CEOs Challenge Managing Changing Business Models
Decoding the CEO’s Dilemmas: Exploring the Challenges of Navigating the AI Revolution and Shaping Future Business Models Driven by Artificial Intelligence.
One of the recent Forbes’s Article which captures 16 common concerns CEOs have in 2023, mentions that Managing changing business models—not just in terms of how they do business > but also in terms of how the world (clients, investors, employees, prospects) perceives their business—is important for CEOs now. The best way to approach this is to think out > of the box and listen to what all the stakeholders have to say. These would be the most actionable points to start with to handle these changes.
Let’s take a moment to reflect. Something seems to be missing, doesn’t it? The discussion about managing changing business models has failed to encompass the impact of AI. How exactly are CEOs navigating the dynamic landscape of business models in the realm of AI?
Building up on it, CEOs face numerous challenges when determining the future of AI-driven business models.
Lack of understanding or knowledge about AI and its potential impact is a significant hurdle.
Misjudgments regarding timing and implementation of AI can lead to missed opportunities or inefficient resource allocation.
Ethical considerations associated with AI, including bias in AI systems and concerns surrounding data privacy, must be navigated.
Furthermore, they need to consider the long-term implications of AI adoption, including the need for ongoing training and upskilling of employees to effectively leverage AI capabilities. They also have to address the potential disruption that AI-driven business models can bring to existing industry dynamics.
Lastly, there’s the challenge of integrating AI in existing systems and workflows, which could require significant restructuring and investment. This includes ensuring compatibility and interoperability between AI systems and legacy technologies, as well as addressing any security or privacy concerns that may arise during the integration process.
“We are closely monitoring the current trend in automation and AI. We’ve incorporated several features into our product, leveraging OpenAI technology and in-house developments. One such feature is ‘Replies AI,’ which we’ve made available across all our plans this year, including the free, two standards, and Enterprise tiers. In the near future, we plan to launch several AI-based automation exclusively for our Enterprise customers. Our clients are highly interested in these new AI-driven capabilities, as they offer significant time savings. By reducing the need for manual and routine tasks, our clients can focus on product development rather than data analysis.” Anatoly Sharifulin, CEO and Founder at APPFOLLOW
Satish Thiagarajan, CEO, Brysa Limited, UK shares in detail on this subject.
Your business might be micro, medium, large or small: the one fulcrum on which your business’ AI future hinges on is data. But you already know it – you know the what. Do you know the how? And do you know how challenging the how is? Ask yourselves the following questions: is my business, a vast majority if not 100% running on systems and not on spreadsheets? Are my flows defined and legible with data collected, cleansed and organised at every stage? Are we surfacing the best data to our customers and are we collecting the most relevant data from our customers? This is just the beginning.
Do you know that by 2027, 41% of an enterprise’s revenue will come from digital products and services* and 64% of consumers and 80% of business believe that the digital and data experience a company provides is as crucial as its products or services.** Businesses cannot just go through digital transformation any more. They need to go through a digital re-transformation: from merely offering top-of-the-class digital-first services to offering AI-first services. And for this to happen businesses need to think of the future as a series of concentric circles: customer, data, systems, people, processes, strategies.
“AI gives you the bandwidth to reach out to segments previously overlooked. Nurturing a market segment that might have been left behind can lead to additional revenue. An example is using an AI tool to reach out to prospects that are in an adjacent industry. A client of mine didn’t want to assign an SDR to it because they didn’t want to risk the overall pipeline but felt that competitors were also overlooking the adjacent segment. Leveraging an AI tool, they were able to convert cold emails into an 8% conversion for demos and a 2% conversion to paying customers. Enough to warrant hiring another SDR to dedicate to the segment,” Rhonda Giedt, Fractional CMO, Portfolio Advisor shares her interesting take.
Summing it up, of course CEOs must adapt and innovate in a rapidly evolving business environment and key aspects are
Digital transformation, data analytics, and AI can enhance decision-making and operational efficiency.
Foster customer loyalty by incorporating these technologies into your business strategy.
Overcome resistance to change by promoting a culture of continuous learning and experimentation.
Transparent communication about the benefits and implications of the new business model is crucial.
Successful transition to a new business model requires collective effort and team support.