[Brief background to this series: In recent months, I have encountered a large number of articles that report lack of returns on investments (ROI) made by organisations in deploying AI and related technologies. But, in reality many organisations are achieving significant return on investments in data analytics (AI/ML) which I encountered during my business value consulting engagements across tier-1 organisations internationally.

Since publication of our book, “Redefining Value Where People and AI Meet”, many people have expressed interest in understanding the foundational concepts behind the various topics covered in the book.]

The first article in this series provides an overview andhow the readers will benefit from the series.

Article 2, discussed the significance of economic value, how value is perceived by different stakeholders, differences between macro and micro economic value and economic theories of value that apply to data analytics (AI/ML).

In this article, I will discuss the fundamentals of accounting in the general ledger comprising profit and loss, the balance sheet and cash flow statements in order to discuss how to apply the various accounting principles when attributing the value contributions of data analytics (AI/ML) to help determine return on investments (ROI). I will briefly cover differences between tangible and intangible value.

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In the next article, I will discuss the concepts of organisational value chain and how data analytics (AI/ML) drives value in operating activities across the enterprise spanning divisional, departmental and business functional boundaries. In the meantime, please take a few moments to share your feedback and thoughts as to the usefulness of this series or otherwise!