Generative AI to Reinvent Physical Operations, Business Leaders Investing in Automation: Report

Samsara, a connected operations cloud company, today released a report highlighting how organizations in industries driving more than 40% of global GDP are transforming their physical operations.

The State of Connected Operations 2023 report, compiled by surveying more than 1,500 physical business leaders in nine countries, found that these leaders are strengthening their supply chains, upskilling their workforce, and adopting sustainable practices. It became clear that they had invested heavily in digitization for their implementation, and it was all paying off. positive result.

According to the report, the challenges facing operations leaders over the past year have received significant attention and sparked debate in boardrooms around the world. These challenges include high fuel costs and inflation, labor and equipment shortages, and supply chain constraints. But by embracing technology and finding ways to optimize efficiency, we have successfully overcome these obstacles.

Automation and generative AI pipeline underway

Leaders are rethinking supply chains and technology budgets to meet these challenges and build resilience. The survey found that the leader is currently adopting generative artificial intelligence (AI) and automation, with 84% saying he will use generative AI and 91% automation to modernize his operations by 2024. I also found out that I have plans to use it. Additionally, 51% are already using or plan to have self-driving vehicles equipped this year.

To further optimize their operations, leaders are replacing traditional paper-and-pen processes with digital workflows, and by 2025, 55% of field workers are expected to rely on digital workflows to carry out their daily tasks. I’m here.

“We asked over 1,500 physical operations leaders in nine countries how they are reinventing operations. The company manages more than 3.6 million vehicles and assets. , with more than 6.3 million employees,” Samsara chief product officer Jeff Hausman told VentureBeat. “Our survey found that two of his three leaders have increased their technology budgets this year and are confident in their ROI of digital transformation. , reported benefits such as increased net income and safety as a result of their investment to date.”

To make supply chains more predictable and efficient, 59% of Leaders plan to move their operations domestically. This means that the company will move its operations to its home country this year.

Real-time operational data remains competitive, according to the survey, with 90% of leaders believing it to be critical to decision-making.

“Leaders predict that by 2025, more than half of frontline workers will rely on digital workflows to carry out their daily tasks. There is less administrative friction and more flexibility, which is a big shift away from pen and paper processes and speaks to the evolution of technology specifically designed for these roles,” Hausmann said. told VentureBeat. “Labor shortages continue to be a major challenge for operations leaders. So we are at an inflection point, roles are changing and the talent pool is tight.”

Independent research firm Lawless Research conducted its State of Connected Operations 2023 Study from February 6 to March 10, 2023. The survey sample consisted of 1,525 physical operations leaders, including C-level executives.

Investment in next generation technology to optimize efficiency

“Our research found that significant change is underway within the next 18 months. All of these investments are leading us to fight today’s toughest challenges,” Samsara’s Hausmann told VentureBeat.

Management expects that within the next two years, one in six employees will be in a role that does not exist today. To tackle this upcoming change, more than half (52%) of leaders are prioritizing equipping their employees with the skills they need to navigate emerging technologies.

Specifically, surveyed organizations are expected to invest approximately $7 billion in 2023 to accelerate employee training, upskilling, and reskilling efforts.

“Optimizing existing employees and investing in their career development is essential to the long-term success of an organization. It’s about proving something and giving them the opportunity to build a career,” Hausmann explained. “Our survey also found that leaders are discovering new ways to leverage technology to improve the skills of their workforce. We plan to improve the skills of our employees through

Samsara’s research also reveals that data plays a fundamental role in any digital transformation strategy, serving as a solid foundation for building resilience and gaining a competitive edge. Technology has given organizations faster access to data, and with accurate and timely insights, leaders are better able to anticipate and proactively address potential problems, thereby ensuring seamless operations. is guaranteed.

Dana Chery, vice president of marketing at Samsara, told VentureBeat, “Almost all leaders surveyed (90%) said having accurate real-time operational data is important to their decision making.” . “Companies are devoting significant resources to ensuring the technology to make the most of their data, and two-thirds of his leaders say he will increase his technology budget for 2023. I am reporting.”

Digital transformation of physical operations

Managing physical operations is complex, Chery added, and organizations have historically struggled to collect and analyze data to make informed decisions. However, recent technological advances such as plug-and-play digital sensors, wireless technology, and cloud-based his AI data processing have enabled significant digital transformation over the past decade.

“From driver safety to back-office operations to customer service, it’s hard to find roles where technology can’t help improve outcomes. It’s a new era for these industries,” she said. “Our survey found that physical operations leaders are excited to test technologies such as generative AI to see their potential. Only 5% of employees were successful, demonstrating a universal need for technology to support the employee experience and improve overall efficiency.”

The report also highlighted that connected operations leaders with the highest levels of digital maturity are six times more likely to exceed financial targets by 25% or more.

The survey found that these leaders are investing heavily to strengthen their organizations and improve the customer experience. Many expect positive change and a good return on investment within the next 12-18 months.

Additionally, improving employee productivity with new technologies is a key priority for 56% of those surveyed.

“We looked closely at the differences between Connected Operations Leaders, the organizations that reported the highest levels of digital maturity, and those in the early stages of digital transformation,” said Chery. “Compared to organizations in the early stages of digital transformation, a connected operations leader is five times more likely to rate employee productivity as ‘excellent’ and financial targets are exceeded by her by more than 25%.” Six times more likely to report. The ultimate benefits of digitization are clear. ”

Commitment to sustainability for a better future

Chery emphasized that even modest enhancements to operations facilitated by digitization can have a large impact on an organization, including sustainability. Samsara’s survey found a growing trend to adopt electric and hybrid vehicles, with half of the leaders planning to buy or lease an electric vehicle this year to reduce emissions. rice field. The more leaders invest in decarbonizing transport, the faster we can reduce global emissions.

“Decarbonizing transportation is a top priority and one way organizations are reducing emissions is by adopting electric vehicles. I predict it will be a hybrid,” she said.

Chery explained that these opportunities are driven by market demands, macroeconomic changes, and the growing role of technology within organizations. A notable example is the rapid transformation brought about by the emergence of ESG (Environmental, Social and Governance) initiatives.

Roles like ESG officers weren’t all that common just a few years ago, she noted. And now we are witnessing the emergence of even more specialized positions, such as Fleet Sustainability Manager.

“Their investment has led to the invention of new revenue streams such as pay-as-you-go and subscription charging stations, or selling energy back to the grid,” added Chery. “These are just a few examples of how leaders are reimagining their sustainability efforts to not only meet their sustainability goals, but drive the bottom line.”