{"id":11382,"date":"2024-11-28T13:41:14","date_gmt":"2024-11-28T13:41:14","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=11382"},"modified":"2024-11-28T13:41:16","modified_gmt":"2024-11-28T13:41:16","slug":"optimise-business-models-for-ai-digital-transformation","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/","title":{"rendered":"Is Your Business Model Helping or Hindering AI Digital Transformation?"},"content":{"rendered":"\n

82% of organisations globally have already invested in Artificial Intelligence (AI) and another 33% are doubling their investment in the coming year, according to design software company Orgvue<\/a>. And Goldman Sachs Research<\/a> estimates global AI investment could reach $200 billion by 2025. <\/em>In short, <\/em>AI transformation is now firmly on the C-Suite agenda.<\/p>\n\n\n\n

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But there\u2019s a problem. Successful digital<\/em> transformations are notoriously hard to accomplish. A McKinsey Global Survey<\/a> found that only 20% of companies achieved more than three-quarters of the revenue gains anticipated, and only 17% achieved more than three-quarters of the cost savings they\u2019d hoped\u202ffor. The problem isn\u2019t the tech, it\u2019s the business model itself.\u00a0\u00a0\u00a0\u00a0<\/p>\n\n\n\n

With that in mind, what lessons can you learn from failed digital transformation initiatives and how can you set up your business to make the most of the AI revolution<\/a>?   <\/p>\n\n\n\n

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Discover Trusted Generative AI Strategies<\/h2>\n\t\t\t\t\t\t\t

Learn how to prepare for the future with our guide on trusted generative AI. Explore key data security strategies and learn how Salesforce can enhance your AI initiatives.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t

\n\t\t\t\t\tGet the Guide<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t
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Out with the old: The traditional business model   <\/h2>\n\n\n\n

Traditional business models aren\u2019t set up to deliver sweeping, enterprise-wide technological change. They spare little room for company-wide innovations that cater to rapidly changing customer demand.   <\/p>\n\n\n\n

So, what are the main issues holding businesses back?   <\/p>\n\n\n\n

1. Lack of agility<\/strong>   <\/h3>\n\n\n\n

Hierarchical structures in traditional models delay decision-making and impede the rapid iteration needed for AI-driven innovation.\u202fAccenture\u2019s 2023 research<\/a> shows that businesses that adopt an agile mindset, especially in workforce strategy, see a three-fold increase in productivity\u200b.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

2. Siloed data systems<\/strong>   <\/h3>\n\n\n\n

In traditional business models, data often exists in isolated systems, creating silos that hinder effective data usage for decision-making<\/a>. According to a study by Gartner,<\/a> 85% of data science projects fail due to poor data quality and siloed systems. This directly challenges businesses relying on legacy infrastructures to support AI transformations.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

3. Resistance to change<\/strong>   <\/h3>\n\n\n\n

Traditional models are often rooted in well-established routines and practices. A Thomson Reuters 2023 C-Suite survey<\/a> found that many executives identified employee resistance and outdated leadership practices as top barriers to successful transformation.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

Your AI-transformation-ready checklist   <\/h2>\n\n\n\n

Understand where your business model weaknesses are with our AI-transformation-ready<\/a> checklist. If you answer \u2018yes\u2019 to most questions, use this article to help rethink your digital strategy:   <\/p>\n\n\n\n

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  1. Does your organisation have data siloed in separate systems?   <\/li>\n\n\n\n
  2. Are you still relying on legacy infrastructure?   <\/li>\n\n\n\n
  3. Is there widespread resistance to adopting new technologies within your business?   <\/li>\n\n\n\n
  4. Does your organisation lack a clear, company-wide strategy for AI?   <\/li>\n\n\n\n
  5. Is your business model reliant on hierarchical, slow decision-making processes?   <\/li>\n\n\n\n
  6. Do your employees lack AI and data expertise?  <\/li>\n\n\n\n
  7. Are digital transformation efforts focused more on internal processes than customer needs?   <\/li>\n\n\n\n
  8. Is your organisation reactive to technological trends rather than proactively pursuing innovation?   <\/li>\n<\/ol>\n\n\n\n

    In with the new: The transformational business model   <\/h2>\n\n\n\n

    For AI transformation<\/a> to succeed across the entire business it requires change management at a fundamental level.    <\/p>\n\n\n\n

    Companies like Amazon, Google, Airbnb, Netflix, and Expedia have all evolved their business models from traditional to tech-integrated \u2014 driving innovation and creating customer experiences focused on convenience, value and efficiency.   <\/p>\n\n\n\n

    So, how can you evolve your operation to succeed like Amazon, Netflix, and Google?   <\/p>\n\n\n\n

    1. Put customers front and centre<\/strong>   <\/h3>\n\n\n\n
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    \u201cEvery digital transformation is going to begin and end with the customer, and I can see that in the minds of every CEO I talk to.\u201d \u2014 Marc Benioff<\/a>, <\/strong>Chairman and CEO, Salesforce.   <\/p>\n\n\n\n

    To avoid overpromising and under-delivering it\u2019s important to set clear, realistic goals for what your AI transformation will deliver to customers. Think about the job you\u2019re helping them do and frame your initiatives around that rather than the products you deliver. Align changes with customer demands and roll out updates in phases, ensuring your team is trained and ready.  <\/p>\n\n\n\n

    How can you achieve that?<\/em><\/strong>  <\/p>\n\n\n\n

    Use your data to help guide your decision making<\/a>. Understand which platforms your customers use and what they engage with. Complement this with UX research to ensure any changes you implement align with user preferences for a seamless customer experience.  <\/p>\n\n\n\n

    2. Deploy modern systems<\/strong>   <\/h3>\n\n\n\n
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    \u201cFirms that want successful AI digital transformations must go deeper by ensuring that they have modern systems throughout their technology estate and equipping their people with the skills to operate\u202fthem,\u201d explains Ruben Schaubroeck<\/a>, Senior Partner at McKinsey.\u00a0\u00a0<\/p>\n\n\n\n

    Modernising your tech stack is a huge task, and poor planning can lead to failure \u2014 like apps crashing or features breaking. The result? Damaged reputation and lost customer trust. Plan wisely to avoid setbacks.  <\/p>\n\n\n\n

    What should you do?  <\/em><\/strong> <\/p>\n\n\n\n

    Audit your existing tech stack to replace or remove outdated tools, consolidate your data into one place to get a 360 view of your customers<\/a>, and assess your cloud requirements \u2014 do you need public, private, or hybrid? Following these three steps will help you deploy modern systems seamlessly.  <\/p>\n\n\n\n

    3. Equip employees with the right skills<\/strong>   <\/h3>\n\n\n\n
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    \u201cGenerative AI is not only here to stay, but it is the fastest evolving technology I have ever seen. Organisations and individuals must take steps now to hone their knowledge in this area.\u201d \u2014 Maureen Lonergan<\/a>, vice president of AWS Training and Certification.\u00a0\u00a0\u00a0<\/p>\n\n\n\n

    As well as ensuring you\u2019ve the right infrastructure in place, it\u2019s important to remember that AI digital transformation<\/a> reshapes how employees work. Poor communication and talent gaps are top reasons for failure. Keep teams educated, informed, and empowered to succeed.   <\/p>\n\n\n\n

    How can you do that? <\/em><\/strong>  <\/p>\n\n\n\n

    When implementing changes, clearly communicate what\u2019s being done, why it\u2019s necessary, and how it\u2019ll impact employees. Upskilling is important but so is recruiting skilled workers who can operate new technologies. <\/p>\n\n\n\n

    Next steps: An AI digital transformation future   <\/h2>\n\n\n\n

    The path to a successful AI transformation requires more than investment \u2014 it demands a shift in mindset, technology, and talent. AI is revolutionising how businesses operate, and leaders must create a clear roadmap for customer needs, innovative infrastructure, and a skilled workforce. Now is the time to act, plan, and execute.   <\/p>\n\n\n\n

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    Discover Trusted Generative AI Strategies<\/h2>\n\t\t\t\t\t\t\t

    Learn how to prepare for the future with our guide on trusted generative AI. Explore key data security strategies and learn how Salesforce can enhance your AI initiatives.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t

    \n\t\t\t\t\tGet the Guide<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t
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    Learn from the failure of previous digital transformation initiatives and build a successful AI digitalisation strategy for growth. <\/p>\n","protected":false},"author":111,"featured_media":11383,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sf_justforyou_enable_alt":true,"optimizely_content_id":"ec6a956210a2433d8fff3117de091e52","post_meta_title":"","ai_synopsis":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"sf_topic":[1,3,224,225,226,251],"sf_content_type":[],"coauthors":[26],"class_list":["post-11382","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","sf_topic-digital-transformation","sf_topic-thought-leadership","sf_topic-c-suite","sf_topic-ceo","sf_topic-cmo","sf_topic-ai"],"yoast_head":"\nIs Your Business Model Helping or Hindering AI Digital Transformation? - Salesforce<\/title>\n<meta name=\"description\" content=\"Learn from the failure of previous digital transformation initiatives and build a successful AI digitalisation strategy for growth.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Your Business Model Helping or Hindering AI Digital Transformation?\" \/>\n<meta property=\"og:description\" content=\"Learn from the failure of previous digital transformation initiatives and build a successful AI digitalisation strategy for growth.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/\" \/>\n<meta property=\"og:site_name\" content=\"Salesforce\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-28T13:41:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-11-28T13:41:16+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.salesforce.com\/eu\/blog\/wp-content\/uploads\/sites\/14\/2024\/11\/Is-your-business-model-helping-AI-transformation.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2160\" \/>\n\t<meta property=\"og:image:height\" content=\"1216\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Salesforce EMEA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Salesforce EMEA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/\"},\"author\":[{\"@id\":\"https:\/\/www.salesforce.com\/eu\/blog\/#\/schema\/person\/image\/cc3d1dd31ff62229e58df71e24b819ac\"}],\"headline\":\"Is Your Business Model Helping or Hindering AI Digital Transformation?\",\"datePublished\":\"2024-11-28T13:41:14+00:00\",\"dateModified\":\"2024-11-28T13:41:16+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/\"},\"wordCount\":1051,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.salesforce.com\/eu\/blog\/wp-content\/uploads\/sites\/14\/2024\/11\/Is-your-business-model-helping-AI-transformation.jpg\",\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/\",\"url\":\"https:\/\/www.salesforce.com\/eu\/blog\/optimise-business-models-for-ai-digital-transformation\/\",\"name\":\"Is Your Business Model Helping or Hindering AI Digital Transformation? 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