Many companies are in big financial trouble since the beginning of the Covid 19 pandemic and even more after the democratization of AI started online in 2022 with the launch of ChatGPT.
One of the main problems they face is that their organizational costs are much too high in comparision with online platforms for instance. What are organizational costs?
Organizational costs are the costs or expenses of creating an organization, running, growing and scaling an organization. Measured in money, time and energy.
Many large corporates and governemental organizations are used to be able to charge out all their costs including organizational costs in terms of money, time and energy to their customers.
Managing, coordinating and collaborating internally and externally cost money, time and energy.
There are actually two types of organizational costs looking at it from a cost structure and revenue model perspective in designing and implementing a new AI-powered business model: necessary costs and unnecessary costs. Especially if you want to succesfully manage a crisis like the Covid-19 pandemic.
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A good example of that last category is the possession during Covid-19 of physical assets like expensive office space in the centre of very expensive towns or many layers of unnecessary senior management and middele managers. Many C-level executives and senior and middle managers ‘discovered’ that everybody could actually work and collaborate very well working from home or remotely in general:
Using tools like Zoom, Skype and Teams in a ‘virtual organization’: What is a virtual organization?.
Something many online platforms, startups, scale-ups and other new companies using the virtual organization as a basic organizational design, already discovered a long time ago. And that is why they have much lower organizational costs than large corporates and public institutions. And that explains why they are much faster than large traditional organisations.
Contact me today.
If you have any question or request on how you can use ICT to lower your organizational costs using ICT and AI as part of defining and implementing your new AI-powered business model with the AI-model canvas, how to define the best Ai-strategy for your company and how to turn your current organization into an externally and internally aligned AI-powered company using AI and fast, please do not hesitate to call me on Skype on tony.de.bree, on 0031634387806 or email me here for a free intake.
Kind regards,
Tony de Bree
p.s.
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