Category: Blog

Kickstart Your Hybrid Copilot Journey with M365 Copilot | Blog

M365 Copilot is rapidly becoming the go-to solution for enterprises to boost employee productivity. The future lies in adopting a hybrid approach, combining buying prebuilt solutions and building custom offerings. Delve into this transformative shift and potential opportunities for enterprises and service providers in this blog.

Reach out to discuss further.

“Our vision is pretty straightforward. We are the Copilot company.”

— Satya Nadella, CEO Microsoft

Microsoft’s recent rollout of its Artificial Intelligence (AI)-enabled digital assistant Copilot, coupled with Nadella’s above statement, has generated much buzz in the enterprise sphere, igniting discussions about its potential impact on the IT industry and the expected employee benefits.

In the ever-evolving IT landscape, enterprises have always prioritized productivity and aim to provide digital counterparts to assist and augment employees’ day-to-day tasks.

Everest Group research found enterprises ranked productivity as a top three expectation from service providers in 2024.

Copilot marks a significant leap towards this pursuit. Next-gen technologies such as ChatGPT and Copilots are frequently interlinked with productivity gains that replace humans and lead to job loss. The human-in-the-loop concept ensures governance and accountability, representing a crucial shift toward responsible AI implementation.

Consequently, Copilots and other generative AI tools are not intended to replace humans but are built to empower them. Inevitably, this will lead to a future where “Employees with Copilots” replace “Employees without Copilots.”

Deciphering the significance of M365 Copilot: Navigating the distinction between different Copilots

Having firmly established the importance of Copilot in the IT landscape, enterprises are now left with the pivotal question of which Copilot should spearhead their transformation journey.

Within the expansive realm of the Microsoft stack alone, many out-of-the-box Copilots with distinct capabilities abound, coupled with out-of-the-box Copilots from other vendors such as Google, AWS, Moveworks, Salesforce, and more. This crowded market makes decision-making daunting for enterprises.

Let’s take a closer look at some of the available options:

Even the Microsoft stack alone has a multitude of Copilots with distinct capabilities abound:

  • Microsoft 365 Copilot: Helps users streamline knowledge management and generate content based on data from Microsoft Graph (Word, Excel, PowerPoint, and Outlook) 
  • Microsoft Security Copilot: Combines AI with cybersecurity to offer users more advanced protection against attacks
  • GitHub Copilot: AI tool that helps in code completions by turning natural language prompts into coding suggestions 
  • Google Gemini: Helps users find information and generate answers from data all over the web 
  • Moveworks’ AI Copilot: Helps employees automate tasks such as enterprise search and knowledge management

M365 Copilot offers the most extensive use cases to enhance employee productivity. It also integrates seamlessly with Microsoft’s productivity suite, including Office 365, which has unparalleled market dominance with 400 million paid users. For these reasons, M365 Copilot is emerging as the leading choice for enterprises to kickstart a Copilot journey.

In two months, adoption for M365 Copilot has been faster than  E3 or E5 suites, Microsoft announced in its second quarter earnings call.  

Evidence from early adopters such as Lumen Technologies, Goodyear, Chevron, and Avanade reinforces the preference for the M365 Copilot.

Hargreaves Lansdown reported the following benefits after the implementation of M365 Copilot:

  • Employees expect to complete tasks such as client documentation four times faster and save an estimated two to three hours weekly
  • 96% of employees find Microsoft 365 Copilot useful in simplifying daily tasks

Early Copilot for Microsoft 365 users were 29% faster in a series of tasks like searching, writing, and summarizing, according to the company.

The potential for innovative service offerings is immense, presenting opportunities for enterprises and service providers alike to capitalize on the expanding Copilot market.

The exhibit below captures M365 Copilot value creation opportunities for enterprises and service providers:

For Enterprises For Service Provider
Knowledge Managament Data readiness
Document creation on Word and PPT User readiness and training
Excel data analysis and visualization Change management
Meeting summarization Proof of concept
Personalized replies on Outlook Extensibility

The way forward

While out-of-the-box Copilots like M365 Copilot hold significant value, they represent only one facet of the coin. Moving ahead, enterprises should exercise due diligence to check the alignment between the M365 Copilot offering and their employees’ needs.

Out-of-the-box Copilot such as M365 Copilot might not be a good fit for all employees due to the following reasons:

  • High price tagThe steep cost of an out-of-the-box Copilot such as M365 Copilot ($30 per user/month) may not be justifiable for every employee
  • Underutilization of Copilot offerings – While out-of-the-box Copilot, such as M365 Copilot, provides a vast array of use cases, many employees may not utilize them all. Instead, a tailor-made Copilot might be an ideal fit
  • Limited customization – Custom built Copilots offer more personalization
  • Limited integration with custom business apps – Integrating Copilots with custom business apps and data is restricted
  • Less control in Copilot roadmap development – Clients have less control over future development when buying than building a solution

Adopting a hybrid Copilot strategy that combines out-of-the-box (Buy) Copilot(s) and tailor-made (Build) Copilot(s) based on unique employee and business needs is the ideal solution.

While starting with Buy Copilot(s) is effective initially, this is a suboptimal strategy in the long run. Ideally, the future of enterprise Copilot strategy should move beyond buy versus build and, instead, toward a hybrid Copilot strategy.

The next blog in this series will explore the hybrid Copilot strategy in detail. To discuss your Copilot journey or for help on a Copilot strategy, please reach out to [email protected] and [email protected].

Watch the webinar, The Generative AI Odyssey: A Year in Review and What’s Ahead in 2024, to learn about actual production-level use cases and get a glimpse into the future of this transformative technology.

Navigating the New Landscape: How DORA Regulations Will Reshape the Future of Financial Services | Blog

With the deadline for the European Union’s Digital Operational Resilience Act (DORA) less than a year away, financial entities and service providers need to begin acting to reach compliance. Learn the steps organizations should take to prepare now and discover how the new DORA regulations will strengthen digital operational resilience.

Financial institutions’ reliance on information and communication technologies (ICT) for core operations brings immense opportunities in today’s digital world but also exposes banks, investment firms, insurers, and other financial entities to significant cyber threats and operational risks. To address these growing vulnerabilities, the EU has enacted DORA.

The DORA regulations are expected to significantly enhance the digital resiliency of the EU’s financial sector and foster greater stability, consumer protection, and trust. Financial institutions and authorities are working toward meeting the implementation deadline of January 17, 2025. Let’s explore this further.

DORA addresses two critical concerns:

  • Rising cyber threats: DORA mandates robust cybersecurity measures to protect financial systems from increasingly sophisticated and frequent cyberattacks that steal sensitive data, disrupt operations, and erode trust
  • Potential financial instability: DORA aims to prevent ICT incidents from cascading through the financial system, jeopardizing its stability and impacting consumers and businesses. The regulations ensure financial institutions can withstand, respond to, and recover from ICT-related incidents

Who will be impacted by DORA regulations?

DORA will impact all financial institutions and ICT third-party service providers. This includes banks and credit institutions, investment firms, trading platforms, and providers delivering critical services like cloud computing, data centers, credit ratings, and data analytics. It applies to over 22,000 financial entities in the EU and ICT infrastructure support outside the EU.

DORA framework

DORA establishes a comprehensive framework for managing digital operational resilience across the financial sector. Some key provisions include:

  • Enhanced ICT risk management: Financial institutions must implement robust ICT risk management practices, including threat identification, vulnerability assessments, and incident response plans
  • Mandatory incident reporting: Major ICT-related incidents and significant cyber threats must be reported to authorities, enabling faster response and improved threat intelligence sharing
  • Regular digital operational resilience testing: Financial institutions must conduct regular ICT systems testing to identify and address vulnerabilities
  • Strict oversight of ICT third-party providers: Financial institutions are accountable for the resilience of their third-party ICT service providers, with DORA outlining clear oversight and risk management requirements

DORA requires third-party providers to maintain robust cybersecurity measures and operational resilience capabilities to mitigate risks from potential vulnerabilities and disruptions. Moreover, financial institutions must ensure their current and future contracts with providers are compliant.

DORA focuses on five strategic pillars centered around data: risk management, third-party risk management, incident reporting, information sharing, and digital operational resilience testing. However, financial institutions still have many technology legacy systems that could create obstacles to data management.

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How can financial institutions comply with DORA regulations?

Immediate next steps financial institutions should take to prepare for the January 2025 deadline include:

  • Conduct a gap analysis and develop an operational resilience framework, business continuity plans, and governance policies
  • Assess risks with third-party providers in the sourcing portfolio and review existing contracts that may be at risk of termination by authorities
  • Ensure risk and compliance leaders are represented on management boards, as the board will have full accountability for ICT risk management
  • Establish systems for managing, logging, and reporting ICT incidents to regulators

How can providers help financial institutions achieve compliance?

By leveraging their deep understanding of enterprise technology footprints, providers should proactively assist enterprises in meeting the regulatory deadline. We recommend providers take the following actions:

  • Develop a perspective on how DORA will impact financial institutions to ease clients’ worries and gain mindshare with new customers
  • Identify accounts needing support to determine current and future states, business continuity plans, risk management frameworks, etc.
  • Evaluate incumbency status and competitive landscape threats. Acknowledge financial institutions will need to reduce their reliance on a single or small group of providers and have open discussions with clients to ensure transparency and collaboration
  • Develop effective rules, procedures, mechanisms, and arrangements to manage ICT risks to financial entities
  • Review contracts and proactively identify clauses needing changes to incorporate DORA compliance
  • Prepare to undergo threat-led penetration testing with financial institutions if deemed critical by regulators

In the near term, we foresee the banking, financial services, and insurance (BFSI) industry in the EU being impacted in the following ways:

  • Spiked demand for security services as financial institutions run security services maturity assessments to review the current state of DORA compliance
  • Revamped sourcing portfolios as financial institutions assess concentration risk of functions deemed critical under DORA
  • Increased demand for a qualified talent pool to conduct vulnerability assessments, performance testing, penetration testing, etc.

With the deadline fast approaching, enterprises and providers cannot afford to wait for the regulatory process to conclude and must begin to take these recommended steps to reach compliance by 2025.

To learn more about the Digital Operational Resilience Act and how to achieve compliance with the DORA regulations, contact Kriti Gupta, [email protected], Pranati Dave, [email protected], and Laqshay Gupta, [email protected].

To learn about Global Services Lessons Learned in 2023 and Top Trends to Know for 2024, don’t miss this webinar.

Changes in Funding Gen AI and Other Technology in 2024 | Blog

I believe 2024 will be the year of focusing on business value. That applies to gen AI, but it goes further than that. Most companies are now more than ten years into their digital transformation journey. Having already picked the low-hanging fruit, they now want to get more value and return on those investments. However, there are fundamental sentiment shifts in the appetite to invest more to get more value.

Read more in my blog on Forbes

Broadcom’s Acquisition of VMware Sparks Unprecedented Chaos in the Virtualization World | Blog

Broadcom’s staggering US$61 billion acquisition of VMware in January marked one of the largest technology deals ever. Broadcom’s reputation for radical cost-cutting and focus on short-term shareholder value following acquisitions has raised concerns about VMware’s future direction. Read on for recommendations for enterprises, service providers, and competitors to deal with the aftermath of the acquisition of VMware.

Connect with us to discuss this acquisition further.

Broadcom’s acquisition of VMware has ignited worries that Broadcom’s aggressive cost-slashing and financial optimization measures will harm VMware’s reputation as a trusted partner and hinder its ability to innovate.

Let’s look at Broadcom’s troubling past track record of taking over companies and then selling off non-core assets:

  • Broadcom acquires CA Technologies: After Broadcom bought CA Technologies for US$18.9 billion in 2018, it sold the software company’s Veracode platform the following year for US $950 million and intermittently laid off CA Technologies employees. Moreover, CA Technologies’ mainframe business customers regularly expressed dissatisfaction post-acquisition, citing a lack of client focus, with many looking for a way out. Everest Group followed the acquisition of CA Technologies in detail in our blog, Broadcom, CA Technologies, and the Infrastructure Stack Collapse
  • Broadcom buys Symantec’s enterprise software business: Following its purchase of Symantec’s enterprise software business for US$10.7 billion in 2019, Broadcom sold Symantec’s cybersecurity services business to Accenture and the enterprise consulting group to HCL Technologies in 2020

Broadcom might be treading a similar path with VMware. As its acquisition history suggests, Broadcom’s actions will likely be drastic and swift. Within only a month, Broadcom has already created worrying disruptions, posing serious concerns for VMware clients and partners as outlined below:

VMWare blog

A brief history of VMware and Broadcom

Founded in 1998, VMware pioneered virtualization technology, allowing multiple virtual machines to run on a single server, eventually creating the multi-billion cloud market. Over the years, VMware grew its product offerings, such as vSphere, ESXi, and Workstation, to become a dominant cloud and infrastructure player. VMware created multiple software solutions for data center management, networking, security, and the digital workplace. The company has maintained a reputation for innovation, working closely with its service partners and creating a positive client experience.

Established in 1991, Broadcom initially specialized in developing semiconductors,  focusing on communication and networking chips. The company expanded over the years into many other areas, including security, infrastructure storage and management, and industrial solutions. In recent years, Broadcom consolidated its portfolio and now reports revenue in two areas – semiconductor solutions and infrastructure software. Broadcom is known for its aggressive acquisition strategy and focus on financial returns, often raising concerns about its commitment to product innovation and long-term support.

VMware and Broadcom merger leaves enterprise CIOs flummoxed

Since its launch over a decade ago, VMware has held massive dominance in cloud computing, with nearly all enterprises licensing its virtualization technology. Its slowdown started when the giant hyperscalers, such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform, developed public cloud offerings with multiple advantages beyond VMware’s in private cloud settings.

However, most enterprises eventually realized that both public and private clouds had their advantages and drawbacks and settled for a hybrid environment to leverage the strengths of each cloud type.

  1. Enterprise recommendations

CIOs who had settled on hybrid cloud strategies have been left with pressing questions by Broadcom’s acquisition of VMware. They must decide whether to stay with VMware, immediately look for alternatives, or wait and watch what peers do. This also allows organizations to reevaluate service providers’ innovative problem-solving abilities or rebalance hybrid cloud portfolios.

While the answers to these critical questions will depend on their specific situations, all enterprises should take the following steps:

    • Reexamine the hybrid cloud portfolio mix – Most enterprises today have an ineffective blend of workloads on public and private clouds, leading to low-value realization. Enterprises should first reevaluate workloads and create a strategic migration and modernization plan
    • Assess the Virtual Desktop Infrastructure (VDI) needVMware and Citrix have been the leading VDI vendors despite the technology’s performance challenges. Fortunately, managing the VMware disruption in the VDI space should be relatively straightforward given the low penetration of VDIs among employees and a flurry of VDI-as-a-service offerings from BigTechs such as Azure Virtual Desktop, AWS WorkSpaces, Citrix DaaS, and specialist players like Anunta, Dizzion, and Parallels
    • Evaluate the implications of staying with or leaving VMware While each organization should undertake a thorough cost-benefit-impact analysis, they should consider the following factors:
      • Expect an increase in total cost of ownership (TOC): Broadcom’s move from perpetual licenses to membership-based pricing will likely result in higher TOC
      • Consider the impact on customers engaged with Dell: Organizations engaged with Dell as the VMware reseller will see an even higher price impact since Broadcom eliminated Dell’s preferred pricing with VMware
      • Recognize the cost of change: Most enterprises have been using VMware software for a long time. Shifting away will require a significant transformation with upfront investment, talent management, and business continuity planning
    • Engage actively with service provider partners – Most enterprises have adopted VMware solutions through third-party service providers. Clients should accept their help to understand the alternatives, advantages, limitations, and integration risks and engage them to create innovative options.
  1. Service provider recommendations

Service providers play a critical role as the conduit between technology providers and enterprises in helping provide guidance and the next steps to navigate this uncertainty.

While service provider partners are also grappling with sudden, unexpected terminations of partner agreements with VMware, they must act quickly to determine the best step for their enterprise customers. Delaying and watching is not an option, and we recommend the following actions:

    • Understand and evaluate all alternatives – A thorough understanding of all available alternatives to VMware is the first step to retaining credibility with enterprises. Nutanix, Microsoft, Citrix, Scale Computing, and ComputerVault are options for virtualization, while Microsoft Azure virtual desktop, Amazon workspaces, and Citrix workspace are contenders for VDI. Not to be forgotten, hyperscalers, including AWS, Azure, GCP, Oracle, and IBM, also offer virtual private cloud and full-stack solutions
    • Refine and accelerate hybrid cloud go-to-market – Every cloud has a silver lining, and the VMware uncertainty has created an opportunity to add new energy to a stabilized cloud go-to-market and messaging. Many enterprises claim a lack of service provider cloud innovation over the last two or three years, and this is an opportunity to start new conversations and deepen relationships
    • Push Desktop-as-a-Service (DaaS) offerings – DaaS or VDI-as-a-service offerings have been available from vendors, including hyperscalers, BigTechs, service providers, and specialists, but haven’t taken off. Despite the many DaaS benefits, enterprises have shown interest spikes but lacked an external stimulus to kickstart large-scale transition. The VMware frenzy could be a catalyst for the transition to DaaS
    • Collaborate with Broadcom without biases – The sudden and shocking actions by Broadcom have led to many preconceived negative perceptions. However, service providers should be open to what Broadcom will offer as it aims to set a level playing field for VMware’s partners. Keeping an open mind will allow providers to leap ahead of their peers on VMware partner status. VMware’s huge client base cannot be ignored despite the current upheaval
  1. Competitor recommendations

Since VMware has shown its belly to competition, it’s now a mad rush. VMware’s competitors have a rare opportunity to grab its clients, potentially giving them considerable future revenue. Competitors understand this and have launched a scathing attack on VMware through email and social media campaigns, as well as direct outreach. While the desire to capture a larger market share is understandable, competitors should take a more balanced and pointed approach for higher conversion rates. We recommend the following strategies:

    • Create a structured attacker strategy – Going after as many clients as possible might sound attractive but is most likely inefficient. Identify a long list of accounts to target, prioritize them based on relevance, and create dedicated teams with established Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs)
    • Build deeper account intelligence to win more clients – Winning new clients requires a more nuanced approach beyond the marketing tactics to connect with distressed clients initially. Understanding the specific context of each potential client, including pain points, decision-making stakeholders, existing software, integration challenges, etc., can significantly increase deal conversion rates
    • Maximize channel partner leverage – Develop joint attacker strategies in collaboration with service providers who often understand clients’ needs better. Aggressively expand partnerships with service providers

We will continue to follow this space and watch how Broadcom’s acquisition of VMware unfolds. If you would like to discuss this further, reach out to [email protected] or [email protected].

Catch our upcoming webinar, Engineering Services in 2024: The Market Outlook and Commercial Trends, for insights into the pricing outlook, commercial dynamics, market attractiveness, and evolving buyer expectations for engineering services.

Call Center Technology Needs a Platform Approach | Blog

It feels like the more technology a company deploys in its call center, the more it results in the worst customer experience possible. What used to be a personal conversation with a specific person is now a proliferation of technology channels that create more complexity for the customer and the company. Whether companies recognize it or not, in making these investments, they have assembled a digital platform operations model where the technology and the people in call center operations have become more intertwined. The problem is they did not adopt platform thinking.

Read more in my blog on Forbes

Consulting Playbook: Organizational Readiness for Gen AI Adoption | Blog

While most enterprises today want to adopt generative AI (gen AI), they struggle to embrace it because of organizational unpreparedness. Consulting service providers can play a key role in this transition. Discover Everest Group’s Organizational Gen AI Readiness Framework, which includes critical strategy and operations components for successful gen AI adoption.

Reach out to us to further discuss gen AI.

The challenge of embracing change

Enterprises that have successfully embraced automation and digitization now face another technological challenge: gen AI. A recent Everest Group survey of over 200 enterprises reveals contrasting sentiments about gen AI adoption. Despite as many as 90% expressing a desire to adopt gen AI, only about 10% of respondents indicated they would significantly invest in the technology during 2024. Most enterprises plan to implement gen AI in small areas, run pilots, or begin building strategies this year.

Additionally, when asked about key challenges with gen AI adoption, more than half (57%) cited organizational readiness as the top obstacle, which was unsurprising. Here are the results:

Survey on gen AI adoption challenges  

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The survey findings underscore a broader enterprise sentiment where excitement for the future is tempered by the challenges of adopting gen AI into established business models. It reflects a blend of eagerness and trepidation, with significant concerns about organizational preparedness for this change.

In this transition, consulting service providers become crucial in bridging these gaps and ensuring smooth adoption into existing operation frameworks. Let’s delve into this further.

Everest Group Organizational Gen AI Readiness Framework:

Crafting a blueprint for a gen AI-driven future

The ease of using gen AI from an end-user’s perspective often belies the complexity of building and operating gen AI models and applications. Consulting service providers can play a critical role in assisting clients in comprehensively understanding their internal capabilities for gen AI.

Leading consulting organizations have developed unique gen AI readiness frameworks that can add significant client value. These frameworks are essential to help organizations analyze their current state in-depth, identify areas needing enhancement, and craft tailored strategies for effective gen AI deployment.

In guiding organizations through gen AI adoption, a consulting firm’s approach is anchored in two principal tenets:

  • Strategy involves shaping a visionary outlook, navigating market trends, managing risks, and identifying innovative opportunities
  • Operations focuses on refining processes, building a skilled team, enhancing technology infrastructure, and implementing effective performance metrics. Together, these elements form the backbone for successful gen AI adoption

Gen AI readiness framework

Gen AI Framework

The strategy

Vision

For gen AI consulting providers, it’s vital to engage clients in a thought-provoking dialogue about their gen AI objectives. Instead of prescribing a set path, encourage clients to consider the following:

  • Clarify the end objective with gen AI: What do clients hope to achieve through gen AI? Guide them to ponder whether they see it as a strategic tool transforming their business model or merely as a means to fill specific capability gaps
  • Alignment with organizational goals: Assist clients in aligning gen AI initiatives with their broader organizational goals. Is gen AI a step toward future innovation, or is it addressing immediate operational needs?
  • Crafting an integration roadmap: Encourage clients to consider their gen AI integration roadmap. This should encompass not just the immediate technological requirements but also longer-term industry trends, potential disruptions, and opportunities for innovation.

Organization and culture

Culture as the cornerstone of gen AI adoption

Corporate culture can accelerate or impede gen AI adoption. The same cultural traits underpinning organizational success – such as adaptability, agility, and innovation – are now the bedrock for gen AI adoption. Creating an environment where transparency, connectivity, and continuous learning are not just buzzwords but the essence of the organizational ethos is crucial. 

Cultural changes needed for gen AI adoption

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Governance, security, and compliance

For gen AI consulting providers, navigating governance, security, and compliance is a multi-faceted challenge in a domain where innovation often outstrips regulation. Consultants must guide clients in developing robust governance strategies, enhancing security measures, and ensuring compliance to build trust and manage risks associated with gen AI.

Integrated framework for governance, security, and compliance in gen AI

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Return on investment (ROI)

Understanding the economic impact of gen AI is crucial. Consulting firms should help clients evaluate the ROI of gen AI initiatives. This involves cost-benefit analyses and identifying areas where gen AI can drive revenue growth and efficiency gains. As part of the readiness assessment, enterprises must establish clear, measurable metrics for gen AI adoption that align with their strategic objectives, such as efficiency gains, revenue growth, customer satisfaction, and innovation. This can provide data-driven insights into the effectiveness of gen AI solutions.

Operations

Talent

The impact of gen AI spans all levels, from enhancing the employee experience to empowering managers, as well as requiring a new leadership paradigm focused on fostering gen AI adoption and integration. Consulting providers will become essential in helping enterprises adapt and evolve their talent strategies.

Talent strategy transformation needed for gen AI adoption

Impact category Examples Description
Roles that will become extinct Traditional Data Analysts, Basic IT Support Technicians These roles, primarily focused on repetitive tasks and manual testing, will likely become obsolete as gen AI automates these processes.
Roles that will emerge Gen AI Ethics Officer, Gen AI Integration Specialist New positions like Gen AI Ethics Officer will arise to address ethical considerations of gen AI use. Gen AI Integration Specialists will be needed to blend gen AI solutions effectively into existing tech infrastructures.
Roles that will evolve Software Developers to Gen AI-enhanced Developers, HR Managers to AI-Driven Talent Strategists Existing roles like Software Developers will evolve into Gen AI-enhanced Developers, focusing more on AI-driven solutions, while HR Managers will transition to AI-Driven Talent Strategists, leveraging gen AI for talent acquisition and management.

 Tech

Consulting providers must have a nuanced understanding of the organization’s current gen AI capabilities. They should enable clients to discern where they stand on the gen AI integration spectrum – whether they are at the stage of creating gen AI solutions from scratch (Do It Yourself), using ready-made components (Do It With Me), or adopting fully developed gen AI products (Do It For Me).

Gen AI tech stack readiness categories

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Data

For most enterprises, the immediate priority lies in addressing gen AI’s data-related risks. Confidentiality, data leakages, reliability, and plagiarism are the four horsemen of the gen AI apocalypse, each capable of causing financial, legal, and reputational damage. The solution? Getting the data house in order. This involves scalable data management, prioritizing discovery, acquisition, and curating data to effectively feed into the gen AI models.

Ecosystem

The ecosystem aspect is pivotal in preparing organizations for gen AI. Consulting service providers play a critical role in:

Strategic partnerships: Assisting clients in forming alliances with technology providers and industry experts to access essential gen AI resources and knowledge.

Seamless integration: Helping clients blend gen AI into their existing business and technological frameworks, ensuring that gen AI efforts align with broader organizational strategies.

Fostering innovation: Encouraging clients to engage with innovation networks supporting continuous gen AI development, idea sharing, and collaborative growth.

Conclusion

As the gen AI wave gains momentum, consulting providers are uniquely positioned to guide enterprises. By focusing on providing services around technological, cultural, and structural transformations, they can lead these organizations not just in adapting to gen AI but also in harnessing its full potential for innovation and growth.

Read more Everest Group Research on Consulting and gen AI in our reports:

If you would like to reach out to us to learn more, email Sandeep P, [email protected], Alisha Mittal, [email protected], and Parul Trivedi, [email protected].

Going Gig? Not Like Eating a Piece of Cake | Blog

You’ve left or retired from your glorious career at a consultancy or in an enterprise. You’ve made the assumption that the world—or at least big, important companies—will beat a path to your door, offering you all manner of interim roles because of your experience. And it seems both enticing and entirely within your grasp—the opportunity to take umpteen years of success solving problems/transforming businesses/leading large teams then selling it to the highest bidder on your terms—40-hour weeks, no PowerPoint, advising and warning folks who you think just haven’t a clue how to run their business.

Think it’s easy to waltz into the world of successful interims? Well, it’s not like eating a piece of cake.

In a post-COVID world, the talent markets are, in the words of an Elvis Presley song, “all shook up.” No more wholesale war for talent; it’s now point buyer. Compensation levels have become less exuberant. Cost pressures have pushed out hiring. And corporate strategies are evolving rapidly in response to churning business conditions.

As a result, the concept of hiring interims, especially for transformative roles in areas such as global business services or technology implementation, is taking hold. Why put someone on a permanent payroll when the job at hand may only last 12-18 months? Why suffer through extended hiring processes when interim search firms or professional employment organizations can source and onboard at pace? Why appoint an internal who doesn’t have critical capabilities when the market is replete with strong senior talent who have “been there, done that?”

At the same time, we’re seeing an increasing supply of experienced folk on the market. Talented transformers and operators are retiring from their corporate roles but are not yet ready to hang up their spurs. Enterprises are recalibrating their operating model’s post-COVID hiring spree, putting accomplished leaders on the street. And the concept of work-life balance is reshaping expectations about career paths, making gig work more attractive.

Why are enterprises embracing interim employment?

  • Need for specialized expertise Sometimes the corporate talent bench does not have the right capabilities to solve a specific problem at hand. An interim with the exact profile, especially one who has “been there done that” with a track record of success in an analogous situation can move the dial.
  • Temporary nature of the work Enterprises often need to deliver a program or project with a deadline, fill a short-term leadership gap, or make a change that requires particular skills at a high level. Interim hiring allows them to obtain the capability without a long-term commitment.
  • Valuable perspective Enterprises are insular institutions. Often, a different perspective from an external who has worked on similar initiatives in other organizations is just the ticket, bringing valuable war stories and lessons learned with them.
  • Speed By avoiding lengthy recruiting, posting, and onboarding processes, talent can be on the ground quickly. Another plus is the ability of experienced interims to quickly get the lay of the land and have an immediate impact.
  • Reduced risk If conditions change, programs stall or are discontinued, or an interim is not delivering as expected, they can be “rolled off” more easily—for less cost.
  • Consultant fee fatigue Rather than bringing in a team of consultants, an interim who can work alongside the enterprise team and harness internal capabilities may be a more cost-effective and durable option.

But as we said in our tee-up, it can be hard for career employees to easily pick up interim roles:

  • It’s a jungle out there Competition is becoming fierce. There is a rising class of experienced career interims. They can go into a new business, often in challenging circumstances, forge new connections and add immediate value. They know how to hit the ground running without taking two to three months to understand the challenge and figure out their role in driving change.
  • Generalists (usually) need not apply The most desirable interims tend to specialize in a specific area—think function/industry/challenge—not something undefinable called “transformation.” That is what makes them more attractive to clients; they know that their reputation is everything (this is how they will secure their next interim role), and it is far easier for them to stand out as an interim if they specialize in a specific area.
  • Variety is the spice of life Desirable career interims have worked in a range of businesses. They can adapt to diverse ways of working across different industries and have a wealth of relevant experience gained from operating in various corporate contexts.

Takes work to get the work Career interims are skilled in business development; they know how to find their own clients and projects. Having skills such as networking, marketing, and proposal writing are critical to get a gig. If you are looking to go interim, or are fortunate enough to snag an interim role, here are a few tips to be wildly successful:

  • Be realistic about compensation Don’t think you can waltz in and get compensation equivalent to your former package: base plus bonus plus long-term incentive. The client will look at both the market and equivalent internal compensation. For many transformation roles, market rates act as parameters for what an enterprise will pay. And do not compare interim rates to those of independent consultancy; interim work has less financial risk.
  • Don’t place undue conditions on the role Sure, you’ve planned three vacations, want weekends off (don’t we all?), and hate to get on Teams calls after 6 pm. But one of the value props of interim for an enterprise is flexibility—and that can include the way you work. An interim gig is rarely a work-when-you-want role.
  • Refrain from patronizing the client team Riding in on a white horse to save the enterprise from itself is not part of the brief for the vast majority of interim roles. You are there to help them achieve their objectives, not play smartest-man-in-the-room or impose your ideas.
  • Don’t expect permanent employment Too many interims think that an interim role is a try-then-buy. While interim work may very well turn permanent, likely you are there to facilitate a change or function as a bridge until an internal team can be assembled. There’s no implicit promise of a long-term relationship.
  • Understand your decision rights Take time to understand how the enterprise makes decisions and which, if any, you are empowered to make.
  • Don’t impose your point of view at every turn Ultimately, the enterprise you are working for makes or ratifies decisions. Coming across with a “I’ve always done it this way” when you don’t understand everything about the context or have all the facts is not an endearing way to operate. Having a trainable point of view is imperative.
  • Adopt the enterprise’s language and ways of working Every enterprise has its own ways of working and communicating. Coming off as one of the team is critical to interim success; communicating the way the client team communicates and engages is key.
  • Avoid thinking your role is solely advising and warning Your job is to get work done, not sit back and pontificate or criticize. Roll up your sleeves and focus on delivery. If the client wants an adviser who can’t do PowerPoint slides, they will hire one rather than you!

The cynics among us could argue that all corporate employment mimics interim arrangements, given constant restructurings, layoffs, and an ever-changing compact between employer and employee. Today, we are all journeymen and women working for companies that hire and fire us at will. Mastering the art of working as an interim can be a career advantage.

Deborah regularly pontificates about talent and operating models in business services organizations. This month, her partner in crime is Paolo, director of Green Peas Resourcing, an interim agency focused on transformation roles.

 Lipstick Doesn’t Look Good on Pigs | Blog

The global services industry adores shiny new toys. Every few years, the industry gloms onto something fashionable and pretty under the belief that if we have one of those, our GBS organization will be most admired. Remember analytics driving GBS value? That was circa 2011-2013. RPA anyone? Following close on the heels of analytics. Process mining? The 2016 era drug of choice. And then, perhaps with COVID pushing us to recreate the way our enterprises work, we pivoted to service experience as the new kid on the block. Don’t take it from me; according to SSON Analytics, over 60% of respondents to a recent poll say that they intend to focus on customer experience over the next few years.

The buzz around experience, almost as if it is a revelation, is somewhat of a headscratcher to me. Fundamentally, what is GBS all about—deliver whatever scope it’s been able to grab with excellence and get stakeholders to adopt and hopefully embrace new ways of working. Yet I see GBS organizations of all shapes and sizes focus on the latter as an afterthought, thinking buying a slick workflow technology is a way to get friction out of a service construct that frankly needs to be completely transformed through digitization. But leaving that aside, if accessing services and solutions is a headache, changing the experience for something the business doesn’t value or need is not worth doing and won’t stick. If a platform is built on suboptimal processes, how can it possibly deliver a seamless experience? And if the GBS team is not communicating a brand promise every day in every way, how can the implementation of a platform possibly solve world peace? You get the lipstick-on-a-pig analogy.

There’s a lot of podium time and tire-kicking devoted to the concept of service experience, usually as an umbrella term for the implementation of an easy-to-navigate workflow platform rather than the transformational, value-adding initiative it should be, moving to digital GBS. And GBS folk who hear the buzz are looking for best practices, use cases, sample business cases and gratis consulting from system integrators in the GBS know. With luck, better service experience has been successfully implemented by HR or IT, and there’s an approach to design and implementation that has been road tested to build on. But GBS is really a different animal; aggregating disparate processes and functions, metrics and underlying data, and juggling the needs of disparate customers is not for the faint of heart. There are preconditions for success that don’t allow for shortcuts. And, when the rules aren’t followed, no one—from the GBS team who provides service, the CXO who funds, to the customer who expects a certain experience—is happy.

Why doesn’t investment in service experience play out for many GBS organizations?

  1. “I want one of those, too” Someone presented a compelling use case at a conference, so GBS leaders, afraid of being caught out as not au courant or best-in-class, embark on buying a platform service experience without doing the ideation, planning, resourcing, alignment, and enablement that is a very heavy lift. We like to say no two enterprises and their GBS work the same way, yet we think that implementing service experience can be achieved with a cooky-cutter approach
  2. Underlying process is broken Like my lipstick-on-a-pig analogy? Designing and implementing a slick portal that orchestrates suboptimal processes is not only a waste of time, but it can also further denigrate the experience by frustrating the user. If underlying processes are not seamless and frictionless, no investment in experience engineering will cover it up
  3. Lack of linkage to change, stakeholder or business relationship management, and brand It’s a very holy trinity, and likely should be aligned programmatically if not organizationally. Service experience is not static; it will constantly evolve as business needs and GBS organizations’ mandate changes. A new experience without comprehensive change management is likely to fail. An approach to business relationship management that is not aligned with experience is suboptimal. And ultimately, experience is the creator of brand in the eyes of the stakeholder. If these are not approached as one, confusion will be the order of the day
  4. Selling an Amazon-like experience Nada, unless there’s a plan to fully digitize GBS operations. GBS is not selling shoes and paper clips that are easy to consume with exceptions few and policies uncomplicated. GBS does not and very likely will not have the funding to set up an all-singing, all-dancing consumer experience. So why set a bar that will never be reached, setting expectations that are entirely unreasonable?
  5. Wrong success measures For many GBS organizations, “put up and shut up” is the primary goal of an investment of experience, targeting no noise out of a transaction manifested by Tier 1 resolution. But experience is a driver of so many of our metrics. For example, a better experience can reduce the number of change requests. A good experience is the best insurance around the proliferation of shadow organizations. Experience is vanguard when it comes to growing GBS scope. Sure, turn-around time, first-call resolution, and the like are important metrics, but experience drives almost every aspect of GBS performance
  6. Prioritizing the wrong use cases It may seem sensible to hit the messy, complicated use case first in order to stop the noise, but other factors should be taken into account. Attacking which process renders a quick win that is a good proof of concept? Where are you likely to get the right resources? Which stakeholder will sing your praises from the rooftops when you take friction out of their delivery? The right starting point has strategic program implications
  7. No-impact reporting Friends, appointing a manager well-versed in implementing a platform to drive the change that experience represents reporting in the bowels of the GBS organization is a non-starter. If experience implementation and management isn’t a top-of-the-house initiative, it will be seen as a tool, not a brand, and not a new way of working. And senior GBS leaders won’t take it seriously
  8. Low patience Ok, we all know Rome wasn’t built in a day, but when it comes to improvement in service experience, GBS organizations often have unrealistic expectations. It takes time to move the dial on C-sat, and even more work to scale and keep the numbers within a reasonable range. Any GBS organization that expects that a sudden focus on service experience is a one-time Hail Mary pass is sadly mistaken
  9. Lack of training We’d like to think new ways of working can be made intuitive, but there are so many significant exceptions to the norm in GBS operations—such as regulation, localization, and unplanned events—that workflow will become complicated. Assuming that both the GBS team and users can easily figure it is a trap
  10. Not investing in easy-to-use, comprehensive, up-to-date knowledge repositories The first principle of experience is to avoid interaction by providing all the answers in an accessible, easy-to-navigate, topical repository (in English or the language of record if you please). Yet it’s a slog for most GBS operations to interrogate, model, align, record, update, and communicate how-tos. So they don’t. The result—too many transactions, frustrated users, overstretched GBS team

 

So, I’ve properly chastised the GBS industry for running to the next big thing. What’s the best antidote to service experience disappointment (besides making sure your processes are shipshape and Bristol fashion)? If you read my last year’s treatise

Service Experience: The Next Value Driver for Global Business Services – A Getting Started Guide, some of this may sound familiar. Here’s a quick list:

  1. Determine your brand, then align experience tenets So many GBS organizations haven’t a clue as to what their stakeholders actually think of them, nor do they know what their brand promise is. It’s not a logo or a tagline; rather, it’s service experience that is ultimately the manifestation of a GBS brand. If one of the tenets is responsiveness, how is it made real through a process and a tool? If alignment with the business is critical, how does GBS cater for both exceptions and high-value interactions? If going above and beyond is a brand hallmark, should there be a level of human intervention at certain points in the workflow? Building a brand from the bottom up—rather than starting with a logo first—is imperative
  2. Decide what you want your stakeholder to feel Is the output a frictionless transaction? An efficient escalation? Collaborative solutioning? Not all experiences should evoke the same reaction. Step back and shape experience not on metrics, but perception. Should stakeholders believe they are heard? That their time is valued? That they are important? Experience can be engineered if the GBS team takes the time
  3. Build a coalition of the willing. Don’t try to boil the ocean What’s the burning platform for a better service experience? Will IT and other functions buy into it, giving GBS some tailwinds? Have enterprise functions already started on a service experience journey providing coattails to align with? Are there stakeholders who can easily grasp the benefits and sign up for partnership? Forgo a big bang approach (but follow a roadmap), and thoughtfully work your way through implementation
  4. Create and ladder use cases that provide a return Make sure your underlying processes are not only ready for experience prime time, but that by staging implementation GBS can create a ladder of benefits that create an ROI…and ultimately momentum for investment and change. Don’t forget the previous point—select partners who see the big picture and will work collaboratively with you
  5. Invest in the team Successful service experience implementation is both a high art and an exact science. Getting the right talent in place with a pan-GBS mandate for change is critical. And, at the same time, delivering a sustainable, programmatic experience means everyone on the GBS team must get onboard. Help your team to understand not only the imperative for GBS sustainability, but also the reality—today, service experience depends on both technology and human intervention. The trick is to know what and when

GBS service experience is a heavy lift. Making superficial or cosmetic changes—for example, the way a stakeholder interacts with GBS—in a futile effort to disguise its fundamental process failings—is a waste of time and money and can ultimately create more harm than good. Don’t put lipstick on a pig.

Analyst Relations Quarterly Newsletter | Q1 2024

Greetings AR pros!

How did we get to the middle of March so quickly?! It seems like it was just a couple of weeks ago when many of you joined us for our 2nd annual webinar for AR professionals, where we shared guidance on how to plan for the year ahead. If you missed that event or would like to share it with colleagues, you can find the replay here. I hope that you’re off to a good start for 2024!

Given that this is our first issue of the year for the Everest Group AR Newsletter, it seems fitting to share updates on new offerings. There are three that I think you’ll find especially interesting and relevant for your organizations. In this issue, you’ll learn more about a new report type called the Service Provider Compass – and as the name implies, it’s all about location, location, location. We are also excited that this is the year that Everest Group launches its large-format events business, with the introduction of the Everest Group Engage event. Lastly, we’ll take a look at the Price Genius offering that just launched in January to enable IT service providers to more effectively price and solution their proposals. See below and click on each of these new offerings for more details.

We’ve already begun planning the next AR-focused event in our ongoing series – look for more details about our upcoming LinkedIn Live on May 8.

Best Regards

Katrina Menzigian
Vice President, Analyst Relations Engagement

 

Thought Leadership 

Insurance BPO Price Benchmarking Catalog | Market Insights™ 

Top 5 Service Providers Delivering Exceptional Value – Europe | Market Insights™ 

Leveraging Strategic Partnerships to Unlock the Potential of Gen AI in Customer Experience Management | Blog 

Navigating the New Landscape: How DORA Regulations Will Reshape the Future of Financial Services | Blog 

Beyond Filters: Exploring the Impact of Generative AI Influencers on the Marketing Landscape | Blog  

 

Client Success Stories 

Everest Group works with companies across industries and geographies, and we love sharing our client success stories with you. Feel free to circulate these with colleagues who may be interested. Or please ask about other examples that may better target something you’re working on.

Discover how Everest Group experts helped:

A leading global service provider enhance its sustainability enablement technology services portfolio
A leading technology company shape its strategic CX priorities

READ ON 

 

Featured Video 

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Adobe Summit 2024: Key Expectations 

Hear Everest Group experts Ronak Doshi, Partner, and Nitish Mittal, Partner, talk about their expectations for the 2024 Adobe Summit Digital Experience Conference, including movement on generative AI and what use cases are making it into production, Adobe’s new products, content supply chains, commercial structures, and more in this short video.

WATCH NOW 

 

Get to Know Our New Offerings 

Everest Group Engage | The Pragmatic Edge: Designing Your Future 

Everest Group’s inaugural Engage event addresses the fundamental challenges around technology, the economy, and changing workplace cultures. Save your place for this event and join our analysts, your peers, and global experts in the ecosystem to learn how these seemingly disparate functions are the collective future of success and innovation for your companies.

EXPLORE 

 

Service Provider Compass™ 

Everest Group’s Service Provider Compass™ is a complimentary report designed to help sourcing leaders get an outside-in view of service providers’ market positions in key delivery locations. The first report focuses on IT-ADM and CXM services delivery from Mexico.

REQUEST NOW 

 

Price Genius™

Price Genius™ is a web-based platform that provides service providers with an outside-in perspective on key commercials and solution sizing elements. It provides robust insights across five key application management services (AMS) pricing models and forty locations.

EXPLORE 

 

Upcoming Everest Group Events 

Upcoming AR-focused LinkedIn Live event on May 8: A Closer Look at Everest Group Industry Technology Coverage: The case of BFSI and Life Sciences

Conversations with Leaders | a LinkedIn Live Series | Featured Speaker – Managing Director, Optum Global Advantage 

CPOs: Do More with Less in APAC through Gen AI, Innovation, and Rate Cuts 

Everest Group Engage 

 

See Us At 

March 11-15: Catch Everest Group’s Healthcare industry experts at HIMSS in Orlando, Florida
Mar 26: Catch Nitish Mittal and Ronak Doshi at the Adobe Summit in Las Vegas, NV
April 23: Catch Kumar Avijit at the RSA Conference in San Francisco, CA
May 16: Catch Durga Ambati at NEXT Pharma Summit in Dubrovnik, Croatia
May 21: Catch Ronak Doshi and Aaditya Jain at Formation ’24 by Duck Creek Technologies in Dallas, TX
June 3: Catch Everest Group’s Achint Arora and Amy Fong at the ProcureCon IT Souring event in Boston, MA

 

Popular Analyst Relations Resources

Sign up your colleagues and peers for Everest Group’s Quarterly Analyst Relations Newsletter 
Help them stay current on Everest Group’s research and corporate happenings via our newsletter.

Everest Group’s Reports Portal: Home to All of Everest Group’s Content  
Access our latest research, outcomes from our latest surveys and studies, on-demand webinars, and much more.
Analyst Relations Engagement Center 
Please visit our dedicated Analyst Relations Engagement page to see past issues of our AR Newsletters and replays of past events designed for AR professionals.

Everest Group RFI Introduction and Overview Document 
This is a handy reference guide on the basics about Everest Group’s RFIs, guidelines on how to use our PEAK Matrix® Assessments, and FAQs.

 

Analyst Relations Best Practices 

Did you know you can view Everest Group’s RFI Agenda at any time? This listing of all forthcoming Everest Group RFIs can be found on our public Reports Portal. It’s a great one to bookmark to help your team better plan its workflow. The RFI Agenda is right on the landing page. You can see all the critical info, such as study title, status, RFI launch date, publication date, and links to previous reports. Check it out!

VIEW EVEREST GROUP’S RFI AGENDA 

 

PEAK Matrix® | Recent Releases 

Data Annotation and Labeling (DAL) Solutions for AI/ML PEAK Matrix® Assessment 2024 | Report 

Google Cloud Services Specialists PEAK Matrix® Assessment 2024 | Report 

Life Sciences Digital Services Specialists PEAK Matrix® Assessment 2024 | Report 

Digital Experience Platform (DXP) Products PEAK Matrix® Assessment 2023 | Report 

Retail IT Services PEAK Matrix® Assessment 2024 | Report 

Latest Published Research 

Generative AI for the Future of Application Services – Propelling Productivity and Reshaping Cost Paradigms | Report 

Interlude to Triumph: 5G Engineering Services State of the Market | Report 

Driving Sustainability in Retail and CPG Industry: A Business Model Transformation Approach | Report 

Decoding Supplier Relationship Management Technologies: What are the Best-in-class Functionalities and Features? | On-demand Webinar 

Importance of IT Security Amid Evolving Care Models in Healthcare and Life Sciences | Report 

 

 

 

Comparing Large Language Models: Everest Group’s AI LLM Assessment Provides a Powerful Framework for Enterprise Decision-Making | Blog

Selecting the right Large Language Model (LLM) is critical for developing the best-suited generative AI (gen AI) solution. However, choosing an LLM on the number of parameters alone can be a costly mistake as larger size alone doesn’t always equate to better performance. Discover a comprehensive framework that evaluates and compares more than a dozen LLMs on 27 key parameters to enhance enterprise decision-making.  

Since the fervor surrounding gen AI started in November 2022, the explosion of LLMs is redefining language understanding and generation boundaries. As more models continue to emerge, evaluating them presents a significant challenge. A more structured and detailed approach is critically needed to evaluate these massive models that goes beyond assessing them solely on their sheer number of parameters.

Given the rising interest in gen AI across diverse applications, the lack of comprehensive research into LLM evaluation is striking. Relying solely on the parameter count when choosing an LLM can be misleading. It neglects crucial performance aspects, increases implementation costs, hinders enterprise readiness, enhances risk, and more. As these LLMs shape interactions and decision-making, an all-inclusive evaluation framework is essential to navigate their impact effectively.

Building on inaugural research in this area, Everest Group has assessed LLMs on multiple parameters and showcased how they rank against each other to help enterprises make the best and most informed decisions.

Introducing Everest Group’s AI LLM Assessment

Everest Group’s AI LLM Assessment presents a comprehensive framework, offering valuable guidance for stakeholders seeking to understand the various elements of LLMs. This assessment meticulously evaluates 13 leading LLMs across 27 distinct dimensions.

The framework evaluates LLMs’ unique capabilities, enabling a deeper understanding of their functionalities. Consequently, enterprises can determine which LLMs are fast, user-friendly, and capable of handling large amounts of input data for practical implementations.

The AI LLM Assessment evaluates various capabilities through such dimensions as the number of tokens they can process, the modalities supported, inference speed, training data quality, and overall market perception. These factors ultimately become differentiators, setting LLMs apart from peers and predecessors.

Below is a snapshot of the Everest Group AI LLM assessment matrix or explore the full framework.

Picture1

The hype of large language models – is bigger always better?

Recently, we have witnessed numerous technology providers developing their LLMs. Each model aims to outperform the others by emphasizing its larger size compared to its peers and previous iterations. However, it is rarely discussed whether having more parameters and larger datasets actually enhances the ability to deliver value across various use cases.

LLM advancements have highlighted a fascinating trend where smaller models like PaLM 2 have demonstrated superior performance despite being trained on fewer parameters than their predecessors. These compact models not only offer better performance but also deliver faster inference times and reduced processing costs. This underscores that larger models may not always be the only way to achieve the desired outcomes.

Choosing the right LLM

Deciding which LLM is the best fit for enterprise applications and use cases based on LLM capabilities and features is the most crucial step in developing a gen AI solution. After assessing a model for these variables, understanding how easily it can be integrated into enterprise operations is vitally important.

To address this need, the framework takes into account the feasibility of practical implementation, considering factors such as the average implementation cost based on usage and ecosystem readiness. The framework also examines the selected LLMs for potential risks that may hinder enterprise adoption.

By considering capability versus adoption ease, the framework offers enterprises a balanced approach for analyzing LLM attributes and functionalities while also accounting for the associated challenges and considerations to integration and utilization.

The path to enhanced LLM performance and adoption

This framework has the potential to help developers enhance their capabilities over peers in building new LLMs tailored for specific tasks or applications by better understanding competitors’ strengths and weaknesses.

While LLM evaluation is undeniably complex and continuously evolving, this framework provides a vital starting point. As Everest Group continues to track developments in the gen AI landscape, we welcome discussing potential use cases, risk and cost considerations, and the impact of gen AI across various industries.

Please reach out to Priya Bhalla, [email protected], Vishal Gupta, [email protected], Vaibhav Bansal, [email protected], Yukta Sharma, [email protected], or Vatsalya Singhal, [email protected] to discuss generative AI topics further.

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