After the first business post (Business #1 – Learn From Your Missteps and Follow Your Passion), I decided to publish the next business post about those two things below:
- Artificial Intelligence (AI) is currently more and more necessary for business.
- Internet of Things is becoming the target of current businesses.
There’s no doubt that we’re living in the fourth revolution that the advanced technology is the key to increasing the Competitive Advantages in business. Just as the technology drives the growth of productivity leading to revenue, it also helps businesses accumulate and manage the huge amount of data. AI and the Internet of Things are two concepts that current businesses focus much on.
1. Why is AI essential for today’s business?
AI is the creation of intelligent machines that stimulate human intelligence. It is designed for speech recognition, learning, planning and problem-solving. It is not only one of the great inventions for computer science but also for business.
According to Croman (2018) – Guest Writer of Entrepreneur, there are four important business relationships that affected by AI
- Employee relationships: Just as employees become more collaborative, using AI tools is the easy way that improves the interaction between employers and their staff. Moreover, employers can understand deeply their employees from employee data analytics such as performance and satisfaction.
- Vendor relationships: Not only machine learning (AI) helps vendors acquire deep business insights in order to understand their partnerships but it also increase the trust rate from two sides.
- Customer relationships: Customers are the key to growing every business. AI is not only used for the internal data (employee and vendor) but also for the external one (customer information). It helps businesses manage customer relationship by chatbots, personalized emails and websites in order to reduce the churn rate and to augment customer satisfaction.
- Investor relationships: AI is allowing investors to gather adequately analytics of the business that they desire to pour money in. Furthermore, investors are able to supervise the performance of the company.
Aside from those things, there are four benefits of AI related to business:
- Expert system: A system that is able to replace an expert.
- Neural networks: A system that is able to control large quantities of data and locate patterns and characteristics where there are no rules.
- Genetic algorithms: A system that gives the best output based on given inputs (suitable for generating multiple solutions).
- Virtual reality (or Augmented reality): A system that simulates the real environment.
So, it is said that AI is becoming more vital for business in today’s market.
2. Internet of Things – the objective of business
Besides artificial intelligence, Inter of Things (IoT) is also the hot topic of conversation in the workplace, especially business market. So, what is IoT?
Internet of Things (IoT): this is the concept that devices are connected with a switch to the Internet such as cell phones, headphones, coffee makers and anything else.
Why do businesses pay their attention to IoT?
Let’s think of when anything that is connected or will be connected, the effectiveness and efficiency of AI will be able to augment – which means businesses are possible to collect more information from their customers. As a result, it is possible to reduce the churn rate and shorten the distance between businesses and customers so that companies can earn more profits and customer are able to get what they desire.
In addition, a giant network of connected “things” (IoT) provides automated and productive processes that support the manufacturing and logistics department. HR department can easily intercommunicate with employees and job seekers, just as Marketing department is able to generate strategies that keep customer satisfy.
So, it is to say that AI and IoT are two concepts that are being ‘hot’ topics in current businesses because of the importance of those.