Posts Tagged ‘Chapter 12: Compounded Value’
ACT II. How Value Actually Forms, Drifts, and Becomes Credible
Topics in this chapter: Business cases (2) · AI ROI (1) · Value realization (1)
A Shortfall in Year One Costs More Than One Year of Value
A value shortfall is booked as a one-time variance. Because value compounds, an ungoverned year removes the base the next years would build on, and only a multi-year record of realized value shows the loss.
Read MoreBusiness Cases Add Up Gains That Actually Multiply
Business cases add their improvements together, but the improvements multiply through one another. The additive case understates the value available and hides how a shortfall in one term pulls down the rest.
Read MoreAI’s Second Wave Is Being Funded by Savings Nobody Checked
When wave two is funded by wave one’s unverified savings, the claims compound and the value does not. Bain finds 44 percent of large companies funding AI this way.
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