The Strategic Reality Check Every Business Needs
Harvard Business Review just published a game-changing reality check that every entrepreneur rushing into AI needs to read. Despite AI's explosive popularity and transformative potential, it's only successful in solving problems with very specific features, not every business challenge you face.
Researchers Paolo Cervini, Chiara Farronato, Pushmeet Kohli, and Marshall W. Van Alstyne have created a framework to help organizations identify which problems AI can actually solve effectively. Their guidance focuses on three critical questions: Is this the right problem for AI? Can we adapt the solution when context doesn't align perfectly? Will this project deliver meaningful business or societal benefits?
The article challenges the current hype-driven approach where companies adopt AI simply because competitors are doing it. Instead, it advocates for strategic evaluation before investment, potentially saving businesses from costly mistakes and failed implementations.
This isn't about dismissing AI's potential, it's about being smarter with your innovation investments. The framework helps separate genuine AI opportunities from problems better solved with traditional methods or human expertise.
How This Impacts MSMEs in Malaysia
Malaysian small and medium businesses are facing intense pressure to "go AI" or risk falling behind, but this pressure could be leading to expensive mistakes. Many MSMEs are investing in AI solutions without properly evaluating whether AI is even the right tool for their specific challenges.
With limited budgets and resources, Malaysian entrepreneurs can't afford to waste capital on trendy but ineffective AI implementations. A failed AI project doesn't just drain money, it creates skepticism among staff and delays real digital transformation that could genuinely help your business.
The good news is this strategic framework offers a lifeline for budget-conscious businesses. By properly evaluating problems before investing in AI, you can focus resources on initiatives with the highest probability of success and ROI.
Consider a local retail business rushing to implement AI inventory prediction when their real problem is inconsistent supplier data, a problem better solved with process improvement. Or a restaurant investing in AI-powered ordering when their customers actually prefer human interaction and the real bottleneck is kitchen workflow.
For Malaysian MSMEs competing with larger corporations, smart AI adoption becomes a competitive advantage. While big companies can afford to experiment and fail, your business needs to get it right the first time.
What You Should Do to Adopt This Strategic Approach
Start by listing your top three business problems and honestly asking: does this require pattern recognition, prediction, or automation that humans struggle with? If your problem is actually about unclear processes, poor communication, or lack of basic digital tools, fix those first before considering AI.
Create a simple evaluation checklist based on the HBR framework: Do you have sufficient quality data for this problem? Is the problem repetitive enough that AI adds value over human judgment? Can you measure success clearly to know if the AI is working?
Consider starting with a paid consultation from AI experts who can objectively assess your business challenges. A few thousand ringgit spent on proper evaluation could save you tens of thousands on inappropriate AI implementations.
Pilot small before going big, test AI solutions on one department or process before company-wide rollout. This approach aligns with Malaysian MSME resource constraints while building internal confidence and expertise.
Partner with consultants who understand both AI capabilities AND business strategy, not just tech vendors trying to sell you their product. The right partner will sometimes tell you "AI isn't the answer here" and suggest better alternatives, saving you money and building trust.
Reference
https://hbr.org/2024/12/is-ai-the-right-tool-to-solve-that-problem
Ready to make smart AI decisions for your business? Infinitee Solutions helps Malaysian businesses evaluate and implement AI strategically, ensuring every ringgit invested delivers measurable results. Contact us for a no-obligation consultation today.