For the sake of simplicity, let’s say there is a spectrum of AI software that ranges from point solutions (make decisions at the departmental level) and at the other end of the spectrum system solutions. System solutions are very large and transformational. This article is about AI point solutions. They are small applications that use AI to help humans in a department do their jobs better. The focus of this article is on AI specific point solutions. AI point solutions are exploding in popularity because they can impact the business quickly. But buying AI point solutions is a big challenge for many companies, and composability is a critical AI buying criteria when buying AI point solutions.
For most companies, the primary objective when buying software is to find the software with the best features and functions. Ten to twenty years ago, selecting the right software product was a critical decision. Most of the systems being evaluated ten to twenty years ago were large enterprise systems. Buying mistakes were very costly. To minimize mistakes, companies created very thorough buying processes. It’s still appropriate to exercise due diligence when buying large systems, but there are two major problems that emerge from legacy buying processes. The first is associated with big software, and the second is associated with the big software procurement process. Both cause major headwinds for companies looking to innovate faster.
Software buying process challenges
First, the companies that sell large software often want to sell a large platform which maximizes their revenue. What does that really mean? Often, the large vendor has acquired software, that compliments their primary offering, but are not best of breed. The software may work – but is often complicated, slow, and not fit for purpose. In addition, many times, large systems are difficult to migrate away from. Buying large software systems locks companies into a platform and makes it difficult to migrate away. As noted in InfoWorld, one reason companies fail to innovate is they are locked into a specific vendor’s technology. Technology continues to change quickly, and vendor lock in and a big drag on innovation.
Second, legacy procurement processes are time consuming, and often based on the wrong criteria. When features and functions are the focus of an evaluation, the evaluators often overlook two key factors: time to value, and ease of integration. Because the rate of technical change is accelerating, often by the time a software product is selected, a better solution has come to market.
For AI point solutions, the focus should not be on finding the perfect software product, but on finding software that easily integrates into existing business systems and solves a specific problem quickly. The buying process should focus on composability.
Composability is a critical AI buying criteria
Here are key buying criteria business and technology leaders should consider when evaluating point solutions.
- Technology is constantly evolving: The pace of technological change is faster than ever before, and it’s only getting faster. It is difficult to keep up, and AI will continue to accelerate this trend. Delivery business value is increasingly about speed and integration. The focus needs to shift to software that can be quickly replaced if/when a better software is available.
- Time is of the essence: In today’s fast-paced business environment, time is perhaps the most valuable resource. Trying to find the perfect software product can be a time-consuming process, and it can take time away from other important work. By focusing on finding software that is fit for purpose, and easy to integrate (rather than “best”) good decisions can be made more quickly.
- Flexibility is key: Businesses need to be able to adapt quickly to changing market conditions and customer needs. By choosing software that easily integrates into existing systems, the department can maintain a high degree of flexibility and agility. This enables the ability to rapidly respond to changing circumstances and to take advantage of new opportunities as they arise.
- Responsiveness is critical: The ability to respond quickly to changing business needs is more important than ever before. Companies can improve responsiveness by focusing on ease of integration. Responsiveness creates a significant competitive advantage.
Choosing the right software product based on features and functions was important in the past, but for AI-point solutions it is much less important. Today, it is more important to find software that easily integrates into existing business systems and solves a specific problem quickly. Composability is a critical AI buying criteria.
