T a large Indian hospital group had a problem. To optimize spending and enable the organization to provide the highest levels of patient care, she had to analyze hundreds of indicators: patient information, such as age and insurance; clinical data, such as treatment and laboratory tests; operational data, such as food quality and the responsiveness of medical personnel; and financial data, such as costs and revenues. The hospital's management software was limited in its ability to handle this complex analysis. To address this challenge, the CFO installed a new decision-support system powered by machine learning. After action was taken on the resulting insights, patient satisfaction scores increased by 12%, and the hospital group enjoyed significant savings by eliminating activities that didn't add value.
Like the hospital CFO, finance leaders in a wide range of industries are trying to integrate data and analytics into finance office processes to improve operations. However, not all CFOs have cracked the code for capitalizing on the promise of these tools, in particular new machine learning applications. In a 2022 study by Gartner, 80% of CFOs said they believe that finance needs to significantly accelerate implementation of machine learning and artificial intelligence in order to effectively support and protect the business.¹ Why are so many CFOs slow to take full advantage of these technologies, and what can be done to bring them up to speed?
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Denne historien er fra Summer 2023-utgaven av MIT Sloan Management Review.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Avoiding Harm in Technology Innovation
To capitalize on emerging technologies while mitigating unanticipated consequences, innovation managers need to establish a systematic review process.
Make a Stronger Business Case for Sustainability
When greener products and processes add costs, managers can shift other levers to maintain profitability.
How to Turn Professional Services Into Products
Product-based business models can help services firms achieve greater scale and profitability. But the transformation can be challenging.
Do You Really Need a Chief AI Officer?
The right answer depends on the strategic importance and maturity of AI in your company.
Where To Next? Opportunity on the Edge
Doing business in regions considered less stable or developed can pay off for companies. But they must invest in working with local communities.
Make Smarter Investments in Resilient Supply Chains
Many companies invest in resilience only after a disruption. Applying the concept of real options can help decision makers fortify supply chain capabilities no matter the crisis.
The Three Traps That Stymie Reinvention
Organizational identity, architecture, and collaboration can be either assets or liabilities to pursuing growth in new sectors.
What Makes Companies Do the Right Thing?
Vaccine makers varied widely in their engagement with global public health efforts to broaden access to COVID-19 immunizations. Ethically motivated leadership was a dominant factor.
Build the Right C-Suite Team for Your Strategy
CEOs can foster a more effective leadership team by understanding when to tap senior executives' competitive instincts and when to encourage collaboration.
A Better Way to Unlock Innovation and Drive Change
A strengths-based approach to building teams can win employee commitment to change and foster an inclusive, agile culture.
