Although interest in artificial intelligence (AI) has passed in the past, market experts believe it is here to stay. The constant fluctuations in supply and demand have convinced everyone of the urgency of bringing more predictability and responsiveness to their business. But is AI positioned for the best ROI and organizational adoption?
In a recent academic paper, retail experts offer a new approach to applying AI technology to retail. Instead of implementing individual AI solutions on a siled, function-by-function basis, the authors recommend leveraging Clayton Christensen and Michael E. Raynor‘s jobs-to-be-done (JTBD) from their book, The innovator’s solution. This approach emphasizes that AI technology should focus on important jobs or purposes rather than a specific step in the retail value chain.
According to the authors, the traditional adoption of AI technologies has been driven by the business function, resulting in fragmented AI technologies that are limited to satisfying these functional goals while ignoring broader business goals. company.
For example, inventory management and distribution belong to supply chain, logistics, transportation, and vendors who are responsible for the movement of products to the store. Technologies for demand forecasting, allocation and replenishment functions are implemented to support these objectives.