2.3 The AWS‘ Well-Advised’ framework – articulating AI value to the board
Well-Advised was proposed in 2016 as a business-focused counterpart to AWS’ Well-Architected Framework and has become even more critical in the AI era – because AI’ s value creation patterns are more complex, multi-dimensional and strategic than any previous technology transformation.
While Well-Architected guides technical teams in building secure, high-performing cloud infrastructure, Well-Advised addresses what executives and boards care about: business value creation. It provides a structured approach for articulating and measuring value creation across five key business pillars that resonates with boards and executives universally.
2.3.1 Innovation and new products The first pillar is Innovation, New Products and Services, and Market Entry. This answers questions like:“ Can we create new revenue streams? Can we enter previously inaccessible markets? Can we build competitive differentiation?”
2.3.2 Customer value and growth The second pillar is Customer Value and Growth. This answers the questions:“ Will this improve customer satisfaction and loyalty? Can we attract new customer segments? Does this enhance our value proposition?”
2.3.3 Operational excellence The third pillar is Operational Excellence and Efficiency. This answers the questions:“ Can we reduce costs and improve margins? Will this increase productivity and quality? Does this optimise resource utilisation?”
2.3.4 Responsible business transformation The fourth pillar is Responsible Business Transformation. This aligns with ESG commitments and answers:“ Can we ensure ethical and fair outcomes of the work that we’ re doing? Will this improve stakeholder trust?”
2.3.5 Revenue, margin and profit The fifth and final pillar is Revenue, Margin and Profit. This answers:“ What’ s the direct financial impact of this initiative? Can we measure concrete returns?”
A single AI initiative can simultaneously: enable new products( innovation pillar), improve customer experience( customer value pillar), reduce operational costs( operational excellence pillar), ensure fairer decisions( responsible transformation pillar) and create new revenue streams( revenue and profit pillar).
2.4 Pillars of AI capability – a checklist
The Five Pillars isn’ t another assessment framework – it’ s an execution reality
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