Why Organizations Must Embrace Whole-of-Business Transformation to Unlock AI’s Full Potential
By Kenny Yeo, Director and Head of Asia Pacific Cyber Security Practice at Frost & Sullivan
Last month, I had the privilege of hosting a seminar with our esteemed Frost & Sullivan customers in Singapore to delve into the transformative potential of #AI. This topic has emerged as the most sought-after and in-demand subject for our team, captivating the attention of our clients.
The evolution of AI is unfolding in overlapping waves—moving from predictive AI to generative AI and now toward agentic AI, a new paradigm where AI agents can act autonomously, make decisions, and continuously learn with minimal human intervention.
As technological advancements continue to accelerate, Frost & Sullivan has identified four business-centric emerging trends based on industry analysis:
As the urgency to deploy AI grows, many are not prepared to capture its potential
During the event, we had the pleasure of having @Cisco CTO in Customer Experience for APJC @Sean Duca on our panel. He talked about how many organizations are unfortunately still unprepared, “The race to deploy AI is accelerating, yet readiness is slipping. Based on Cisco’s 2024 AI Readiness Index Report, despite 98% of companies feeling the pressure to implement AI, only 13% are fully prepared to capture its potential. Organizations must shift from urgency to strategy—because AI without readiness is just risk without reward. Is your organization truly ready for AI, or just feeling the pressure to implement it?”
Game-Changing Adoption Remains Low
While AI has the potential to revolutionize industries, game-changing adoption remains elusive.
An article published at the end of 2024 by The Economist, speculates that AI will not be the major productivity breakthrough it promises.
The actual use of AI beyond querying ChatGPT is low, the American Census Bureau found only 5-6% of businesses are using AI to produce goods and services.
How can your organization achieve ROI on AI spending?
Many organizations are hesitant due to unclear return on investment (ROI), a lack of AI-ready talent, and cybersecurity concerns. The ability to quantify AI’s impact remains a significant challenge—and this is confirmed by our conversations with many end-user customers.
The Rise of the AI Agent
As Microsoft defines it, agentic AI extends beyond automation, operating with greater contextual awareness and adaptability.
A notable feature of these models and solutions is their ability to break down complex requests into manageable subtasks and prioritize them, allowing for the autonomous handling of intricate workflows.
While this technology is still very new, it could potentially lead to improved workflows and provide value for AI investments.
Conclusion: AI Transformation Requires Business Transformation!
True AI transformation cannot happen in isolation—it requires a whole-of-business approach. Frost & Sullivan advises that organizations must undergo a multi-layered transformation, ensuring alignment across leadership, business value, human capital, digital operations, and governance.
This transformation follows a three-stage journey:
- Digitization: Laying the foundation by modernizing infrastructure and digitalizing business processes.
- Digital Transformation: Embedding data-driven decision-making, automation, and customer-centric innovations.
- AI Transformation: Implementing advanced AI-driven business strategies with technical capabilities to unlock new efficiencies and competitive advantages.
Key Considerations for AI-Ready Businesses:
- Leadership Buy-in: AI initiatives must align with corporate strategy and demonstrate clear business outcomes.
- Business ROI: How can your organization make money or gain value from your AI investments? What is the ROI for the business? In my view, this will make or break your organization’s AI transformation.
- Human Capital Investment: Building AI fluency across teams is essential. AI is not just a technological shift but a workforce transformation.
- Data & Cybersecurity Readiness: AI thrives on high-quality, secure data. Organizations must prioritize data governance, cybersecurity, and regulatory compliance.
Achieve AI actualization with a whole-of-business mindset
AI transformation is not just about technology; it’s about rethinking business models, redefining operational processes, and fostering a culture of continuous innovation. The future belongs to companies that treat AI not as a tool but as a strategic business capability—one that requires a holistic and structured approach to unlock its full potential.
Reach out to our Growth Experts to better understand how to actualize an AI-transformation roadmap for your organization:https://shorturl.at/v0kKV
