Kaihan Krippendorff identifies how the concept of a flywheel can be applied to business.
Most evenings, when I’m not traveling, I make time to get in at least half an hour on my Peloton bike. It helps to wind down at the end of the day. I’ll turn on a show (lately I’ve been slowly savoring this season’s episodes of The Handmaid’s Tale and waiting in anticipation for season 2 of Ted Lasso) and pedal to break a sweat. As my legs push the pedals around, the wheels spin faster and faster until I need to add resistance to slow myself down.
In the physical world, we who have studied physics are familiar with the coefficient of friction—the amount of force it takes for you to push one object against another. When the object is in motion, like the wheels on my bike, that coefficient goes down. Once I’ve gathered momentum, I don’t need to work as hard to go fast.
A flywheel takes this a step further, by accelerating a large rotor to very high speeds and maintaining the energy in the system as rotational kinetic energy. It takes a great amount of effort to start turning the flywheel, but once it’s in motion it builds momentum to keep picking up speed.
In the world of data, the concept of a flywheel is being used to increase customer centricity and satisfaction. My recent podcast guest, Ash Fontana, and the insurance company Lemonade Inc. show us how.
THE DATA FLYWHEEL
Any company that has at least dabbled in data analytics or artificial intelligence (AI) knows that it takes time to get started. In order for big data and AI to provide their desired benefits, a company must build a reservoir of customer information. This process can take years and can cause many companies to give up before realizing the effects.
Key points include:
- The AI flywheel
- Lemonade’s flywheel for customer centricity
- How to identify AI opportunities
Read the full article, THE CORE CONCEPT THAT IS DELIGHTING CUSTOMERS, on Kaihan.net.