AI in Decision Making

 

Alta Via Consulting's proEO provides your business a better understanding of it's financials based on principles adopted by global accounting bodies.

"The digitalization of information provides management accountants with the opportunity to leverage AI for better decision-support capabilities using causal, real-time information."

Artificial Intelligence (AI) for Decision Analysis in the Digital Age

The 21st century is shaping up to be the century when everything will be digitalized. And with digitalization comes a plethora of other technologies that will impact all of us in many different ways. Consider all the articles and webinars on IOT(the Internet of Things) or robotic process automation and artificial intelligence. These technologies will have a significant effect on our jobs.

If history is any guide, digitalization will impact your professional life in well under 5 years, which was how long it took smartphones to reach 25% of the population some years ago. (https://marketrealist.com/2015/12/adoption-rates-dizzying-heights).

Technology Adoption Chart

Those concerned with optimization must plan and engage so they can use digitalization (and its spin-offs like AI) to maximize their organization’s decision support capabilities. This will mean focusing on greater engagement in strategy, optimizing organizational outcomes, and value creation.

AI will significantly affect decision making in organizations. The question is: How will your organization fare as AI reshapes the nature of work, analytics, and decision support? There are only two choices: adapt or die. Digitalization of information and AI is a runaway freight train coming at us. We need to understand how and where it is creating change and opportunity to prepare, adapt, and use it effectively.

We are amid an evolution in the processing and use of information. The search term ‘digital twin’ garners almost half a billion hits on Google. Digitalization provides many benefits, not the least of which is a 20 to 30% reduction in system, process, and product development costs. Digitalization will also revolutionize how we work. Consider the switchboard operators from yesteryear. A job, around for more than a century, that succumbed to digitalization. Decision support information link operational quantities and their monetary impact to provide optimization insight. General ledgers and historical financial reporting are obsolete for internal decision use. Decision-makers need causal and real-time information. The digital twin provides the foundation for integrating operational and financial information in a way never seen before.

The following are three examples of AI in action given current capabilities.

proEO Profit Maximization

proEO's profit maximization tools help decision-makers optimize their product mix. This tool allows forward-thinking executives to develop and plan product or service mixes to optimize profitability in a variety of scenarios and economic conditions.

 

 

Decision Support Integration

In this brief demo see how proEO can help drive decision making using predictive analytics in manufacturing

 

 

Predictive Analytics are key to a competitive manufacturing company. Preventing unnecessary downtime, reducing rejects due to tool wear and other maintenance items.

proEO helps decision-makers determine the best course of action based on real data from the manufacturing floor and connecting it to financial data. This data combined with Alta Via's costing principles allows for a better use of information.