AI transforms business operations and outcomes, IBM exec says
CALIFORNIA, UNITED STATES — Artificial intelligence (AI) is changing how companies operate, shifting the focus from simple automation to becoming the cornerstone of enterprise transformation.
This AI evolution is not just about achieving incremental efficiency but fundamentally rethinking business processes across various departments like finance and customer service.
Tony Menezes, a global managing partner at IBM Consulting, emphasized the importance of a mindset change, moving away from legacy systems towards data-driven decision making and process innovation to unlock scalable value.
From cost-cutting to value creation
AI-driven operations are increasingly centering on transforming processes rather than mere automation or relocation of tasks. IBM, recognizing the shift in business needs from cost-cutting through outsourcing to achieving tangible outcomes, now engages in outcome-based, gain-sharing models.
These models link compensation to the actual business value delivered, responding to clients’ demands for shared risks and rewards.
Menezes told SiliconANGLE theCUBE, “A lot of our commercial conversations we’re having with clients is now we’re putting our neck out to say we can deliver the outcome and we’ll get paid on percentage of that outcome to be delivered. That allows us to basically tell our clients what they can actually put up with us or we can put up with them to be able to get to those types of results.”
Enabling change and enhancing digital experiences
This change often requires strong leadership and effective change management, which IBM facilitates by demonstrating value in small areas before scaling up successful practices. Menezes noted the importance of creating consumer-grade digital experiences not only for customers but also for employees and suppliers, which helps in transitioning away from outdated processes.
“This work is now getting to be a lot more digital operations, and it’s critical that we actually have a consumer grade experience for any consumer of this service,” Menezes added.
“To me the consumer is the internal employee that’s doing work in the enterprise, it’s a supplier that supports that given enterprise, it’s even customers of that given enterprise.”
In the context of deploying AI, companies vary in their readiness, especially concerning data privacy and cloud integration. Sensitive data, particularly in finance and HR, often remains on-premises, necessitating hybrid cloud strategies. IBM assists clients in integrating public and private cloud environments to leverage AI capabilities effectively while respecting data sensitivity concerns.
In conclusion, as businesses increasingly turn to AI to drive their operations, the focus is shifting from merely automating existing processes to completely reimagining them, ensuring that technology not only supports but actively drives business growth and efficiency.
