In the realm of data platform decision-making, organizations typically consider several dimensions when making their choices. These encompass aspects including functionality, performance, scalability, cost, flexibility, and alignment with specific use cases.

The following are some of the key criteria of data platform decision-making. It’s worth noting that one of the most-hyped databases right now, in support of AI, is vector databases. We’ll explain why.

Data Model and Schema Flexibility

Organizations assess whether the database supports their data model requirements. Some may need the flexibility of schema-less or schema-on-read models. Others may require the rigidity of a relational model. The choice depends on factors like the structure of the data — is it simply rows and columns of numbers? is it a mix of images, videos, and documents? — and the need for agility to adapt to evolving schemas.

With the rise of Hadoop, many organizations began to store more of their data for analysis, now or in the future. Open source Hadoop offered data storage on commodity hardware, while more traditional proprietary data warehouses were almost certainly far more expensive. The trouble is that Hadoop lacked a schema — a structure for the data warehouse — making it harder to extract the data when you need it (though workarounds are now available).

As mentioned above, vector databases are garnering a lot of attention because of the rise of AI. Reasons for this include:

  • Efficient Similarity Search or Nearest Neighbor Search: Vector databases are optimized for nearest neighbor search, a fundamental operation in many AI applications such as recommendation systems, image retrieval, and natural language processing.
  • High-Dimensional Data Handling: AI models, especially in NLP and computer vision, generate high-dimensional embedding vectors. Vector databases can store and index these vectors efficiently, allowing for rapid querying and analysis.
  • Semantic Search: By leveraging embedding vectors that capture semantic information, vector databases enable more intuitive and relevant search results compared to traditional keyword-based searches.
  • Multimodal Search: Vector databases support the integration of various data types (text, images, audio) by converting them into a common vector space, allowing for unified search and analysis across different modalities.
  • Clustering and Classification: Vector databases support operations like clustering and classification directly on the stored vectors, aiding in tasks such as customer segmentation, anomaly detection, and pattern recognition.

Vector databases are pivotal for AI because they provide the necessary infrastructure to store, manage, and query high-dimensional vectors efficiently. This capability is foundational for enabling fast, scalable, and intelligent AI systems across various applications and industries.

Performance and Scalability

Performance considerations include factors like query speed, throughput, latency, and concurrency. Scalability relates to the ability of the database to handle growing volumes of data and increasing user loads without sacrificing performance. Organizations evaluate whether the database can scale horizontally (adding more servers) or vertically (upgrading existing servers).

Consistency and Durability

Consistency refers to the degree to which data remains in a consistent state across distributed systems, especially in the event of failures or concurrent transactions. Durability relates to the ability of the database to ensure that committed transactions persist even in the face of system failures. Organizations weigh the trade-offs between consistency, availability, and partition tolerance based on their application requirements.ACID is key to relational, transactional databases. ACID compliance refers to a set of properties that ensure the reliability and integrity of transactions in a database system. The acronym ACID stands for Atomicity, Consistency, Isolation, and Durability, each representing a fundamental aspect of transaction management.

ACID is spoken of in somewhat hushed tones by NoSQL vendors. When pushed, some will say they offer “ACID-like” compliance. For many modern use cases, ACID-like is good enough. But speak to a database developer dealing with transactional systems — like core banking systems — and they will tell you their regulators and other stakeholders require “pure” ACID compliance. Compliance with ACID standards can help organizations meet regulatory requirements and maintain data governance.

Data Integrity and Security

Organizations prioritize databases that provide robust mechanisms for maintaining data integrity (e.g., through constraints, transactions, and validations) and enforcing security (e.g., encryption, authentication, authorization, and auditing). Compliance with regulatory requirements such as GDPR, HIPAA, or PCI-DSS may also influence database selection.

Ease of Development and Maintenance

This encompasses factors like developer productivity, ease of learning, availability of tools and libraries, and support for programming languages and frameworks. Organizations seek databases that streamline the development process, facilitate debugging and monitoring, and minimize operational overhead.

Total Cost of Ownership (TCO)

TCO considerations include both up-front costs (e.g., licensing fees, hardware costs) and ongoing expenses (e.g., maintenance, support, scaling). Organizations evaluate databases based on their ability to deliver value relative to their costs over the entire life cycle of the system.

Ecosystem and Integration

Organizations assess the database’s ecosystem, including its compatibility with existing infrastructure, integration with other systems (e.g., data warehouses, analytics platforms, the cloud), availability of third-party tools and services, and community support. Integration capabilities influence factors such as data migration, interoperability, and extensibility. There is also the issue here of deployment venue: on premises, in the cloud, hybrid, or multicloud.

 

By evaluating data platforms along these lines, organizations can make informed decisions that align with their business objectives, technical requirements, and constraints. Vector databases are certainly one of the hottest tickets in town in support of AI — but different use cases have different priorities.

Over the last 30 years, the mobile phone industry has been through two major revolutions. The first revolution began when the mobile phone emerged, transforming the way we communicate by introducing mobile communications into our lives. The second revolution emerged in the latter half of these three decades when smartphones disrupted everything else in our lives.

Today, with 3.1 billion smartphones in use globally, these devices play a critical role in the world. The latest technological development that has taken the tech world by storm is the launch of AI-powered smartphones. Although AI is not new, it gained significant attention with the launch of ChatGPT and the capabilities of Generative AI (GenAI). Leveraging Large Language Models (LLMs), a new revolution is coming to the smartphone – intelligence.

Defining AI Smartphones*

According to IDC, Gen AI smartphones are defined as devices featuring a system-on-a-chip (SoC) capable of running on-device Generative (Gen AI) models more quickly and efficiently leveraging a neural processing unit (NPU) with 30 Tera Operations Per Second (TOPS) or more, using the int-8 data type.

The smartphone SoCs being designed and marketed by silicon vendors with next-gen AI smartphones in mind will increase in the future as they continue to push forward the NPU technology. However, to date, here are a few that qualify based on the definition above:

  • Apple A17 Pro
  • MediaTek Dimensity 9300
  • Qualcomm Snapdragon 8 Gen 3
  • Samsung Exynos 2400

Market Opportunity

The latest IDC forecast estimates that Gen AI smartphone shipments will grow 364% year-over-year in 2024, reaching 234.2 million units.

Despite the current macroeconomic environment and the fact that consumers are keeping their devices longer, the potential of Gen AI on a smartphone is expected to drive significant demand over the coming years. This segment is projected to be the fastest-growing segment in the smartphone category during the forecast period, outperforming the non-AI-enabled smartphone segment. Growth will continue into 2025 with an expected increase of 73.1%, followed by moderate double-digit growth for the rest of the forecast period. By 2028, worldwide Gen AI smartphone shipments will reach 912 million units, resulting in a compound annual growth rate (CAGR) of 78.4% for 2023-2028.

Reshaping the Mobile Experience

AI will enable manufacturers to offer unique and intelligent features, experiences and even services to their users. Since the introduction of the first iPhone and Android smartphones in 2007 and 2008, and particularly after the introduction of app marketplaces by Apple and Google, users have become used to interacting with the smartphone by using apps. The more powerful the apps, the better it is. With AI, the fewer apps the phone will need and the more capable can use data contextually to assist the user, the better it will be. This “app-less” world will revolutionize the user experience, requiring the phone to better “know” its users while ensuring personal data remains private and secure.

The interaction with the smartphone will shift from touch to voice, as “intelligent” voice assistants become our true personal digital assistants. These conversational digital assistants, fully integrated with the device, will be game-changers, providing compelling reasons for users to upgrade their smartphones.

Although a full AI experience is still in development, less than 18 months after the introduction of ChatGPT, several vendors announced their AI strategies and devices showcasing some intelligent capabilities. These include:

  • Samsung Galaxy S24 Ultra: Some of the key AI features include a transcription summariser built into the voice recorder, real-time voice translation, and Circle to Search, a tool developed by Google that allows users to draw a circle around anything on screen and search it on Google.
  • Xiaomi 14 Ultra: Features AI-generated subtitles for video calls and an AI Portrait feature that lets users take a selfie and add a different background.
  • Google Pixel 8 Pro: Offers features like summarising recorded conversations, suggesting replies to messages, and creating AI-generated wallpapers. The camera also benefits from AI with Magic Editor (moving or removing objects); Best Take (selecting the best shot), and Video Boost (enhancing video colour and lighting).
  • Apple Intelligence: The new suite of AI features will come to the iPhone, iPad and Mac later this year with the latest OS versions announced at Apple Worldwide Developers Conference. The AI features will include rewriting text and proofreading, generating email replies, and content summarization. Users will be able to generate images from text based on note contents and remove objects from photos. Siri, Apple’s digital assistant will become more conversational.
  • OPPO AI Strategy: Betting big on AI, OPPO aims to incorporate over 100 Gen AI features across its lineup of AI-enabled smartphones in 2024. Unlike other players, OPPO aims to democratize AI by introducing these features to more affordable price points.
  • Honor Magic 6 Pro: The device promises AI-powered user experiences and it is the first Honor’s all-scenario strategy, featuring cross-OS collaboration and AI designed with a human-centric approach.
  • Motorola Razr 50 Ultra: Will run Google Gemini as the main digital assistant, offering AI out of the box. Features include recognizing photos, summarizing text, answering voice queries, and changing message tones before sending. It includes Motorola’s AI tool, Style Sync, which creates a wallpaper based on the colors and patterns of a specific photo.

Use Cases

Gen AI smartphones are expected to disrupt different aspects of our lives. IDC identified several use cases that can drive adoption and have a positive impact:

  • Work Environment: According to an IDC survey, employees view the smartphone as one of the most important tools in the workspace. AI will streamline tasks by summarizing content from meetings and documents, allowing users to focus on discussions. AI will also summarize email threads, suggest replies based on the conversation, and help manage calendars based on requests received via email or messages.
  • Healthcare and Wellbeing: Smartphones have become central to various wearables (through apps) that collect data on vital body signals, such as blood pressure, heart rate, and blood oxygen. AI will monitor this data from all sensors, alerting users to potential risks and suggesting dietary and exercise plans for a more active lifestyle. Acting as a digital personal trainer, AI will provide guidance beyond simple tracking.
  • Education: AI is already an important tool in the classroom, both directly and indirectly. Students increasingly rely on tools such as ChatGPT for content research, note-taking, and transcribing and summarizing lessons. AI on smartphones will make these tasks mobile, with the camera becoming an important source of prompts. Additionally, AI will help students manage their study plans and understand complex subjects more quickly and efficiently.
  • Entertainment: For most people, the smartphone is the device of choice for content creation, taking photos and creating videos for social media. It has also become the primary tool for streaming content and gaming. AI will optimize visual effects, providing a more immersive experience, and act as a “gaming assistant”, enhancing the overall experience and increasing engagement. Also, by generating images and videos from text on the device, users can share content more creatively.
  • Mobility: Users increasingly rely on smartphones for directions and finding information about locations. AI will improve commuting and travel by efficiently analyzing traffic patterns, user travel journeys, and frequent destinations. It will offer improved planning by integrating travel needs with calendar appointments, making commutes more efficient.

The rise of Gen AI smartphones will become the next technological revolution. As the most widely adopted consumer electronics, Gen AI smartphones are set to reshape the mobile experience through unparalleled enhanced intelligence. Smartphones will bring new features and use cases, unlocking the next phase of intelligence for these devices. As AI features and applications grow, consumers will prioritize these advanced capabilities in their next purchase.

*For a more detailed technical definition and explanation about the definition of IDC’s AI smartphone, you can read our blog, The Future of Next-Gen AI Smartphones.

For a look at industry and segment spending forecasts for broader AI and GenAI use cases, see IDC’s ⁠AI and GenAI Spending Guide.

Francisco Jeronimo - Vice President, Data & Analytics - Devices - IDC

Francisco Jeronimo is VP for Data and Analytics at IDC EMEA. Based in London, he leads the research that covers mobile devices, personal computing devices, emerging technologies and the circular economy trends across EMEA. His team delivers data on personal computers, tablets, smartphones, wearables, PC monitors, PC gaming, enterprise Thin Client devices, smart home, augmented reality and virtual reality, and sales of used devices. He provides in-depth analysis of the strategies and performance of the key industry players.

Cybersecurity threats continue to increase. According to ENISA’s 2023 Threat Landscape report, there were around 2,580 observed incidents in the EU between July 2022 and June 2023. In the previous reporting period, there were less than 800. ENISA reported that 19% of events targeted public administrations, by far the largest industry.

Government chief information security officers (CISOs) are not resting on their laurels. They understand that cybersecurity is important.

IDC’s EMEA Cross-Industry Acceleration Survey, conducted in December 2023, found that 91% of government executives were planning to maintain or increase their level of spending in cybersecurity. In the many one-on-one conversations that IDC Government Insights analysts have had with government CIOs, CISOs, and other IT executives, cybersecurity always stands out as a “ring-fenced” item protected from budget cuts.

But given the rising volume, variety and velocity of threats, ring-fencing budgets is not enough — a change of paradigm is in order.

Paradigm Shift: From Protecting the Perimeter to National Survivability

The most forward-looking governments understand that the old mindset focused on protecting the individual government agency, or even the individual system or digital citizen service app, is insufficient. They understand that governments play a key role in national digital and physical services and infrastructure resilience and survivability.

To deliver on this higher purpose, government CISOs need to look beyond their organizational boundaries, take a whole life-cycle approach to cybersecurity, and provide knowledge to non-security experts to enable them to act responsibly.

Looking beyond organizational boundaries means collaborating across public administrations and the private sector to create a resilient ecosystem. Beyond the NIS2 Directive’s mandatory obligations — such as establishing at least one computer security incident response team (CSIRT) in each EU member country — resilience comes through the collective effort of cybersecurity specialists within ministries of defense, police forces, intelligence agencies, and all other public administrations.

In a recent IDC conversation with a regional government institution’s senior IT leader, it was emphasized how important it is for all levels of government to collaborate in the ecosystem to protect against the spike of attacks that usually occurs in the months prior to and during major events like the Olympics, the World Expo, the FIFA World Cup, or a G7 meeting. Participants should include transportation operators, payment and banking service providers, telcos, utilities, and travel and hospitality companies.

Taking a life-cycle approach to cybersecurity means caring for the hygiene of systems, protecting them and responding to events from development through termination. Hygiene starts with security by design, DevSecOps and application security best practices, and vetting hardware and software supply chain bills of material for security and compliance requirements.

Data hygiene is paramount — not only to comply with regulations that protect sensitive data, but also to increase the resilience and visibility of all data sets critical to government operations. Holistic protection requires enhancing the observability of the broader landscape.

CISOs should demand that their cybersecurity solution providers make available AI/ML solutions and AIOps practices that can increase the productivity of observability and detection.

Incident response must be grounded on governance processes and structures that enable timeliness and coordination. Throughout the life cycle, government CISOs should regularly upgrade their team’s skills, not only traditional cybersecurity skills but also legal skills, AI ethics, bias testing, and prompt engineering.

Ensuring that security and non-security experts have the right knowledge to act responsibly is a major people and organizational transformation effort. Investing in programs to raise the cybersecurity awareness of civil servants, other industries, and the general public is critical.

It is also important for CISOs to articulate the value of cybersecurity to the elected and appointed officials who make budget decisions. CISOs and their teams that are able to articulate the value of cybersecurity in terms of business risks will raise their profile internally and be recognized as strategic decision makers.

Technology developments will help CISOs accelerate the paradigm shift. In particular, the automation and orchestration of processes related to security and privacy will help address the skills gap and accelerate the detection of malicious behaviors, threat response, and remediation actions.

European government CIOs and CISOs that combine tool investments with a holistic approach to cybersecurity will boost the resilience of their organizations, of the communities they serve, and increase citizens’ trust in government. Those that focus on siloed system protection and legacy operating models and competencies will not be able to respond to threats and will be relegated to the role of gatekeepers who eventually lose influence and budget.

To learn more, explore the latest IDC research

Massimiliano Claps - Research Director - IDC

Massimiliano (Max) Claps is the research director for the Worldwide National Government Platforms and Technologies research in IDC's Government Insights practice. In this role, Max provides research and advisory services to technology suppliers and national civilian government senior leaders in the US and globally. Specific areas of research include improving government digital experiences, data and data sharing, AI and automation, cloud-enabled system modernization, the future of government work, and data protection and digital sovereignty to drive social, economic, and environmental outcomes for agencies and the public.

What Is Supercloud?

Supercloud is an approach to cloud computing that abstracts underlying cloud platforms from applications so completely that it allows applications to move seamlessly between clouds – or even operate across multiple clouds at the same time.

Thus, if you were to adopt a supercloud strategy, you’d build a cloud architecture that lets you migrate an application instantly from, say, AWS to Azure, without having to reconfigure the application or its environment in any way. You’d also be able to do things like host some of the application’s microservices on Azure and others on Google Cloud Platform (GCP) at the same exact time.

Supercloud could prove to bring massive disruption to the cloud computing industry because it opens up a host of opportunities that aren’t viable under traditional multicloud architectures.

Supercloud Versus Multicloud

To explain why supercloud could turn out to be such a big deal, let’s first talk about how it’s different from traditional multicloud.

As of 2024, multicloud architectures – which mean using multiple clouds at the same time – are commonplace. IDC’s March 2024 Cloud Pulse Survey (n = 1,350) shows that 74% of cloud buyers have multicloud strategies. It’s no longer a big deal to use multiple clouds.

However, traditional multicloud architectures simply involve using one cloud platform to host some workloads and other clouds for other workloads. They don’t deeply integrate cloud platforms together. As a result, with traditional multicloud, migrating an app from one cloud platform to another is typically a complicated process because you have to reconfigure the application to run in the new cloud. This entails tasks like rewriting identity and access management (IAM) rules, reconfiguring networking, and selecting and setting up new compute and storage services.

Likewise, the idea of hosting applications across clouds at the same time is virtually unheard of, even for organizations that have long used multiple clouds. It’s very rare to try to have an application frontend run in one cloud while its back-end components are hosted on a different cloud, for example. Network latency issues would present a big challenge if you tried to do this. You’d also need to implement application logic that allows your internal application services to connect across clouds, which would significantly complicate the application development and management process.

But supercloud could change all of this. By making underlying cloud platforms irrelevant from an application’s perspective, supercloud has the potential to take multicloud to a whole new level.

Benefits of Supercloud

Specifically, supercloud architectures could deliver benefits like the following:

  • Maximizing application reliability by hosting complete instances of an application on multiple clouds at once. This would mean that even if an entire cloud crashed, the app would keep running.
  • Optimizing cloud costs by making it possible to migrate to a different cloud instantly if better pricing becomes available in that cloud.
  • Eliminating the need for teams to learn the intricacies of multiple cloud platforms. With supercloud, cloud service vendors’ tooling and configurations would become less important because they’d be abstracted from IT operations.
  • Improving application performance by making it easy to distribute application instances across cloud platforms and regions. This would reduce latency and speed application responsiveness, resulting in a better user experience.

How Realistic Is Supercloud?

In theory, supercloud would open amazing new doors in the realm of cloud computing. But is it actually feasible in practice to build a supercloud architecture?

The answer remains unclear. Although the supercloud concept has generated a bit of chatter over the last year or two, no vendor has come close to developing solutions for actually creating a supercloud.

There are, of course, plenty of cloud monitoring, management and security tools that support multiple cloud platforms. To an extent, they smooth the process of operating applications across clouds. But they certainly don’t erase the barriers to instant cloud migration or cross-cloud operation. Being able to use the same tool to monitor applications that run in different clouds is quite different from having apps that work exactly the same no matter which cloud hosts them.

There are also some application hosting platforms that abstract applications from underlying infrastructure in ways that could, in theory, help to build superclouds. Kubernetes, the open source orchestration platform, is a prime example. Theoretically, you could build a Kubernetes cluster in which some nodes are virtual services running in one cloud, while other nodes are servers hosted in a different cloud.

But this is not what Kubernetes was designed for, and multicloud Kubernetes clusters are very rare. Building them requires grappling with complex technical issues, like the difficulty of keeping the various parts of a Kubernetes cluster in sync when they are distributed across multiple clouds and rely on the internet, instead of superfast local networks, to communicate.

So, while we do have some solutions that gesture toward a supercloud future, building a supercloud today would be a very fraught and clunky experience, at best.

What It Will Take to Make Supercloud a Reality

But the hurdles to supercloud don’t seem impossible to overcome. If cloud service providers were to collaborate around developing shared standards for configuring and using cloud infrastructure, building a supercloud would become quite easy. Imagine, for instance, that instead of having to write different IAM and networking rules for each cloud you use, or select different types of cloud server instances, you could write rules or select infrastructure that worked on any cloud. Technically speaking, this wouldn’t be too hard to do, if cloud providers got on board.

The challenge, of course, is that cloud providers currently have little incentive to make it easier for customers to use competitors’ platforms at the same time. Amazon doesn’t stand to gain anything by making it easy for its customers to migrate AWS-based apps instantly to Azure or GCP, for example.

Another possibility is for a single vendor to build a supercloud platform that abstracts underlying clouds from applications. A third-party solution could translate between different cloud service providers’ tooling and services in ways that enable a consistent application deployment experience, while also solving for the cross-cloud connectivity issues that abstraction platforms like Kubernetes don’t currently address.

But the problem there is that customers would end up locked into a supercloud platform owned by one vendor. They’d also presumably end up paying more because the vendor would effectively be reselling public cloud services and adding a premium.

The bottom line: Bringing supercloud to fruition will require solving a business challenge more than a technical challenge. The technology is feasible enough to build. Getting vendors to cooperate with one another sufficiently to enable a supercloud future is the hard part.

Christopher Tozzi - Adjunct Research Advisor - IDC

Christopher Tozzi, an adjunct research advisor for IDC, is senior lecturer in IT and Society at Rensselaer Polytechnic Institute. He is also the author of thousands of blog posts and articles for a variety of technology media sites, as well as a number of scholarly publications. Prior to pivoting to his current focus on researching and writing about technology, Christopher worked full-time as a tenured history professor and as an analyst for a San Francisco Bay area technology startup. He is also a longtime Linux geek, and he has held roles in Linux system administration. This unusual combination of "hard" technical skills with a focus on social and political matters helps Christopher think in unique ways about how technology impacts business and society.

Historically, telcos were able to rely on providing voice and data connectivity to achieve revenue growth and consistent profit margins. However, since roughly the introduction of 3G cellular network technology and the first version of the Apple iPhone (circa 2007), third-party digital innovators have moved in to siphon off emerging monetization opportunities while curating vast developer ecosystems, relegating telcos to the connectivity provider role. Telcos have been struggling to take advantage of ever-faster networks, a growing diversity of devices, and massive popularity of social media and mobile video applications, while struggling to keep pace with ever more exacting network performance requirements, ever since.

With this backdrop, the meshing of 5G networks and API exposure can empower telcos to reinsert themselves as a key connectivity platform within the digital landscape by unlocking the ability to more easily sell and scale customized, programmable connectivity underpinned by app developer platforms grounded in telecom network APIs.

FIGURE 1: Network API Primary Segments

Telecom Ecosystem Evolution: Network API Market Makers/Drivers and Likely Roles

Telcos face several – non-exclusive – paths to market. As 5G service exposure invites a more vibrant telecommunications ecosystem, there are many stakeholders exploring how best to foster development of new API service bundle–fueled services that can generate new innovation and, by extension, new revenue from 5G service exposure. The core constituent groups are described in the sections that follow.

  • Telcos: Telcos already have the ability to expose network capabilities via an API gateway enabled by the Service Capability Exposure Function (SCEF) in 4G/LTE networks; or the Network Exposure Function (NEF) in 5G networks. Telcos also provide the underlying connectivity, which could be delivered via custom network slices, guided by API and policy definitions to align with developer needs. Developing services – utilizing CAMARA specifications and/or non-standardized APIs – alongside their existing connectivity business models will bring telcos more in line with cloud and edge service providers that focus on enabling third parties to build services on top of their infrastructure. This can lead to a deeper monetization of network infrastructure and increase network accessibility and commercial engagement with application developers.
  • Network Infrastructure Vendors: These vendors provide the underlying infrastructure (e.g., hardware and software) to enable the programmable 5G service. Further, vendors could conceivably end up helping build the service APIs as bundles and offer them as standalone or white-label solutions to comms SPs or platform providers alike. Vendors also stand to benefit from a robust 5G API ecosystem that can contribute to both increasing infrastructure sales required to deliver advanced connectivity services and offering them a new revenue stream. Nokia, Ericsson, and Oracle represent some of the vendors highlighting early activities in this area.
  • CPaaS Platforms/API Aggregation: Communications Platform as a Service (CPaaS) providers such as Vonage and Infobip players provide a known way to aggregate and consume APIs for a range of communications services, including customer engagement through multiple channels and two-factor authentication. CPaaS and API aggregators are a natural channel partner for network APIs, broadening developer market access to these services.
  • Hyperscalers: Hyperscale cloud providers (HCPs) provide a potential path for integrating network APIs via an API gateway and to integrate network performance capabilities enabled through these network APIs, along with cloud computing and storage, in order to build high-value applications in support of a number of vertical markets and use cases. HCPs all support enormous bases of cloud developers that are well-versed in API consumption and lifecycle management. HCPs are actively participating in industry initiatives such as CAMARA and the GSMA Open Gateway Alliance, and represent a significant potential opportunity.
  • Independent Software Vendors or Edge Platform Providers: Independent software vendors (ISVs) can design and bundle APIs for SaaS offerings to organizations, simplifying API consumption for organizations that lack the ability to embed APIs themselves. In addition, IDC observes an emerging subset of the app platform market that focuses on enabling edge applications (e.g., IoT edge apps) that are hosted and run across edge sites. Specific platforms may focus on discrete vertical opportunities to specialize. ISVs are able to specialize in respective verticals and use cases (e.g., industrial automation, healthcare, and entertainment), providing a logical route to drive network API adoption among enterprise and industrial adopters that would be most comfortable consuming new software offerings.

Education and Training are Keys to Growth

While the potential opportunity for network APIs is potentially limitless, the key to their success lies largely in the ability for network API proponents to articulate their value in these various contexts. In particularly, the largest opportunity may be in educating the developer community on what value network APIs can bring in augmenting enterprise and consumer-facing applications, what combination of network APIs can be brought to bear simultaneously to address various requirements pertaining to Quality on Demand (QoD), edge, security, location, and a number of other network capabilities enabled by APIs. IDC believes that industry groups such as CAMARA, Open Gateway Alliance, and TM Forum will need to devote as much of an effort to educating (and potentially certifying) app developers in network API capabilities and best practices, as it is currently devoting to establishing and proving out their technical capabilities.

For a deeper dive into these topics, watch IDC’s July 10th webinar, ‘Revenue Enablers for the Future Telco: APIs, AI, and Emerging Tech”.

In the dynamic and competitive landscape of B2B technology, gaining visibility and credibility can be a significant challenge for startups. While many focus on product development and customer acquisition, engaging with industry analysts is often overlooked.

Yet, building relationships with these influential figures can provide startups with critical insights, validation, and market presence. Let’s debunk some common myths that deter startups from engaging with analyst firms and explore why these relationships are invaluable.

Myth 1: Analysts Are Only For Large, Established Vendors

Many startups believe that analyst relations are reserved for large, established companies with extensive resources. However, this is far from the truth. Analysts are keen to discover innovative solutions and emerging players in the market.

Engaging with analysts early can help startups refine their value propositions and ensure a better product-market fit. Building these relationships early on can also lead to significant opportunities, such as mentions in influential reports and increased visibility within the industry.

Myth 2: Analysts Are Too Expensive

The cost of engaging with top-tier firms can indeed be high, often perceived as prohibitive for startups. However, the return on investment can far exceed the initial expense. Analysts provide invaluable insights that guide product development, marketing strategies, and overall business direction.

Additionally, startups can opt for strategic inquiries, briefings, and free resources to begin benefiting from analyst insights without committing to full subscriptions. Engaging with analysts can be more cost-effective than traditional PR efforts, offering substantial credibility and market presence.

That’s why IDC provides a cost-effective solution for startups and emerging tech vendors only. Startups can leverage IDC’s insights to better understand market trends and competitive dynamics. Engaging with IDC analysts can help startups position their products effectively and gain visibility among potential customers and investors.

Myth 3: Startups Don’t Need Analysts Until They’re Bigger

Some startups think they should wait until they are more established before engaging with analysts. In reality, early engagement is crucial. Analysts can provide early-stage feedback, helping startups avoid costly mistakes and better align their products with market needs.

Being on an analyst’s radar early can also lead to significant opportunities, such as mentions in reports and invitations to industry events, which can greatly enhance a startup’s visibility and trustworthiness.

Why Engage With Industry Analysts?

Influence and Credibility: Analysts are among the top influencers in the technology buying cycle. Their endorsements can significantly boost a startup’s credibility and market presence.

Market Insights: Analysts offer deep insights into market trends, customer needs, and competitive landscapes. These insights can inform strategic decisions and help startups stay ahead of the curve.

Go-to-Market Strategy: Analysts can validate go-to-market strategies, helping startups refine their messaging and positioning to better resonate with target audiences.

Investor Attraction: Positive analyst mentions can attract investor interest, making it easier to secure funding and partnerships. Investors often look for third-party validation when evaluating potential investments.

Time & Resource Efficiency: Engaging with analysts can save startups time and resources. Analysts aggregate and distill vast amounts of market data, providing actionable insights that startups might otherwise spend significant time and money gathering independently.

Best Practices for Engaging with Analysts

To maximize the benefits of engaging with industry analysts, it’s essential to approach the relationship strategically and thoughtfully. Here are some best practices that startups can follow to build and maintain effective analyst relations.

  • Identify Relevant Analysts: Research and identify analysts who cover your industry and technology space. Look for those who have influence over your target market.
  • Develop a Strategic Outreach Plan: Tailor your outreach to align with the analyst’s interests and expertise. Highlight your unique value proposition and how it addresses market needs.
  • Prepare Thoroughly: Create a compelling presentation that includes your company’s background, product roadmap, market differentiation, and customer success stories. Practice your pitch to ensure clarity and confidence.
  • Engage Consistently: Schedule regular briefings to keep analysts informed about your progress and developments. Maintain open communication and seek their feedback.
  • Leverage Analyst Endorsements: Use positive mentions and quotes from analysts in your marketing materials, sales pitches, and investor presentations. Highlight these endorsements to build credibility and attract attention.

Conclusion

Engaging with industry analysts is a strategic move that can provide tech startups with significant advantages. By debunking common myths and understanding the value that analysts bring, startups can leverage these relationships to enhance their market presence, credibility, and growth potential. Start early, engage consistently, and use analyst insights to drive your startup’s success.

If you’re ready to take your startup to the next level, don’t hesitate to reach out to industry analysts and start building these valuable relationships today.

For more details on how to start and maintain these valuable relationships, consider reaching out to one of our specialists to explore partnership opportunities.

IDC’s annual CEE Summit was held in Vienna on June 9-11, with the theme of “Unlocking Performance Potential.” It highlighted the opportunities and challenges for organizations currently embracing AI.

Digital transformation continues to reshape industries and economies worldwide, and Central and Eastern Europe (CEE) is no exception. This vibrant region, with its technology hubs and innovative spirit, has the potential to become a key player in the global tech landscape.

In this blog post, we offer insights from industry experts on the pivotal factors driving this transformational change. From building IT spending transparency and making a compelling case for artificial intelligence to the critical roles of culture, change management, and sustainability, we explore how CEE can harness its full transformation potential. Moreover, we emphasize why cybersecurity remains a top priority in this rapidly evolving digital era.

Key insights include:

Making the Case for AI and Building IT Spend Transparency

AI use cases are widespread and growing, in industries including financial services, pharma, manufacturing, and more. However, IDC research shows that GenAI investments are putting increasing pressure on IT budgets.

For organizations with tight IT budgets, our advice is to build a transparent IT spending management capability that provides a financially sound platform on which to base investment decisions.  Avoid reliance on high-level benchmarks that provide no visibility on the organization’s future state. Mapping spending to clear cost pools and defined services provides great insights into spending and helps identify opportunities to cut costs and improve efficiency.

Culture and Change Management Are Key for Any Kind of Transformation

No matter the company size or sector, winning over hearts and minds is crucial for success. This is true whether the organization is consolidating its regional IT services delivery, looking to fully leverage the benefits of GenAI, or adopting SAP HANA across the business. 

Key elements in building a positive culture include solid backing from senior management, empowerment of teams to make their own decisions and fail fast, finding the right ambassadors of change, and rooting out toxicity.

Given all the different elements involved in change, organizations need to consider a change management function focused on the successful adoption of new tools, processes, and behaviors. This helps with communication, building transparency, and creating buy-in during periods that are often riddled with uncertainty.

Sustainability and Tech for Good

Sustainability and IT optimization are becoming critical in Europe and hot topics of discussion among IT users. Driven by the increasing number of European regulations and directives, sustainability is seen as a viable approach to stay competitive, enhance brand image, and boost customer trust. However, like IT optimization (or FinOps), sustainability can also help to streamline operations, reduce costs, and increase business value.

Cybersecurity Remains High on the Agenda

Cybersecurity remains a high priority for European executives, in particular with activities such as building resilience and business continuity, regulatory compliance and governance, and positioning security as a enabler.

Focus is increasing on cloud-native security capabilities, such as endpoint protection, threat intelligence, and application security. However, there are many industries where legacy infrastructure is widespread, resulting in security capabilities that must be adapted for cloud .

Recommendations

Many organizations are at the AI exploration stage, testing out use cases that often focus on productivity, such as chatbots and digital assistants with GenAI. For many organizations, the worry centers around the ROI gap and the real impact of AI on business.

However, real commercial differentiation with the use of AI can only be driven with function-specific (CFO, CMO, CHRO) use cases or industry-specific use , but those are more complex and investment-. Effectively, organizations are looking at the trade-off between ease of implementation vs. cost with less/more differentiation. Impacts from this investment can be achieved at all levels in the organization, but the level of impact will depending on the chosen trade-off.

We advise more holistic thinking: Organizations need a responsible AI strategy and prioritized use case roadmap with C-suite buy-in. Challenges such as AI pricing, governance, and organizational change must be considered. The broader ecosystem — including supply chain, tech vendors and other strategic partners — must also be considered. in mind, however, that GenAI or broader AI doesn’t offer a short cut to the holistic thinking noted above: you need to start with a data strategy.

IDC’s 2024 CEE Summit

Over three days, participants gathered to discuss technology opportunities and challenges from a distinctly CEE perspective. The Summit had wide representation from across the region, with participants from Czechia, Slovakia, Poland, Croatia, Serbia, Slovenia, Greece, Austria, Hungary, Romania, and Bosnia Hercegovina.

The location — in the historic town center of Vienna — evoked the Vienna Circle of the early 20th Century,  where discussions among mathematicians, scientists, and philosophers laid many of the logical foundations for the Information Age of the second half of the century.

One highlight of the event was an innovation challenge, where teams had to swiftly create and propose a GenAI-enabled initiative. This generated collaboration and many creative investment pitches, with the winner focusing on AI to improve predictive maintenance for electric vehicles.

As attendees departed Vienna, they did so with more than a fridge magnet and the strains of Mozart in their ears — they took with them new knowledge, new contacts, and the inspiration that comes from setting aside the daily routine long enough to exchange ideas with industry peers.

If you want to find out more about this and other events we host, please visit our website here.

Thomas Meyer - General Manager and Group Vice President, IDC EMEA - IDC

Thomas Meyer joined IDC in January 1999 and is currently responsible for managing IDC's Research Division in EMEA. This includes Practices focused on Digital Transformation, Cloud, Artificial Intelligence, IoT, Blockchain, Intelligent Process Automation and Accelerated Application Development as well as Core ICT (Software, Services, Infrastructure and Devices) and Industry-specific teams (Financial, Manufacturing, Energy, Retail, Healthcare, Government and Telco Insights)

“Key Highlights from the 2023 CIO Sentiment Survey” by Mona Liddell provides key insights to understanding the operational dynamics and strategic directions of IT organizations. In this blog, we’ll cover four that rise to the surface. Let’s dive in to some of them!

Firstly, let’s discuss Digital Transformation (DX). While integrated, continuous enterprise-wide DX strategies once took the spotlight, organizations are now leaning towards shorter-term approaches.

This shift may stem from factors like organizational learning curves, economic uncertainty, or the aftermath of global disruptions, such as the ongoing recovery from the pandemic. Figure 1 shows significant growth in organizations who have transformed or are integrated than over the previous year. Almost 65% were in the transformed or integrated maturity groups versus even a year previous where it was only 45% – an almost 45% increase.

Next on the agenda is Generative AI (GenAI), a topic sparking both excitement and caution. While about 32% of IT organizations have already adopted GenAI, a considerable number are still either not investing or only developing the use cases. This means these more conservative organizations are not developing the skills, building the data platforms, or examining the competitive advantages GenAI can provide.

IDC recommends piloting GenAI as a way to understand the potential business benefits, develop governance structures, and identify gaps within the organization to deliver its potential. Efforts can start with the simplest use cases, such as productivity, before expanding to functional and industry use cases.

GenAI isn’t a fad, like NFTs or the metaverse. It is a sea change on the level of the ’80s PC revolution and the ’00s smart phone transformation. A notable 22% of organizations are already adapting to the emergence of GenAI by actively changing their hiring plans. These companies may be creating new roles to leverage the early benefits of GenAI. 

Meanwhile, cybersecurity remains a perennial concern, with varying investment priorities across organizations of different sizes. Both midmarket and large enterprises struggle to recruit cybersecurity talent, akin to finding a needle in a haystack. Larger enterprises due to more resources are less affected by this cybersecurity skill gap, but still struggle.

The question organizations need to consider is whether creative solutions can help bridge the gap, like using GenAI tools to summarize security alerts for less experienced staff, retraining existing staff, implementing robust internship programs, machine learning, and moving from discrete applications to a platform approach to security to simplify security management.

Technical debt poses another challenge, with a majority of organizations failing to allocate adequate resources or establish formal processes for its management.

While a majority of organizations allocate a small portion (12.8% average) of their IT budget to reduce technical debt, a significant number (79%) do not have formal processes for tracking and reporting this debt.

This gap in tracking and reporting could affect the strategic planning and alignment of IT initiatives with business objectives. It also reflects a need for more structured reporting and management practices to ensure that technical debt is accounted for in executive decision-making. However, amidst these challenges, there’s a silver lining: widespread adoption of cloud-based solutions and virtualization as integral parts of digital transformation endeavors.

These insights prompt several recommendations:

  1. Balance Short and Long-Term DX Strategies: Maintain equilibrium between short-term necessities and long-term digital roadmaps. Establish agile practices that allow for rapid adaptation between immediate market demands and long-term digital evolution to help ensure that short-term shifts don’t disrupt the broader business goals of the organization.
  2. Develop a Strategic Approach to GenAI Adoption: Plan strategically, incorporating governance principles and adoption roadmaps. In anticipation of GenAI-driven market changes, proactively revise IT hiring strategies while also upskilling current employees to ensure alignment with the future demands of GenAI integration. 
  3. Invest in Cybersecurity Talent: Prioritize recruiting and developing cybersecurity professionals. Prioritize investments in training programs (e.g., certifications and workshops) to upskill current employees in cybersecurity practices and incorporate an internship program for fostering new talent, thereby mitigating the talent shortage by internally growing cybersecurity skills and introducing fresh perspectives through internships.
  4. Establish Formal Processes for Technical Debt Management: Implement structured processes for tracking and mitigating technical debt.. This should include regular audits of existing systems, quantification of debt, and documentation of remediation plans. Second, develop a prioritization framework to tackle technical debt, focusing on areas that yield the highest risk to the business or present opportunities for quick wins. A future tease is IDC will be releasing a methodology to assess technical debt in a report to be published in April 2024.

These insights, drawn from a global survey of IT leaders, provide valuable guidance. However, it’s essential to tailor strategies to fit individual organizational contexts and needs. The findings from this survey have been exclusively depicted in an eBook for technology leaders like you. Click the button below to download the eBook now.

Learn what matters most to your customers with IDC’s AI Use Case Discovery Tool—find out more.

Mona Liddell - Research Manager, Quantitative Analysis, CIO Executive Research - IDC

Mona Liddell is a Research Manager for IDC’s CIO Executive Research team. She is responsible for leading the creation, analysis, and delivery of quantitative-based research and related marketing content for business and technology leaders. This research provides guidance on how to leverage technology to achieve innovative and disruptive business outcomes.

High Expectations Collide with Market Realities

Telecom Service Providers are facing historic challenges amidst shifts in both enterprise and consumer demand and challenges transforming from “connectivity providers” to digital platform players.

Historically, telecom service providers have championed connectivity at scale. In past decades, this proved a profitable strategy, with the value of connectivity garnering consistent year-over-year revenue growth and profits. However, recent years have seen telecom providers grapple with a host of challenges including industry competition, commoditization of services, and inflexible IT systems that have made it hard for them to swiftly innovate and compete against new threats.

Further, while network traffic continues to rise, predominantly driven by video apps, service providers have been unable to effectively monetize this traffic growth. The disconnect between revenue growth and network traffic growth remains one of the top challenges globally for service providers as they hunt ways to reinsert themselves and justify connectivity as not just a commodity, but as a value-based service that can be delivered to support a range of use cases and verticals.

In response, many forward-thinking telecom providers have made a purposeful decision to focus their technology offerings and ecosystem partners on targeting digital engagement and new revenue opportunities and rearchitecting their technology stacks to align with hyperscale cloud models as a means to simultaneously control costs and position for service agility longer term.

Even so, third-party entities, including CPaaS, cloud, and other digital platform players, have moved into largely siphon off these digital opportunities while curating vast developer ecosystems, once again relegating many telecom providers to a connectivity-only role.

New Tools in the Arsenal Create New Monetization Opportunities for Telcos

Amidst this push and pull of telecom service provider efforts, a new opportunity has emerged, driven by the promise of SA 5G networks and API exposure capabilities to empower telecom providers to reinsert themselves within the digital landscape by unlocking the ability to more easily sell and scale customized, programmable connectivity designed to be packaged and consumed by application developers.

Unsurprisingly, hyperscale cloud providers, CPaaS companies, and systems integrators have also positioned themselves for this new market opportunity by aligning with industry consortia (e.g., Camara, Open API Gateway) that are championing global standards; however, it remains to be seen where, how, and by whom value will ultimately be created and monetized.

Figure 1: Emerging Telecom and Network API Ecosystem

Source: IDC, 5G Exposure and Network APIs: How Will the Telecom Ecosystem Capture New Opportunities with Developers?

As part of these market developments, the worldwide IDC team has spent the past couple of years building a methodology to size this opportunity and define ways the telecom API ecosystem can work together to enhance this emerging market.

Telecom Service Providers Can Capitalize on AI and GenAI to Improve Business Results and Potentially Reshape Their Market Role

While APIs represent one-way service providers can capture new monetization opportunities, Artificial Intelligence (AI) presents another avenue to drive business results. More specifically, AI can be inserted into the telecom technology stack to improve TCO, enhance service agility (e.g., AIOps), as well as improve the customer experience (CX) lifecycle.

As telcos move toward future network architectures governed by cloud-native architectures, this ushers in a much greater role for automation and orchestration across various physical, virtual, and containerized network functions, as well as AI-informed operations and monetization platforms.

This in turn raises the importance of adopting AIOps within network operations; however, network-related AIOps brings its own unique set of challenges for Telecom Service Providers as well as a vendor community that overlaps but does not entirely match, the more generalized ITOps vendor roster.

Meanwhile, GenAI has emerged as a powerful tool to enable telcos to embrace some of the benefits of AI while simultaneously investing in the internal skillsets and capabilities required to embrace AI more broadly. The graphic below highlights some of the key use cases IDC envisions for GenAI across telco environments.

Figure 2: GenAI Telco Use Cases Across Telco Environments

Source: Core Use-Cases for Generative AI in Telcos (Doc # EUR151410923)

While this graphic provides an optimistic outlook for the full set of Gen AI’s impact on telecom service providers, the reality is it will take time, effort, and AI partners for telecom providers to realize gains from AI. Indeed, with AI curators racing to drive AI innovation across multiple environments (e.g., hybrid and multi-cloud, etc.), it is likely multiple models will become prevalent in which telecom service providers serve dual purpose by becoming some of the strongest consumers and distributors of AI and Gen AI going forward.

Further, interest in AI applications is also prompting service providers to build near-term roadmaps clarifying how enterprise customers can leverage their core and edge assets to support emerging use cases (e.g., AI inferencing at the edge) while reinforcing connectivity as the foundation of AI-enabled applications and services. Indeed, while AI is being emphasized by many organizations, it will require a global distribution mechanism to help scale. Hyperscale cloud providers are top-of-mind, but telecom service providers can also play a role in connecting AI apps.

Overall, it is a critical time for telecom providers, and their technology vendors, to synchronize on key priorities and investment strategies, particularly in light of historical struggles to optimally monetize telecom networks. Doing so can enable them to rearchitect a brighter future for telecom monetization and set them up for a key role in a digital, AI-centric world.

For a deeper dive into these topics, watch IDC’s July 10th webinar, “Revenue Enablers for the Future Telco: APIs, AI, and Emerging Tech”.

In today’s high-stakes sales environment, managers are grappling with an array of challenges that can stifle growth and efficiency. From the daunting task of managing diverse teams and complex sales processes to the relentless pressure of meeting ambitious targets, the role of a sales manager has never been more demanding. Add to this the reality of having to do more with less—facing static staffing budgets amidst increasing operational complexities—and it’s clear that the traditional approaches to sales management are no longer sufficient.

Enter Artificial Intelligence (AI). This transformative technology is not just a buzzword, but a practical solution poised to revolutionize sales management. AI’s ability to automate administrative tasks, provide personalized training, and deliver data-driven insights offers a beacon of hope for overwhelmed sales managers.

By harnessing AI, sales leaders can not only navigate the challenges of their roles more effectively but also unlock new levels of productivity and strategic decision-making. This introduction to AI in sales management marks the beginning of a new era, where efficiency and growth go hand in hand, empowering managers to lead their teams to unprecedented success.

The Challenges Sales Managers Face

In today’s high-pressure sales environments, sales managers are grappling with a myriad of challenges that test their limits daily. The transition from top-performing salesperson to a managerial role often comes with the assumption that success in sales equates to success in leadership. However, the reality is far more complex. Sales managers find themselves overwhelmed by the immense workload, which includes not just leading and motivating their teams but also handling administrative duties and striving to meet ambitious sales targets.

The scarcity of resources, be it time, budget, or staffing, further exacerbates the pressure on sales managers. They are also tasked with navigating the intricate sales processes and managing a deluge of data from various sources without adequate analytical tools. The diversity within teams, in terms of skill sets, personalities, and working styles, adds another layer of complexity to ensuring cohesion and productivity. Continuous learning and development for both the managers and their teams are essential to maintain consistency and adherence to sales methodologies, all while under relentless pressure to achieve organizational goals.

Despite these challenges, organizations often expect sales managers to do more with less. With staffing budgets remaining stagnant and the tools and processes involved in B2B selling becoming increasingly complex, sales managers are often set up for failure from the start. The high turnover among sales representatives and the significant costs associated with hiring and training new talent only add to the burden, making the role of sales managers one of the most challenging in the business landscape today.

Revolutionizing Sales Management with AI

In today’s dynamic sales environment, AI and Machine Learning (ML) are essential tools that are reshaping the way sales management operates. By offering personalized training, automating administrative tasks, and providing data-driven insights, AI is setting a new standard for efficiency and growth in sales management.

Personalized Training and Coaching

Gone are the days of one-size-fits-all training programs. AI enables a more personalized approach to training, catering to the unique needs and learning styles of each sales representative. By analyzing sales interactions, AI identifies areas for improvement and tailors training content, ensuring that each member of the sales team receives the most relevant and effective coaching.

Administrative Automation: A Time Saver

AI shines in automating routine tasks that consume a significant portion of sales managers’ and representatives’ time. From generating personalized emails to logging customer interactions and scheduling meetings, AI tools streamline these processes, freeing up time for more strategic activities. This shift not only enhances productivity but also allows sales managers to focus on coaching and strategic planning.

Harnessing Data-Driven Insights

In the realm of sales management, data is king. However, the sheer volume of data can be overwhelming. AI algorithms excel in sifting through vast datasets, providing real-time performance metrics, identifying bottlenecks, and offering accurate forecasting. These insights empower sales managers to make informed decisions that drive better results for their teams and organizations.

AI is not just transforming sales management; it’s revolutionizing it. By providing personalized training, automating administrative tasks, and delivering data-driven insights, AI is enabling sales teams to achieve unprecedented levels of efficiency and growth. As we embrace these technologies, the future of sales management looks brighter than ever.

“In the fast-paced world of sales, managers are often overwhelmed by the sheer volume of data and tasks. AI offers a lifeline, helping them navigate the complexity with precision and efficiency, turning chaos into opportunity.”

Navigating the AI Implementation Journey in Sales Management

Integrating AI into sales operations isn’t just about deploying new technology; it’s about aligning it with your organizational culture, securing leadership buy-in, and ensuring your data is primed for action. Here’s how to make AI work for your sales team:

Organizational Culture: The Foundation of AI Adoption

Your company’s culture is the bedrock of successful AI integration. A culture that values innovation and is open to change will embrace AI’s potential to transform sales management. Conversely, a culture resistant to change may see AI as a threat rather than an opportunity. Cultivating an environment that encourages experimentation and learning is key to leveraging AI effectively.

Leadership Buy-In: Steering the Ship

Without the support of leadership, AI initiatives are likely to flounder. Leaders must not only endorse AI projects but also actively participate in their implementation. This involves allocating resources, setting clear objectives, and demonstrating a commitment to leveraging AI as a strategic tool for sales management success.

Data Readiness: The Fuel for AI

The adage “garbage in, garbage out” holds particularly true for AI in sales. The quality, completeness, and accessibility of your CRM data are critical. Before embarking on your AI journey, assess your data infrastructure to ensure it can support AI analysis. This step is crucial for avoiding pitfalls and setting the stage for meaningful AI-driven insights.

By focusing on these key areas, organizations can navigate the complexities of AI implementation in sales management, transforming challenges into opportunities for growth and efficiency. Remember, AI is not just a tool but a strategic asset that, when aligned with your organizational culture, leadership vision, and data capabilities, can significantly enhance sales management practices.

“Incorporating AI into sales operations requires more than just technological know-how; it demands a strategic approach that considers the unique dynamics of your organization. By addressing these foundational elements, companies can unlock the full potential of AI to empower their sales teams and drive unprecedented growth.”

Harnessing AI for Future Sales Success

The potential of AI in sales management cannot be overstated. As organizations look to navigate the complexities of modern sales environments, AI stands as a beacon of efficiency, growth, and strategic insight. By embracing AI, companies can unlock scalable success, empowering sales managers to lead with confidence and foresight. The path forward is clear: integrating AI into sales operations is not just an option; it’s a strategic imperative for sustainable growth and competitive advantage.

Learn what matters most to your customers with IDC’s AI Use Case Discovery Tool—find out more.

Michelle Morgan - Research Manager, Customer Experience - IDC

Before joining IDC, Holtz worked for ABN AMRO. As a senior analyst in the bank's Treasury Operations, Wholesale Division, she had a strategic advisory role on business organizational matters and was responsible for internal IT cost control and internal service level and performance data management.