After a recent training session, an attendee asked a question we’ve been hearing in one form or another quite a bit lately. Paraphrasing, the theme of these questions sounds something like this:
“Everyone at my company is beating the drum about using AI anywhere and everywhere, like it’s the only thing that matters. Should we just get on the bandwagon and go along to get along? Or should we push back and continue to focus on what we know is most important and valuable?”
It’s a fair question. Because if you’ve been around for any length of time, you’ve seen this pattern before. Something new and shiny comes along and suddenly all the air gets sucked out of the boardroom. Whatever the new thing happens to be…big data, ecommerce, business intelligence, digital transformation, whatever…it becomes the only topic anyone wants to talk about or focus on.
Then, seemingly overnight, the stated priorities shift. Budgets get redirected. Every initiative gets reevaluated for so-called “alignment.” And along the way, a lot of really important and valuable work is quietly moved to the back burner or shuffled off to the sidelines.
Now, don’t get me wrong…artificial intelligence is very powerful…and it will no doubt prove to be extremely valuable and transformational in most, if not all, commercial settings.
But…is it more valuable than having a robust price segmentation model that allows you to surgically increase margins without risking revenue? Is it more valuable than boosting willingness-to-pay by putting more compelling value messaging into the marketplace? Will it generate more financial gains over the next twelve months than improving the negotiation skills of your deal-makers? And will it boost margin performance in the next year more than modifying the incentive comp plan to include metrics around price attainment?
You see, that’s the rub with the bandwagon effect. It creates this sort of false dichotomy, where it seems like it’s an either/or proposition. Either you forego your previous plans and get on board with the new thing, or you’ll be viewed as an obstructionist who just doesn’t get it and is hopelessly behind the curve.
So…should you push back? Not really. Should you just go along with everything? Not exactly. The most pragmatic answer is that you should jump on the bandwagon and then just steer it in the direction you want to go!
Instead of starting with the technology and asking, “Gee, what can I do with AI?”, start with your strategic priorities and ask, “How can use AI to finally accomplish the big things I need to get done?”
This shift in perspective changes everything. It puts AI into its proper place as a means to an end, rather than as an end unto itself. It allows you to continue focusing on developing the pricing capabilities that are proven to drive tangible business value, while still satisfying the organizational need…or compulsion…to jump aboard the latest innovation train.
Of course, there’s a political advantage to doing this…
By positioning your pricing initiatives as being aligned with the company’s AI push, you can tap into all of the energy, enthusiasm, and investment that management is suddenly willing to cough up for any and all things “AI.” By wrapping your strategic pricing initiatives in AI appeal, you can garner more organizational support for doing many of the big things you’ve wanted and needed to do for years.
But beyond the political benefits, there’s also a very practical advantage…because in its fullest form, AI really can help execute the big things you want to do!
As we explain in Making Sense of AI for Pricing, artificial intelligence is actually a much bigger and broader set of technologies than just the language-focused chatbots that are most visible at the moment. From automating onerous pricing processes and manual workflows to conducting sophisticated data analysis and predictive modeling, the combination of these technologies makes very powerful pricing solutions not only more possible, but also more timely and cost-effective.
So if you haven’t done so already, I encourage you to review the Making Sense of AI for Pricing training session. Learn all you can about the different flavors of AI, what they are best suited for, and how they work together in operational solutions. Study the real-world application examples and use-cases to better understand what’s possible in the realm of B2B pricing.
Then climb aboard the AI bandwagon, take the wheel, and steer it toward your most valuable pricing initiatives!
Making Sense of AI for B2B Pricing
There's no doubt that artificial intelligence will transform nearly every aspect of sales and revenue operations. How do we cut through the hype and harness AI to generate improved pricing results and business outcomes?
The B2B Pricing Blueprint
In this webinar, we'll explore strategic insights and lessons learned from experienced professionals to build...or rebuild...highly effective B2B pricing functions based on today's best practices.
Aligning Pricing to Business Strategy
How do you ensure that your pricing and the overall business strategy are properly aligned? And what should you do when there's a disconnect?
