The buzz around AI is inescapable, but many businesses struggle to harness its true potential.
Companies at the forefront of innovation are embracing AI not just as a tool, but as a catalyst for reimagining their entire operations. From product design to manufacturing and customer experience, the journey of AI adoption offers valuable lessons for businesses across all sectors.
The insights shared in this article draw from a recent interview with Eric Redmond, founder of Nike’s technology and innovation office, MIT researcher, and author of the book “Deep Tech: Demystifying the Breakthrough Technologies That Will Revolutionize Everything.”
Redmond’s expertise and firsthand experience with AI initiatives, shared on the “Welcome to the Machine” podcast, provide a unique and authoritative perspective on how businesses can leverage AI for transformative change.
Surfacing “Unknown Unknowns”
One of AI’s most powerful capabilities is its ability to uncover insights that humans might never consider or discover on their own. This concept of surfacing “unknown unknowns” has applications across various industries.
In sports, for example, AI has been used to analyze elite athlete performance, uncovering nuances in training, recovery, and performance that were previously invisible. Nike’s Breaking2 project, aimed at breaking the two-hour marathon barrier, used AI to analyze vast amounts of data from elite runners.
This analysis revealed unexpected factors influencing performance, from the micro-movements of a runner’s gait to the impact of sleep patterns on race-day performance.
In manufacturing, AI might uncover unexpected correlations between seemingly unrelated factors that affect product quality.
In finance, it could reveal hidden patterns in market data that inform investment strategies. The key is approaching data without preconceived notions, allowing AI to surface patterns and correlations that might challenge existing assumptions.
Digitizing and Reimagining Processes
AI doesn’t just improve existing processes; it can fundamentally transform them. This reimagination of processes has the potential to alter business models across industries dramatically.
In the fashion and footwear industry, companies like Nike have revolutionized the design process by implementing AI-driven systems that instantly translate 2D sketches into 3D digital prototypes. This accelerates the design process and opens up new possibilities for creativity and customization.
In healthcare, AI is being used to streamline diagnostic processes, potentially reducing the time from symptom presentation to treatment.
In logistics, AI-powered route optimization is reimagining supply chain management.
Consider how your industry’s core processes could be reimagined with AI. Could AI transform your product development cycle, customer service model, or operational workflows?
Thinking in Multiples, Not Percentages
Thinking small can hinder AI innovation. As Redmond puts it, “If you can’t imagine a world where there’s a billion dollars in value, then either expand your vision or stop doing it.”
“If you can’t imagine a world where there’s a billion dollars in value, then either expand your vision or stop doing it.”
This mindset shift from incremental improvements to exponential growth is crucial. Instead of asking how AI can make your current processes 10% more efficient, consider how it could multiply your value proposition or create new revenue streams.
An example from Nike illustrates this approach.
Traditionally, designing and producing a new shoe could take up to 18 months, from concept to consumer availability. This lengthy timeline meant that trends or consumer preferences might have shifted by the time a product reached the market.
However, by applying AI to reimagine its design and production processes, Nike saw the potential to reduce this timeline dramatically. The goal wasn’t just to shave off a few weeks or months but to potentially collapse the process from 18 months to as little as 11 months.
This shift would make Nike more responsive to market trends and consumer demands.
The implications of such a change are profound. It’s not just about doing things faster but fundamentally altering the business model.
With a shorter production cycle, Nike could:
- Reduce the risk of overproduction and unsold inventory
- Respond more quickly to emerging fashion trends
- Offer more personalized and limited-edition products
- Potentially shift to a more on-demand production model
This example demonstrates the power of thinking in multiples.
The focus wasn’t on making the existing process 10% or 20% faster but on reimagining the entire production cycle in a way that could double the speed-to-market.
How could AI fundamentally change your business model?
Could it allow you to enter new markets, offer new types of products or services, or completely transform your customer experience?
Fostering a Culture of Experimentation
Embracing AI requires a culture that encourages experimentation and is comfortable with the unknown. This needs to come from both the top-down and bottom-up within an organization.
Successful companies in the AI space often give teams the leeway to experiment while ensuring that leadership provides clear strategic direction. This balance is crucial in navigating what Redmond calls the “post-zero hangover” – the cautious mindset that can set in after a period of easy growth.
To foster this culture in your organization:
- Encourage calculated risk-taking
- Celebrate learnings from failures as much as successes
- Provide resources and support for AI experimentation
- Ensure leadership actively champions AI initiatives
Integrating AI with Other Emerging Technologies
AI’s power is amplified when combined with other cutting-edge technologies. This integration can lead to revolutionary changes across various industries.
In manufacturing and retail, combining AI with 3D printing and Internet of Things (IoT) technologies could enable a future where products are custom-designed and manufactured on demand, even in local stores.
This integration of technologies could revolutionize not just production but the entire concept of inventory management and retail.
In healthcare, integrating AI with genomics and wearable technology could usher in an era of truly personalized medicine.
AI combined with drone technology and IoT sensors could optimize crop yields while minimizing resource use in agriculture.
Consider the emerging technologies in your industry. How could AI enhance their impact or create new synergies?
The Path Forward: From Incremental to Exponential Thinking
The journey of AI adoption offers valuable lessons for businesses across all sectors.
Companies can position themselves at the forefront of their industries by using AI to surface unknown insights, reimagine processes, think exponentially, foster experimentation, and integrate with other technologies.
The key takeaway is this: AI is not just a tool for improvement but a catalyst for reimagination. As you embark on your AI journey, ask how AI can improve your current business and how it can transform your business entirely.
The future belongs to those who can reimagine their businesses in the age of AI. Will you be among them?
Additional Resources
To further explore AI’s potential in business: