Monday Morning Impact – July 29
Gartner Survey: AI the Technology with the Greatest Impact Over Next Three Years
According to a survey by Gartner, 62% of CFOs and 58% of CEOs believe that AI will have the most significant impact on their industries in the next three years.
“CFOs and CEOs are both focused firstly on profitable growth with nearly two-thirds of respondents in both groups putting this in their top three strategic business priorities,” said Alexander Bant, Chief of Research in the Gartner Finance Practice. “After that, technology and workforce are the next highest priorities with approximately a third of respondents selecting these in their top three.
“While AI has enormous potential to transform industries, three years is a short time horizon to do so. Senior executives must manage their expectations and be fully aware of the organizational challenges they will face.”
CFOs and CEOs are similarly aligned on growth, with both groups selecting it as their top business priority for 2024-2025. For CFOs this does not mark a huge change from their 2023 priorities, but for the CEO group the number of respondents picking growth in their top three priorities has jumped 38% since last year.
The sentiment regarding cost management deviated this year, however, with a significant increase in CFOs seeing it as a top priority but little change in CEO sentiment, which may be due to CEOs being more likely to give longer leeway on internal investment payback periods than CFOs.
“To address these differences while keeping organizational growth a priority, CFOs should align with their CEO regarding digital investments, risk appetite and cost cuts that support growth,” added Bant. “CFOs should discuss the drivers behind their CEO’s flexibility on investment time horizons. For many companies, this likely relates to the longer timelines that transformational investments in technology require to deliver returns.”
CEOs and CFOs are also concerned about talent shifts, citing employees’ rising compensation expectations and desire for flexibility in the short term, and the impacts of AI in the long term. Both are optimistic about AI’s potential to boost cost savings and productivity, but more CFOs than CEOs hold concern about near-term talent challenges.
“CFOs should provide insight on new approaches that bridge talent gaps while creating cost savings such as ‘quiet hiring,’” said Bant. “To address talent shifts or attrition when pay increases are not feasible, CFOs can make the case for flexible work policies that employees prefer.”
Finally, almost 75% of CEOs see environmental sustainability as more of a growth opportunity, whereas CFOs are more likely to view sustainability initiatives as marketing tools.
Gartner clients can read more in the report entitled, “Comparing CFO and CEO 2024 Strategic Business Priorities.” Nonclients can download CFO Perspectives on the 2023/24 CEO Survey.
Channel Impact®
Channel partners and their CFO clients should determine whether the company’s sustainability ambitions call for compliance, optimization, or transformation. The investment evaluation criteria can then be adjusted accordingly.
Hitachi Vantara: Enterprises Still Struggling with AI Adoption
Enterprises are looking for ways to smooth out the hurdles that stand in the way of generative AI ambitions, starting with security, costs and data, according to a report led by Hitachi Vantara.
According to the survey of 800 IT decision makers, more than three out of five organizations have significant gaps in AI readiness when it comes to infrastructure and data ecosystems. Nearly three-quarters agreed their infrastructure needs modernization before pursuing generative AI projects.
More than half of AI decision-makers are worried about whether their IT teams can keep up with the pace of innovation driven by generative AI, especially given the fact that enterprises have a lengthy list of action items, ranging from improving data processes and strengthening infrastructure to adapting risk mitigation frameworks.
Even so, nearly two-thirds say they have identified at least one use case for generative AI.
“Enterprises are clearly jumping on the GenAI bandwagon, which is not surprising, but it’s also clear that the foundation for successful GenAI is not yet fully built to fit the purpose and its full potential cannot be realized,” said Ayman Abouelwafa, CTO at Hitachi Vantara.
Around 40% of enterprises track progress based on a qualitative impact analysis, accuracy of generative AI responses or user/process quantitative benefits. Slightly less — 38% — are looking at cost savings as a success marker.
The push for ROI is expected to grow as AI initiatives command a larger percentage of enterprise budgets.
Channel Impact®
Channel partners need to help their customers establish better security, quality and flexibility from their data foundations to meet generative AI goals. While organizations are bullish on what AI can do for their operations long-term, most are not yet ready for widescale adoption.
Upstack Acquires Telecom Consultancy Performance Networks
Upstack, a New York-based digital infrastructure company, has acquired Performance Networks, a telecommunications consulting company based in Denver. Formed in 2010, the acquired company specializes in business-class connectivity, secure networking, unified communications, contact center, wireless and data center solutions from more than 40 providers worldwide. Consultations include requirement analysis, design, vendor selection, contract negotiation, project management, billing and ongoing account support.
“Nurturing our relationships and building customer confidence have been keys to our success,” said Performance Networks founder Shawn Nus. “Our clients trust us because we’ve always been there for them through the years, and they can depend on us to continue supporting them with best-in-class solutions and high-quality customer care.”
“Performance Networks’ commitment to customer experience and client success is an excellent fit for Upstack,” said Upstack Founder and CEO Christopher Trapp. “Shawn Nus has built a company that thrives on forging deep customer relationships and supporting clients with the highest quality of care.”
Nus joins Upstack as a partner. The terms of the transaction were not disclosed.
Channel Impact®
Upstack uses business intelligence to streamline IT architecture, procurement, and ongoing management. Areas of focus include colocation and data center, network connectivity, SD-WAN, unified communications, cloud contact center, private and public cloud, security, mobile, business continuity and IoT. The acquisition of Performance Networks is expected to add additional synergies.
Stay in the Know
Keep tabs on what’s happening in the channel and the impact it will have on the partner community by subscribing to Channel Impact communications.
Recent News
Search Buzz
Buzz Categories
