"AI Transformation – the new paradigm" with UC Berkeley Professor and AI Startup Expert, Greg La Blanc. Get ready to dive into the future of AI!

For some people, transformation is exciting and challenging. Curiosity and excitement about learning, drew Greg to into the field of strategy and transformation and all the other topics that he has been teaching throughout his career. 

Every time you learn something, you are displacing or changing some previous notion of how the world works. For some people, this is disturbing. But for others, it is a thrill and really exciting. It’s how you approach the transformation is the beginning of how you deal with transformation, and curiosity is such a powerful, such a powerful human trait.

Technology diffuses rapidly. What does not diffuse rapidly are these managerial techniques, organizational architectural innovations. This is why these older companies have difficult time adapting.

– Gregory LaBlanc

Some people would emphasize what they call long-term trends. And then others would be more inclined to say everything’s new. Similarly, with the digital and AI transformations taking place, you can say, everything’s new, everything has to be changed. This is something that we’ve never seen before, or you can say this is not that much different from the sorts of things that we have seen and happened to us in the past. 

As humans, we are in the entropy reduction business. We are trying to create order. We’re trying to make sense of our world. We’re trying to put in place practices that we can automate. We’re trying to create routines and subroutines, and indeed, this is how efficiency happens. Efficiency happens when you realize, you start to recognize patterns, and you start to engage in repetitive action. 

The problem with that is that the circumstances and the environment changes. And so, the routines that you’ve established, they need to be changed at some point. And that requires a bit of work. So, sometimes, there’s a couple different ways we can respond to that. One is to say, okay, the world’s changed, so we got to change the way we’re doing things. The other is to say, well, let’s try to change the world so that we don’t have to change. And that often means trying to shape the behavior of your customers or your employees or try to use regulation or market power to hold off the onslaught of change.

The third way is to say, let’s change. 

Too much flexibility means that nothing ever gels, too little flexibility means that, you get stuck. And so, it is needed to figure out what that optimal amount of flexibility is, and then figuring out a way to routinize change. That sounds paradoxical. It means creating systems, which are designed right intentionally to respond to the, the changing environment. If you can routinize change, you can routinize curiosity. If you can create a standard operating procedure for discovery, then in some ways you can have your cake and eat it too. And that’s what all really good dynamic businesses are, are trying to do.

Every time there’s a new discovery in the world of artificial intelligence, people say, now’s the time. This is AI, it’s this. Back in 2015 with neural nets, everyone’s like, yes, AI finally. The possibilities of AI and each one of these sorts of punctuated discoveries are a continuation of series of discoveries that have been happening right in the world of artificial intelligence for the last couple of decades.

Every time there is a new discovery in the world of artificial intelligence, people say – now is the time. This is AI. This is going to change everything.

– Gregory LaBlanc

The technology diffuses rapidly. What doesn’t diffuse as rapidly are managerial techniques, organizational, architectural innovations. And that’s also the reason why older companies have a tough time adapting. They resist change and the kinds of transformations that they would need to undertake in order to enable new technologies.

There is the immune system of the organization, but the immune system of all of the individuals within the organization Natural propensity for many people is to fight new ideas when they encounter them as individuals. And then if you take that and you combine it into a big organization, you can often have an organization where every individual’s open to new ideas, but the organization is not because it has its own logic.

Fear plays a role, but it’s not the complete story. It’s not always that they’re afraid. They feel fairly confident that they can keep this at bay. And this is why leadership is so critical. You need carrots and sticks, but you also need your, your, your vision and, and your messaging.

Even before generative ai, more primitive forms of machine learning and the ones that have been the easiest to adopt are the ones that perform some relatively narrow tasks. Suppose you are in HR and you’re doing hiring, and someone comes up with a product that helps you to process more applications more quickly. You can see how that is going to save you money. You can see if you are in marketing and someone comes along and says, I got this great tool that’ll help you to figure out who you should be targeting with your marketing. You will think, I am a revenue center, I’ve just boosted my revenue. So, all of those specific applications are actually relatively unproblematic. 

Just setting aside AI for a second, if we look at the automotive industry. Look at a company like Ford or GM that has tier one suppliers, tier two suppliers, tier three suppliers, and son on. If there is an innovation in the steering column, the tier one supplier makes steering, they’ll figure it out and they’ll start selling it. But the challenge is when you want to figure out a way to connect those things.

The current supply chain architecture makes it very difficult, because you need to adjust the design elements of the brake to coordinate better with the design elements of the, the steering column. And when you have everything set up in this, then it becomes tough. Whereas with Tesla, which has an integrated, much more integrated production process and design process, it is super easy. To make those kinds of shifts. So, the reason the car companies are struggling is because they’ve tried to incorporate a lot of these new technological innovations into the pre-existing business architecture, supply chain, and value chain architecture, which was optimized for the internal combustion engine. Which is why someone like Tesla can just leapfrog.

Your competitive advantage is always going to come from the data. It is never going to come from your analytics tools. 

If you don’t have the right data to train the model on, the model is just a computer with no apps on it.

– Gregory LaBlanc

If I have access to unique data, then I can take cutting edge algorithms and train them on that data it can give competitive edge.

There will be companies that can they live without a solid data strategy, but for the vast majority of companies, if you do not have a data strategy, you’re toast.

There are two major takeaways. The first one is in this transformation; your organizational structure is super important. How you organize your company so that data is democratised. And then the second one is having high quality unique data. Not just the quality of data, it is the uniqueness of the data is what’s going to differentiate you going forward, at least in the next couple of years.

How do you make a balance between flexibility and order is also going to be an important skill for all leaders. All our education systems have to teach flexibility, adaptability, how to learn and how to learn fast.

With artificial intelligence in all of our jobs, we have to develop higher order thinking skills.

Production Team
Arvind Ravishunkar, Ankit Pandey, Chandan Jha

Join us in this episode where our guest Mark Donavon, Head of Digital Strategy and Ecosystem Development at Nestle Purina PetCare shares his real-life experiences and insights to explore what it takes to understand and build prototypes and pilots using AI.

This podcast gives insights into how a pet care organization harnesses the power of AI and IoT technologies to enhance pet welfare. The discussion centers on innovative problem-solving and the considerable potential for AI applications in the pet care domain.

The podcast opens by highlighting the importance of allowing technology to be driven by problems and needs rather than dictating solutions. The emphasis is on understanding specific user groups and comprehending the challenges faced by pet owners. Instead of beginning with existing technology and searching for problems to solve, their approach revolves around understanding the needs of end users and subsequently exploring how technology can address these issues. This user-centric approach is a cornerstone of their organization, reinforcing their commitment to developing products tailored to pet owners' requirements.

The conversation then pivots to the process of understanding user needs. The organization conducts consumer research, with variations across regional divisions. Each division maintains its own consumer insight team working closely with external agency partners to gather research data. Their digital team collaborates with these divisions, allowing them to access consumer insights that might not be uncovered through traditional research methods. This highlights the adaptability of their company and the synergistic relationship between divisions.

The podcast proceeds to discuss the practical application of AI and IoT technologies. An example is presented: a smart litter box equipped with IoT capabilities that utilizes AI to provide valuable insights. The aim is to detect early signs of kidney disease in cats, a common yet often undiagnosed ailment. The organization saw an opportunity to intervene earlier by identifying changes in a cat's bathroom behavior that correlate with an increased risk of the disease. This innovative device provides pet owners and veterinarians with early warning indicators, effectively transforming the approach to cat health.

The speaker underscores how the smart litter box is revolutionizing pet care. Traditional practices often involve diagnosing the disease at advanced stages, making it challenging for veterinarians to do more than manage symptoms. However, this device alerts pet owners to subtle behavioral changes, enabling early intervention and potentially life-saving treatments.

The journey toward developing this ground-breaking device is then explored. It began with a low-fidelity prototype, using a simple mechanical device to record data when a cat entered the litter box. This provided initial insights into behavioral patterns. Subsequently, more sensors and technologies were integrated, resulting in the current iteration of the smart litter box. The speaker stresses the importance of combining various sensors to collect comprehensive data for diagnosing specific behaviors and patterns in cats, thus facilitating early detection of health issues.

The podcast also delves into AI models, which are employed to gain a deeper understanding of pet behavior. Early prototypes collected data on behavioral patterns but could not interpret the cat's actions within the litter box. To address this limitation, machine learning models were incorporated. These models were trained to distinguish between various behaviors, such as urination, defecation, and digging. This enhanced the system's ability to provide meaningful insights, enabling the early detection of potential health issues by interpreting the pet's actions within the litter box.

In response, a point is made regarding the flexibility and adaptability of AI models. It's crucial to allow machine learning models to evolve and adapt since pets may exhibit diverse behaviors. This flexibility aligns with the organization's commitment to accumulating extensive data and generating high-quality training data to enhance their systems.

The discussion then touches upon the challenges of introducing innovative technologies within an established company. The speaker describes the initial hurdles they faced when convincing management to invest in these new technological directions. Skepticism and questions about the impact on pet food sales were common concerns. Yet, by presenting real-world data, success stories, and tangible outcomes, they were able to build a compelling case and garner support for their projects over time.

Production Team
Arvind Ravishunkar, Ankit Pandey, Chandan Jha

Join us in this episode featuring Shikhar Ghosh, Professor, Harvard Business School, as we explore how AI can fundamentally impact business and society!

In the ever-evolving landscape of technology, artificial intelligence stands as a true disruptor, poised to reshape not only our businesses but also the very fabric of society. In a captivating podcast discussion with Shikhar Ghosh, Harvard Business School professor, we delve deep into the riveting world of AI, exploring why its impact is so seismic, how enterprise leaders should navigate this new frontier, the question of human relevance in the age of AI, and whether we are truly prepared for this transformative journey.

We will uncover the essence of AI's disruptive power and provide compelling insights into the sheer transformation that AI can herald.

Be prepared to be guided through the stormy seas of AI influence on businesses. Our expert highlights the critical importance of a well-defined AI approach. Enterprise leaders must be agile and proactive, recognizing that AI is not merely a tool but a transformational force. We will discuss how to approach AI with an open mindset, viewing it as a catalyst for innovation rather than just a threat.

We will also see why leaders should maximize the upside of AI. This underscores the value of human-machine collaboration, emphasizing that AI augments human capabilities rather than replacing them entirely. It's a matter of harnessing AI's analytical prowess to inform decision-making and free up human resources for more creative and strategic pursuits.

One of the most intriguing segments of the podcast explores the question that lingers in the minds of many: Will humans remain relevant in the age of AI? This is discussed with nuances that business leaders can take a leaf from and be proactive in embracing AI wisely and effectively.

In a world teetering on the precipice of AI-driven transformation, this podcast offers a compelling exploration of why AI is the disruptive force of our era. It presents an alluring narrative that transcends the technical jargon, making the topic accessible and engaging for both the tech-savvy and those new to the AI landscape. As we listen to Professor Shikhar’s captivating insights, we are left with a resounding question: Will we embrace AI as a catalyst for positive change, or will we be swept aside by its inexorable tide of disruption? The answer may very well determine the fate of businesses and society as we know it. Find out more, tune in to the full podcast and embark on a journey into the future of AI, business, and our shared human experience.

Production Team
Arvind Ravishunkar, Ankit Pandey, Chandan Jha