and leaders face will continue to impact their operations over the next few years. The rise of AI-based solutions could be a key technology to help organizations combat those challenges and maintain a competitive edge if they adopt AI solutions and integrate them effectively with their greatest assets: human creativity and problem-solving.
The strategies I outlined will help leaders prioritize as they begin selecting and adopting those AI solutions and navigate the current and growing issues associated with the shift from globalization to regionalized supply chains and labor.
Realizing AI’s Vast Potential
It’s important to remember that today’s artificial intelligence and automation solutions are designed to enhance human capabilities and improve their potential to solve problems and create explainable knowledge. They aren’t meant to replace humans in the workforce.
Leaders who remember this and focus on the symbiosis of human creativity and AI rather than on using AI to replace people will have a strategic advantage in the decades to come.
Featured Image Credit: Provided by the Author; Unsplash; Thank you!