There is a longstanding marketing philosophy reflected in Harvard professor Theodore Levitt’s quote, “Sell the hole, not the drill.” The premise is that as a consumer, the outcome, the hole, is the goal. Accomplishing the goal without the cost or burden of owning and maintaining a drill is often optimal.
The Current State of AI for Manufacturing
Is the current state of AI for manufacturing a drill or the hole? When asked to confirm one or the other, ChatGPT will willingly argue either point. The fuzziness of uncertainty around AI for manufacturing is even fuzzy for AI itself.
Manufacturers are currently inundated with propaganda around how AI is the only path to competitiveness. Either get AI-savvy or become IT fossil reminders of a time gone by. The buzz is certainly more prevalent than the actual penetration of AI as a tool in the day to day business of manufacturers. Does a manufacturer really want to buy AI? Or is the better question, does a manufacturer really want to buy AI now?
Those in the “I just want a hole” camp are less enthusiastic around the myriad of AI propositions. Manufacturers need to focus on the outcomes that will make them successful. There are myriads of legacy challenges that manufacturers have struggled to address. In many instances the investment in automation or technology did not pass the ROI test for investment to address these challenges. If AI does not deliver an obviously better outcome to a legacy approach, then it risks becoming the burden of owning a very expensive drill.
Unless AI can solve a problem that was just plain impossible to solve another way, it will suffer the same result of “interesting but not practical.” There are a number of software vendors espousing AI platforms that promise to turn data into value. Too many of those propositions speak in terms of possibilities rather than specific capabilities that deliver specific outcomes. Yes, AI can evaluate data to drive previously uncovered insights. The early benefits of AI have come from directing the data mining and analytics to a predetermined improvement or outcome. AI in its current form is not a general purpose consultant that can evaluate a manufacturing enterprise and generate a set of generalized recommendations.
A Pragmatic Approach to AI
Manufacturers will welcome the AI hole if it is pragmatically defined with a clear indication of potential benefits. Savvy software developers are content to hold the drill while they deliver outcomes ranging from efficiency in accounts payable, optimizing supply chain parameters or driving greater impact of maintenance personnel on the plant floor.
Does this all mean that manufacturers aren’t interested in AI as the drill? The answer is, not necessarily. AI is a tool with an unprecedented ability to problem solve. Unlike traditional tools that serve a specific purpose, AI’s adaptability and versatility allow it to tackle a myriad of problems, making it a solution in itself. Manufacturers are starting to invest in the resources necessary to explore the use of this tool.
However, it has been challenging for small to medium manufacturers to take the leap of faith for this kind of investment. Asking a mid-size manufacturing firm to identify and name their data scientist(s) has too often met with a meager response. Often if a data scientist does exist, they work in the finance portion of the organization and not in the operational side of manufacturing.
Both intellectually and emotionally, most manufacturers covet being part of the growing AI momentum. A pragmatic engagement around AI solutions with a specific outcome may be the most reasonable path to greater AI capability. Manufacturers should engage in the immediate-term with software vendors or consultants who can deliver AI as a hole to address challenges. It is likely that the experience will result in both knowledge transfer around the technology and the comfort level for broader use of the AI drill.
How Can Manufacturers Start to Embrace AI Solutions?
ChatGPT’s dual support of AI as both the hole and the drill might actually be a duality that can be embraced by manufacturers. AI in its current evolved state can be and should be thought of as both. QAD is actively engaging with global manufacturers around pragmatic AI solutions with proven outcomes. QAD delivers these “holes” via QAD Process Intelligence, which is a data mining and AI analytic “drill” that can be adaptably applied to address additional challenges.
