Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
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Case Study Description of Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making
Artificial intelligence (AI) has penetrated many organizational processes, resulting in a growing fear that smart machines will soon replace many humans in decision making. To provide a more proactive and pragmatic perspective, this article highlights the complementarity of humans and AI and examines how each can bring their own strength in organizational decision-making processes typically characterized by uncertainty, complexity, and equivocality. With a greater computational information processing capacity and an analytical approach, AI can extend humans' cognition when addressing complexity, whereas humans can still offer a more holistic, intuitive approach in dealing with uncertainty and equivocality in organizational decision making. This premise mirrors the idea of intelligence augmentation, which states that AI systems should be designed with the intention of augmenting, not replacing, human contributions.
Swot Analysis of "Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making" written by Mohammad Hossein Jarrahi includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Ai Humans facing as an external strategic factors. Some of the topics covered in Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making case study are - Strategic Management Strategies, IT and Technology & Operations.
Some of the macro environment factors that can be used to understand the Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, wage bills are increasing, increasing household debt because of falling income levels, increasing transportation and logistics costs, increasing commodity prices, increasing government debt because of Covid-19 spendings,
cloud computing is disrupting traditional business models, there is backlash against globalization, etc
Introduction to SWOT Analysis of Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Ai Humans, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Ai Humans operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making can be done for the following purposes –
1. Strategic planning using facts provided in Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making case study
2. Improving business portfolio management of Ai Humans
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Ai Humans
Strengths Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Ai Humans in Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making Harvard Business Review case study are -
Cross disciplinary teams
– Horizontal connected teams at the Ai Humans are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Operational resilience
– The operational resilience strategy in the Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Ai Humans has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Learning organization
- Ai Humans is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Ai Humans is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Superior customer experience
– The customer experience strategy of Ai Humans in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Training and development
– Ai Humans has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Strong track record of project management
– Ai Humans is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Ai Humans digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Ai Humans has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Ability to lead change in Technology & Operations field
– Ai Humans is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Ai Humans in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High switching costs
– The high switching costs that Ai Humans has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Organizational Resilience of Ai Humans
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Ai Humans does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Analytics focus
– Ai Humans is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Mohammad Hossein Jarrahi can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Weaknesses Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making, in the dynamic environment Ai Humans has struggled to respond to the nimble upstart competition. Ai Humans has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Ai Humans has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow decision making process
– As mentioned earlier in the report, Ai Humans has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Ai Humans even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Need for greater diversity
– Ai Humans has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High bargaining power of channel partners
– Because of the regulatory requirements, Mohammad Hossein Jarrahi suggests that, Ai Humans is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High cash cycle compare to competitors
Ai Humans has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– After analyzing the HBR case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Low market penetration in new markets
– Outside its home market of Ai Humans, firm in the HBR case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Workers concerns about automation
– As automation is fast increasing in the segment, Ai Humans needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Capital Spending Reduction
– Even during the low interest decade, Ai Humans has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Increasing silos among functional specialists
– The organizational structure of Ai Humans is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Ai Humans needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Ai Humans to focus more on services rather than just following the product oriented approach.
Opportunities Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making are -
Learning at scale
– Online learning technologies has now opened space for Ai Humans to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Ai Humans is facing challenges because of the dominance of functional experts in the organization. Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Building a culture of innovation
– managers at Ai Humans can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Technology & Operations segment.
Buying journey improvements
– Ai Humans can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Ai Humans can use these opportunities to build new business models that can help the communities that Ai Humans operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Manufacturing automation
– Ai Humans can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Ai Humans can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Ai Humans can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Ai Humans in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Ai Humans can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Ai Humans can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Using analytics as competitive advantage
– Ai Humans has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Ai Humans to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Ai Humans to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Ai Humans to hire the very best people irrespective of their geographical location.
Loyalty marketing
– Ai Humans has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Threats Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making are -
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Ai Humans in the Technology & Operations sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Ai Humans will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Ai Humans needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making, Ai Humans may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Shortening product life cycle
– it is one of the major threat that Ai Humans is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Ai Humans has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Ai Humans needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Stagnating economy with rate increase
– Ai Humans can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Ai Humans.
Consumer confidence and its impact on Ai Humans demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Ai Humans in the Technology & Operations industry. The Technology & Operations industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Regulatory challenges
– Ai Humans needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
High dependence on third party suppliers
– Ai Humans high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Weighted SWOT Analysis of Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Artificial Intelligence and the Future of Work: Human-AI Symbiosis in Organizational Decision Making is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Ai Humans needs to make to build a sustainable competitive advantage.
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