+AI & the PDCA Cycle
Introduction
In the +AI era, the costs of both horizontal expansion and vertical expansion are steadily decreasing.
Horizontal expansion refers to applying methods or products that have succeeded in one market or environment to other markets or environments.
For example, an investment strategy that worked well in the stock market may be tested in commodity futures or foreign exchange markets, or a game application that succeeded on Windows may be ported to macOS.
With the advancement of +AI, such horizontal expansion is becoming possible at a far lower cost than in the past.
Cost Reduction and Acceleration of Vertical Expansion
Vertical expansion, on the other hand, refers to running the PDCA cycle, a sequence consisting of Plan, Do, Check, and Action.
• Plan: Formulating hypotheses and plans
• Do: Conducting small-scale experiments
• Check: Evaluating and analyzing the results of those experiments
• Action: Deciding on the next steps or moving toward full-scale execution based on the evaluation
The adoption of +AI makes it possible to run the entire PDCA cycle at lower cost and higher speed.
Its impact is particularly significant in the Plan and Check phases.
Machine learning and statistical analysis techniques are representative examples of how the Check phase has already been dramatically streamlined.
Lowering the Cost of Planning
Despite these advances, many people still struggle to take the “first step.”
One reason is that the cost of planning appears high.
What should be tried?
What should be done if it fails?
Is it even worth trying in the first place?
The cognitive burden of answering these questions often prevents action.
However, if AI can reduce the cost of planning, it can also lower the amount of energy required to take that first step.
+AI will not only accelerate execution, but will also work toward reducing the psychological and cognitive costs of planning itself.