Successful Innovation & Change Based on Artificial Intelligence

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1. How problems faced in human resource management has been solved using AI?

There has been an increase in technological advancement in the field of HR, through machine learning one can expect recruitment and employee management system to be smarter which will be easy to understand, accessible which will solve major pain areas of HR managers. Three existing solution that has been implemented by Marks and Spencer are described below.

1. Human Resource Information System(HRIS): It is an integrated system used to gather, store and analyse information regarding the organizations human resource. It can help HR automate and simplify task, reduce administration and record keeping and provide other HR related information (Agrawal, 2015). It has different components such as recruitment, time and attendance, training and development, performance evaluation, labour relations, payroll interface etc. AI system helps HRIS by making recruitment and record management process automatic and systematic. It lowers the time spent by HR professional in repetitive and unproductive administrative tasks. Another important role which AI can play in HRIS system is that through automatic systems HR decisions can be taken without any bias and it becomes very easy for the organisation and its HR system to measure the return on investment and effectiveness of HR decisions. It has been possible with AI which M&S has already implemented. M&S has started recruiting through online, candidates can take an online test and upload the resume. M&S has successfully implemented this system which has helped in conducting development program and online training from different location and maintaining performance record of the employees centrally. So it can be said that information system has brought efficiency in HR process of M&S.
2. Decision Support System(DSS): It is technology that assists in managerial decision-making by helping decision makers to take timely and accurate decisions by using the unstructured data and models available (Aouadni and Rebai, 2017). M&S has implemented this system for better decision-making. Machine learning is being used for anomaly detection, employee attribution, more personalized employee experience using predictive analytics to recommend career path, professional development (Madhavi Lakshmi and Siva Pratap, 2016). It helps in setting rewards for the employees based on the performance and data analysis of each employee.
3. Management Information System: It is an information system that provides information to all levels of management for running the business smoothly (Taamneh, Alsaad and Elrehail, 2018). It is designed to provide primary and exceptional reports for structured problems. It helps in planning, organizing, directing and controlling. M&S has an up to date information system which is efficient in dealing with the orders, vendors, inventory management, performance improvement etc. (Wiblen and Marler, 2019). AI with automation is implemented across all repetitive manual task to boost efficiency, productivity and drive innovation.\

Model has been used to explained importance of three solutions for growth and expansion of firm and enhancing profitability.  

Tidd & Bessant 4P's model of innovation space

            This tools helps to discover what innovation process can improve and bring to the business. The innovation mix consists of 4 P's which are stated below.

1. Product: It refers to the products and services that the organization offers. At present M&S sells vast range of consumer goods such as clothes, food and other household items. However, there is great potential for organisation to innovate its range of products and services. For instance, new diet food for health-conscious products or mobile application-based booking system can be effective innovation in products and service range of M&S. Thus, the Decision Support System (DSS) can be put into this P as it will help in taking managerial decision with the help of unstructured data.
2. Process: It refers to the changes in the way things are created and delivered. In this, HRIS can be plotted because it is the collection of different functions that can be carried out based on the needs such as training and development, performance evaluation, payroll interface etc. At present most of the services are delivered by M&S through its physical stores. However, organisation has made attempts through online retailing but its effectiveness can be increased by improving its process of service delivery. For instance, organisation can provide mobile application-based services or AI based billing counters in its stores so that operational process can be accomplished quickly. It will enhance the quality and customer satisfaction. Here, HRIS system can be put to use which will help in managing the all the information of the customers.
3. Position: It refers to the changes in context to product and services created (KOUKIS and KOULIOUMPAS, 2015). DSS can be taken in this because all the decisions are taken based on this system and relevant changes are undertaken in the product and services of M&S and employee’s performance analysis and retention decisions. In this HRIS system is best as it will help in monitoring the performance of the employees and in undertaking important changes.
4. Paradigm: It refers to the change in the model under company frames what it does. So, MIS can be put into this as its main purpose is to help M&S from planning to controlling that is from starting till end, which completely changes the way organization works. It will give broad platform to organisation for interacting with its customers and other stakeholders so that organisation can make better decisions. Therefore, MIS solution will be used because it will assist M&S in all the stages of change with a chance to interact with the stakeholders.

2. Coynes 3-Condition

On the basis of Coynes 3-Conditions the 3 solution can be evaluated as follows:

Human resource information system is an intersection through HR software between human resource and information technology (Williams, 2015.). This system can be used in M&S to undertake various small activities such as management of human resource, accounting, pay roll and plan HR cost effectively. In order to gain competitive advantage HR should find new way to manage different type of people with different perspective, should identify the capability of its competitor or the way they are managing human resource. This system assists in creating value chain, trust and reputation and the way M&S manage to the changes. It contains information related to value attribute of employees of M&S that include interpersonal skill, ability to learn new things, ability to work in team and to adapt to change.

Decision Support System it comprises massive analysis information that can be used to solve a problem and thus help in decision-making (Faktorová and et.al., 2019). It supports determination, judgement and course of action in a business activity of M&S. It is either powered by human or completely computerized. Mapping attribute gives competitive advantage in the way human resource are organised in the M&S as per their capabilities. By using such system, it can determine its organization structure and arrangement of people. On the basis of previous endeavour, it can determine its positional capabilities such formal and informal operating system, its roles and responsibility and inter relation between various employee. On the basis of Functional capabilities such as operational, finance and marketing company can assign work to an individual. On the basis of culture capabilities such as their ability to work as a team, its ability to manage change, to be innovative and their preferences.

Management system information provide help manager to efficiently manage, organize and evaluate various department in an organization (Dumoulin and et.al., 2017). It helps in management of project and people, in decision-making by providing relevant information relate to past, present and thus predict future. Sustaining, protection and exploiting competencies it is related to the protection of employees of M&S that include safety and security needs of employee, employee protection act has been implemented or not. Sustainability include issue such as cost of employee, is that employee useful, for how many years the employee will remain in the company. Enhancement include providing continuous training and development of employee to increases their efficiency. Thus enhances employee efficiency within M&S whcih will increase the production and profit of the company. Exploitation is to make optimum utilisation of employee knowledge and skill and it could be used in other way in order to achieve organisational objective.

The above 3 solutions are important for the company has be explained explained through Competency tree or wheel. These are describing below:

Human resource management information: It is a useful system for the HR as it provides information related to payroll, manage account and human resource thus reducing the work load of HR and help him to focus on main activities of the business. It also decided the pay roll of HR and thus help in deciding the payroll to the employee as per their position in the company (Stith-Williams, 2016). So it is value able for M&S as it helps in managing the most important resource of company.

Decision support system: It helps M&S in assigning right person at right job by providing information related to organisation structure and as per the skill and knowledge of the person thus help in decision-making. Thus, it is useful for M&S as it analysis massive data, comply that can be used to male decision and solve various problem (Stith-Williams, 2016). It helps in providing total employee in the organization, the number of employee are to be recruited, new employee, information related to their efficiency so that decision can be taken in such matters in order to achieve goals.

Management system information: It important for M&S as it evaluate past, present and future information and thereby help to evaluate the project or various department (Shapiro. and Noe, 2015). On the basis of evaluation done it provides training and develop to employee, utilize its potential to optimum, satisfy him by providing safety and security thus it helps in achievement of goals of an organization. Thus, it increases efficiency of employee thereby production and profit of company increases. It not only manages people but also enable various department to work efficiently within a company. It is important for a business as it maintain records of various analysed problem and the way they are solved, so they can be used as per the requirements.  

3. How innovation is linked to business success, what can be the future based on AI and how the daily existence of human relationships changes?

Successful innovation needs to be the part of every organization. For business, it means implementing new and innovative ideas, improving services and creating dynamic products. Performance based on innovation is a key driver of business success. Supporting HR and IT so that they can provide training to the employees that contribute to the culture of internal innovation. For achieving success, innovation has a key role to play (Goffin and Mitchell, 2016). First, solves problems easily, sometimes coming up with out of the box answer to solve the problem with which no one has ever come up will make the business better. Second, increase the productivity, getting stuck at something means it's time to be more productive. In order to work smarter, think creatively. Focus on the things that can be streamlined or cut out. Also, focus on the workflows that can be used to increase productivity. Third, beat the competitors, innovative thinking can easily come up with better ways to design products and connect with customers. Creativity will help checking out the right marketing tactic that will help in growing the business. Forth, improves employee’s relation, having pride in the product and the desire for the organization to be at top will reduce workplace turnover and boost productivity which will lead to more innovative idea because employees are the best source of ideas. Fifth, reduce waste and cost, innovation can help reduce waste, that can bring number of benefits, lower cost, better profit margins, increased competitiveness. So it is clear that innovation leads to business success which requires encouragement and proper funding.

The influence of AI is expanding to a greater extent. In the coming decade, most of the HR solution will be highly automated and employers would be investing in recruiting and retaining the best which leads to customized offerings. For example, there are situations when employees as well as customers of M&S may require cognitive support and assistance in decision making. Thus as part of innovation organisation can use AI so that individual can seek their help instead of searching for any other employees. One of the major challenge that can be resolved using artificial intelligence is repetitive task and administrative work, making employees to focus on more creative and meaningful work (Elliott, 2019). This will give humans time to do more complex problem solving, critical thinking and creativity. AI can not only help in removing time-consuming tasks associated with planning, acquisition and management but also by providing consistent processes and strategies on the ground level. It can concentrate on analysis and prediction while focusing on employee's needs and outcomes. Employees can concentrate on the other important task like budgeting, forecasting, formulating employee policies, predictive analysis, research, identifying the required talent and putting in place. Analysing the changes in the environment, planning for the same, meeting up with the time is the major advantage it can have. By using analytical predictions of AI M&S can improve the customer experience and its profit margin. For instance, if any customer has any queries or issues then AI or new innovated mobile application system of organisation can even provide organisational services at odd hours of the day or during holidays.

This transition point from humans to AI or a partnership between humans and artificial intelligence, AI will not only challenge the communication relationship with humans but also human communication in general. There are many predictions about unemployment in the next decade. Task that are monotonous can be easily automated for instance, customer care, call centre, document verification etc. the same applies to the roles related to operations and production support, humans are being replaced by robots for smooth navigations and performing complex assembling operations. Every sector will be impacted by the use of artificial intelligence (Kamar, 2016). In transportation, already in transformation stage, seeing he decreasing demand of the skills. In e-commerce sector, fulfilment centres will be fully automated with robots who will be collecting and executing customer orders and even deliver it to the customer. Importance of sales person will shrink. Even in legal and financial sector, AI will take the task of documentation, verification, typing, extraction. Apart from the negative impact it has there are positive impact as well. It will increase the productivity of the organization through its quick process, with more accuracy which will help in time saving and achieve target. Some jobs will be lost but new jobs will also be created in the role of support and maintenance of AI and robotics devices. But it will also require professional having understanding about the AI and robotics. To cope up with the shift in demand, new skills needed to be acquired because organization have started the research for professionals having the competent skills (Felten, Raj and Seamans, 2018). Artificial intelligence can collect information quickly and understand the patterns that humans cannot. It can increase the productivity by giving companies the prediction about the future opportunities and gives recommendation on how to take action. Companies are using chatbots to answer to the customer needs this enables organizations to spend less money on customer service employees and spend more on marketing, production, sales etc. This is how human relations will be affected or change with the emergence of artificial intelligence and robotics in the workplace which can be beneficial for some and threatening to other.

Future of AI

AI will replace the human needs on every field of business and daily human connection. It will be so advanced that it will outstrip the requirement of the human skills. It includes the solving the logical formulas, medical diagnosis and many other activities which requires decision making. Everything will be so structured and planned that it will reduce the reliance over the humans. The implication of it would be seen especially in the supply chain and manufacturing industry, education, customer service and so forth.  Everything will be advanced and a step far thus, reducing the time wastage so that more focus can eb put in key areas.

For the proposed changes the below model will be applied.

Here predictive HR model is applied which is based upon the people analytics which can assist the HR department of M&S. This model makes se of raw data which will help in introducing new strategies resulting in attaining success. This model will help in promoting high value employees, enhancing the employee engagement and performance level and making an investment into right type of training and recruiting the right talent. This can be easily done by following three points stated below:

• Considering the struggling areas
• Designing around the pain points
• Rolling out the changes

CONCLUSION

From the above analysis, it can be concluded that Artificial intelligence and robotics is the new way of doing business. It has entered each and every sector having pros and cons and to remain in the market it is important to grab the skills and changes required. It is a very exciting field as it is full of innovations and creativity. It is for both employees and business. In this way business can be successful.

 

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