Where this Myth Originates
It is common to look at the news and see large enterprise companies such as Walmart, SeatGeek, or Pepsi spending millions of dollars on data, AI capabilities, and digital transformations. It is a reasonable impression that this means incorporating AI into your company is costly and made only for Fortune 500 companies; however, this is not the truth.
Small/Mid-Sized Companies Utilizing AI
Single Use Cases (Point Solutions)
In today’s world of technology, adding an enterprise system and data transformation to your company can seem daunting. However, the use of AI can be as simple as automating or analyzing a single use case rather than implementing a full platform, middleware layer, or data layer to your digital ecosystem. Starting with just a single use case, like demand forecasting, is an easy way to keep AI implementation budgets low, but effective within an organization when prioritized for value.
Cloud-based Platforms Help Cut Costs
The creation of cloud and saas-based technologies has decreased upfront implementation costs significantly compared to recent years. These products already have some AI capabilities built into the software. This allows for easier automation and analysis compared to the enterprise level. In the past, adding technology into a business meant starting from ground zero. Now, with software like Microsoft Business Central, implementation has become more accessible and cost friendly. This is good news for companies with smaller budgets as AI has become more integral for success and a competitive advantage. If your most recent information on AI isn’t so recent, you might be surprised at how accessible AI has become!
Smaller Size Can Lessen the Cost (and help ROI)
A small to mid-sized company is usually able to see a faster ROI than larger companies as there is less organizational complexity to navigate and therefore easier to implement, not to mention this likely means less shadow IT, and overall less data cleansing required. These companies only need a well-scoped project with key outputs outlined to make an impact on both the operations and the P&L’s bottom line. This significantly cuts implementation costs for smaller operations. With less structure to navigate, smaller companies are able to get their digital transformation, data cleansing, and AI enablement up and running faster than enterprise companies and see tangible change and ROI in a shorter time frame.
Real Business Applicability
Direct Applications to Agribusiness
- Grain elevators using AI can track incoming trucks and outgoing shipments accurately, which reduces idle time and demurrage costs. This is a simple integration that can save a company thousands per year.
- Automating ingestion of incoming invoices with vision AI tools for faster entry into your AP platform and reduce potential errors, while freeing up time for accounting and operations teams
- Adding forecasting tools to feed mills to analyze and track their top SKUs can help solve challenges of overproduction and ingredient waste (see our article about ERP and sustainability). This helps guarantee available, fresh products for clients. These simple AI integrations can give any small to mid-sized business a competitive advantage without having to implement data overhauls.
Concluding Remarks
The value of AI integration is not limited to company size or budget, but rather by a problem to solve. There are many options available to solve problems and inefficiencies through AI integration that whatever your budget and company size is, there is a platform or AI capability for you. As businesses look at these use-case driven solutions, be sure to review how your data is being used and how extensible the AI tool is to minimize change management when implementing a solution for the next use case.
At Captios, we believe AI adoption begins with focus. Before organizations can see measurable results, they need to identify opportunities worth solving. The Captios approach focuses on fixing the most pressing needs, but keeping an eye on the future by creating the optimal AI strategy that aligns with your company’s goals, so AI initiatives deliver measurable business value regardless of company size now and well into the future.
Captios Partners works with companies to bring structure and clarity to operational and technology decisions. If you are ready to see what AI could do for your company, reach out directly to Michael at pelsoci.michael@captiospartners.com.
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