What is your AI Score?

AI: is it really the future or just a new hype to sell more technology?

  • How ready are YOU for AI?
  • What is the secret to unlock the power of AI in your organisation?

Data-Driven, AI-ready, or improving productivity all rely on having the same foundations in place.

Why is this important?

Data-Driven is the second stage in the evolution of decision making.

  1. Gut Feel and Experience
  2. Data-Driven with human curation
  3. AI Driven – NO human curation

How do you measure your Data-Driven Score?

We need to assume that you have a Business Strategy which has identified a number of Strategic Objectives and Goals.

To achieve these goals, you will have identified several KPIs including tolerances and ranges, maybe even RAG levels for each KPI. The KPIs selected will ideally represent a cross section of measures across your business. This is often referred to as a Balance Scorecard or you might be using OKRs

You might have KPIs that cover categories such as Finance, Customer, Internal Process or Learning and Growths or similar.

Each category might have 1 to 5 measures or metrics, each with their own KPI.

Data-Driven Rate

So, how do we define your Data-Driven rate?

How many measures do you have for your Strategic Objectives?

If you use a Balanced Scorecard (BSC) and you have 5 measures for each category, you will have 20 Key performance Indicators.

How many of these KPIs are measured using a data-driven report which anyone can run at any time?

It is possible that people who can run the report may be constrained by Governance Controls as the information may be considered restricted, but in practice, anyone can run the report without having to do any preparatory work, nor do any checking or manipulating to the output before it is ready for circulation. That is a Data-Driven Report

The number of KPIs that can be produced like this will determine your Data-Driven Score: X% Data Driven

Data-Driven KPIs / Total KPIs * 100

Humans may still curate these reports in order to interpret the results and make decision about actions to take.

The Report is Data Driven, the actions are determined by humans

AI Reporting Rate

So, how do we define your AI-ready, reporting Score

We use the same principles as we did for your Data Driven Score.

The difference between Data-Driven and AI ready reporting is prediction.

Data-Driven, uses your data to tell you what has happened. This is called Lag Reporting. AI Ready reporting requires your reports to predict potential outcomes.

Data-Driven allows human beings to curate the information and make decisions based on the report. AI-ready implies that you can allow your systems to make automated decisions based on the data story, with no human curation. To get ready for this stage we must be able to run reports that predict and drive outcomes.

If you can predict potential outcomes from your KPIs and would be comfortable with implementing changes based on thise outcomes, that KPI is AI-Ready

AI-Ready KPIs / Total KPIs * 100

Humans may still curate these reports in order to interpret the results and make decision about actions to take.

The Report is Data Driven, the actions are determined by humans, but the AI predictions are implemented.

Business Glossary

A Business Glossary is a foundation requirement for any business that describes itself as Data-Driven or AI ready.

In addition to every term, initial and acronym, all goals, metrics and KPIs are not only defined but linked to the Data Catalogue to describe how and where that metric is measured.

Uprating your glossary to a Business Knowledge Hub takes the glossary work and delivers a really valuable communication tool to your whole business: call it Google for my business!

Ideally, every business should have one today.

If you do not have a glossary, getting to Data-Driven or AI ready comes down to luck.

Process Automation

Automation is a key strand of AI. Its is not new, has been around for many years, yet many businesses have not focussed on its vital role in driving Productivity.

So how do you measure your Process Automation Rate.

You count your total number of Processes (A) and you separate them into 3 classes.

  1. Processes that are fully automated (B)
  2. Processes that can be automated (C)
  3. Processes that cannot be automated as they are currently defined (D)

Process Automation Rate

Automated Processes (B)/ Total Processes (A = (B+C+D)) *100

As a short term Goal you might use the Process Automatable Rate

Automated Processes (B)/ Total Automatable Processes (B+C) *100

It is important to be clear which measure you are using.

Process Automation Potential Rate

This is a medium to long term aim to get this score to 100%

Automatable Processes (B+C)/ Total Processes (A = (B+C+D)) *100

Managing, even knowing what processes you have is a clear imperative in this potential AI driven business world.

That is where the value of a Business Process Model pays dividends. Once built, this will become a key asset of real, long term value

Business Model

Sometimes known as Business Process Model, or BPM

How the business really works – Strategic Objectives, Goals and KPIs surround the People, Processes, Systems and Technology.

The business world is moving too fast to rely on SMEs and middle management. The leadership need to have top-down visibility of how their business works; what is driving success or holding it back. Ideally, they will have a monitoring system that alerts them when the business is moving outside agreed tolerances, as well as the ability to run scenarios on potential changes they might want to implement.

How does your business work?

  • Process model
  • People
  • Business Systems.
  • Data Structure
  • Technology

How do your People (Departments, Roles and Individuals) work with your Processes, your systems and your technology.

  • What does your Master Data Structure Look like.
  • What Processes are ripe for Automation? Where can AI be incorporated to drive innovation, improvement or productivity.
  • Are business systems integrated? Where are the weak spots, best practices.
  • Where are the risks, how they controlled and mitigated.
  • What technology are we using and what is adding benefit or costing too much?

How can any businesses thrive in the 21st Century without a Business Process Model?

If you need a list of the top KPI and Reports to prepare, you can download a copy here.

The download includes a suggested list and does not purport to be a complete list of all KPIs and Reports that you should use.