As a business leader responsible for profits this year, cash flow today, and being in business next year, should you be investing your most important commodity – your time – into AI for your business?
During disruptive periods of technology, there is a struggle for technology companies to retain their market share. If you’re are a customer of a company who isn’t a leader in the new technology, you can expect them to panic and worry you will drop them.
As of this writing, the Large Language Model category of AI (LLM) is in ‘hyper-hype’ territory. Non-technical journalists, marketing experts, financial advisors are in full “FOMO” (Fear of Missing Out) mode. It’s difficult to watch CNBC, read the Wall Street Journal or your industry publications without being challenged to buy AI to save your company from the apocalypse.
The first way AI can hurt your business
When software as a service (SAAS) started getting traction into the Early Adopter stage, there was a mad dash to rebrand conventional software as SAAS. I had several clients who used conventional on-premises software, one being QuickBooks. QuickBooks, not to be outdone by NetSuite and other first mover SAAS competitors, spun up some Windows Servers, had you buy Citrix or Windows Remote Desktop and then sold this as SAAS.
This “On-Premise Software” wolf in “SAAS” sheep clothing was a disaster. The software wasn’t re-written and couldn’t support the number of companies who bought this pseudo -SAAS. Over time, the software system performance dropped until it was unusable, and customers had to revert back costing them downtime and money!
The Second Way AI Can Hurt Your Business
Second, here’s another story. Timing is critical to your successful adoption. Vish Thirumurthy, who was an executive at Microsoft Business Systems for several years, will explain, SAAS software is had to be redesigned and architected from the ground up to run in a web browser, and more importantly as more users were added, its performance didn’t degrade. This took time and lots and lots of capital. There were many casualties as many SAAS companies ran out of capital, couldn’t deliver and closed. And their customers had to pick up the pieces and find another vendor.
The good news, is those that won the battle, now deliver great SAAS systems now run far faster than any on-premise system! But it took time.
What Should You Do?
- Get some expert help on figuring out where the technology is going and if it’s ready to deliver for your industry or business size.
- Get some expert help to select a vendor/partner to work with. Get answers to these three important questions:
- Are you an early mover adopting this technology?
- Did you create it or just rebrand it?
- Do you have the capital and engineering depth to win the battle?
- And especially if you are a small or medium sized business – do you have any reference companies?