Critically evaluate these statements, with some focus on strategic cost planning for competitive advantage.

A)      Artificial Intelligence Goes Mainstream

“A confluence of forces has propelled artificial intelligence into the business mainstream. Add it to the growing list of potentially disruptive forces CIOs can introduce into their organizations for commercial benefit.

The term artificial intelligence (AI) —referring to the use of computer systems to perform tasks that normally require human understanding—has been around for nearly 60 years. But only recently does AI, and its offshoots cognitive computing and cognitive analytics, appear to be on the brink of revolutionizing industries as diverse as health care, law, journalism, aerospace, and manufacturing, with the potential to profoundly affect how people live, work, and play……..”

“But imagining the possible is not just about the opportunities. Executives need to put on their “paranoia hat” and envision where AI has the potential to disrupt their business or even their entire industry. Now is the time to have this discussion. In three to five years, it may be too late.” Wall Street Journal

Task

 

Critically evaluate these statements, with some focus on strategic cost planning for competitive advantage.

Full article can be accessed at https://deloitte.wsj.com/cio/2015/07/29/artificial-intelligence-goes-mainstream/  (750 words)

 

B) FT Article on launch of MOIA in Hamburg, Germany.

                MOIA, Volkswagen’s answer to Uber and Lyft, launched operations in Hamburg on Wednesday (9th January) and said it eventually wants to offer its pooling services in 50 cities across Europe and the US. Progress has been slow for VW’s ride-sharing arm since it said two years ago that the unit would generate a substantial share of its sales revenue by 2025, with services until on Wednesday only offered in Hanover. The MOIA operations launched on Wednesday in Hamburg are only in a pilot phase for select users. In April, a fleet of 100 vehicles is set to launch across Hamburg, ramping up to 500 vehicles within 12 months. “It’s our ambition to go into global scale, but we don’t want to scale our mistakes,” said Ole Harms, chief executive. “It’s still early days, there is still so much to learn. We want to make the business model robust before we go upscaling. That’s a guiding principle for us.”

https://www.ft.com/content/9bba9fa0-1424-11e9-a581-4ff78404524e