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Strategy For and With AI

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Strategy For and With AI

MIT Sloan Management Review,

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Artificial intelligence can help you set, rather than just measure, your key performance indicators.

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9

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  • Analytical
  • Visionary
  • Hot Topic

Recommendation

Ask an informed person what the future holds, and you’ll no doubt hear something about artificial intelligence and how it will change how people work, play and live. This MIT Sloan Management Review article describes the results from a survey of 3,225 executives, managers and analysts from 20 different industries and offers critical insights for identifying appropriate metrics and KPIs using machine learning and AI. Chances are that your company is competing with disruptive, digital-born start-ups and that you need data-driven strategies to keep up. This article can help.

Summary

Use artificial intelligence to inform your company’s strategy and set KPIs.

An effective corporate strategy communicates which priorities the company will pursue to prosper in its market. Key performance indicators (KPIs) and objectives and key results (OKRs) are the metrics used to measure success and keep employees and processes accountable. Data-driven companies don’t use AI just to measure KPIs; they use data to formulate, prioritize and execute strategy. Uber, for example, has pinpointed accurate estimated times of arrival (ETAs) as being crucial to positive client and driver experiences. The company thus diminishes the importance of KPIs that conflict with accurate ETAs. Machine learning, it turns out, is only as good as the KPIs emphasized by...

About the Authors

The Massachusetts Institute of Technology produces the MIT Sloan Management Review, a research-based publication for business executives.

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