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Organizations With Innovative Cultures Have Significant Advantages with Generative AI 

January 17, 2024

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Organizations With Innovative Cultures Have Significant Advantages with Generative AI 

The artificial intelligence (AI) landscape is ever-transforming, and having an innovative culture within your organization may be advantageous in harnessing this technology, especially its branch of generative AI (gen AI). 

This resource will highlight the significant advantages of generative AI through an innovative culture. We will dig into how companies embracing creativity, experimentation, and a supportive environment tend to leverage generative AI more effectively.  

We will also highlight how innovative environments encourage risk-taking, continuous learning, and adaptability and, in doing so, maximize the potential of generative AI to drive innovation, problem-solving, and transformation within various industries. 

The Age of Generative AI is Here 

Generative AI is now transforming how we work. Automating some of our tasks has empowered our capabilities as individual workers. McKinsey previously estimated that gen AI can automate half of the time people spend on work. Still, their latest research found that it can now automate between 60 to 70 percent of our responsibilities.¹ 

All industry sectors are expected to be significantly impacted by generative AI. About 75 percent of the value that generative AI use cases could deliver covers four areas: marketing and sales, software engineering, customer operations, and research and development (R&D). 

McKinsey found 63 use cases across 16 business functions. These use cases can address specific challenges encountered by organizations in a way that can produce measurable outcomes. For example, gen AI can support customer interactions or generate creative content for marketing. 

Everyone discusses generative AI and how it can improve business results, but top innovators aren’t just talking. They are doing something. Thirty percent of the strong innovators McKinsey surveyed said they are deploying generative AI in their R&D and innovation functions, over six times the rate of organizations lagging in innovating.² 

The statistics underscore generative AI’s wide use and it’s evident that generative AI isn’t merely a trend—it’s a strategic necessity for staying ahead in the competitive landscape. Leaders who prioritize its integration position their organizations to lead in innovation, efficiency, and sustained growth. 

The 4 Pillars of Innovation: What Makes a Culture Innovative? 

According to Gallup, 61 percent of US employees strongly agree that their employers expect them to be creative.³ To succeed in creating an innovative workplace, leaders must foster innovation and infuse creativity in their culture at work. Here are the four guiding principles of innovation that Gallup found. 

Related Reading: 6 Reasons Why Soft Skills are the Key to Resilience in an AI-Forward Era 

1. Strategy 

Leaders should communicate their vision for intrapreneurship and innovation through words and action. A clear vision for innovation can help employees form ideas and quickly test, improve, and scale them into marketable services and products. 

Organizations should also invest in innovation. Consider factors like market conditions, industry demands, and company portfolio. 

2. People 

Encourage people by letting them know it’s okay to make mistakes, as this is where learning can come from. Cultivate innovative mindsets, creating an atmosphere where employees are empowered to try, fail quickly, and learn from mistakes. 

Gallup, unfortunately, found that only 18 percent of US employees strongly believe they are allowed to take risks at work. 

To address this problem, organizational leaders can publicly celebrate employees’ efforts in innovation. Ensure that you treasure diverse ideas and incentivize innovation through your processes. 

3. Processes 

Take advantage of digitization and automation in your processes to simplify things. This can help your team determine customer needs and react with fewer repetitions. 

Leaders should be confident that their systems increase innovation instead of hindering it. Through internal communication, you can make your teams aware and aligned on where and how to focus innovative efforts. They should also be guided on when to shift and what to do next when they form great ideas. 

4. Structure 

Having a physical space for innovation is also essential. Leaders can encourage creativity and innovation by providing dedicated, well-equipped spaces at work. 

Employees can access innovative tools such as glass walls and flipcharts, encouraging them to make the most of their ideas. Leaders may also allot part of their employees’ working hours for innovation. 

Innovation in the Age of Generative AI: Strategies to Implement 

McKinsey’s survey of over 1,000 respondents found a strong connection between businesses with a strong innovative culture and their capability to increase value through generative AI and other latest digital technologies. 

Here, we’ll explore five actions taken by top innovators. 

1. Ask the right questions. 

Top innovators already use other AI forms, and their teams know about understanding algorithms to speed up gen AI. They understand the “garbage in, garbage out” trap that gen AI can create and are already familiar with the roles it can play and those that it can’t. They are also four or five times more likely than their weaker peers to have tech-savvy leaders.  

Start by mastering the effective leverage and deployment of new technologies to create value within your organization. Cultivate an agile environment where your teams possess the capability to write their own codes. Embrace the advantages offered by generative AI’s faster self-writing code, empowering your teams to be well-prepared for swift deployment and gain a nuanced understanding of the benefits and limitations of AI technologies. 

2. Weed out wrong answers fast. 

Top innovators “fail fast, ” which is vital in the era of generative AI. Organizations that fail fast have a culture where they pull the plug on things that don’t work for them to move on to the next ideas. They are nine times as likely to possess hundreds to thousands of cross-functional teams with a comprehensive end-user view of their business.  

This means spotting wrong answers is key instead of focusing on asking the right questions. Ensure your organization develops a culture of testing and learning at all levels. By encouraging risk-taking—something executives should believe in three times more—your business will be adept at swiftly identifying and discarding unsuccessful approaches, paving the way for faster innovation and success. 

3. Ceaselessly build propriety data. 

McKinsey also found that top innovators are five times more likely to have products, customer interactions, and internal processes designed for data capture. These leverage both external and internal data. 

This means that through running generative AI, they can access sources of insight that others don’t. These help them get better answers. 

They are also five times as likely to have established DevSecOps practices that help them protect their data, comply with regulations, and prevent the accidental leak of propriety data into more public algorithms like ChatGPT. 

4. Empower the organization to learn quickly. 

It is not surprising that top innovators succeed in this area. The ability to quickly learn almost defines what it’s like to be a successful innovator. Top innovators are eight times as likely to have harnessed agile practices within their organization. This includes teams beyond information technology. 

Imagine implementing agile methodologies not only in IT teams but across diverse departments, creating a culture of rapid learning and adaptation. 

5. Reinforce crucial “no human touch” workflows to utilize generative AI’s speed. 

On top of assisting organizations with the ability to search through huge data sets to look for answers quickly, generative AI’s ability to learn and evolve is one of the most discussed benefits of the technology. This includes codes that write themselves. 

Organizations in unregulated industries have already figured out the fundamental workflows and assigned people, mindsets, and processes to empower them. These are the organizations ahead in leveraging generative AI’s speed. 

Related Reading: 2024 and Beyond: 8 Ways to Foster Generative AI Proficiency in 2024

Stay Ahead with a Culture of Innovation in Generative AI 

An innovative culture serves as the foundation for asking the right questions, a prerequisite for leveraging the true potential of generative AI. Remember to rely on the four pillars of people, processes, strategy, and structure to build an innovative culture where everyone can thrive with their creative ideas. 

ACCESS THE EXPERTISE OF INNOVATIVE PEOPLE WITH RASO360 

Generative AI success can be found if you have the right people to oversee its use. Embrace the AI era with Raso360!  

Our team of experts can help you match with the right people. Our goal is your pride – placing individuals in roles they love, enhancing productivity, and achieving milestones faster. 

Build your future-ready team by contacting us today

References 

1 “The Economic Potential of Generative AI: The Next Productivity Frontier.” McKinsey & Company, 14 Jun. 2023, www.mckinsey.com/capabilities/mckinsey-digital/our-insights/the-economic-potential-of-generative-ai-the-next-productivity-frontier#key-insights

2 Banholzer, Matt, et al. “Companies with Innovative Cultures Have a Big Edge with Generative AI.” McKinsey & Company, 31 Aug. 2023, www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/companies-with-innovative-cultures-have-a-big-edge-with-generative-ai

3 Taboada, Gerard. “Innovation Can’t Wait — Create It With 4 Guiding Principles.” Gallup, 12 Jun. 2020, www.gallup.com/workplace/312593/innovation-wait-create-guiding-principles.aspx

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