Sluggish economic growth, lagging capital spending, and cautious hiring challenge CFOs managing the organization's financial path. Leaders now demand greater insights from data driven decisions. Analytics and big data are as important as treasury concerns and counter-party risk mitigation. Further, a greater number of CFOs now own the IT function and have CIOs reporting to them. This growing and evolving role of the CFO results in a need to understand the impact of disruptive technologies on business models and financial security. Constellation's analysts and research helps CIOs understand the challenges faced by the IT and line of business divide as well as take a pragmatic approach to technology adoption.
Runway, a startup looking to break into the financial planning for businesses market, said its AI-driven platform for enterprise finance is generally available.
AI Begins And Ends With Nvidia
Despite the massive buzz on AI, only a few core companies that power the Age of AI will succeed. The high capital costs of research and development investment, the time required to take a product to market, and the ability to cross competitive moats create a massive barrier to entry. In fact, only a few vendors have shown significant profits in AI:
Take A Measured Approach To AI Adoption
The rush to AI projects often comes as an all or nothing approach. However, lessons learned from Constellation's Executive Network (CEN) members show a gradual and measured approach. Constellation sees five phases to adoption from both a business and cultural point of view:
Workday reported a strong first quarter as the company leveraged AI within its platform and continued to become more efficient. Workday did say that sales cycles are taking longer.
Technologies for the enterprise have often been seen as enablers for disruption and change. Over the past five decades as one technology or vendor would come to prominence and dominate a market, challengers would apply new technologies or business models to topple the legacy market and create new markets. Silicon Valley built its credibility on these disruptive market entrants. This cycle would continue to repeat itself until the next challenger became the market leader and struggle to hold on to its lead while meeting the demands of investors and the market.
Expect Software Giant Hunters To Soon Be The Hunted In A Digital Giant's Quest For Growth
Six of the Magnificent Seven (Microsoft, Apple, Nvidia, Alphabet [Google], Amazon, Meta [Facebook]) stocks have entered the four comma club -over $1 trillion in market cap. With a combined market cap of over $13.2 trillion, these six players continue to defy physics with continuous quarters of double digit organic growth. Digital giants by definition have deployed five key strategies:
