The Importance of Tracking Measures of Value Creation in Companies

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Companies track and measure the value created by automation and productivity gains in various ways, such as counting hours or dollars saved. However, it's important to consider what people are doing with the time saved. Smart organizations assess the economic value of automation, including costs avoided, increased sales, and improved decision-making. Certification from the finance organization is crucial to justify these activities.

New AI technology enables anyone to become a programmer — opening doors to faster analytics and automation but also presenting big challenges. Organizations need policies and strategies to manage the chaos created by what Tom Davenport calls “citizen developers.” Davenport is a professor of management and information technology at Babson College, and he’s been studying how employees are using new AI tools and how companies can both encourage and benefit from this work. He suggests practical ways for team and organizational leaders and IT departments to best oversee these efforts. Davenport is coauthor of the HBR article “We’re All Programmers Now” and the book All-in On AI: How Smart Companies Win Big with Artificial Intelligence.