AI decoded
Adding value via strategy, innovation and go-to-market
Part II
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated. Photo credit: Pavel Danilyuk.
Disclaimer
Updated: October 16, 2023
In preparing for this presentation, I have done extensive desk research and attributed used sources to the best of my knowledge. If I missed any source attributions, please let me know and I will correct as appropriate.
Much of the content in this presentation is based on personal experience, sometimes obvious, other times more obfuscated for various reasons.
Some content reflects my opinion, intuition or conclusion formed on the basis of incomplete information and may or may not be accurate. If you see inaccuracies that could lead to a poor learning experience, please notify me and Iβll endeavor to make the appropriate corrections. Also, I donβt have a technical background and hence this presentation covers AI topics from a business perspective.
PS. You guessed it: Some of this content was created with the help of my friends ChatGPT, Bard, Claude AI, Bing Chat. Thanks to them!
Part II:
AI strategy
October 17, 2023
@ RSM
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated. Photo credit: Pavel Danilyuk.
AI decoded: Adding value via strategy, innovation and go-to-market
Recap of last week and agenda for today
Last week
Part I: Disruption through AI
Last week
Part I: Disruption through AI
Today
Part II: Strategic AI
Next time
Part III: AI go-to-market and LLMs
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated.
AI decoded: Adding value via strategy, innovation and go-to-market
Section 5:
Adding value through AI
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated. Photo credit: Kindel Media.
AI decoded: Adding value via strategy, innovation and go-to-market
Highlighting AIβs strategic potential using adjusted value chain
Source: Michael Porter, Competitive Advantage, Free Press, 1985
Original by Michael Porter, 1985. Updated by Steef van Winkel, 2023.
Support activities
Firm infrastructure | ||||
Human resource management | ||||
Technology | ||||
Procurement | ||||
Inbound logistics | Operations | Outbound logistics | Marketing and sales | Service |
Primary activities | ||||
Firm & technology infrastructure | ||||
Human resource management | ||||
Technology | ||||
Procurement | ||||
Inbound logistics | Operations (incl R&D, product design) | Outbound logistics | Marketing and sales | Service |
| ||||
Firm & technology infrastructure | ||||
Human resource management | ||||
Procurement | ||||
Marketing | ||||
Inbound logistics | Operations (incl R&D, product design) | Outbound logistics | Marketing and sales | Service |
| ||||
Firm & technology infrastructure | ||||
Human resource management | ||||
Procurement | ||||
Marketing | ||||
Supplier strategy and operations Inbound logistics | Operations (incl R&D, product design) | Outbound logistics | Sales | Service |
| ||||
Firm & technology infrastructure | ||||
Human resource management | ||||
Procurement | ||||
Marketing | ||||
Supplier strategy and operations | Operations (incl R&D, product design) | Buyer strategy and operations Outbound logistics | Sales | Service |
| ||||
Firm & technology infrastructure | ||
Human resource management | ||
Procurement | ||
Marketing | ||
Supplier strategy and operations | Product strategy and operations | Buyer strategy and operations |
| ||
Firm & technology infrastructure | |||||
Human resource management | |||||
Procurement | |||||
Marketing | |||||
Supplier strategy and operations | Product strategy and operations | Buyer strategy and operations | |||
Supplier acquisition | Supplier management incl data exchange and inbound logistics | Product management | Product development | Buyer acquisition | Buyer management incl data exchange and outbound logistics |
| |||||
Firm & technology infrastructure | |||||
Human resource management | |||||
Procurement | |||||
Marketing | |||||
Supplier strategy and operations | Product strategy and operations | Buyer strategy and operations | |||
Supplier acquisition | Supplier management incl data exchange and inbound logistics | Product management | Product development incl R&D, design, production, testing | Buyer acquisition | Buyer management incl data exchange, outbound logistics, sales, service |
| |||||
Firm & technology infrastructure | |||||
Human resource management | |||||
Procurement | |||||
Marketing | |||||
Supplier strategy and operations | Product strategy and operations | Buyer strategy and operations | |||
Supplier acquisition | Supplier management incl data exchange and inbound logistics | Product management | Product development incl R&D, design, production, testing | Buyer acquisition | Buyer management incl data exchange, outbound logistics, sales, service |
| |||||
Margin
Highlighting AIβs strategic potential using adjusted value chain
Firm & technology infrastructure | |||||
Human resource management | |||||
Procurement | |||||
Marketing | |||||
Supplier strategy and operations | Product strategy and operations | Buyer strategy and operations | |||
Supplier acquisition | Supplier management incl data exchange and inbound logistics | Product management | Product development incl R&D, design, production, testing | Buyer acquisition | Buyer management incl data exchange, outbound logistics, sales, service |
Primary activities | |||||
Original by Michael Porter, 1985. Updated by Steef van Winkel, 2023.
Support activities
Margin
Workplace services: Predict impact of work environment changes on employee happiness
Finance: Predict revenue growth
Legal: Digitize and summarize lengthy legal docs
Technical infrastructure: Automate cloud capacity planning based on seasonality, customer experience and cost
Automate campaign management and performance optimization
Predict supply chain capacity and potential disruption using supplier data, historical performance, news and global events
Predict new feature impact on value to supplier
Predict new feature impact on value to buyer
Predict new feature impact on revenue
Automate product optimization to revenue, supplier & buyer value
Sales enablement via predicted sales opportunities
Service enablement via diagnostics, troubleshooting tooling
Logistics enablement via diagnostics tooling
Inbound data quality evaluation
Adding value in the Google ads business
Support activities
Firm infrastructure, human resource management & procurement | |||||
Legal, public relations, trust and safety | |||||
Technology infrastructure | |||||
Marketing | |||||
Partner strategy and operations | Product strategy and operations | Customer strategy and operations | |||
Partner acquisition | Partner management incl data exchange and inbound logistics | Product management | Product development incl R&D, design, production, testing | Customer acquisition | Customer management incl data exchange, outbound logistics, sales, service |
Primary activities | |||||
Margin
Original by Michael Porter, 1985. Updated by Steef van Winkel, 2023. * Simplified for illustrative purposes; accuracy debatable.
Support activities
Margin
Margin
Googleβs high level goal of growing revenue can be achieved through the following sub-goals | ||||
Grow Google ads revenue |
Adding value in the Google ads business by measuring and aligning goals with customers using AI
Context: In 2000, Google launched ads by search results. Advertisers could buy ads from 1 ct per impression.
Goal alignment: π = Measurable; π©βπΌ = Googleβs customers; π¨βπ¨βπ§ = Googleβs users; β = Goal is aligned; β = Goal is unaligned; π€ = Goal alignment is unclear; π = Key driver to achieve goal
β |
Grow number of user searches | x | Grow number of ads on a search page | x | Grow revenue per ad impression |
π: β π©βπΌ: β π¨βπ¨βπ§: π€ | |
π: π¨βπ¨βπ§ = π |
π: β π©βπΌ: π€ π¨βπ¨βπ§: β | | π: β π©βπΌ: β π¨βπ¨βπ§: π€ |
π: π©βπΌ = π | | π: π©βπΌ = π |
Googleβs high level goal of growing revenue can be achieved through the following sub-goals | ||||
Grow Google ads revenue |
Adding value in the Google ads business by measuring and aligning goals with customers using AI
Context: In 2000, Google launched ads by search results. Advertisers could buy ads from 1 ct per impression.
Goal alignment: π = Measurable; π©βπΌ = Googleβs customers; π¨βπ¨βπ§ = Googleβs users; β = Goal is aligned; β = Goal is unaligned; π€ = Goal alignment is unclear; π = Key driver to achieve goal
β |
Grow number of user searches | x | Grow number of ads on a search page | x | Grow revenue per ad impression |
π: β π©βπΌ: β π¨βπ¨βπ§: π€ | |
π: π¨βπ¨βπ§ = π |
π: β π©βπΌ: π€ π¨βπ¨βπ§: β | | π: β π©βπΌ: β π¨βπ¨βπ§: π€ |
π: π©βπΌ = π | | π: π©βπΌ = π |
Context: In 2002, Google improved goal alignment across customers and users. Advertisers could buy clicks.
Grow number of user searches |
x | Grow likelihood of an ad click | x | Grow revenue per ad click |
π: β π©βπΌ: β π¨βπ¨βπ§: π€ |
π: π¨βπ¨βπ§ = π |
π: β π©βπΌ: β π¨βπ¨βπ§: β | | π: β π©βπΌ: β π¨βπ¨βπ§: π€ |
π: π¨βπ¨βπ§ = π | | π: π©βπΌ = π |
Adapting to AI and turning it into an opportunity
Key takeaways: AI changed the industry of search engine marketing (SEM).
9,500 retailers use ProductHero to get better results from Google shopping ads.
While SEM used to be highly manual process, ProductHero now develops their own AI to help retailers get better results.
Wouter Veenboer
CEO @ ProductHero
Insert video here
Insert profile pic
Summary and Q&A
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated. Photo credit: Kindel Media.
AI decoded: Adding value via strategy, innovation and go-to-market
Summary, key takeaways, Q&A and next time
Last week
Part I: Disruption through AI
Today
Part II: Strategic AI
Next time
Part III: AI go-to-market and LLMs
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated.
AI decoded: Adding value via strategy, innovation and go-to-market
Q&A
Steef van Winkel
π Get the slides, let me know if you would like to learn more about AI and other topics or simply connect with me at linktr.ee/steefvw.
Me
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated. Photo credit: Kindel Media.
AI decoded: Adding value via strategy, innovation and go-to-market
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated. Photo credit: Kindel Media.
AI decoded: Adding value via strategy, innovation and go-to-market
The end
Thank you
Author: Steef van Winkel, 2023; Free to use and edit all content; Giving credit to the author is appreciated. Photo credit: Kindel Media.
AI decoded: Adding value via strategy, innovation and go-to-market