ChatGPT is a AI-powered language model trained on a massive amount of internet text data.  Give it different prompts and ChatGPT will generate very human sounding text (or voice) responses.  After last month’s newsletter my colleague couldn’t contain himself and asked ChatGPT “how to develop a winning strategy in the SABRE business simulation?”   ChatGPT answers are in bold – my comments are in italics.

ChatGPT:  I don’t have specific experience playing the SABRE Business Simulation, (an obvious oversight at OpenAI ????) but I can provide some general tips that may help you develop a successful strategy:

1. Understand the game mechanics: It’s important to thoroughly understand the rules and mechanics of the game before you start playing. This will help you make informed decisions and avoid costly mistakes.   Wow good start.  It’s imperative you know the rules and regulations that govern your industry.  Don’t assume rules will be the same in each country or apply the same to outsiders. More than a few Western CEO’s were arrested in China for failing to understand these nuances.
2. Analyze the market: Analyze the market conditions and identify trends that could impact your business. Look for opportunities to exploit and threats to mitigate.   Excellent advice!  However  ChatGPT missed an important step.  The reason you do market analysis is to identify your competitive advantages and look for opportunities to exploit and threats to mitigate.
3. Develop a long-term strategy: Plan your strategy for the long-term and set specific goals. Identify your competitive advantage and how you can leverage it to achieve your objectives.  ChatGPT is a great tool but gets shaky here.  Identifying your competitive advantage is part of your market analysis– after all you are part of the market. (see point 2 above).   Then, based on your competitive advantage and the market opportunities, set your objectives.   Objectives are “What” you want to accomplish”.   The small ‘s’ strategy is “How” you’re going to accomplish it.   ChatGPT misses this point and makes no mention of the components of strategy.  Here they are here:
   • Portfolio strategy:  To reach our objectives, what products or services will we focus our efforts on (and which ones we won’t).
   • Segmentation strategy:  To reach our objectives, what customers (or customer groups) will we focus on (and which ones we will not).
   • Positioning strategy:  To reach our objectives, what messages do we want to send to our customers that will convince them that we are the best company to satisfy their desires. 
4. Manage your finances: Keep a close eye on your finances and make sure you’re generating enough revenue to cover your expenses. Avoid taking on too much debt and manage your cash flow carefully.  Good advice given the business environment we are currently in.
5. Invest in research and development: Investing in research and development can help you stay ahead of the competition and develop innovative products and services.  So true both in the SABRE Business simulation and in reality.  Ensure that your R&D aligns with your strategy (see bullet 4)
6. Build a strong team: Your team is a key asset in the game, so make sure you recruit and train the right people. Develop a strong culture that promotes collaboration and creativity.   ChatGPT is spot on that teamwork is key component of strategy execution however ChatGPT skipped a few other important considerations.
   • Communicate the Vision and Objectives,
   • Ensure you team has the skills to succeed,
   • Align the incentives with the strategy,
   • Align the resources with the strategy,
   • Make sure your structure and systems support the strategy and,
   • Make sure everyone knows their role and responsibilities.
7. Monitor your performance: Regularly monitor your performance and adjust your strategy as needed. Use key performance indicators (KPIs) to track your progress towards your goals.  Good advice.

Finally, ChatGPT reminds us…Remember, the best strategy will depend on the specific circumstances of the game, so be prepared to adjust your approach as you play. Good luck!   Strategy is always being adjusted and tweaked to respond to changes in the market.  Some strategic decisions that require large capital investments lock in some choices – make these decisions carefully!  In general, the best strategies are full of strategic options so they can flex and bend to the circumstances.  Don’t be afraid to make the adjustments as the future unfolds.

Wouldn’t it be cool if AI could actually develop our strategy for us?  But, as you must have noticed, ChatGPT will only tell you the steps you should take.   YOU still need to do the research! YOU still need to analyse the data, make the choices, and implement them.   Think of AI as being able to create a good, “To Do list”.  Then get on with it and create the strategy!