Operations, Data and AI

Accelerating Value with AI/ML: The 90-Day Realization Approach for Key Business Challenges

Written by Sanjiv Gupta | Nov 1, 2024 5:33:36 PM

 

Explore how AI/ML can tackle pressing issues in revenue growth, inventory management, and order fulfillment, driving measurable results within 90 days.

Given current competitive landscape, companies are increasingly wondering if AI can be deployed for swift, impactful solutions. However, realizing AI’s potential within 90 days may seem ambitious. This short timeframe, however, can be incredibly productive when companies strategically sequence their AI use cases. Boston Consulting Group (BCG) emphasizes that by focusing on a “North Star” of clear priorities, companies can streamline their digital transformation, generating value more quickly and effectively than traditional approaches allow. In fact, defining and aligning AI use cases with business goals can accelerate time-to-value by up to 30%.

Revenue Growth and Promotion Effectiveness

AI offers powerful capabilities to drive revenue growth, especially in optimizing promotion effectiveness. McKinsey notes that organizations that successfully implement AI in customer-facing functions, such as targeted promotions and product recommendations, can improve revenues significantly, with some companies seeing as much as a 15-20% increase in response rates when promotions are personalized using AI​. AI-driven insights empower businesses to refine their marketing approach based on customer preferences and historical trends, ensuring promotions reach the right audiences and maximize returns.

Imagine deploying an AI-driven promotion analysis tool that identifies customer trends within the first 30 days. By day 60, companies can adjust ongoing campaigns to target high-impact areas, optimizing spending and increasing revenue. By the 90-day mark, measurable results in promotion effectiveness can strengthen stakeholder confidence, justifying further AI investments.

Inventory Workbench: Managing Overage, Shortage, and Placement

Inventory management remains one of the most complex areas where AI can drive immediate value. According to Gartner, advanced data architectures and AI tools that provide real-time inventory insights can reduce overages and shortages, resulting in 10-15% lower carrying costs and improved operational efficiency. By leveraging AI to monitor stock levels, forecast demand, and optimize storage, companies can avoid the traditional pitfalls of manual inventory adjustments and achieve measurable results quickly.

Within the first 30 days, an AI-based inventory management solution could analyze historical trends and identify potential risks of overage or stock-outs. By day 60, the system can adjust inventory placement to minimize waste, ensuring high-turnover products are prioritized. By day 90, businesses not only reduce costs associated with excess inventory but also increase available-to-sell (ATS) stock, enhancing responsiveness to customer demand.

Order Fulfillment: Improving Fill Rates and Understanding Customer Behavior

Order fulfillment is critical for customer satisfaction. AI can help streamline this process by analyzing fill rates, tracking order patterns, and predicting customer behavior. Companies integrating AI into fulfillment and logistics experience improve accuracy in demand forecasting, which translates to fewer stock-outs and higher on-time delivery rates.

An AI-driven order fulfillment tool can start analyzing fill rates within 30 days, allowing businesses to make necessary inventory adjustments. By day 60, predictive analytics can anticipate customer behavior, improving demand responsiveness. By day 90, companies can observe a substantial improvement in fill rates and a more streamlined fulfillment process, enhancing both customer satisfaction and brand loyalty. 

Setting Up for Success: Why a 90-Day Goal is Crucial

Establishing a 90-day goal aligns transformation with actionable insights and accountability. Companies that set focused, time-bound goals for AI-driven transformations achieve faster ROI and stronger stakeholder alignment. Short-term wins from AI not only generate immediate value but also lay the groundwork for longer-term impact​.

Conclusion: Accelerate Impact with the Right Partner

When it comes to AI-driven digital transformation, speed and measurable outcomes are crucial. The 90-day approach enables early results and continuous improvement, making it easier to gain support for ongoing transformation. At OpsVeda, we are dedicated to helping organizations move beyond simple visibility, enabling them to unlock actionable insights and drive meaningful change.

But here’s a key question: does your software partner help you realize value, or do they merely provide visibility? At OpsVeda, we don’t just show you data—we enable you to take action, ensuring AI is truly integrated into the heart of your business, delivering value from day one.