Enhance Key Performance Metrics Using Artificial Intelligence
Organizations strive to improve key performance indicators (KPIs) for success in the competitive marketplace. Artificial intelligence (AI) is increasingly being utilized in various applications to perform tasks more precisely, quickly, and to gather and analyze data for better performance.
One advantages of AI for enhancing KPIs is its ability to analyze past data to design KPIs that can identify possible future scenarios and context-specific KPIs.
AI Solutions for Organizations
At the MIT & BCG Summit, David Kiron highlighted the benefits of AI-enhanced KPIs for organizations. Although the advantages of improved KPIs are widely understood, many companies lack the necessary technologies and tools to manage them effectively. Now, AI tools are being employed in numerous business functions to boost productivity and strategy, with the focus recently shifted towards enhancing KPIs. Companies that have implemented AI to bolster their KPIs have seen significant improvements in KPI metrics, leading to improved efficiency, financial benefits, and better team collaboration, as well as enhanced ability to predict future performance.
KPIs can be improved in three key areas with the help of AI tools:
- Improve Existing KPIs: AI helps companies analyze performance metrics, identify new opportunities, and prioritize high-value KPIs. With AI, companies can develop new KPIs aligned with current market realities to drive superior performance.
- Create New KPIs: AI offers the potential to discover and create KPIs that better reflect market requirements to monitor the performance in line with changing market forces.
- Establish New Connections Among KPIs: To ensure smooth operation among KPIs, it's essential to integrate them into a cohesive set of metrics. AI can help recognize new relationships among KPIs and how they impact each other, leading to new insights and business opportunities.
The future performance of organizations will rely on smart KPIs that offer improved, new, and interconnected metrics. Companies must invest in AI to create better opportunities for value capture, ensuring KPIs operate beyond silos and their dependencies and interconnections are well understood. KPIs must be transparent, explainable, and subjected to periodic audits to evaluate their individual and collective performance. Data quality is crucial to the success of AI-enhanced KPIs.
AI tools deployed in organizations can help improve existing KPIs by analyzing performance metrics, identifying new opportunities, and prioritizing high-value KPIs, resulting in enhanced performance. Additionally, AI can facilitate the discovery and creation of new KPIs that reflect market requirements, fostering adaptability in the ever-changing business landscape.
