ARTICLE | October 14, 2025 | VOICES

Learning from the Industrial Revolution in the AI era

A centuries-old business philosophy helps scale AI with discipline and purpose

By Patrick Tam, Workflow contributor

The hype about artificial intelligence (AI) is not hyperbole. AI-driven tools and platforms are upending the way companies build products, serve customers, and measure success. Billion-dollar ideas can emerge seemingly overnight. The old barriers to innovation—complex approvals, endless build cycles, and siloed communication—are eroding fast.

For many leaders, this pace is exhilarating. For others, it’s daunting. But if there’s one lesson I’ve learned on the front lines of business transformation, it’s that rushing into AI without a strong foundation in operational excellence (OE) is a risky bet. OE originated at the beginning of the Industrial Revolution. This approach enables organizations to enhance performance through process optimization and continuous iteration. The winners in this new era won’t be those who move fastest, but those who move with discipline and purpose. And that starts with OE.

So how do we translate AI’s potential into consistently better outcomes? Let’s talk solutions—practical steps any organization can take starting today.

What is operational excellence?

There’s a strong temptation to chase the shiniest thing or adopt a new platform as soon as it hits the market. Yet this is rarely the most efficient way to approach new tech. OE is about rethinking the methods, processes, and workforce you need to achieve your outcomes.

Before deploying the latest AI agent, clarify the business result you’re aiming for. Use classic operational frameworks such as define, measure, analyze, improve, and control (DMAIC) to identify processes that aren’t working and diagnose the root causes. For every workflow or customer experience, ask: What does great look like? Which metrics matter? What outcome do we want to improve? AI can help surface insights, but operational rigor ensures that insights are translated into results.

Moving at the speed of AI means rethinking team structure. This is especially true at a moment when AI is democratizing what’s possible for businesses and individuals alike. These days, a small team and a handful of cloud resources can build what used to require hundreds of people and a lot more cash. With fewer people and faster cycles, agility and communication become paramount.

Assign clear owners for each major function: innovation, communication, operations, and so on. Make sure every team member knows how their work fuels business outcomes. Regularly align cross-functional groups, and leverage AI-powered dashboards to keep everyone on the same page. Check in to ensure the product team is plugged into marketing and sales, the COO is focused on the right metrics, and frontline employees are empowered to use AI tools as partners in innovation. In the race to optimize, make sure your teams are also staying aligned, focused, and responsive in this rapidly changing environment.

The winners in this new era won’t be those who move fastest, but those who move with discipline and purpose.”

One of AI’s strengths is its ability to highlight inefficiencies and automate tasks. But in trying to achieve efficiency, executives can sometimes rush to adopt untested new tools. Without a disciplined approach, automation for its own sake can lead to solution fatigue or wasted investment.

To prevent this, build feedback loops into every AI-driven process. Use process mining and analytics to identify bottlenecks and root causes and validate every major change against business priorities. Pilot new projects, and measure results rigorously before scaling. And always, always make sure AI solutions are creating real value for customers and stakeholders.

When AI is paired with operational discipline, it becomes a tool for amplifying—not distracting from—what matters most.

We’ve all seen stories of small teams achieving outsized results. It’s easy to imagine how a couple of entrepreneurs could come up with a tool built on top of an open-source platform that brings a billion-dollar product to market. The barrier to entry is lower than ever, but the hype has never been greater. Do not get stressed out by the pace; stay focused on the basics.

To that end, companies should embrace the idea of minimum viable bureaucracy. Make it as easy as possible for teams to experiment. At the same time, however, put guardrails in place to ensure resources go toward initiatives with clear payback. Use AI to streamline approvals, model business impact, and reduce unnecessary meetings—but never abandon the need for human judgment.

Leaders should regularly review what’s being built, why, and whom it serves. Set quarterly or even monthly check-ins to realign priorities, and communicate winnings and learnings to maintain a culture of continuous improvement.

OE is crucial for executives looking to take their business from being an economy car to an F1 race car. AI can supercharge your organization, but only if your operational “pit crew” is ready for the race. This means not only accelerating processes, but also strengthening coordination and accelerating response times.

To that end, revisit your operating model. Where are delays and misalignments most frequent? Can you leverage AI-powered tools to proactively detect breakdowns in processes, whether in sales enablement, partner communication, or customer onboarding? Tie every improvement back to core goals: faster time–to market, higher customer satisfaction, and measurable cost savings.

Make your pit crew the backbone of change. Provide upskilling so staff can use AI confidently. Appoint process champions who ensure everyone’s moving in the same direction. Celebrate wins, learn from setbacks, and adjust rapidly. OE isn’t static; it’s a dynamic discipline, now turbocharged by technology.

As new AI tools and platforms proliferate, speed alone will not determine success. The companies that win will be those that apply operational discipline to maximize every AI-driven advantage.

My advice to fellow leaders is to focus relentlessly on outcomes, empower your teams, and bolster innovation with governance and rigor. With AI as your partner—and OE as your guide—you’ll be in a position to lead the future.