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The transformative AI initiative: from process digitization to AI strategic digitalization

The transformative AI initiative: from process digitization to AI strategic digitalization Strategically focused AI transformation will almost certainly be more profound than the era of AI process optimization that has preceded it because it potentially changes the way the organizations operate and compete in the marketplace.Design/methodology/approachPotentially transformative strategic digitalization, although built on the AI technology to create process efficiencies that preceded it, will need leaders to adopt a new decision mindset first, and therefore is currently an aspirational initiative in progress.FindingsStrategic digitalization shifts the focus of attention from the technical features of process digitization to the transformation of the context and of the organization itself, triggered or enabled by the advent of new technological possibilities.Practical implicationsStrategic digitalization has the potential to automate the decision-making in middle-management functions in order to greatly potentiate the value of their work. Contrary to the conventional organizational pyramid, strategic digitalization will likely be most effective in an hourglass form of organization, one that replaces many middle management tasks through AI and related technologies in order to create higher-value jobs for managers.Originality/valueGuidelines derived from effective initiatives offer a roadmap to the ongoing experimental approach to applying AI to both organization and strategy, a transformation that will be crucial to the future success of organizations. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Strategy & Leadership Emerald Publishing

The transformative AI initiative: from process digitization to AI strategic digitalization

Narayanan, Vadake
Strategy & Leadership , Volume 51 (2): 7 – Mar 13, 2023
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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1087-8572
eISSN
1087-8572
DOI
10.1108/sl-01-2023-0009
Publisher site
See Article on Publisher Site

Abstract

Strategically focused AI transformation will almost certainly be more profound than the era of AI process optimization that has preceded it because it potentially changes the way the organizations operate and compete in the marketplace.Design/methodology/approachPotentially transformative strategic digitalization, although built on the AI technology to create process efficiencies that preceded it, will need leaders to adopt a new decision mindset first, and therefore is currently an aspirational initiative in progress.FindingsStrategic digitalization shifts the focus of attention from the technical features of process digitization to the transformation of the context and of the organization itself, triggered or enabled by the advent of new technological possibilities.Practical implicationsStrategic digitalization has the potential to automate the decision-making in middle-management functions in order to greatly potentiate the value of their work. Contrary to the conventional organizational pyramid, strategic digitalization will likely be most effective in an hourglass form of organization, one that replaces many middle management tasks through AI and related technologies in order to create higher-value jobs for managers.Originality/valueGuidelines derived from effective initiatives offer a roadmap to the ongoing experimental approach to applying AI to both organization and strategy, a transformation that will be crucial to the future success of organizations.

Journal

Strategy & Leadership – Emerald Publishing

Published: Mar 13, 2023

Keywords: AI strategic digitalization; Hourglass form of organization; Maturity model of strategic digitalization; Middle management decision automation; Process digitization; Sensing capabilities

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