CHANGES THROUGH AI IN THE PROFESSIONAL ENVIRONMENT
Professional activities are increasingly changing through the use of artificial intelligence, which also includes the development of innovative business models.
Regardless of whether you want to develop a new business model as a self-employed person or optimize existing business models as an entrepreneur and make them more sustainable – basic knowledge and skills in dealing with AI are crucial. In the session Developing innovative business models with AI tools with Max Beinhofer, participants were able to learn what AI can do and what skills they need to successfully master these changes.
Introduction to the role of AI in business model development
As part of the project KI-Kompass: Navigating the new world of work, we recently opened a live think tank.
The aim was to find out how the potential of AI can be used to find new business models and what skills are needed for this.
With the help of expert Dr Max Beinhofer, who specializes in artificial intelligence with his deep-tech strategy consultancy.
The summary of the session illustrates how AI is not only changing business processes, but also the way employees work and their role in the company and what new opportunities and challenges AI opens up for the future of work in this context.
When used strategically and wisely, AI can improve the innovation process by increasing efficiency, enhancing creativity and ultimately leading to superior results beyond what traditional methods alone could achieve.
– Max Beinhofer
Known innovation methods and their significance
Design Thinking, Business Model Canvas & Lean Startup
Traditional innovation methods such as design thinking, business model canvas and lean startup offer valuable framework conditions for the development of new business models. The integration of AI can further strengthen these methods. Anyone involved in innovation is usually already familiar with some of the proven methods and structured approaches for developing creative ideas, understanding market needs and finding innovative solutions. We believe that our participant community is at the forefront of this: The majority were familiar with these methods, according to a Mentimeter survey. Max gave a very good, brief and understandable introduction for all newbies who were not yet familiar with them.
It is important to know that the approaches used in innovation processes have different focuses and are used in different phases of the process. Design thinking, for example, is used to find out whether the ideas developed actually meet the needs of customers. Business Model Canvas, on the other hand, is well suited to structuring developed ideas for a functioning business model. While Lean Startup is used, for example, to quickly create functional models and prototypes. These mock-ups can then be tested immediately with customers in order to receive direct feedback and iteratively improve product development.
Applications of AI in different industries for different purposes
AI applications help to recognize, decide and create, says Max and presented us with some examples:
Predictions and discounts: In the energy sector, for example, AI is used to analyze energy data and identify patterns in order to make more precise predictions about energy consumption. AI enables energy costs to be reduced and operations to be optimized in this way.
Pattern recognition and fraud prevention in banking: Have you ever received an e-mail or text message as a bank customer that someone in the USA has just debited 500 dollars from your credit card and asked: Was that you? Here too, AI and algorithms are running in the background to identify fraud patterns and improve advice through personalized services.
Dynamic pricing through AI in the travel industry: AI applications also decide on flight prices. If you call up a flight connection for the first time, you will be enticed with a low price. If you make this request repeatedly, the price increases. Travel industries use AI for dynamic pricing models that are based on real-time data and maximize profitability. With repeated requests, the AI assumes that your interest is high and your willingness to pay (more) has increased.
Generative AI in business model development
AI applications, especially those with generative AI, are also used when something is created:
Fast prototyping: Tools such as uizard.io allow you to create prototypes of your ideas quickly and easily. These tools use AI to generate functional mock-ups from simple sketches or text descriptions.
Creating customized AI models and tools: Entrepreneurs can use generative AI to develop customized models and tools that address specific business needs and drive innovative solutions. For example, when creating a logo for your business or to provide customized answers for specific applications. We had learned and tested this in the KIK workshop, for example to create the “Future Skills Laura”. This custom GPT helps you identify key skills for the future.
Practical application in the session
Problem space and solution space in education
Generative AI can be combined well with innovation methods and innovation frameworks. For example, design thinking, which is often presented in the Double Diamond model and was once popularized by the British Design Council. The Double Diamond model helps to thoroughly explore the problem space and then navigate through creative solution approaches. One example is the application of this model in the education sector for the development of new learning platforms. In this visual representation, two diamonds represent a process of exploring an issue more broadly or deeply (divergent thinking) and then taking targeted action (convergent thinking).
Creation and evaluation of business ideas with AI
Max applied the model with us using a practical example of finding a new business model in the education sector.
We started with ChatGPT and suitable prompts in the “problem space”.
With the prompt: You are now an expert in design thinking and adult education.
Which 5 megatrends are most relevant for the education sector? we have discovered promising trends in the education sector.
We selected the trend “sustainability” and then used ChatGPT to generate 10 innovative business models, possible target groups and customer benefits, as well as information on market potential and implementation costs.
To illustrate this, Max generated a Python code from ChatGPT to generate a market matrix in matplotlib.
This gave us a visual representation to visually compare and evaluate different business ideas based on certain criteria such as market potential and implementation costs.
What we took away from it: By using AI, companies can make faster and more informed decisions when it comes to developing and evaluating new business ideas.
Benefits and limits of AI in innovation processes
Initial overview and direction set by AI
In Max’s session, it became very clear that AI applications are helpful for developing innovative business models. You can use them wisely to get initial ideas and inspiration. However, you can use AI not only in the early phase of an innovation process to recognize trends or find problems. AI-supported design tools such as uizard.io also help you with rapid prototyping. There are also tools that help you with comprehensive analyses, target group identification, business strategies or provide you with marketing recommendations.
Need to verify the authenticity of AI-generated data
Despite the benefits of AI, it is crucial to verify the authenticity and relevance of the data generated by AI in order to make informed business decisions.
Don’t forget: Exchange with people!
It also became clear that not everything in the innovation process should be done online, because the best way to get real, valuable feedback is through direct interaction with customers and users. Max attached great importance to this.
The live session was a lot of fun.
We can highly recommend Max as a friendly innovation consultant.
Anyone who is now curious and wants to learn more can register for a training course with Max: AI as an innovation tool – open training for innovators and product managers.
