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Why 97% of Companies Fail at AI Transformation

Many CEOs say their company is all-in on AI. Every one of their earnings calls touts AI integration. Their strategy deck features the words AI-powered a dozen times. Yet when I review these same organizations, I encounter a starkly different reality: employees using consumer  Generative AI (GenAI) tools in secret, departments building redundant solutions, and confusion about what AI transformation actually means. Recent research from Google also reveals the inconvenient truth: Just 3 percent of organizations have achieved meaningful AI transformation. However, 97 percent remain mired in what I call AI aspiration fantasy theater. This isn't a technology problem. The GenAI tools work. The models are remarkable. The issue is that we've fundamentally misunderstood what meaningful and substantive AI transformation requires. The Executive Blind Spot The data reveals a troubling pattern: executives are 15 percentage points more likely than their employees to believe that AI is alread...

Digital Transformation Drives Cloud Computing Demand

Digital  Business Transformation projects gained momentum in 2014, as more companies moved their legacy IT workloads to cloud computing platforms and launched a variety of new cloud-native applications. This pervasive trend will continue and accelerate for the duration of 2015. Total cloud IT infrastructure investment (server, storage systems , and ethernet switch) is forecast to grow by 21 percent year-over-year to reach $32 billion in 2015 -- accounting for about 33 percent of all IT infrastructure spending this year, which will be up from about 28 percent in 2014. Private cloud IT infrastructure spending will grow by 16 percent year-over-year to $12 billion, while public cloud IT infrastructure spending will grow by 25 percent in 2015 to $21 billion, according to the latest worldwide market study by International Data Corporation (IDC). For the full year 2014, cloud IT infrastructure spending totaled $26.4 billion, up 18.7 percent year over year from $22.3 billion -- priva...

The Evolving Role of Savvy Business Technology Leaders

As the chief executive at your company, if you discovered that you had some major financial standards compliance issues within your organization, would you be concerned about the risks associated with that exposure? If your designated outside auditor had bypassed your internal finance department and chose instead to work directly with your individual Line of Business leaders, would you want to know why? Moreover, would you intervene? Yes, it's a rhetorical series of questions. And I think we all know the answers. Did you know there's a movement that's already in progress that could impact your company's provision and consumption of IT services, with a corresponding potential exposure concern that's related to compliance issues? Have you heard about the Shadow IT phenomenon? According to the assessment of several leading IT market analysts, it's a trend that's already quite pervasive across a broad cross-section of industries. It’s also been a hotly ...