EDITOR’S NOTE: The following post was originally published on the Scoutbee Blog on April 15th, 2024.
At first glance, you might think today’s question is somewhat whimsical, and perhaps it is a little. However, an undeniable, underlying connecting thread runs through the title.
Regardless of each car’s year, model, and technology, they are only useful with an experienced driver. The lack of an experienced driver would negatively impact each vehicle’s optimal performance.
The AI connection
“AI will not replace humans; humans with AI will replace humans without AI.” Joe Gibson interview (November 6, 2023)
The above quote is at once simple, logical, and powerfully accurate.
Like cars, AI is also an extension of human capabilities, and its effective use is based on experience and expertise. But let’s keep one important fact in mind: AI is not a replacement for humans – at least not productive ones.
So, what makes a human or, in this case, a procurement professional, productive?
To find out more about this fascinating topic, be sure to sign up for Scoutbee’s next webinar – The future of procurement is people who are tech savvy not procurement savvy – on June 6. Register here.
Experience and expertise
During an interview with an industry thought leader, the subject of the famous Peloton case study came up.
For those unfamiliar with the story, here’s the transcript excerpt from that interview:
“Remember the famous Peloton case study where their business went booming through the ceiling when the pandemic hit, yet they couldn’t meet delivery commitments? They took hits. They had to switch from one shipping method because of blockages with traditional transportation routes and go to air travel. One of the questions I raised was, did they have the data? In many instances, the responses given were they had the data but didn’t know how to read it. That’s really a big part of cognitive analytics. It isn’t just (that) the systems are getting smarter, we (humans) must adapt to AI data outputs and ‘get smarter’. I mean, is that a reasonable thought?”
Who comes first?
Let’s go back to our car analogy.
In a race between the Model T and Bugatti, where the Model T has an experienced driver behind the wheel and the Bugatti has a driver with either no or limited experience, who would win?
If you think of Model Ts in the context of the continuing use of spreadsheets in U.S. businesses, what do the following statistics tell you?
“60% of businesses in the U.S. are still relying on Excel spreadsheets, while 21% are moving towards other spreadsheet software solutions.”
While some may see spreadsheets as the Model T of the digital era, more businesses rely on this “antiquated” version of digital capabilities.
How much better or faster would business move forward with AI?
What does the following graphic tell you about moving forward with AI adoption?
I see the message as being reasonably clear – companies don’t have (or don’t think they have) the time, money, or people to learn how to drive a Bugatti or move from Model T spreadsheets to AI advanced analytics.
Time to lower Everest
If someone said, “I would give you a million dollars to climb Mount Everest or five thousand dollars to jog up and down a small hill”, which would you choose?
Spending too much time selling the benefits of a million dollars without considering the “perceived” cost of climbing Everest is not the way to go. Put another way, you don’t have to convince me that a million dollars is worth more than five thousand dollars. It would help if you convinced me that climbing Everest is as easy as jogging up and down a small hill.
The above analogy perfectly sums up the earlier Kearney graphic.
The solution providers that can best “lessen” the divide between Everest AI rewards and the small-hill benefits of current platform expedience and convenience will enable businesses to upgrade from Model T technology to Bugatti AI empowerment.
The only question – and it’s not a technology question – is which providers have the experience and expertise to help you make the transition to fully realizing the potential of AI.
30
Procurement Insights
What do AI, a Model T, and a Bugatti have in common?
Posted on April 16, 2024
0
EDITOR’S NOTE: The following post was originally published on the Scoutbee Blog on April 15th, 2024.
At first glance, you might think today’s question is somewhat whimsical, and perhaps it is a little. However, an undeniable, underlying connecting thread runs through the title.
Regardless of each car’s year, model, and technology, they are only useful with an experienced driver. The lack of an experienced driver would negatively impact each vehicle’s optimal performance.
The AI connection
“AI will not replace humans; humans with AI will replace humans without AI.” Joe Gibson interview (November 6, 2023)
The above quote is at once simple, logical, and powerfully accurate.
Like cars, AI is also an extension of human capabilities, and its effective use is based on experience and expertise. But let’s keep one important fact in mind: AI is not a replacement for humans – at least not productive ones.
So, what makes a human or, in this case, a procurement professional, productive?
To find out more about this fascinating topic, be sure to sign up for Scoutbee’s next webinar – The future of procurement is people who are tech savvy not procurement savvy – on June 6. Register here.
Experience and expertise
During an interview with an industry thought leader, the subject of the famous Peloton case study came up.
For those unfamiliar with the story, here’s the transcript excerpt from that interview:
“Remember the famous Peloton case study where their business went booming through the ceiling when the pandemic hit, yet they couldn’t meet delivery commitments? They took hits. They had to switch from one shipping method because of blockages with traditional transportation routes and go to air travel. One of the questions I raised was, did they have the data? In many instances, the responses given were they had the data but didn’t know how to read it. That’s really a big part of cognitive analytics. It isn’t just (that) the systems are getting smarter, we (humans) must adapt to AI data outputs and ‘get smarter’. I mean, is that a reasonable thought?”
Who comes first?
Let’s go back to our car analogy.
In a race between the Model T and Bugatti, where the Model T has an experienced driver behind the wheel and the Bugatti has a driver with either no or limited experience, who would win?
If you think of Model Ts in the context of the continuing use of spreadsheets in U.S. businesses, what do the following statistics tell you?
“60% of businesses in the U.S. are still relying on Excel spreadsheets, while 21% are moving towards other spreadsheet software solutions.”
While some may see spreadsheets as the Model T of the digital era, more businesses rely on this “antiquated” version of digital capabilities.
How much better or faster would business move forward with AI?
What does the following graphic tell you about moving forward with AI adoption?
I see the message as being reasonably clear – companies don’t have (or don’t think they have) the time, money, or people to learn how to drive a Bugatti or move from Model T spreadsheets to AI advanced analytics.
Time to lower Everest
If someone said, “I would give you a million dollars to climb Mount Everest or five thousand dollars to jog up and down a small hill”, which would you choose?
Spending too much time selling the benefits of a million dollars without considering the “perceived” cost of climbing Everest is not the way to go. Put another way, you don’t have to convince me that a million dollars is worth more than five thousand dollars. It would help if you convinced me that climbing Everest is as easy as jogging up and down a small hill.
The above analogy perfectly sums up the earlier Kearney graphic.
The solution providers that can best “lessen” the divide between Everest AI rewards and the small-hill benefits of current platform expedience and convenience will enable businesses to upgrade from Model T technology to Bugatti AI empowerment.
The only question – and it’s not a technology question – is which providers have the experience and expertise to help you make the transition to fully realizing the potential of AI.
30
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