The Biggest AI Problem of all

Manfred Bremmer, Editorial Manager of Computer Woche, wrote an interesting article in Foundry, a San Francisco Company and part of the CIO Brand, which is owned by Boston-based IDG Group:

“The gap between SAP and its customers must not widen further“.

My first thought: Are the issues mentioned really the biggest SAP needs to be aware of?
I absolutely don’t think so.
Our customers are largely SAP users, and the issue lists we hear vary widely. The top three include:
* Complexity (far too complicated)
* Siloed old-world application, no seamless integration
* Unbearably expensive.

The key aspect

In search of added AI value

“Many enterprises are not yet ready for such integration.” Really? I don’t think so. They may be overwhelmed by a first presentation, but then they realize that Enterprise AI is what they have been hoping for quite a while. Not bots, co-pilots, and glued-on agents, but a holistic enterprise AI solution that helps cross silos, allows teams to delegate 50% of the work they are not good at or don’t like, and hands over routine tasks to an AI system that guides them through intelligent workflows. An AI that is so powerful that it keeps the entire staff busy.

A new dimension of security

“A key issue is Security? IT Security Act (IT-SiG 2.0), NIS2 Directive, and the BSI IT Baseline Protection are independent of AI.” As long as businesses prefer to manage security themselves rather than trusting the cloud, they should be reminded that 87% of vulnerabilities come from within. Who should you trust?

AI needs data – and patience

“A key obstacle for companies remains the data foundation. For many SAP customers, analytics landscapes are fragmented, and a unified data layer is lacking.” Did anybody ever ask the single most relevant data question: “What is it that not a single company on the planet, in the past 50 years, was able to keep their data clean?” Because it is IMPOSSIBLE. It requires AI to get this job done – not the other way around!!!

The biggest AI problem of all

The Biggest AI Problem of all is not the technology but understanding how to leverage it and having a vision for where to take it.

AI can’t be just delegated to IT or CIOs – it needs the entire C-Level.

The AI discussion must include (at least):
How can it help the company grow and scale?
How are intelligent workflows shaping our linear business processes?
What does it mean for our day-to-day work?
How do we deal with productivity gains of 50% or more?
What are the biggest possible competitive advantages?
How will we deal with social impacts and shifts?
What are the transition considerations?
Will we still need change management to get it done?
How will it shape and elevate our conventional IT?
Who will manage the thousands of highly intelligent AI entities?
What corporate wide strategic measures will we have to consider?
What is the planning horizon and the transformation roadmap?
Will the conventional software based IT eventually be replaced?
Will we have to rewrite security and compliance rules?
What are the questions we didn’t even ask?

It may be obvious that we brought up those questions because we not only can answer them but also show how BlueCallom·AI can execute on them. But that is not the point. The point is that far too few executives are raising those questions. And to answer all of them takes time – time most people are not willing to spend.

Regardless of the possible reward, the fear that it will be far too expensive is dominating. For that, we developed a simple formula

AI Success Formula

STEP 1

1. Take the average all-in-salary of your employees.
2. Consider a productivity gain of 35% from that salary
3. Multiply it by 90% of your staff
   The result is your productivity gain in your currency

STEP 2

1. The productivity gain is now used for growth and workflow optimization.
2. The team you have will be able to do almost twice as much with more satisfactory work.
3. Your customers will experience significantly faster delivery and better service
4. The leap in customer experience will attract way more new customers.
5. This works because you increased the AI utilization by an order of magnitude.
6. And specific to your company there are countless opportunities to improve.

RESULT

1. You do far more with what you have without hiring a single person
2. You will not let any of your valuable employees go
3. Later, you experience an AI utilization of maybe 25% and hire more people.
4. NOTE: History repeats itself – 150 years ago, it was called machine utilization.

 

It looks like there is so much to learn that you might prefer to postpone it. It only takes two days to get the picture wide enough to make well-educated decisions – guaranteed. Enterprise AI for executives.