Tuesday, June 14, 2022

Why Most Firms Applying New Technology Do Not See Outperformance

If business, nature and life have a standard distribution, then the percentage of firms able to turn artificial intelligence into measurable financial results should also be a standard distribution. 

source: Accenture 


Lots of firms, organizations and individuals make a living giving advice about how to boost performance of all sorts. But performance in any competitive arena is a standard distribution. In any market or endeavor, nearly 70 percent of actors will cluster around a median point. You would expect about 15 percent to notably outperform, while 15 percent significantly underperform. 


source: Cate Bakos 


The point is that even if all firms applied artificial intelligence, distributed computing, private neworks, internet of things or any other innovation you can think of, most would still perform at about the same levels as most peers. 


Up to 15 percent will outperform. But those firms were likely already the top performers. They are likely to be the firms already prepared to take advantage of new technologies. 


That is not to deny the value of advice about improving performance. It is to point out that, even with available to all, new technology will result in differential results. Underachievers rarely, if ever, become overachievers because of a single applied technology. 


` `1 -*/*++Perhaps some “average” entities can elevate their performance and become high achievers. More will simply keep pace with their peers and a few might actually underperform after embracing a particular innovation. 


Silver bullets rarely exist, or work. 


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