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Michael Trezza

Michael Trezza is the CEO and founder of Lithyem. Since 1999, Michael has been solving complex technology challenges for some of the world's greatest brands. Connect with Michael on LinkedIn.

May 04
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The ROI of AI: Real Numbers to Help CEOs Make Informed Decisions

By AI, Systems Thinking

The ROI of AI: Real Numbers to Help CEOs Make Informed Decisions

In an age where technology relentlessly reshapes the business landscape, Artificial Intelligence (AI) stands out as a transformative force. For CEOs and business leaders aiming to harness AI, understanding its return on investment (ROI) is crucial. This piece dives into the real numbers and strategic insights that empower informed decision-making, ensuring that investments in AI not only innovate but also add tangible value to your business.

Decoding AI ROI: Understanding the Financial Implications

The financial implications of implementing AI are vast, yet they hinge on several key factors including efficiency gains, cost reduction, and revenue enhancement. Consider how AI technologies like machine learning, natural language processing, and robotic process automation can streamline operations and cut down on overhead costs. For example, AI-driven analytics can predict market trends and consumer behavior, leading to more targeted and effective marketing strategies that boost sales and increase customer retention.

Efficiency Gains: The Silent ROI Booster

One of the less heralded, yet most significant, impacts of AI is its ability to enhance operational efficiency. From automating mundane tasks to optimizing logistics, AI can save countless hours of human labor. This not only speeds up operations but also frees up your team to focus on more strategic tasks that can drive further growth. For instance, AI tools can analyze large datasets in seconds, which might take humans hours or even days, providing critical insights faster and more accurately.

Cost Reduction: Trimming the Fat in Operations

AI’s capability to improve process efficiency often results in substantial cost savings. Automated systems reduce the need for manual labor, thus lowering payroll costs and minimizing human error—two elements that can be hefty financial burdens on any corporation. Additionally, AI can lead to savings in procurement by optimizing supply chains and reducing waste through better demand forecasting.

Revenue Enhancement: Unlocking New Opportunities

Beyond cutting costs, AI can significantly enhance revenue streams through new product development and improved customer service. AI-driven solutions can identify new market opportunities and niches, enabling companies to innovate more rapidly and stay ahead of competition. Enhanced customer interaction through AI chatbots or personalized recommendations fosters better customer experiences, leading to increased customer loyalty and higher sales.

Real-World Examples: AI’s Impact in Action

Consider the case of a leading retail corporation that implemented AI to manage its inventory more efficiently. The AI system analyzed purchasing patterns, predicted future demand, and adjusted inventory accordingly, reducing overstock and understock situations. The result? A 20% reduction in inventory costs and a 10% increase in sales due to better availability of products.

Similarly, a global financial services firm used AI to enhance its customer service. By integrating AI with their existing customer relationship management (CRM) system, the company improved its customer interaction, resulting in a 30% increase in customer satisfaction and a significant increase in cross-selling products.

Navigating the Challenges: What CEOs Need to Know

While the benefits of AI are clear, the path to successful implementation is not without challenges. Data privacy, ethical concerns, and the upfront costs of AI technologies are significant considerations. Furthermore, for AI to yield a high ROI, it must be seamlessly integrated into existing systems and workflows, requiring careful planning and execution.

Conclusion: Why AI Investment is Non-Negotiable for Future-focused CEOs

In the digital era, the question is no longer whether to invest in AI, but how to do so effectively. With compelling evidence of significant ROI from AI across various industries, CEOs must consider AI not just as a technological upgrade but as a strategic necessity. By understanding the real numbers behind AI’s impact, leaders can make more informed decisions that ensure their businesses not only survive but thrive in the evolving marketplace.

In closing, the ROI of AI offers a promising outlook for those willing to embrace its potential. As AI continues to evolve, its ability to drive business success becomes increasingly undeniable, making it an essential component of any forward-thinking business strategy.

Contact Us for more info!

May 04
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How to Choose the Right AI Solutions for Your Business Needs

By AI, Systems Thinking

How to Choose the Right AI Solutions for Your Business Needs

Embracing AI for Enhanced Competitiveness and Efficiency

In an era where technology continuously reshapes the landscape of industries, artificial intelligence (AI) stands out as a beacon of transformative power. For businesses aiming to stay competitive and efficient, integrating AI solutions is no longer just an option—it’s a necessity. But with a myriad of AI technologies available, how do you choose the right one for your specific business needs? This article will guide you through the process, ensuring your business leverages the most appropriate AI tools to thrive in today’s fast-paced market.

Understand Your Business Needs

Before diving into the vast ocean of AI technology, it’s crucial to anchor yourself with a clear understanding of your business needs. What specific problems are you trying to solve? Whether it’s enhancing customer service, improving operational efficiency, or gaining insightful analytics, identifying these goals clearly will serve as the north star of your AI integration journey.

  • Operational Efficiency: Are repetitive tasks slowing down your workforce? AI can automate these processes, freeing up your team for more strategic activities.
  • Customer Engagement: AI can provide personalized experiences to your customers, from customized recommendations to chatbot services that handle inquiries and support around the clock.
  • Data Analysis: With AI, big data becomes more manageable, providing your business with actionable insights through advanced analytics.

Evaluate the AI Landscape

With your goals in mind, the next step is to survey the AI landscape. AI solutions come in various forms, each suited to different business needs and technical capacities:

  • Machine Learning Models: Useful for predictive analytics and decision-making support.
  • Natural Language Processing (NLP): Ideal for enhancing customer interaction tools like chatbots or virtual assistants.
  • Robotic Process Automation (RPA): Best for automating routine tasks that require little to no human intervention.

Understanding the strengths and limitations of each AI technology will help you make an informed decision about what’s best for your business.

Consider Scalability and Integration

How will the AI solution fit into your existing infrastructure? Scalability and ease of integration are critical factors to consider. It’s essential to choose AI solutions that not only address your current needs but can also grow with your business. Look for AI platforms that offer:

  • Modular Design: Allows for the addition of features as your business needs evolve.
  • Compatibility: Ensure the AI solution can seamlessly integrate with your existing software systems, reducing the need for extensive modifications.
  • User-Friendly Interfaces: Non-technical team members should find the AI tools accessible and straightforward to use.

Assess Vendor Expertise and Support

Selecting the right vendor is as important as choosing the AI solution itself. A vendor’s expertise in AI will significantly influence the success of your technology implementation. Consider the following when evaluating potential vendors:

  • Industry Experience: Have they successfully implemented AI solutions in businesses similar to yours?
  • Support and Training: Do they offer comprehensive training and ongoing support?
  • Innovation: Is the vendor known for continuously updating their AI solutions and staying ahead of technological trends?

Calculate the ROI

Implementing AI is an investment, and like any investment, it’s vital to understand its potential return. Calculate the expected return on investment (ROI) by considering the following:

  • Cost Reduction: How much will AI save on operational costs by automating tasks?
  • Revenue Growth: How will AI-driven enhancements (like improved customer service) lead to increased sales?
  • Efficiency Gains: What is the value of the time saved by your employees due to AI automation?

Stay Informed and Adapt

The field of AI is constantly evolving. Staying informed about the latest technologies and industry trends will help you adapt and make necessary adjustments to your AI strategy. Regular training sessions for your team and consultations with AI experts can keep your business at the forefront of AI technology.

Summation

In conclusion, choosing the right AI solution requires a thorough understanding of your business needs, an evaluation of the available technologies, and a consideration of their scalability and integration capabilities. Additionally, choosing a knowledgeable vendor and calculating the expected ROI are crucial steps in making an informed decision. By following these guidelines, you can ensure that your business fully capitalizes on the benefits of AI technology.

Choosing the right AI solutions is not just about keeping up with technology trends—it’s about strategically enhancing your business to operate smarter, faster, and more efficiently. With the right AI tools, your business is not just prepared for the future; it is set to define it.

Contact Us to learn more.

May 04
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Scaling with AI: Strategies for Growth-Minded CEOs

By AI, Systems Thinking

Scaling with AI: Strategies for Growth-Minded CEOs

In today’s hyper-competitive business environment, growth-minded CEOs are constantly searching for innovative strategies to scale their operations effectively. Artificial intelligence (AI) stands out as a pivotal tool in the arsenal of modern executives, offering unparalleled opportunities for business expansion and efficiency. This article delves into how AI can be leveraged by CEOs to drive substantial growth, enhance operational efficiencies, and maintain competitive edges.

Unleashing the Potential of AI in Business Operations

AI technology is not just a futuristic concept; it’s a practical tool that is already transforming the way businesses operate. From automating routine tasks to deriving insights from massive data sets, AI enables companies to streamline operations and focus on strategic growth. Here’s how:

  1. Automation of Routine Tasks: AI-powered automation tools can handle repetitive tasks such as data entry, scheduling, and customer service inquiries. This not only speeds up processes but also frees up human resources for more complex and creative tasks.
  2. Data-Driven Decision Making: AI excels in analyzing large volumes of data to uncover trends and predict outcomes. CEOs can use these insights to make informed strategic decisions, identify new market opportunities, and optimize existing operations.

Enhancing Customer Experiences with AI

A pivotal area where AI can impact a business is in enhancing customer experiences. Personalization and responsiveness are key components of customer satisfaction, and AI is exceptionally equipped to deliver both:

  • Personalized Customer Interactions: AI algorithms can analyze customer data and behavior to tailor interactions and recommend products or services that meet individual preferences.
  • 24/7 Customer Support: AI-powered chatbots and virtual assistants can provide round-the-clock customer support, resolving issues and answering queries instantly, which significantly boosts customer satisfaction.

AI-Powered Innovation for Product Development

Innovation is crucial for staying ahead in the market, and AI can significantly accelerate the development of new products and services. By leveraging AI for product design and testing, companies can shorten development cycles and bring innovations to market faster:

  • Predictive Analytics for Market Trends: AI can predict shifts in consumer behavior and market conditions, allowing companies to adapt their product strategies proactively.
  • Enhanced Prototyping: AI tools can simulate user interactions with prototypes, providing immediate feedback that can be used to refine products before they hit the market.

Streamlining Supply Chains with AI

Supply chain management is another critical area where AI can drive significant improvements. By integrating AI into supply chain processes, companies can achieve greater transparency, reduce costs, and enhance efficiency:

  • Predictive Supply Chain Operations: AI models can forecast supply and demand, optimize inventory levels, and anticipate potential disruptions, enabling smoother operations.
  • Automated Supplier Negotiations: AI systems can perform automated negotiations with suppliers, ensuring optimal terms and reducing the time spent on contract negotiations.

Wrap-Up: Integrating AI into Your Growth Strategy

In conclusion, integrating AI into your business strategy offers a robust path to scaling and growth. AI not only enhances operational efficiency but also provides a strategic advantage in product development, customer relations, and supply chain management. For CEOs looking to propel their companies forward, investing in AI technologies is not just an option; it’s a necessity for staying relevant and competitive in a rapidly evolving market.

For more insights on leveraging AI for business growth, Contact Us, for scalable and efficient technological solutions.

May 25
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Contact Tracing for Dummies

By Smarter, Faster

Last week, in an unprecedented partnership, Apple and Google released the first version of the Exposure Notification API. This technology will allow public health agencies to send you an alert if you’ve been exposed to someone with COVID-19.

The question is: Will people use this potentially life saving technology?

I get it. Everyone is concerned with privacy, big brother and civil liberties. So before anyone starts to dust off their soapbox, let’s get up to speed on how the technology actually works.

Imagine that everyone you come in contact with, you give a tiny magic crystal to. They all look the same, and nobody can link you back to that crystal once you give it to them. Now one day you test positive for COVID-19 and decide that you want to let everyone you’ve been in contact with know. You cast a spell and all the magic crystals that you gave out all turn red, alerting everyone that they have potentially been exposed and to take precautions. They don’t know who the glowing red crystal belongs to, they just know they’ve been exposed.

That’s how it works. It’s brilliantly simple, anonymous and entirely opt-in by each individual.

I don’t want my location tracked!

The technology isn’t tracking your location and in fact location data PLAYS NO PART IN IT. It doesn’t need to. In fact to even use the API, apps must have Location Services turned off to further enforce this policy.

Honestly if you’re reading this on Facebook, LinkedIn, an iPhone or an Android.. if you use Instagram, Twitter, Facebook or Youtube, you have zero grounds to complain about privacy, you just don’t know it. If a product is free, YOU are the product.

I don’t want my data in the cloud!

Contact tracing data is only stored on a user’s device and is only processed on a user’s device.

But privacy?

Privacy is the tentpole of this technology. The Temporary Exposure Keys are randomly generated, encrypted bluetooth signals. Using WiFi at Starbucks is more dangerous.

But I don’t want to help my community!

Nobody is forcing you to use it. It’s all opt-in and you can decide to download the apps (when they’re ready) or not.

At A Glance

  • The entire system is opt-in
  • Other applications for contact tracing will be allowed in the App Stores; they can adopt Apple and Google’s API, but they must remove all Location Services features and adopt the privacy frameworks of the Apple and Google API
  • Contact tracing data is only stored on a user’s device
  • Contact tracing data is only processed on a user’s device
  • Public health agencies can define what constitutes an exposure event
  • Public health agencies can determine the number of exposure events a person has had
  • Transmission risk of positive cases can be factored into the definition of an exposure event
  • Public health agencies can contact exposed users based on a combination of the API and data that users voluntarily choose to input into the app
  • No news to announce yet on whether Apple will promote these applications, such as in the App Stores

Closing Thoughts

I hope when these apps become available you consider the benefit you’ll be providing to the community. It doesn’t cost you money, time, privacy, security, liberties or anything else. The only thing it costs you is the interest in protecting our communities.

Further Reading:

May 19
Love1

Upgrading Technology in a Downtown

By Lithyem Insights, Systems Thinking

Upgrade Technology in a Downtown

We are in a pretty unique time in history. As much as the pandemic and the economic fallout have caused difficulty and challenges for so many, it’s also a rare opportunity for forward thinking and innovative companies.

Many businesses have been put on pause in the midst of this downturn. Business models have needed to quickly adapt to social distancing while the economy has been flailing. But inside this dumpster fire is an opportunity.

The slowing down of business creates an opportunity to upgrade systems and technology for the inevitable reawakening.

“Invest more in R&D even during a recession, knowing that the market will eventually rebound and new and innovative technologies will drive future demand.” – Paul Otellini / former Intel CEO

When business is on fire, when things are jumping and deals are pouring in, how motivated are you to upgrade systems, processes and software? Internal projects get back-burnered and deprioritized until there’s free time. Enter 2020 and the gift of free time.

Guaranteed that you have been putting off upgrading an old outdated software platform, or streamlining a process that was a pain to manage, or implementing a new piece of technology but were too busy to find the time. What better time than when things are slow to level up and create a real competitive advantage in your business.

Benefits of investing in systems & tech:

  • Cost savings through automation and optimization
  • Improved customer experience
  • Improved employee experience & productivity

Consider these questions while things are slow:

  • What systems or processes are costing us time and money?
  • What internal projects have we been putting off?
  • Where is the risk in our systems?
  • What are the opportunities if we were to upgrade our systems / technology?

Keep in mind that the rebound is coming and either you or your competition is going to come out of this more prepared, with a better offering or a better customer experience. Who is it going to be?

Contact us to learn more
May 14
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Are You Swimming Naked?

By Lithyem Insights, Smarter, Faster, Systems Thinking

On April 1, a researcher at the Centers for Disease Control emailed Nevada public health counterparts for lab reports on two travelers who had tested positive for the coronavirus. She asked Nevada to send those records via a secure network or a “password protected encrypted file” to protect the travelers’ privacy.

The Nevada response: “Can we just fax them over?”

AP News published an article yesterday describing the absolute train wreck of the data supply chain supporting the COVID-19 response and guiding decision making. While it’s no surprise that many (most) organizations are running on legacy, and badly outdated systems, it’s rare to see the impact of such widespread technology debt exposed the way this pandemic has done.

“You only find out who is swimming naked when the tide goes out.” — Warren Buffett

Well, the tide is out. Right now, data about this pandemic is critical to be accurate and up to date. It turns out that most state and local health departments still rely heavily on faxes, email and spreadsheets. This has seriously impacted the ability to gather and analyze data that peoples’ lives depend on. It’s exposing a symptom of a vast problem faced by most companies, even if the negative consequences aren’t as dire.

“The CDC during this entire pandemic has been two steps behind the disease,” Dr. Ashish Jha

Additionally, the White House has partnered with Palantir, in an effort to build out its data collection platform HHS Protect Now. Vice President Pence asked 4,700 hospitals to provide numbers on test results, patient loads, hospital beds and ICU capacity… daily. This is great in theory but in practice this has utterly overwhelmed already overworked hospital staff with administrative work.

Up to half the lab reports submitted for public health case investigations lack patient addresses or ZIP codes, according to a May 1 Duke University white paper co-authored by Mostashari.

Let’s face it, working to solve this problem while it’s happening is a monumental task. The solution is built of a few components, core of which are modern software systems. The implementation, nationally, is a different story.

The real lesson here is in how this relates to YOUR company. 

While your company is likely not using faxes these days (seriously), you are almost certainly relying on emails and spreadsheets as core components of your operations.

Do any of these symptoms hit home?

  • Email and spreadsheet overload
  • Double data entry
  • Lack of real-time dashboards, data and reporting
  • Lack of automation
  • Paper-based systems

Of course they do. For a moment consider the risks:

  • Cost of maintaining old systems
  • Wasted time & effort that could be spent on creative work or new business
  • Compliance or regulatory issues
  • Inability to work remotely
  • Scalability challenges
  • Security risks

Paper based and manual systems are NOT an option any longer. Businesses that don’t agree will be rendered obsolete. Here are a few lessons learned from the story above that you should consider for your business.

  • Legacy systems cost you time and money
  • Collecting data cannot increase the burden on the company
  • Collecting data must be foolproof
  • Data must be standardized and actionable
  • Automation must be applied to maximize efficiency

Don’t swim naked. (In business only).

If you’d like to chat about a technology strategy, systems improvement or software solution I’d love to have a conversation.

May 12
Love0

Roaring Out of A Recession, Examined

By Lithyem Insights

Roaring out of a Recession

In 2010 Harvard Business Review studied 4,700 public companies’ performance during the past three global recessions (1980, 1990, 2000) breaking down the data into three periods: the three years before a recession, the three years after, and the recession years themselves.

The full article can be found here:

It’s a great article with quite a lot to learn from the past.
“The past is a horrible master but a great teacher.”
-Unknown
Let’s look at the article by the numbers:
  • 17% of the companies in the study didn’t survive a recession: They went bankrupt, were acquired, or became private.
  • About 80% of the surviving companies had not yet regained their pre-recession growth rates for sales and profits three years after a recession.
  • 40% of the surviving companies did not return to their pre-recession sales and profits levels three years after a recession.
  • 9% of the companies flourished after a slowdown, doing better on key financial parameters than they had before it and outperforming rivals in their industry by at least 10% in terms of sales and profits growth.
  • Firms that cut costs faster and deeper than rivals don’t necessarily flourish. They have the lowest probability, 21%, of pulling ahead of the competition when times get better.
  • Businesses that boldly invest more than their rivals during a recession don’t always fare well either. They enjoy only a 26% chance of becoming leaders after a downturn.
  • Companies that were growth leaders coming into a recession often can’t retain their momentum; about 85% are toppled during bad times.
  • Companies typically combine three defensive approaches—reducing the number of employees, improving operational efficiency, or both—with three offensive ones: developing new markets, investing in new assets, or both. This yields nine possible combinations, some of which are more effective than others.
  • Few prevention-focused corporations do well after a recession, according to our study. They trail the other groups, with growth, on average, of 6% in sales and 4% in profits
  • Despite a focus on growth, promotion-focused companies’ post-recession sales and earnings rise by only 8% and 6% respectively.

The Winning Combination (Cost Cutting + Innovation)

One combination has the greatest likelihood of producing post-recession winners: the one pursued by progressive enterprises. They cut costs mainly by improving operational efficiency rather than by slashing the number of employees relative to peers. However, their offensive moves are comprehensive. They develop new business opportunities by making significantly greater investments than their rivals do in R&D and marketing, and they invest in assets such as plants and machinery. Their post-recession sales and earnings jump to 13% and 12% respectively.

Are you ready for rebound?

Lithyem has developed a FREE Assessment to help you look at your Remote Readiness. It will take 10 minutes, it’s free and it will help you look at your company through the lens of innovation, optimization and a distributed team paradigm.

Visit http://remotereadytoday.com/ to take the FREE Diagnostic and learn how you can optimize and innovate today.

Apr 25
Love0

The New Normal & Business After the Pandemic

By Lithyem Insights, Systems Thinking

The new normalThe COVID-19 Pandemic and the economic fallout has created a business environment that’s forced extremely rapid changes on businesses around the world.

Businesses have had to quickly shift operations to a remote workforce, with little to no strategy, planning and process around it. Compounded by the uncertain economic times, many businesses are left unprepared for the challenges and are also unaware of the opportunities in this new paradigm.

Many businesses will not make it through these difficult times. Some may just find their way through. Some, however, will come out with a massive head start against their competition. Those that will explode past competitors will have been smart by cutting expenses, of course, but what they will also have done is have invested in infrastructure, innovated their business models, improved service delivery and reimagined their companies.

Imagine a situation where the entire world was put on pause and you had the opportunity to optimize your business, innovate your business model and prepare for the rebound that’s 100% coming. That’s where we are today. We might be here for a while, but the fact is that the rebound is coming and you’re either skating to where the puck is headed or you’re playing a losing game.

If there is an obvious and in-your-face change that is crystal clear these days it’s that remote work is the new normal.

Remote Work as The New Normal.

Given the social distancing situation, nearly every single business today is having to manage significant change around a remote workforce. For MOST businesses, this is an entirely new mode of operating.

First, here are a few major benefits to a remote workforce:

  • Increased Productivity
  • Reduced Expenses (Rent, Equipment, Salaries) / Cost Savings
  • Larger Talent Pool / Geographic Arbitrage
  • Less Commute Time / Less Absenteeism
  • 24 Hour Production Hours (If Business Model Supports It)
  • Higher Morale
  • Forced Automation and Streamlined Operations

It’s not all roses, of course, and here are some of the drawbacks to a remote workforce:

  • Employee Isolation
  • Decreased Employee Visibility
  • Potentially More Difficult Collaboration
  • Work / Life Balance May Suffer
  • Challenges Developing Company Culture
  • Some People are More Suited to Remote Work than Others

With that all said, the benefits of a distributed team to many businesses can be huge. The challenge, however, is in the implementation.

Using ZOOM Does Not Make a Company a “Remote Workforce”

It’s not as simple as giving everyone a laptop and a camera. Here are 6 quick questions that need to be asked and answered:

  1. What’s the best way to adapt our systems, processes and operations for a remote workforce?
  2. What do we gain / lose with a remote team?
  3. Where is the RISK? (Technology, Operations, Security)
  4. How can we maximize the cost savings?
  5. How will our service delivery or product quality be impacted? Can it be improved?
  6. How can we help our employees to be productive, engaged and creative at home?

These are just some points to get you thinking about the new normal. I hope it’s been a helpful read. Stay safe and lead on!

If you’re interested in learning more, Lithyem has developed a FREE Assessment to help you look at your Remote Readiness. It will take 10 minutes, it’s free and it will help you look at your company through the lens of innovation, optimization and a distributed team paradigm.

Visit http://remotereadytoday.com/ to take the FREE Diagnostic and learn how you can optimize and innovate today.

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