In 2024, the landscape of artificial intelligence (AI) and automation in the business sector experienced significant shifts, driven by meticulous exploration and cautious implementation of emerging technologies. Industry leaders, including Steve Birgfeld, Nuno Miller, and Stijn Stabel, participated in a panel discussion facilitated by SAPinsider, where they shared insights on the evolving challenges and innovations influencing their organisations.
Central to the discussion was the "CIO’s 2024 Transformation Report Card," which highlighted key trends in technological transformation. Business process automation, standardisation, and redesign were identified as leading projects for the second consecutive year. Over half of the leaders surveyed indicated they had implemented or were in the process of integrating SAP S/4HANA, with 30% still evaluating or piloting the system ahead of a looming 2027 deadline. However, AI adoption remained modest, with nearly 46% of respondents feeling their organisations were lagging behind the competition in terms of AI experience. Birgfeld remarked, "We have built a great foundation of ERP now with SAP S/4HANA. Now it’s a matter of how to best optimise what we have."
Notably, resistance to change emerged as the primary challenge hindering transformation success, overshadowing issues such as a disconnect between IT and business operations, and constraints around budget and resources. Birgfeld noted the strides his company, Blue Diamond Growers, has made since implementing SAP S/4HANA, elaborating on their ongoing efforts to harness AI capabilities. The company plans to go live with RISE with SAP in January 2025, aiming to leverage AI and automation for improved decision-making and analytics.
Conversely, Nuno Miller at N Brown Group shared insights on the company’s transition from a traditional catalogue business to a digitally-driven enterprise. To facilitate this transformation, Miller restructured the organisation to break down silos and foster a new digital culture based on cross-functional teams or 'tribes.' This approach contrasted traditional change management methods, which he deemed insufficient. "We organized our tribes based on experiences we wanted to create," he explained.
Data management was echoed as a critical theme among the executives. Stijn Stabel highlighted the necessity of having dedicated data leadership and strong governance processes, saying, "Many organizations want to go fast and they want to generate results, but they are hindered by a lack of data quality." He emphasised that effective data utilisation requires skilled personnel who can navigate both technology and the intricacies of business operations.
As businesses prepare for 2025, the panel offered strategic insights on navigating the future of AI in operations. They advised leaders to explore RISE with SAP but to be mindful of potential commitments. They encouraged a focus on bringing AI from theory into practical applications and warned that substantial organisational changes may be essential in realising the benefits of technological innovations.
The SHRM report summarised key themes throughout 2024, indicating that while generative AI tools gained traction, many organisations faced obstacles with practical implementation. Companies experimented with AI but recognised that early integration with core business functions was still limited. The research highlighted the importance of human-AI collaboration, finding that organisations need to rethink their processes to effectively integrate AI capabilities alongside human oversight.
Among those themes were leadership challenges around employee trust and governance, as well as the evolving role of middle management in the AI-dominant workplace. The report emphasised the importance of gradual adaptation in AI implementation—urging organisations to start small with focused use cases and to invest in training and feedback mechanisms.
As organisations take these lessons into 2025, questions remain about the future trajectory of AI tools, the evolving skills needed by workers, and the governance frameworks that will regulate responsible AI use. The coming year is set to continue a narrative of gradual evolution, characterised by learning and adaptation as organisations strive to reconcile technological advancements with the foundational need for human insight and functionality.
Source: Noah Wire Services