26 – The Productivity Paradox: Why AI Hasn't Saved the Economy (Yet)

Your host Alex Shevelenko welcomes Professor Hermann Simon, founder and honorary chairman of Simon-Kucher and the world’s leading authority on pricing and strategy. Often cited as the most influential management thinker since Peter Drucker, Hermann brings five decades of experience identifying the "Hidden Champions" of the global economy and advising world-class organizations on value and growth.In this conversation, Hermann shares his perspective on the intersection of specialized expertise and artificial intelligence, explaining why companies must "stay deep" while accelerating their "disruptive velocity." He addresses the "mother of all problems"—demography—and discusses the IT Productivity Paradox, questioning why decades of technical investment have yet to yield massive gains in labor productivity. Hermann also offers a candid look at the bureaucratic hurdles facing Western industries and why the secret to modern competition lies in the speed of translating research into marketable products.From his early days as a professor at Harvard and Stanford to his role in building a global consultancy with over 2,000 employees, Hermann illustrates how trust, purpose, and human relationships remain the constants in an era of exponential change. This episode provides profound strategic insights for leaders navigating the complexities of global competition, pricing in the age of AI, and the structural shifts defining the next decade of business.To continue the conversation with Hermann, connect with him via hermannsimon.com.Want to be a guest on the show? Apply here.To learn more about RELAYTO, visit: relayto.com.