Latest news with #valueCreation
Harvard Business Review
23-06-2025
- Business
- Harvard Business Review
Recalculating the Costs and Benefits of Gen AI
Everywhere we look, we're surrounded by messaging about the profound impact of generative AI. A steady stream of articles outlines how organizations can increase the speed and scale of work or automate and streamline processes, while our inboxes and social media feeds are bombarded with 'top 10 AI tools' lists that promise to make us individually more efficient and to take menial or mundane tasks off our plates. Let's get one thing straight: Gen AI can absolutely help us produce a greater volume of output, more quickly, and with less human effort. Anyone who denies that is, well, in denial. By focusing on the value of the output that AI produces, however, we tend not to think much about other sources of value, like what we learn and how we build relationships. We rarely ask: In what way does each activity we do create true and unique value? It's time for leaders to take a cold, hard look at their organizations and ask that question so they don't destroy more value than they create in adopting gen AI. Where Value Comes From As much as I wish I wrote articles like Mozart was purported to have written symphonies—with words spilling onto the page in fully-formed thoughts and with no corrections in sight—that's never the case. Writing this article involved numerous false starts, multiple (conflicting) outlines, frequently walking away from my computer in frustration, and a 'scraps' document that's an order of magnitude longer than the final article. Out of curiosity, I fed a few prompts into a gen AI tool to create a draft and got something coherent in approximately 10 seconds. So, let's start with the obvious: Gen AI has the potential to create a tremendous amount of value for organizations and individual employees. By automating complex or mundane tasks, it can be used to increase efficiency and free up resources for more value-producing applications. Its computational power can improve decision quality through data analysis and accelerate processes like innovation by modeling, testing, and refining new ideas—all at a scale and speed far beyond us mere humans. When used as a brainstorming aid, it can seed our creative processes with seemingly infinite amounts of source material. Leaders need to start with and keep these benefits in mind, as they all stand to improve the quality and efficiency of the work being done. But what might we be trading when we outsource a task to gen AI? Or put another way: Where else does value come from? Here are five key areas to consider. Gaining knowledge and insights Our work processes often provide us with knowledge and understanding beyond the task we're working on. Struggling to find a word in a foreign language often cements it into our brain for future recall; the rejected solutions to a thorny technical problem can turn out to be solutions to other related problems or unexpected new innovations on their own (as was the case with the discovery of penicillin, Coca-Cola, and smoke detectors); and the process of summarizing and synthesizing information helps us recognize conceptual connections. Asking gen AI to translate, solve problems, or summarize documents will undoubtedly yield faster and in some cases more accurate results with less effort; however, in so doing, we lose the learning that we otherwise would have gained. Consider this quote that's attributed to the Confucian philosopher Xun Kuang: 'Tell me and I forget. Teach me and I remember. Involve me and I learn.' Honing skills Closely related, there's a reason people say 'practice makes perfect'— we improve our skills through doing. Drafting and revising a report improves our editorial skills, searching to find bugs in our code makes us better programmers, and cursing at writer's block builds our perseverance as writers. Parallel to learning, asking gen AI to revise a document, draft or find bugs in code, or generate a collection of paragraphs to choose from gains us the short-term benefit of a solution but poses risks to long-term improvements in our capabilities. Maintaining social ties Most work has traditionally been done collectively—with groups of people providing the mental horsepower needed to find solutions to particularly challenging problems. The massive increase in computational power provided by gen AI allows us to individually solve many of the problems we otherwise required others for—which in turn means fewer interpersonal interactions. It's important to recognize that such interactions serve as the basis of mutual understanding, a sense of connection and community, and ultimately trust—all of which have significant impacts on organizations' ability to deliver. In addition, research suggests that these changing behaviors may also be reducing our personal well-being by making us more isolated and lonelier. Engaging with ideas Engagement, defined by being psychologically present when performing a role, has a wide range of benefits, from improved outcome quality and efficiency to individual well-being and satisfaction. However, none of us are 100% engaged in 100% of the things we do 100% of the time, and our use of gen AI can play a role in that. Take summarization, a task that gen AI excels at by extracting themes from large volumes of data much faster than any human. Whether the data being summarized is a large report or the transcript of a meeting, when we outsource that task to gen AI, we often take a mental step back and reduce our engagement. Human summarization is an active process; we don't simply capture data—we frame, interpret, and further develop the ideas. That process connects us to the work and increases our engagement. While it's easy to say, 'But I'll go back and add in my comments or build on the arguments later,' ask yourself, how often do you really do that? We're all busy, and it's just too easy to look and say, 'Yeah, I think this is good enough,' without engaging deeply enough to recognize what's missing. Maintaining uniqueness Open any management publication or newspaper business section and you won't have to look long before finding articles on different leadership styles. This is for good reason, as having the right leadership style for a given situation can make a huge difference in outcomes. We are the product of our experiences, and the work we do contributes to our identity as leaders. Our tone in written documents, how we communicate in messages, our style in presentations, and even how we solve problems are identifiable traits that distinguish us from one another. While using gen AI to auto-generate emails, memos, or presentations may save leaders time and yield technically better results, doing so removes the personal tone and voice that makes them unique. Going one step further, it's important to remember that LLMs are fundamentally convergent technologies. When a leader asks gen AI to draft something, it returns a response that best aligns with and matches all the relevant information in the data it was trained on. That means all leaders asking similar questions of the same LLM will get similar answers because they're built from the same assumptions. (That effect can be magnified when those answers then get added to the training data of future models.) Weighing the Costs and Benefits of Gen AI Trying to weigh benefits like increased productivity or efficiency against costs like lost skills or reduced engagement is not easy; rather than comparing apples to oranges, it's more like comparing apples to motor oil. However, it's even more complex because not all costs and benefits are experienced in the same way. In our research on building an integrated employee value proposition, HBS professor Amy Edmondson and I identified two critical dimensions leaders must keep in mind when assessing the effects of organizational initiatives: level (individual or collective) and time horizon (short or long term). Leaders are responsible for both collective and individual outcomes, and decisions about where and how to integrate gen AI affect both. For example, when gen AI is introduced to write code for a project, it may increase project-level output, but at the cost of individual-level team member development. Similarly, leaders must think not only about what tools and processes benefit their employees, teams, and the organization in the present, but also how they'll play out over time. For example, using gen AI to capture and summarize meetings may save time in the present but lead to disengagement in the future. Leaders must therefore also be thinking about how to weigh current benefits against future costs—something humans are notoriously bad at doing. How to Conduct an AI Value Audit Gen AI is here to stay and its benefits are undeniable, but the potential trade-offs mean leaders need to be intentional about its use. Just like any other important managerial decision, this requires an objective and holistic assessment of benefits and costs. Leaders need to perform an AI value audit. Here's how: Step 1: Determine the most relevant types of value for a given AI-able task. Start by asking what kinds of value the task creates. Output—such as volume, speed, quality, and efficiency—is obvious, but also consider how much learning the task generates, how much it fosters social interaction and relationships, and whether it benefits from a unique or personal voice. This list isn't exhaustive, but it's a good starting point. This need not be a heavy process—it could be as simple as a sticky-note checklist. Just make sure you give these some thought and think beyond just output. Step 2: Prioritize and optimize the types you've identified. Not every task needs to deliver every type of value, nor is each project equally effective in providing it. Focus on where the benefits are greatest and most needed. For example, using gen AI to summarize meetings may boost efficiency but reduce connection and engagement. Consider only automating notes for low-stakes meetings or alternating between AI and live note-taking. Also consider how tasks fit into the broader ecosystem and social network. If you use gen AI to replace a brainstorming meeting, for example, look for other opportunities for people to build rapport. Step 3: Iterate. Recognize that we don't yet have the impacts of gen AI all figured out. Not only that, every organization, industry, and team is different—and context matters. Use what I call the 'milk test': Every decision about the use of gen AI should come with an expiration date. Just like checking milk, reassess when the data arrives—don't toss it out automatically, but give it a sniff. Think like a scientist: Form a hypothesis, test it, gather data, and reach empirically supported conclusions. This is the best way to ensure your decisions are adaptive, as you can adjust them if you discover your prioritization is no longer optimal. . . . One final point: The decision to use gen AI doesn't rest solely (perhaps not even primarily) with leaders. These tools are cheap, accessible, and widely available, so your employees are already making their own decisions about when and how to use them—with or without guidance. As the saying goes, 'What gets measured gets done.' If your KPIs and other metrics focus only on output and speed, you're incentivizing employees to outsource to gen AI as much as possible. If that's all that matters—and in some cases it is—that's fine. If it isn't, however, look at what you're rewarding and consider options that promote behaviors that may be at risk, like collaboration or learning. Finally, talk to your people about gen AI and the types of value it creates—and risks damaging. Ensuring they're aware of the benefits and drawbacks will reduce the likelihood of people making decisions that aren't in their own best interest or the interest of the organization.
Forbes
15-06-2025
- Business
- Forbes
Discovering The New Age Of Value Creation
CEOs of fast growing firms: Schmidt; Barra, Nadella, and Amin For several centuries, businesses sought mainly to make money. But some 25 years ago, a different idea began spreading. 'What if,' some said, 'instead of aiming to make money, we set out to create value for our customers?' When they did that systematically, they found that customers responded positively and, to everyone's surprise, they were usually much more profitable. So why don't all firms commit to creating value for their customers? The shift is key for many reasons: The shift is still under way. We thus now live in two different, concurrent worlds. One world is still dominated by autocrats, sharks, and self-interested businesses who are doing what they can to extract profits for themselves and their associates at considerable cost to society. The other world comprises businesses and many other kinds of organizations and individuals who are intent on creating value for others. The result here is an emerging Age of Value Creation. The idea that businesses must be primarily self-interested has a long and difficult history. Self-interest in business was assumed by the founder of modern economics, Adam Smith, in Wealth Of Nations (1776). It was presumed by the father of 20th century management processes, Frederick Taylor, in The Principles of Scientific Management (1911). It was explicitly pursued by the movement led by Nobel Laureate Milton Friedman and his colleagues to maximize shareholder value (1970 and beyond, even though the idea was eventually labeled by former CEO of GE, as 'the dumbest idea in the world.' It was endorsed by the U.S. Business Round Table (1997), until that endorsement was declared politically unacceptable in 2019. Leading management journals still publish and praise articles about self-interested businesses focused on making profits for the benefit of the firm, its executives and its shareholders. The management of self-interested corporations tends to be hierarchical, bureaucratic, mechanical, process-driven, inert, and inhuman, stifling creativity and innovation, and more. In the relatively stabler context of the 20th century, large self-interested firms made financial profits, even as staff engagement moved steadily lower and business returns gradually declined. What has led to change? It wasn't a sudden moral epiphany on the part of business leaders. It was recognition by businesses that the world itself had changed. Thus the internet (and now AI) gave rise first, to firms, new possibilities for innovation, and then to customers, more choices, and finally to firms again, the potential of new business models that can generate exponential network effects. The old way of running things couldn't keep up. Smart executives saw they had to do something different. While each firm is unique and uses its own language, the underlying management patterns have much in common. Thus Apple talks of a different 'culture'. Microsoft speaks about 'mindset', 'empathy' and 'values.' Amazon focuses on 'leadership principles' and 'works backward from the customer.' Some firms talk of 'mental models' and 'narratives.' The Agile Manifesto spoke of valuing 'individuals and interactions' more than 'processes and tools.' Despite the differences, they are all about putting people ahead of processes. This new breed of firm generally uses subjective concepts to drive their objective business processes. These mindsets, goals, values, and narratives are the very things that traditional management dismissed as having only second importance. The result has been an upheaval in every aspect of business practices. It can be called a paradigm shift in management, although probably no more than 20% of public firms have yet made the transition. The fastest growing firms have transformed almost every aspect of the enterprise so as to form an integrated, complex, multi-dimensional organism. These multiple but integrated changes require that everyone thinks, perceives, speaks, and acts differently from work in a traditional organization. Methods, processes and tools don't disappear. But in these firms. it is the mindsets, values, and narratives that drive and transform the methods and processes, rather than vice versa. The result is a culture where people can see meaning in what they do. Table 1: Self-interested Organizations and Value Creating Enterprises. Summary of prevalent differences between self-interested organizations and value-creating ... More enterprises This is not to suggest that all fast-growing firms do all these things all the time or that fast-growing firms are without flaws. All such firms need to make continued progress towards creating steadily more value for stakeholders. and avoid backsliding towards self-interest. Understanding how these fast-growing firms are being managed is the first step for those firms that are still being managed by yesterday's methods and processes. Unless they begin making similar shifts, most will not survive, at least in their current form. And read also: How Creating Value For Others Has Become The Key To Business Success Why Peter Drucker Got Customer Value Right Table 2: Firms with a track record of sustained fast growth
Entrepreneur
11-06-2025
- Business
- Entrepreneur
Dabur Aims Double Digit CAGR By FY28
You're reading Entrepreneur India, an international franchise of Entrepreneur Media. FMCG company Dabur India recently unveiled its refreshed strategic vision to achieve sustainable double-digit CAGR in both topline and bottomline by FY 2027-28. "Our renewed strategy is designed to harness the strength of our core while unlocking future-ready engines of value creation. It represents a fine balance between stability and disruption, scale and agility, and heritage and modernity. With new product formats, enhanced supply chain capabilities, and a renewed focus on customer-centricity, we are confident that our General Trade partners will continue to thrive alongside us as we steer Dabur into the next growth orbit," said Dabur India CEO, Mohit Malhotra. The company is reaffirming its presence in general trade with its new vision strategy and intends to work with partners to not only tap the emerging opportunities but also ensuring that partners' RoI is protected and enhanced. The company will also invest in tools and programmes to empower the stockiest partners, ranging from predictive analytics for demand planning to simplified onboarding and claims processing systems. These initiatives are designed to make doing business with Dabur easier, faster, and more rewarding. "As we look to the future, our message is simple: we are with you, we value you, and we grow with you," said Malhotra
National Post
05-06-2025
- Business
- National Post
Armacell Announces New Vice President of AMERICAS Business
Article content John Ross Turner appointed Vice President AMERICAS Role drives value creation across Advanced Insulation and Component Foams through growth, performance, innovation, teamwork and the acceleration of the development of Armacell in Energy and Industry Article content CHAPEL HILL, N.C. — Armacell, a global leader in flexible foam for the equipment insulation market and a leading provider of engineered foams, today announced the appointment of John Ross Turner as Vice President AMERICAS. He is based at Chapel Hill, NC regional headquarters and joins Armacell's Executive Management Team. Article content In this role, Turner will drive value creation across Advanced Insulation and Component Foams through growth, performance, innovation, teamwork, and the acceleration of the development of Armacell in Energy and Industry. Article content John Ross, also known as 'JR', will drive Armacell's performance and growth across North and South America in Advanced Insulation and Component Foams and accelerate the development in Energy and Industry. He brings over seven years of experience from Chargeurs Group – Novacel, where he most recently served as Managing Director Americas. His earlier career includes key leadership roles at Avery Dennison, including Plant Manager and positions in Global Supply Chain Management. He holds a Bachelor of Science in Business Administration from the University of Tennessee, with a concentration in Supply Chain Management. His expertise spans component foam strategy, safety management, procurement, digitalization and engineering projects, and operational excellence programs. Article content 'We are excited for JR to join the Armacell team,' Article content said Laurent Musy, Armacell's President and CEO. Article content 'He brings comprehensive experience in manufacturing, supply chain, commercial, and general management—skills that align perfectly with the needs of our AMERICAS region. We are confident he will help drive value creation through growth, performance, innovation and teamwork.' Article content 'Armacell is a global market leader in providing energy efficient solutions. Known for its strong track record of innovation, commitment to quality, and focus on sustainability, it's a very attractive organization to be a part of,' Article content said John Ross. Article content 'I look forward to partnering with our talented team to reach the next level of performance across the AMERICAS region, maximize synergies, agility and drive even faster execution for our customers, employees and shareholders.' Article content In his new role, John Ross Turner will lead one of the world's most dynamic markets for flexible mechanical insulation, supporting energy efficiency across commercial, residential, industrial, OEM and energy sectors. North America also serves as a hub for Armacell's specialty foam production for foam components. The company operates six manufacturing facilities in the AMERICAS: four in the United States, one in Canada, and one in Brazil. Article content © Armacell, 2025. All rights reserved. Article content ABOUT ARMACELL Article content As the inventor of flexible foam for equipment insulation and a leading provider of engineered foams, Armacell develops innovative and safe thermal and mechanical insulation solutions that create sustainable value for its customers. Armacell's products significantly contribute to driving energy efficiency worldwide. With more than 3,300 employees and 25 production plants in 20 countries, Armacell operates two main businesses, Advanced Insulation and Engineered Foams. Armacell focuses on insulation materials for technical equipment, high-performance foams for acoustic and lightweight applications, recycled PET products, next-generation aerogel technology and passive fire protection systems. Armacell in the AMERICAS has four plants in the United States, one in Canada, and one in Brazil, with its regional headquarters in Chapel Hill, North Carolina. Article content Article content Article content Article content Contacts Article content Article content Article content
Tahawul Tech
02-06-2025
- Business
- Tahawul Tech
Techco Transformation Archives
The insights developed during the Techco Forum are expected to significantly contribute to the industry's collective understanding and accelerate the practical implementation of Techco strategies globally, unlocking new possibilities for growth and value creation.
