FEATURES
Technology
Artificial Intelligence for the Real World
Thomas H. Davenport and Rajeev Ronanki page 072
Cognitive technologies are increasingly being used to solve business problems; indeed, many executives believe that AI will substantially transform their companies within three years. But many of the most ambitious AI projects encounter setbacks or fail.
A survey of 250 executives familiar with their companies’ use of cognitive technology and a study of 152 projects show that companies do better by taking an incremental rather than a transformative approach to developing and implementing AI, and by focusing on augmenting rather than replacing human capabilities.
Broadly speaking, AI can support three important business needs: automating business processes (typically back-office administrative and financial activities), gaining insight through data analysis, and engaging with customers and employees. To get the most out of AI, firms must understand which technologies perform what types of tasks, create a prioritized portfolio of projects based on business needs, and develop plans to scale up across the company.
HBR Reprint R1801HC
FEATURES
Managing Organizations
More than a Paycheck
Dennis Campbell, John Case, and Bill Fotsch ｜page 082
Fifty years ago a good blue-collar job was with a large manufacturer such as General Motors or Goodyear. Often unionized, it paid well, offered benefits, and was secure. But manufacturing employment has steadily declined, from about 25% of the U.S. labor force in 1970 to less than 10% today. Now a decent living entails more than a generous wage; it involves sharing the company阵 success with employees.
Some companies offer a direct stake in the company阵 performance through stock, a share in profits, or both. Companies with employee stock ownership plans report significantly higher sales growth and higher revenue per employee than do conventionally owned companies in the same industry. However, virtually all the gains to be had go to those that create an ownership culture, by building in participative management and helping employees learn to think and act like owners.
HBR Reprint R1801J
FEATURES
Negotiations
The Case for plain-language Contracts
Shawn Burton | page 098
What do you call a dense, overly lengthy contract that’s loaded with legal jargon and virtually impossible for a non-lawyer to understand? The status quo, says Shawn Burton, the general counsel for GE Aviation’s Business & General Aviation.
When Burton was leading the legal team for that division’s new digital-services unit, he and his colleagues noticed that customer contract negotiations were dragging on for months, hampering growth. So they set out to replace the unit’s seven excruciatingly complicated Contracts with one that even a high schooler could understand. In this article, Burton describes how the team went about achieving that goal and the lessons learned along the way. He also shares the results: Customers were delighted with the new contract, and some even signed it without making a single change. The time it took to negotiate contracts dropped by a whopping 60%. And now plain-language contracts are starting to spread inside GE.
HBR Reprint R1801L