5/5 (1)

Today’s business world is filled with  buzzwords like “Blockchain” and “AI” and we encounter the existence of new innovative technologies on a daily basis. But do you as a business always need an amazing new technology in order to maintain growth? I don’t think so. Companies are able to extract successes by improving their business models and thereby the way they make money.

Of course, comping up with an groundbreaking new technology might enable for a big boost in the growth of the company without a doubt. Nevertheless, if we dive deep into the truly embedded roots of the company, looking at the true engine mostly gets down to its business model. This is the foundation and the fuel of the company. Especially transforming the traditional business model into a digital one, is a promising transformation a business can take on.

For instance, let’s look at Domino’s. We all know them from their American pizza’s with thick crusts and their delicious cinnamon rolls. However, what you might not expect is that Domino’s was on the brink of bankruptcy in 2008.

Now, more than 10 years later, Domino’s shares are worth 80 times (!) more than back in the day in 2008. How come? It all started with their new digital business model: e-commerce. Domino’s digitized its business model by enabling customers to order their pizza’s via digital platforms instead of only through the phone or in the store. Furthermore, going online enabled the company to add multiple features in the platform such as a personal profile and loyalty programs.

This in turn, led to more transactions and improved the whole customer experience by making ordering pizza an enjoyable experience.

The take-away is that this whole new business model enabled Domino’s to create a new brand image and  improved their customer value propositions by turning their old and conservative business model into a digital one, just in time to not go bankrupt.

 

References

https://hbr.org/2018/12/digital-growth-depends-more-on-business-models-than-technology

https://hbr.org/2008/12/reinventing-your-business-model

https://www.entrepreneur.com/slideshow/333374

5/5 (3)

Fast forward to a couple months from now, we are done with our BIM masters and now have to take the jump into the adult life of working. We expect to send our resume, a letter of motivation and then wait for the call that tells us we are invited to go see the HR people from the organization. However, instead of talking to an actual person, we now have to interact with a computer by participating in AI games and talking to cameras, in order for the organization to get a sense of your capabilities, personality and ambitions. Sounds weird right?

It is actually not. The usage of artificial intelligence within HR and recruitment has been prominent since a couple of years. There are several ways of the usage of AI during the recruitment processes.

To begin with, it is nowadays possible to automate the way we search for candidates. With the usage of AI, recruiters are able to analyze more than 300 million social profiles at a time. Not only the search has been made easier, but AI also enables recruiters to send automated and personalized messages to candidates.

Besides this automation, companies are also able to created personalized value propositions that are uniquely made for every applicant. Because every candidate is a different person, what would be of value for one candidate, would not necessarily mean it is of value for the other. Which is why with these personalized value propositions for employees (EVP) it is possible to adapt these to the various applicants and to create a unique and customized experience.

Although this all sounds really innovative and cool, we have to ask ourselves, would this actually work and what is the goal of it? As AI becomes bigger, so does the understanding of it. People are more conscious about these different techniques and therefore they might feel that the messages they get are being automated and not as personal as they should be. Hence, this could also work counterproductive to the actual goal of using AI in recruitment processes. Furthermore, research has shown that actually this usage of automation has in the past privileged men over women, which is very undesired. Moreover, what is the point of changing your value proposition for every applicant? Don’t people apply because they like your company, not because you manipulate them into believing they like your company?

Taking this into consideration, AI is a wonderful way to make recruitment easier and interesting, but it is definitely not yet where it should be in order to solely rely on AI for these recruitment processes.

 

Sources:

https://harver.com/blog/machine-learning-in-recruitment/

https://harver.com/blog/ai-in-recruitment-2019/

https://www.sciencedaily.com/releases/2019/09/190906134000.htm

https://www.michaelpage.co.uk/advice/management-advice/attraction-and-recruitment/create-great-employee-value-proposition