This article discusses the growing use of artificial intelligence in business and its impact on different industries. It explores the challenges for AI implementation and provides insights on strategic cost planning. The article also discusses the launch of MOIA by Volkswagen and its potential impact on Uber's business.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
Running head: COST MANAGEMENT COST MANAGEMENT Name of the Student: Name of the University: Author Note:
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
1COST MANAGEMENT Artificial Intelligence Goes Mainstream The use of artificial intelligence is growing at a large scale. The main advancement of the artificial intelligence is the commercialization of AI. Many of the organizations are using artificial intelligence for the expansion of the business and improving the quality of service (Channon and Caldart 2015). It can be assumed that the commercial use of the artificial intelligence will increase in near future. The main objective of this paper is to evaluate the different aspects of using the artificial intelligence in the commercial purpose. Discussion Growing use of artificial intelligence in the business: It has been seen that the organizations are adopting artificial intelligence based systems for the improvisation of the products and services (Král and Králová 2016). One of the examples for the adaptation of the artificial intelligence is recommendation engines by Netflix. Apart from that for improving the safety of the car computer vision is also an application of artificial intelligence. Automated voice response system has improved the customer interaction system. In thiscontext, the example of Hong Kong subway can be mentioned. Hong Kong subway authority uses artificial intelligence driven automated system for the optimization for the planning of the workers. With the application of the artificial intelligence, the mention of the machine learning is also needed to be mentioned (Katz 2017). These two terms are related to each other; however, they are not the same thing. Machine learning is making the machine to learn to do predefined
2COST MANAGEMENT work. Decision making ability of the system may or may not involve in machine learning. However, in case of artificial intelligence, it can be said that, the system has to go through deep learning process and the concept of neural network is applicable in his case. The artificial intelligent system is capable to make decisions on the basis of the situation. The affect of using the artificial intelligence in different industries: There are some effects of using the artificial intelligence in the different sectors of the industry. It has been seen that the organizations are able to improvise their systems and innovations are taking places in the industry (Král and Králová 2016). This increases the competitions among the organizations in the market. The main advantage of using the artificial intelligenceisthattheorganizationsaregettingefficientandtheproductivityofthe organizations is increasing. Apart from that use of artificial intelligence in mitigating the overhead cost for the organization. Some of the organizations are using the artificial intelligence for the analysis of the market. The values are collected from the different sources. In some cases, artificial intelligence uses other emerging technologies like big data (Král and Králová 2016). In many cases, it has been seen that the organizations are collecting data and information through the surveys. The analysis of the data collected from various sources can indicate the demand of the customer and the possible changes in the market. Challenges for the implementation of artificial intelligence in the business There are certain challenges in using the artificial intelligence for industrial use. The leaders of the organizations should think about the way of using the artificial intelligence in the industry. This technology can be used in various ways and for various purpose (Tredinnick
3COST MANAGEMENT 2017). The identification and the relevance of the reason for using the artificial intelligence in the industry are needed to be evaluated by the organization leaders and CIOs of company.The success of the implementation of artificial intelligence is dependent on the implementation of the AI and way of implementing the whole system (GUO and GONG 2018). The decision of making the changes and the implementation AI in the organization indicates the success and the failure of the project. There are some things those are needed to be considered during the implementation of the AI. The leader should take the strategy that will encourage the organization to recruit more technical experts in the organization so that the implemented system can be handled in a proper way. Strategic cost planning regarding the implementation AI: It has been seen that the implementation of AI can be expensive for the organization. There are various technologies associated with the implementation of artificial intelligence (Wong and Bressler 2016). Apart from that with the implementation of AI some of the non-technical expenses increase (Fox 2018). The expenses can increase due to the recruitment of the new technical experts for handling the newly implemented system (GUO and GONG 2018). However these expenses can be regarded as investment as after the implementation, the production cost can be decreased effectively. FT Article on launch of MOIA in Hamburg, Germany.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
4COST MANAGEMENT MOIA by Volkswagen is Uber like service that is initiated in Germany. The company is currently operated in Hamburg and is offering the pooling service for 50 cities around Europe and USA (Ravanfar 2015). The main aim of the company is to run the business in a global scale but the organization do not want to make any mistake while doing this.According to the chief executive of the organization, the organization is new in the market and is exploring the opportunities for learning new things. Discussion The discussion is regarding the impact of this innovation by Volkswagen on the business of Uber. It can be said that the initiative taken by the Volkswagen cannotaffect the global business of the Uber. However, the business of the Uber can be affected in the Germany as the MOIA is becoming popular (Cox, Pinfield and Rutter 2018). The potential strategy change of Uber in this context can be described through the use of Mackisey’s 7S’s framework. Strategy:The business strategy of Uber for the global business should not be changed as it is already doing fine in the global market. On the other hand, in Germany, Uber has to change the strategy of doing business as MOIA is gaining popularity. In this context, Uber can reduce the price for the service. The objective is to maintain the market share in the on demand car service industry in Germany. The goodwill and the international recognition of Uber will help this organization to do well in the competition with MOIA. System:The system that drives the business of Uber in competitive market are proper business strategy and planning along with proper marketing and communication with the customers (Wolff and Wolff 2017). Apart from that in order to modify the structure proper resources and financial planning is needed to be done.
5COST MANAGEMENT Structure:Ubermaintainsaproperhierarchystructureinordertomaintainthe functionalities in a proper way. The reporting of the market analysis is done by the employees to the manager. The strategic planning is taken by the regional heads and the managers of the company on the basis of the analysis. The decision making process in this case can be centralized. In this case, the employees in the organization can take part in the decision making process of the organization. However, the final decision would be taken by the manager or the leader of the MOIA project based on the opinions of the employees. Shared values:The corporate value of Uber is to serve the people with best service. The promptness of its service has helped this organization to achieve the popularity. These values aligned with the competitive strategies and pressure (Baishya 2015). However, this organization can achieve this through good internal work culture that motivates employees to modify the service and the system. It can be said that the improvements and the modification will bring positive changes in Uber and that will help Uber to compete with MOIA. Style:The general leadership style of the organization is participative leadership style. Thisimpliesthattheemployeescanparticipateinthedecisionmakingprocessforthe organization (Baishya 2015). There are teams those are involved in the different processes and the functionalities of the functioning of Uber. All these teams reports to their respective team leaders or managers. The whole process encourages the employees to take calculative risks and challenges in order to make the innovative modifications in the competitive market. Skills:Uber has identified that there is no skill gap exists in the organization. However, from the market analysis it has been indicated that there are some gaps between the demand of the consumers and the existing process and functionalities of the organization (Baishya 2015).
6COST MANAGEMENT However, in order to merge the gap certain technical and non-technical improvisation in the business process is needed to be done (Milgrom and Tadelis 2018). After the implementation of the improvised process, proper training is needed to be given to the employees is that they can manage the system. Otherwise skill gap in the organization is not desirable for the organization. Staff:Some of the positions of Uber are vacant. In this context, Uber can increase the number of drivers who are under the contract with them. This will improve the service of the organization. On the other hand the demands of the consumers are needed to be understood in a proper way.
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
7COST MANAGEMENT References Baishya, B., 2015. McKinsey 7s Framework in Corporate Planning and Policy.International Journal of Interdisciplinary Research in Science Society and Culture (IJIRSSC),1(1), pp.165- 168. Channon,D.F.andCaldart,A.A.,2015.McKinsey7Smodel.WileyEncyclopediaof Management, pp.1-1. Cox, A.M., Pinfield, S. and Rutter, S., 2018. Extending McKinsey’s 7S model to understand strategic alignment in academic libraries.Library Management. Fox, S., 2018. Domesticating artificial intelligence: Expanding human self-expression through applicationsofartificialintelligenceinprosumption.JournalofConsumerCulture,18(1), pp.169-183. GUO, R.P. and GONG, J.Q., 2018. Management Innovation of Entrepreneurship Education in Universities Based on McKinsey 7S Model.China University Students Career Guide,5, p.017. Katz, Y., 2017. Manufacturing an Artificial Intelligence Revolution. Král, P. and Králová, V., 2016. Approaches to changing organizational structure: The effect of drivers and communication.Journal of Business Research,69(11), pp.5169-5174. Milgrom, P.R. and Tadelis, S., 2018.How Artificial Intelligence and Machine Learning Can Impact Market Design(No. w24282). National Bureau of Economic Research. Ravanfar,M.M.,2015.AnalyzingOrganizationalStructurebasedon7smodelof McKinsey.Global Journal of Management And Business Research.
8COST MANAGEMENT Tredinnick,L.,2017.Artificialintelligenceandprofessionalroles.BusinessInformation Review,34(1), pp.37-41. Wolff, G. and Wolff, J., 2017. Strengths and potential of the SP theory of intelligence in general, human-like artificial intelligence. Wong, T.Y. and Bressler, N.M., 2016. Artificial intelligence with deep learning technology looks into diabetic retinopathy screening.Jama,316(22), pp.2366-2367.