Ai Projects
Case E: Artificial Intelligence
Executive Summary
The company selected is Google, which is among global leading companies in IT sphere, offering different IT services, such as internet search, advertisement, mobile app development, communication services, maps, etc. Artificial intelligence can become a relevant tool to support the company’s innovative nature in the nearest future; moreover, the company is already making some endeavors in AI sphere. Currently, the company is a leader in the search engine market, and it has good positions in other markets, such as the market for mobile OS. Owned by Alphabet, which currently does not have good financial health, Google may face issues with development and implementation of new AI programs. Based on the analysis, Google was provided with three recommendations: to continue working on its existing AI projects, to consider ethical issues related to AI and, if previous recommendations are followed, to start new AI projects in 2020. Due to that, Google will be able to improve its financial situation, find new customers and continue growth in global markets.
Impacts of Artificial Intelligence
Google is an innovative company that is often considered a pioneer in different IT spheres. Thus, the use of artificial intelligence can help it to support its image and contribute to further development and growth. Currently, Google is already working on various AI projects and developments, including smart devices, apps, and machine learning. As the CEO of Google states, “Machine learning and artificial intelligence are unlocking capabilities that were unthinkable only a few years ago” (“Bringing the Benefits of AI to Everyone”). Thus, the strategy can be further expanded to benefit the company. However, some potential negative impacts of AI application should be considered as well. In particular, they may include potential fails or issues with AI, which can affect the company’s reputation. Moreover, development and further support of AI may be costly for Google.
Strategic Focus
To create a modern and dynamic artificial intelligence system, to support the future development and growth of the company, and provide benefits to customers.
Environmental Scan
Opportunities to Create Value
|
Strategic Area: |
Opportunities for Creating Value: |
Challenges for Creating Value: |
|
Accounting |
· Using different models in different segments |
· Following all standards within a huge company |
|
Operations & Business Logistics |
· Offering new products |
· Growing power of competitors in different markets |
|
Finance |
· Multiple sources of revenue for further growth |
· Financial crises · Instabilities in foreign markets |
|
Management |
· Professional managers · Focus on multiple areas and acquisitions |
· Difficulties in management due to the involvement in multiple industries and global operations |
|
Marketing |
· Promotion of new products based on loyalty to existing ones |
· Failures to promote new products, if there are many competitors |
Industry Dynamics
Based on Porter’s Five Forces, an assessment of the industry forces is the following:
|
|
Low |
Moderate |
High |
|
Threat of new entrants |
|
X |
|
|
Bargaining power of buyers |
|
|
X |
|
Bargaining power of suppliers |
|
X |
|
|
Threat of substitutes |
|
|
X |
|
Rivalry among existing firms |
|
|
X |
Environmental Scan Summary
Environmental scanning means a deep study of the company’s internal and external environments with the aim to find threats and opportunities that may influence its future development. Google is an international company that is represented in many IT markets, and its main competitors are Apple, Yahoo, Facebook, IBM and many others. Currently, Google leads a successful business, as it is represented in many industries and has substantial competitive positions in many of them. It offers a search engine, a browser, mobile OS, maps, mailing and messaging services, etc. For example, the market share of Google search engine in the world is about 87% (“Worldwide Desktop Market Share”). One more popular product of Google, Android OS, is also a leading one in the global industry; in 2017, its share amounted to 87% (“Global Market Share”). The financial health of Google will be determined by indicators of a holding company Alphabet. Generally, the company is not financially stable enough. Despite the growth of revenues from $74 billion in 2015 to $111 billion in 2017, its net income dropped during the same period from $16 billion to $12,7 billion (“Alphabet Inc.”). Moreover, the correlation of total liabilities to total assets grew from 18,4% to 22,7% (“Alphabet Inc.”). Because of worsening of the owner’s financial status, Google may have issues with further development and implementation of its new AI projects. In general, Google has good opportunities to continue its growth and expansion. The company can continue development and support of its existing products, especially the popular ones. It can also offer new products for its customers, including AI products. However, its further development can be limited by the financial situation of Alphabet, because due to declining profitability and growing indebtedness, Google may lack money for further products’ evolution.
Recommendations
Recommendation #1: To continue AI projects and policies.
Currently, Google has several projects related to AI, and the company should continue working on them. Some substantial implementations should be performed from 2018 to 2020.
Benefits and Anticipated Results
The image of Google is based on innovation and customers’ loyalty, and AI projects will support the image. Currently, Google has such AI projects as Teachable Machine, AIY kit and a library for machine learning (“Bringing the Benefits of AI to Everyone”). Those projects are interesting and have good prospects for future. Thus, it would be good for Google to continue working on them, as a certain amount of efforts has already been invested in them, and they require fewer costs. At the same time, the company should consider its current financial situation, because resources for the projects may be limited.
Recommendation #2: Consideration of ethical issues related to AI.
While working on all projects related to AI, Google should consider ethical issues that may occur in each particular case. It should be done from 2018 to 2020.
Benefits and Anticipated Results
Currently, Google focuses on potential ethical issues related to the use of AI and has created some projects with the aim to study and minimize such issues. In particular, the company owns a subsidiary DeepMind, which investigates the potential ethical issues with AI and its impact on society via its formal research group that was formed in 2017 (Vincent). The project has a beneficial nature, because in case some ethical issues related to AI occur, consumers may reject the projects, which will affect the reputation of Google. Thus, the company should continue working on DeepMind, as well as develop new projects aimed to study potential issues associated with AI application. Taking such measures, Google will prove the image of an ethical company.
Recommendation #3: Developing new AI projects.
If the first two recommendations are followed properly, Google will have different successful AI projects, which will be ethically appropriate at the same time. The implementation of the recommendation can be started in 2020.
Benefits and Anticipated Results
Google can develop new AI projects based on current needs and interests of potential customers and the society as a whole. With the development of technologies, AI will be required in many industries and social spheres. Thus, the company can use its huge potential to fill the gap in demand. The number and scope of new projects should be based on the current financial situation and its trends. The company will benefit by improving its reputation and proving an image of an innovative enterprise. Moreover, the new projects will ensure an increase in new customers, which can boost its sales and financial results.
Implementation Plan and Action Steps
|
Action steps |
Who |
When |
Outcome |
|
1. Continue working on current AI projects |
Google and its subsidiaries |
2018-2020 |
Popularizing existing projects and finding new customers |
|
2. Improve ethical considerations |
DeepMind and new subsidiaries |
2018-2020 |
Improving an ethical image of the company and its AI projects |
|
3. Start new AI projects |
Google and subsidiaries |
2020-2025 |
Finding new customers for the new projects and improving the image of innovative company |
Timeline
|
2018-2020 Continue working on current AI projects |
2018-2020 Improve ethical considerations |
2020-2025 Start new AI projects |
Balanced Scorecard
|
Strategic priorities |
Objectives |
Measures |
Targets |
Initiatives |
|
Financial |
· Net income growth · Reduction of indebtedness |
· Net income · Total liabilities to total assets ratio |
· $16-18 billion · 18%-20% |
· Sales growth · New products and markets |
|
Customers |
· Increasing customer satisfaction · Increasing loyalty |
· Market shares · Percentage of satisfied customers |
· Growth by 1-3% for each product group · Growth by 5-7% |
· Considering ethics · Development of new products |
|
Internal |
· New AI projects |
· Number of new projects |
· 2-4 each year |
· Employee training and education · Acquisitions of innovative companies |
|
Learning and growth |
· Professional employees and teams |
· Level of employee education · Percentage of employees who develop innovations |
· College or university, academic degrees · Growth by 5% annually |
· Internal employee training · Subsidizing education |
KPIs
For Google’s implementation of AI projects, the key KPIs should include customers’ loyalty to the company and AI projects in particular. They should also include financial indicators that display the company’s profitability and each of its AI projects.
Conclusion
In this strategic brief, a review of the current situation of Google and artificial intelligence use within the company was provided. Based on the deep analysis of the current situation and trends, recommendations for improvement of AI projects were made. The company was recommended to continue working on its existing AI projects, because they are prospective. It was also recommended to consider potential ethical issues related to the use of AI, as well as to consider current financial issues in planning AI projects. If those two recommendations are completed and positive trends are outlined, starting from 2020 Google can participate in new AI projects depending on the actual demands and social needs. Participation in AI projects can help Google to support its image of an innovative and ethical company, as well as to promote its further development and growth.
You can Buy Case Study on this or any other topic at 123HelpMe.org. Don’t waste your time, order now!
