Augmented Organization: A Nordic Perspective

How can an organization become an 'augmented organization', meaning that it deploys emerging technologies to improve its competencies and productivity? According to BearingPoint's research, there are four preconditions organizations must meet to become an augmented organization and thus stay competitive in the market. When looking at the Nordic respondents in our global study, we see that a lot of work has already been done to establish a foundation for AI adoption. However, the lack of a robust AI strategy, as well as a risk-averse and 'policy-first' mindset, might hinder development in the Nordics. 

What is an Augmented Organization? 

An Augmented Organization uses artificial intelligence and other emerging technologies to enhance its capabilities and operational efficiency. By doing so, it reinvents customer and employee experiences and ultimately disrupts the value chain to maintain market relevance. 

The need to become an Augmented Organization undescores that AI-driven transformation is now essential.

In our Augmented Organization study, we have identified key success factors that contribute to the adoption of AI and the conditions that must be met to become an Augmented Organization.

How do Nordic organizations compare to global peers? 

Overall, the Nordic organizations are aligned with their global peers. However, when diving deeper into the survey results from the Nordic respondents, three topics emerge: 

A 'technology and policy-first' approach is a prevalent mindset. Nordic countries have adopted a "technology and policy-first" approach in AI adoption, as evidenced by the fact that many Nordic respondents have already established guidelines on the use of AI in their organization. However, the study indicates that they are lagging in creating a comprehensive strategy for AI adoption. For example, in the Nordics, AI initiatives are typically assessed individually rather than following a unified prioritization method, unlike other regions. This suggests a need for a more comprehensive and human-centric approach to transformation.  

Conservative approach to AI transformation. The Nordics appear to be cautious in their AI transformation. For instance, when prioritizing AI opportunities, companies focus more on implementation challenges and less on business value than their global peers. Nordic respondents also hold more cautious expectations for Generative AI compared to their global peers. Despite this moderate approach, they continue to make steady progress.

AI ethics and regulation create concern. C-level executives in the Nordics are particularly concerned about the lack of competence in AI ethics and regulations related to AI transformation. This concern is more pronounced among Nordic executives compared to their global peers, even though it is a common issue worldwide. In connection to the lack of competence in AI ethics, there is a more general concern about the lack of skilled personnel in the Nordics.  

In summary, while Nordic organizations are progressive and agile in adopting emerging technologies, their implementations are less mature. This indicates that the groundwork for AI is being laid but has not yet fully transitioned into widespread and active use. Related to this insight, Nordic countries seem to lack a strong strategic focus in their adoption of emerging technologies. 

This means that the four prerequisites for becoming augmented organizations have not been fully met in the Nordics. While the future is challenging to predict in detail, these four prerequisites represent key focus areas for preparing for a future that will require different organizational cultures and operating models.

Augmented Organization study – Four prerequisites for organizations 

To fully harness the potential of upcoming technological waves, businesses and public organizations must emphasize the execution of augmentation, concurrently establishing the necessary four prerequisites: