Align technology with business strategy to meet AI-era demands

Part of our Insights series: How to Tackle Business Transformation in the Age of AI

From the pioneers of the industrial revolution to the modern-era disruptors who revolutionized supply chains and customer experiences across consumer products, healthcare, hospitality and more, technology is the catalyst that transforms how we work, live and consume services. Leveraging the strategic technologies of the day to achieve business outcomes is what enables organizations to achieve unrivaled market expansion and profitable growth.

Today, we are on the forefront of the artificial intelligence era. As I speak to clients, there is an unparalleled sense of excitement and anticipation for the uses of AI. This sentiment is reflected in our Global GenAI report, where 66% of C-suite executives view GenAI as a revolutionary game changer and only 1% see it as overhyped. Organizations are raring to launch into the AI age and are particularly keen to align technology with business strategy and meet key challenges, such as: innovating while sustaining profitable growth, balancing legacy and modern technology in fragmented environments and driving human adoption of change.

In my experience, solving these types of business challenges by aligning technology to business strategy is what will create lasting value. I’ve spent years working with leaders developing and prioritizing practical solutions to their most pressing business challenges, and in the AI era this tailored approach is even more relevant. We help organizations thrive through every era by focusing on achieving outcomes that underscore enduring market success: optimized costs, managed risk, improved customer experiences and sustainable growth.

Optimized costs: Technology allows us to do more with less, and AI has the potential to enable the largest productivity gains since the industrial revolution. The key challenge is the path to success. To get the full benefits of technology-led efficiencies, organizations should start with data governance — a well-organized data foundation can help reduce errors and operational costs, thereby boosting overall efficiency. A tangible example of this is outlined in recent work we completed at an American retailer. We first had to assess, analyze and aggregate data to prime the technology environment for new forecasting requirements and network models. This created the foundation for a carrier evaluation that enabled a 44% reduction in their carrier base and a 7% cost reduction per truckload. Iterative optimization on the improved data set helped move the process from theoretically optimal solutions to an ideal implementation for the distribution network.

Managed risk: New technologies carry unforeseen risks. Aligning your technology strategy with the overarching business strategy in the AI era requires balancing regulation, governance, profitability and speed to market. In our GenAI study, 89% of C-suite executives stated they were very concerned about potential security risks of AI deployments, even as they agreed that the promise and ROI outweighed the risk. And less than half agreed that their GenAI and cybersecurity strategies were fully aligned. One of the most important things as a company starts the journey is to establish and embed governance first. Governance enables data reliability and security, which are vital for effective decision-making and risk management. Simplifying the complexities of AI through strategic alignment, precise use-case identification, and meticulous data management is vital. Additionally, it is necessary to foster a balanced collaboration between human expertise and machine capabilities. This can improve efficiency and minimize errors, thereby helping organizations manage risks effectively.

Improved customer experience: Whether your customer is a global business, consumer, or citizen, they expect seamless, intuitive and personalized interactions. The AI era offers countless ways to meet these expectations; prioritize them by aligning them to your business strategy. Tailoring CX design and AI-enabled digital product initiatives to meet specific customer needs and expectations turns customers into raving fans and marketing engines. We know this first hand because, along with Penske Entertainment, we leveraged data to create innovative experiences for INDYCAR. We provided real-time race data and media-rich features to fans worldwide through an app to deliver full visibility to every aspect of the largest sports venue in the world, using AI. With our technology, fans got new insights and fun ways to engage and share their enthusiasm.

Sustainable growth: Achieving sustainable growth requires organizations to clearly define their business strategy and goals and then chart an operational plan to achieve those goals, supported by technology. With AI becoming a key enterprise efficiency tool, organizations can improve operational plans by inventing new ways to handle repetitive tasks, gain enhanced visibility to organizational effectiveness, and most importantly, optimize employee productivity to focus on strategic, high-value work. The AI era creates new opportunities to empower teams to drive innovation that helps companies grow and succeed. Fintyre, for example, was able to return to profitability by improving its strategic decision-making across the entire supply chain with enhanced data insights. They improved EBITDA from a heavy loss to more than a €12 million gain in four years. Wissam Shihadeh, Fintyre’s chief operating officer, said, “The biggest benefit from our partnership with NTT DATA is our improved visibility into the business…(and) our improved forecasting accuracy was a major factor in accelerating our return to profitability and generating trust with our shareholders.”

The AI era is full of promise. Moreover, front-runners are making serious investments. But even as 83% say they have a well-defined GenAI strategy in place, a shocking 51% have not yet aligned that strategy with their business plans. For organizations to play to win today, a game-changing tactic is how well they can align their technology, AI and otherwise, to their business strategy.

If you are ready to play to win, we’re here to help you thrive through change.