Artificial intelligence is the most important technology in service transformation

IFS, a cloud enterprise software company, has published the first results of its latest study. The role of technologies in companies’ transition to service-oriented (service) business models is examined. The results show that switching to a service model is a top priority for 39% of officials in German companies. The most important reason for slow progress is the lack of specifications for personnel, processes and technologies.

For this purpose, the opinions of 2,000 vice-presidential decision-makers in Germany, France, Great Britain, Japan, South Africa and the United States of America were surveyed. They come from industries such as energy supply, production, construction, communications, automation and digitalization or services

Across all industries, AI is the most important technology in the transformation of services, including in Germany. According to German contacts, it improves operational efficiency by 25%, helps conquer new customer segments and markets (25%), increases customer satisfaction (26%) as well as customer loyalty (25%), which is a prerequisite for higher profit margins ( 27%).

Developing AI capabilities has the greatest urgency in Germany’s manufacturing and aerospace and defense sectors at 90% and 63% respectively. Followed by the services sector at 54%, communications at 42%, construction and engineering at 51%, and the energy sector at 44%. Innovation and clear definition are therefore seen as the basis for sales growth and profitability.

Strong finances and high flexibility are at the top of the agenda of CEOs (54%) and CFOs (49%) in all countries during services transformation. This demonstrates the close relationship between the pressure to modernize through digital transformation and the critical expectations of board members regarding the service-oriented business model. In Germany, the CEO plays the most important role in promoting services, as stated by 42% of those surveyed.

“Digital transformation is not just a technical issue, we hear that again and again from our customers,” explains Frank Berlage, General Manager DACH and Benelux at IFS. “Our study clearly shows how important board-level collaboration is when it comes to further development of a company. Service, that is, guiding customers in design, production and service, has been an issue for a long time. Now we finally have the technologies to leverage artificial intelligence, machine learning and automation for service. And this Very exciting for IFS.”

www.ifs.com