{"id":11913,"date":"2024-06-18T06:00:10","date_gmt":"2024-06-18T13:00:10","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=11913"},"modified":"2024-06-17T15:15:07","modified_gmt":"2024-06-17T22:15:07","slug":"holes-and-drills-and-the-duality-of-ai-for-manufacturers","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2024\/06\/holes-and-drills-and-the-duality-of-ai-for-manufacturers","title":{"rendered":"Holes and Drills and the Duality of AI for Manufacturers"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;11914&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">There is a longstanding marketing philosophy reflected in Harvard professor Theodore Levitt&#8217;s quote, &#8220;Sell the hole, not the drill.&#8221; 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.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">The Current State of AI for Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Is the current state of <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2024\/03\/the-benefits-of-artificial-intelligence-in-food-manufacturing-and-the-food-supply-chain\" rel=\"noopener\"><span style=\"font-weight: 400;\">AI for manufacturing<\/span><\/a><span style=\"font-weight: 400;\"> 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.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Those in the \u201cI just want a hole\u201d 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Unless AI can solve a problem that was just plain impossible to solve another way, it will suffer the same result of \u201cinteresting but not practical.\u201d 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 <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2023\/11\/introducing-miny-generative-ai-in-qad-process-intelligence\" rel=\"noopener\"><span style=\"font-weight: 400;\">data mining<\/span><\/a><span style=\"font-weight: 400;\"> 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.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">A Pragmatic Approach to AI<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">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, <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/blog\/2024\/04\/how-to-predict-the-unexpected-and-mitigate-supply-chain-disruption-with-ai\" rel=\"noopener\"><span style=\"font-weight: 400;\">optimizing supply chain parameters<\/span><\/a><span style=\"font-weight: 400;\"> or driving greater impact of maintenance personnel on the plant floor.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Does this all mean that manufacturers aren\u2019t 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&#8217;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.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">How Can Manufacturers Start to Embrace AI Solutions?<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">ChatGPT\u2019s 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 <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/pragmatic-ai\" rel=\"noopener\"><span style=\"font-weight: 400;\">pragmatic AI solutions<\/span><\/a><span style=\"font-weight: 400;\"> with proven outcomes. QAD delivers these \u201choles\u201d via <\/span><a target=\"_blank\" href=\"https:\/\/www.qad.com\/solutions\/qad-process-intelligence\" rel=\"noopener\"><span style=\"font-weight: 400;\">QAD Process Intelligence<\/span><\/a><span style=\"font-weight: 400;\">, which is a data mining and AI analytic \u201cdrill\u201d that can be adaptably applied to address additional challenges.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;11914&#8243; img_size=&#8221;full&#8221;][vc_column_text]There is a longstanding marketing philosophy reflected in Harvard professor Theodore Levitt&#8217;s quote, &#8220;Sell the hole, not the drill.&#8221; 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 [&hellip;]<\/p>\n","protected":false},"author":20,"featured_media":11914,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[546,2965,2806,2161,24,2964,2901,2751],"class_list":["post-11913","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-ai","tag-ai-duality","tag-baby-steps","tag-data-mining","tag-manufacturing","tag-manufacturing-ai","tag-pragmatic-ai","tag-process-intelligence"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Holes and Drills and the Duality of AI for Manufacturers | QAD Blog<\/title>\n<meta name=\"description\" content=\"The current state of AI for manufacturing allows for balancing the adoption of specific outcome based solutions with a more pragmatic AI approach.\" 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