Artificial Intelligence: Finally, a dream has come true where humans will be replaced by machines or technology. Everyone has watched Star Trek serial which used to be a fascination of a different world. We have now originally created the same but are we creating a sustainable economic growth and social development. Today I will depict one of the tools of strategic cost management called Balanced Scorecard and its relative measure of the technological advancement and its link with the same. The motive behind this short article is that we need AI driven Balance Score Card Approach.
Balance scorecard and technology-driven process need a quick look at how they are getting linked to each other or there is some gap between the same. Balanced scorecard 4 principles need to be aligned well with changing technological innovation in the long term otherwise organizational imbalances will emerge as one of the key bottlenecks for long-term sustainable business
Artificial intelligence is the new era of the global economy. Automated process and negligible human interference lead to a significant drop in human labor and more efficiency in the business process and cost management. Does this mean that cost management and traditional costing methods and strategies are getting obsolete and new strategies are transforming the same into AI or Blockchain based strategies? The global economy is adopting Blockchain and AI in much faster pace as compared to the previous decade of the Internet revolution.
Efficiency in process and system cannot be achieved alone based on IT. IOT helps in improving the efficiency of the humans and of the organization. It leads to a substantial jump in the learning curve and also in customer satisfaction and improving the financials of the companies who are using IOT to improve the values. A perfect match of Balanced scorecard but where does this Balances scorecard 4 pillars fit when we remove or replace humans and just focus on creating robotic and AI-based systems.
Cost management and Technology helped the societies across the world to develop and grow and prosper into a muchadvanced civilization. Now in the current or upcoming decade, we are witnessing trends of cost management leads to zero marginal cost of production followed with advanced technology
replacing human manpower. Cost management has been able to resolve the issue of getting prices lower so that equal participation could happen from the society is achieving the balance of living standard. This is one of the key principle benefits of the subject, but with the advancement of technology and now AI and other modes which are taking over the traditional practices would spook imbalances in many fronts. Unemployment is the key fruit of AI and Block Chain. I will keep IOT out of the thing as this helps to build efficiency in accordance with the principles of the Balanced Scorecard.
Now the biggest questions are the will AI or Blockchain will be able to adhere to the principles of Balanced Score Card. Operational efficiency might grow but with massive technology changes, the investment risk remains always high. Human manpower combined with Technology is the best since human cost investment is limited whereas technology-driven process would be high-cost extensive matter as technology changes faster than one changes his dress.
Now Blockchain or AI should be implemented but with a combination of humans too. Operational efficiency maintenance through technology is huge cost initiative hence complete dependence on the same would be a problem for the long term since technology investments is not constant like human cost where the cost remains the same with an abundant supply of skills and labor.
Customer satisfaction which is one of the key pillars of Balanced Scorecard is the prime focus of the emerging economies but they are forgetting that easy money investments days in return of negative ROI is going to end soon. Once the easy money comes to an end and ROI is being demanded the investments in technology would decline and that’s the place where again one has to start the with human labor
The learning curve is just declining due to AI and another technological advancement where humans are involved is negligible. Human’s involvement plays a pivotal role in developing the future technology based on the customer interaction. Feedback process and one-time interaction is highly required to develop the future growth strategy. Big data analytics are being deployed to find a pattern of customer consumption patterns and in other areas but one should remember nothing is constant hence consumer pattern change would be faster by the time the data-driven product development hits the ground. The simple formula to save oneself is developing a rapid system of identification of upcoming changes rather than past data analysis. The learning curve over here needs to assemble with humans and not with only robotics and algorithm-based system.
The prime aim of cost management as a subject has been to develop efficient products for the mass and social development of an economy through a judicious mix of human manpower and technology. But capitalist mindset is all set to eliminate the growth the society and only focused towards a collective growth of capital. AI or Blockchain should improve the expertise of the human and society. The learning curve should not be compromised at any point of time. We need an AI-based balance scorecard approach.