Enterprise AI in Technology and Service Operations

Enterprise AI in Technology and Service Operations

TSIA Research Journeys are our initiative to solve the top problems plaguing the tech industry today. Join us as we launch discovery research, build practical theories, and deliver industry-validated, board-ready insights designed to help empower every tech company.

Today, it’s nearly impossible to find a professional who hasn’t been inundated with articles and discussions heralding artificial intelligence as the ultimate game changer. A recent poll by Fortune found that a whopping 79% of CEOs are banking on generative AI to ramp up efficiencies. TSIA shares this sentiment, recognizing the monumental influence AI is set to have on the operations of technology providers.

Enter the AI-native company. More than just a buzzword, it’s a visionary concept encompassing a number of key strategies:

  • Embedding AI as the linchpin of their business model
  • Scrutinizing every internal workflow through an AI-exploitative lens
  • Prioritizing automation and efficiency through AI as an essential tenet
  • Ensuring that data and analytics steer decisions

But here’s the catch: is your business part of such a forward-thinking entity? Surprisingly, the answer for many might be a resounding “no.” TSIA’s recent executive briefings uncovered a glaring reality—most tech firms are still in the early stages of carving out robust strategies to back their AI endeavors. Echoing this sentiment was a July 2023 Wall Street Journal piece, “The Big Question for Managers on AI: Who Gets the Job of Figuring It Out?” This article delved into the corporate conundrum of determining the custodians of AI initiatives, given its widespread applicability from marketing to engineering—the conclusion? A misstep could either stymie innovation or lead to potential risks.

That said, TSIA is firm in its belief that companies that seamlessly transition to an AI-native stance are not on the trajectory merely to compete—they’re on the path to dominate. With stakes as high as these, the pressing question for tech leaders is clear: Are you ready to embrace the AI-native revolution? By subscribing to our latest Research Journey, you can find out!

Over the course of this journey, we will reveal the risks of not tackling this challenge and introduce our research methodologies. With our findings, we can empower every technology services company with the insights they need to thrive in a dynamic and competitive market. But we can’t do it without you.

So jump in with us as we:

  • Define the Problem: By clearly identifying the business challenge, we can start tackling it.
  • Launch Discovery: With polls, surveys, and interviews, here’s where we dig deep into the facts and contributing factors.
  • Develop the Theory: With data in hand, our researchers and analysts can start developing and/or enhancing frameworks.
  • Guide the Industry: Correlations to financial results lead to conclusions that will help your organization get up to speed on AI capabilities.

By participating in our Research Journeys, you become part of a vibrant community that seeks to push the boundaries of what’s possible in the tech industry. Together, we can navigate the challenges that technology and services companies face while working toward the AI-native revolution.

Additionally, this blog will be continually updated with our findings as we work through each step of this research journey. By subscribing to this journey, you can stay updated on each step, participate in finding solutions, and view our results as we work toward what it takes to become an AI-native organization.

Define the Problem: Why AI is a Disruption You Can’t Ignore

When contemplating the vast capabilities of artificial intelligence, it’s tempting to envision a myriad of potential applications. However, businesses need a focused and structured approach to harness this potential effectively.

The following categorization of AI into the three primary dimensions: data-driven decision-making, efficiency and cost reduction, and enhanced customer experience, is not random. It’s based on the fundamental operations and objectives of businesses.

The categorization of AI into the three primary dimensions: data-driven decision-making, efficiency and cost reduction, and enhanced customer experience.
The categorization of AI into the three primary dimensions: data-driven decision-making, efficiency and cost reduction, and enhanced customer experience. (Expand image)

Data-Driven Decision-Making

In today’s complex business landscape, decisions based on gut feelings or outdated methods are no longer sustainable. The shift to data is not just a trend but a necessity. Data offers objective insights, minimizing biases and enhancing precision. This category is paramount because, at its core, a business’s strategic direction and key decisions need to be informed and purposeful. AI’s ability to swiftly analyze massive data sets can unearth insights humans might overlook, making this categorization indispensable.

Efficiency and Cost Reduction

Regardless of industry or scale, businesses consistently strive to optimize operations and reduce costs. It's the backbone of profitability. AI’s capability to automate and streamline tasks directly impacts the bottom line. By integrating AI, businesses can minimize overheads and reallocate resources more effectively. This dimension of AI thus addresses the universal business objective of cost-saving and optimization.

Enhanced Customer Experience

In the age of the consumer, businesses that don’t prioritize customer experience risk obsolescence. As market competition intensifies, product or service differentiation alone isn’t enough. The modern consumer values experiences, personalization, and engagement. AI’s ability to tailor interactions, predict customer preferences, and create intuitive user interfaces positions businesses at the forefront of customer satisfaction.

In essence, these three categories holistically cover the core areas of any business. By breaking down AI’s potential into these dimensions, organizations can strategically implement AI solutions that resonate with their primary objectives and operational needs rather than using a fragmented approach.

Navigating the AI Hype: TSIA’s Research Journey into AI in Tech Business Models

It’s no secret that every revolutionary tech capability has its ebb and flow, with moments of both exaggerated hype and undervalued potential. AI is on a similar trajectory, with its dynamic capabilities just starting to be recognized, understood, and integrated. TSIA believes the biggest pitfall for member companies isn’t about catching up with the AI trend, but rather the possibility of overlooking the transformative influence AI can wield on internal operations. And that’s precisely why we’re excited to announce our next big venture: The second TSIA Research Journey into AI in Tech Business Models.

What’s this Research Journey all about? At its core, our research aims to:

  • Interpret the AI adoption pulse: Dive into the tech world to gauge how companies strategize and implement AI deployments.
  • Spotlight impactful AI capabilities: Sift through the AI capabilities buffet to identify those making resounding business impacts in real time.
  • Decoding scalability: Discover industry best practices to deploy AI capabilities at an expansive scale, ensuring holistic integration and maximum return on investment.

Timeline of This Research Journey

Define the Problem

By clearly identifying the business challenge, we can start tackling it.October 2023

This Blog (Above): Why AI is a Disruption You Can’t Ignore

When contemplating the vast capabilities of artificial intelligence, it’s tempting to envision a myriad of potential applications. However, businesses need a focused and structured approach to harness this potential effectively.

The following categorization of AI into the three primary dimensions: data-driven decision-making, efficiency and cost reduction, and enhanced customer experience, is not random. It’s based on the fundamental operations and objectives of businesses.

Launch Discovery

With polls, interviews, and more, here’s where we dig deep into the facts and contributing factors.Coming October - December 2023

Listen to the Podcast: AI Capabilities Integrations, Stay Ahead of the Curve

With a wealth of practical expertise between them, TSIA's Thomas Lah and George Humphrey, Distinguished VP & Managing Director of Offering and Delivery Research, delve into the transformative impact of AI on technology business models. They focus on three pivotal dimensions:

  • Data-Driven Decision-Making
  • Efficiency and Cost Reduction
  • Enhanced Customer Experience

Emphasizing the urgency for companies to effectively organize around AI, they discuss the risks of stagnation in the face of rapid technological advancements. They stress the need for proactive strategies and highlight the potential dangers of irrelevance and diminished competitiveness for companies that fail to strategically embrace AI-driven transformations.

Read the Quick Poll Insights: Governance Gap in AI Strategies

Artificial intelligence (AI) is currently a predominant topic in the industry, and rare are the companies that are not funding AI initiatives today. Nonetheless, the 2023 Organizing for AI Success quick poll underscores deficiencies in how companies structure those initiatives, highlighting an overall immaturity in governance and strategy. Despite significant investment in AI, the lack of formal processes and company-wide ownership reflects a failure to take AI disruption seriously.

Develop the Theory

With data in hand, our researchers and analysts can start developing frameworks.Coming February - April 2024

Watch the Webinar: The Black Box of Implementing AI

March 5, 2024

AI is already creating shifts in the employee base of technology companies. How long before AI capabilities replace 25% of the workforce in tech?

AI will reduce the amount of labor required to develop, sell, and service technology solutions. Right now, there are three challenges facing technology leaders as they work to operationalize AI capabilities: First, how long will it take for AI to dramatically change our workflows? Second, what are the best AI use cases to work on first? Third, what are the friction points we will encounter when deploying new AI capabilities?

Join TSIA researchers Thomas Lah and George Humphrey for an interactive 45-minute webinar where they’ll be addressing some of the most pressing questions the industry is facing today, including:

  • How fast is AI disrupting technology business models?
  • How are companies navigating the deployment of AI capabilities?

We’re looking forward to seeing you there!

Read the Quick Poll Insights: Unlocking Revenue Potential Through AI Monetization

The integration of artificial intelligence (AI) plays a pivotal role for companies seeking innovative ways to generate revenue. The 2024 TSIA Leveraging AI Capabilities in Services quick poll explores the strategies employed by companies, revealing a nuanced picture where nearly half already actively monetize their AI capabilities. Read the insights from the poll results to learn more.

Listen to the TECHtonic Podcast Episode: AI Sizzle vs AI Substance

In this episode of TECHtonic, Thomas Lah chats with Justin Cawood about the complex journey of integrating AI into the operations of a large technology services provider. Together, they explore the evolution of Managed Services platforms, the initial business case for AI, and the transformative impact of AI on service delivery and customer value propositions.

Additionally, Justin shares the challenges and triumphs of deploying AI from the customer perspective and helping customers realize the value of their enhanced experiences—even while preemptively addressing service issues.

With a lively discussion on the ever-changing nature of AI-driven operations and the critical role of a team approach in evaluating and implementing AI solutions, this episode isn’t just about technology; it's about the future of service delivery, and the strategic advantage that AI can provide to companies seeking to stay competitive in the marketplace.

Read the Industry Story: Real-World Applications of AI for Technology Companies

TSIA is publishing a series of case studies on how member companies are deploying AI to improve internal workflows. This is a case study on how Informatica is leveraging AI to perform adoption analysis for existing customers.

Guide the Industry

Correlations to financial results lead to conclusions. We’re ready to present our findings!
Coming May 2024

What's Next? Get Involved and Stay Updated

We’re embarking on this Research Journey, but it’s incomplete without insights from the ground zero of tech businesses, which is where you come in! We’ve rolled out a quick poll designed to help companies understand how they are positioned to leverage AI capabilities in their business model. Take the TSIA Quick Poll: Leveraging AI Capabilities in Services to receive a report that frames the potential risk they face from AI and lend your insights to this collaborative exploration.

For those keen on staying abreast of the latest findings, trends, and actionable insights from this research journey, we invite you to subscribe to receive updates directly to your inbox in real-time. Join us as we demystify AI’s role in tech business models and chart a roadmap for the future.

Stay curious. Stay informed. Let’s journey into the AI universe together.

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