“Perhaps the biggest threat and opportunity organisations face is Natural Language Processing (NLP); where ever increasingly smart robots simplify transactions for customers.”
Yet the user experience of such intelligent personal assistants can at times feel underwhelming because they lack a sufficiently broad range of services versus other digital channels. Facebook M for example relies upon human trainers to complete more complex customer service tasks requested by users and Alexa utilises ‘skills’ – tailored apps such as Spotify. None of them appear to offer the same level of complete user freedom as using traditional web browsers to access any available content.
“Any organisation regardless of its size able to master NLP can potentially compete in previously unreachable or unscalable markets.”
One way these robots could overcome these limitations is to “learn” how to use NLP to access any digital service through its front-end without the need for any technical integration or human touchpoints. All transactions could then be consumed or simplified into one customer experience accessed by a single AI.
The implication for competitive advantage is that potentially any organisation regardless of its size that can effectively master these “platform on platforms” cloud capabilities will be able to compete in previously unreachable or unscalable markets
“In this “open season” competitive environment, NLP can enable an organisation to transform its relationship with an existing customer and steal new ones from competitors.”
One such service could be an AI that searches and buys the best priced goods from competitors from their own customer-facing channels (without their co-operation or collaboration) so empowering a customer to create their own “perfect basket” free from the constraints of only shopping with one brand. These competitors would still get revenue from these purchases but critically won’t have direct access to this customer relationship or loyalty – NLP is disrupting their competitive advantage by reducing their market power.
In this “open season” competitive environment, where switching costs are practically nil for customers, NLP can enable an organisation to radically transform its relationship with an existing customer and steal new ones from competitors – David becomes Goliath.
If you would like more information about how digital transformation can benefit your organisation please contact the Sopra Steria Digital Practice.