When companies focus on technology instead of people, enterprise AI projects go off the rails.
So says Matt Domo, co-founder of the AWS database division, founder of AI consultancy FifthVantage, and author of the book Everyone Wins.
“The biggest reason they fail is because business and leadership and the way we work and make decisions don’t change to accommodate the new way of doing things,” Domo said in an interview. register.
Domo said he experienced this throughout his career. When AWS was new, people didn’t understand it, he said. They couldn’t understand how this cloud technology could work without its own constraints. They only saw things through the lens of their existing operations.
“That’s the biggest failure here,” he said, and asked, “So how do we fix it?”
The first step, he argues, is to take a step back and analyze what the organization is trying to do, who will benefit from it, how people will use the technology, and how success will be measured.
The function wars are over. it’s about value
He said companies need to take a closer look at how they can leverage technology, not just AI, to create the value people want.
“The capability wars are over,” Domo said. “It’s no longer about functionality. It’s about value. Ask how many CIOs are happy with the eight-figure forklift they made with a software package like CRM and what value they got from it.”
From there, he said, it’s important to systematically consider what needs to change to provide the desired customer experience and address how employees can deliver that experience.
Such a review is necessary, he said. “Because we’re going to accelerate some things. There’s going to be new signals. We’re going to have to adapt.”
In other words, organizational change also requires a clear assessment of which signals are important and which signals should be downplayed or ignored.
“What I’ve seen is that leaders are tired of the negativity that robots are going to take over the world,” Domo said. “75% of CEOs are panicking about losing their jobs because they can’t develop an AI strategy.”
Domo believes the AI component of IT budgets will increase by 86% this year and buyers will expect real results. “We’ve come from theory to the idea that we have to move now. We have to capture value. People have to see the ROI. We have to see the benefits.”
Automation through AI should be considered, but Domo insists that business signals are key.
“What it unlocks is the ability to process signals, see turns and make predictive decisions,” he said. “If we focus solely on automation, we will miss out on the biggest unlock of this decade.”
As an example, Domo detailed its work with a SaaS company that tried to address customer churn by assembling a team to bring back customers who had canceled their service.
If you focus only on automation, you will miss out on the biggest unlock of the decade
“I had dozens of people call me and a few congratulate me when I got back,” he said. “If stress is high, success rate is low.”
He said issues are evident in the analytics data, such as fewer people logging in over time, decreasing session lengths, and heightened emotions during chatbot discussions. By automating data collection and processing, the company is able to intervene earlier.
“It’s much more effective to treat a customer before they leave than to try to convince them to come back after they’ve left,” he says. Data analysis also helped the pre-purchase sales process by improving the company’s chatbot interactions and marketing email sequences.
“They looked around the corner and got a tremendous sense of elation from it all,” he explained. “Customers want something very personalized, they want it to be easy. They want something that’s focused on what they’re trying to do.”
Domo argues that the days of customers accepting poorly designed products are over.
“People won’t accept it,” he said. “And there’s never been a time when I could easily replicate a product. The price, the speed, the tools, it’s easier than ever for me to step in and replicate what you’re doing. So if you don’t rise to that challenge, people will switch.”
Regarding the need for automation, Domo emphasized that automation should not be done to reduce headcount. Rather, it’s about freeing up staff to focus on high-value issues.
“With things moving so fast, the number one priority is closing the gap between decision and execution,” Domo said. “When it comes to understanding pilots, start small, move quickly, learn, and iterate. Get a few things that add tangible ROI to your P&L and costs, and scale when you feel inspired. Pilots that have been stagnant for 18 months will move into production and start adding value. And in the process, you as a leader, your team, and your stakeholders will become more confident.” ®
