by Shahriar Parvarandeh, Ned Calder, Phil Le-Brun and Freddy Solis
The need to tap AI to incrementally strengthen existing businesses often is causing incumbents to give short shrift to efforts that could transform their businesses. The solution is to take a dual approach: Transformation A leverages AI to optimize today’s business model—refining processes, reducing costs, and enhancing customer experiences. Transformation B creates new AI-driven business models that unlock opportunities and redefine markets. The two efforts should be separate and structured differently. To overcome hurdles and implement dual transformation effectively, leaders should take three steps: conduct scenario planning to anticipate disruptive shifts, establish a shared leadership perspective, and turn internal capabilities into market opportunities.