Will You Pass or Fail the Tesla-fication Test?

NAB

https://amplify.nabshow.com/articles/will-you-pass-or-fail-the-tesla-fication-test/

By 2030, 70% of growth in the global economy will come from AI, robotics, 5G, and automation, but how many companies actually have a business model primed to take account of this?

Turns out, none too many. According to Wind River, which collaborated with Forbes on a survey of more than 650 executives in the US and Japan, only 16% of companies are ready for what it calls the intelligent systems journey.

The characteristics of a successful intelligent system are more than just the technologies deployed; they cover how leaders think about intelligent systems, business drivers, and deployment of the necessary process changes for embedded intelligent systems design.

Top of the heap are those 16% of company execs who hold a deep belief in the “Tesla-fication” of their business and the idea that they outperform peers four-to-one.

They consider themselves significantly more able to deliver new business models with intelligent systems, including seamless connections between suppliers and customers and connecting business processes with new forms of sensors, than all their peers.

“Their prime investments in intelligent systems focus on an ability to get everybody on one real-time workflow process now,” Wind River says. “In the medium term (five years), the ideas of automated learning and the ability to detect events and resolve them autonomously are key. They see their embedded systems future as critical and dependent on the ability to monitor, manage, and maintain these devices on the far edge. They see themselves as rich visionaries and believe their embedded device businesses will be increasingly innovative.”

Nearly a quarter of execs position their companies on the next rung down. They believe in a data-driven future but see the ability to compute on the edge as only a nice-to-have.

“The key for this group is to move the company to a data-driven decision process at its core,” Wind River suggests. “They see themselves as behind their peers in their digital transformation and behind on concepts such as AI and ML. They are ahead of their peers on the idea that designing in the cloud is the future, but they lag in areas such as 5G on the far edge and the future importance of mission-critical capabilities. The big barriers are cybersecurity and a lack of momentum that would come from a shining example in their industry.”

Twenty-two percent of the sample are not fully committed to “intelligent systems,” although they understand the ideas behind it.

“They see themselves as digital businesses and are moving to an organizational level of commitment to intelligent systems. They are concerned about the potential difficulty for the organization to deliver, but on balance they believe that the organization does see where the value is.”

At the bottom end of Wind River’s categorization is the one in eight firms (12%) that don’t really believe in the meta trends and thusly lack vision and motivation.

“They underestimate the potential impact of true compute on the edge, the ability to predict and solve failures, and real-time workflows. This group of companies, as expected for organizations on the lowest levels of return and also on the lowest levels of belief in intelligent systems, are significantly behind other companies on most of the variables measured.”

For example, Wind River suggests, this group does not believe that companies are becoming software enterprises, that digital models should be at their core, that mission-critical capabilities are going to be more important in the future, or that cybersecurity and security are building blocks for all sectors.

“Their general lack of belief in the major trends (software enterprises, new business models, digital feedback loops) is probably holding back their desire to experiment and learn, as they do not see where the possible results could come from.”

Could that be you?