Artificial intelligence Part 2: Deriving business principles
Conclusion: While the current artificial intelligence (AI) initiatives are data-driven, there are instances whereby the current data is insufficient to predict the future. For example, answering the following questions might be challenging if the available data is only of a historical nature irrelevant for forecasting purposes:
- Q1: What will be the effect on sales if the price is increased by 10 % as of the next quarter?
- Q2: What would have happened to sales had we increased the price by 10 % six months ago?
The purpose of this note is to provide a framework that can be used to derive sales principles to answer the above questions. The same approach can be used to derive other business processes principles such as procurement, customer service and client complaints tracking.