Capgemini: Generative AI Will Speed Business Transformation Toward Software-Led Era
Software is redefining the next era of business, and generative AI in particular is accelerating transformation toward a new software-led era, according to the new Capgemini Research Institute report, The Art of Software: The New Route to Value Creation Across Industries.
Organizations expect their software-based revenue to grow to 29% of total revenue by 2030, up from 7% in 2022. Across industries, software and software-enabled technologies such as AI and machine learning (ML), cloud, IoT, and high-performance networks including 5G are accelerating innovation for products and services, creating personalized CX, introducing new revenue streams and business models, and reducing costs, the report notes.
Successful software-driven transformation is expected to deliver significant financial gains for organizations across all industries by 2030, led by the telecom sector with a projected increase in revenue of 39%; followed by automotive, banking, and insurance, each with 32%; and by the life sciences with 31%.
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Organizations are also turning to technologies such as generative AI to help engineers throughout the software development lifecycle to accelerate the delivery of software code. Generative AI tools is expected to increase the time saved for software engineering from 15% to 43% over the next three years. Within the same period, generative AI will also help create 37% of software engineering code, the report reveals.
Despite the significant benefits to be obtained, only 29% of organizations have started to scale and utilize software to drive transformation, and just 5% have implemented fully scaled initiatives. To realize the full potential of software, organizations will need to cultivate talent, ensure interoperability and flexibility across various platforms, and manage long-term operating costs and performance levels in the transition from legacy to future-proof architectures.
Critical skills are in short supply, notably in cybersecurity and compliance (61%); AI, ML and deep learning (60%); and data and cloud (57%).
William Rozé, CEO at Capgemini engineering and a member of the company’s executive board, says a paradigm shift is needed in the new era of software-led business. “Thinking must move away from using digital technologies as an add-on or tool to fix crinkles and smooth edges,” remarks Rozé. “Instead, leaders must view software as a key strategic asset, which can unlock a myriad of benefits and establish competitive differentiation. Generative AI poses significant potential here—with the ability to vastly accelerate all endeavors.”
For the research, the Capgemini institute surveyed 1,500 senior executives from organizations with an annual revenue exceeding $1 billion. The organizations come from a range of sectors, and are based in 13 countries across North America, Europe, and Asia Pacific. The institute, which has research centers in the UK, US, Singapore, and India, is part of Paris-based Capgemini, a global provider of technology, consulting, and outsourcing services.
Qualtrics: Top Four Consumer Experience Trends for 2024
And the top four CX trends to watch are these: A human connection is the foundation of a winning AI strategy; great customer service will beat low prices in the battle for customer loyalty; digital support is going to be the weakest link in the customer journeys; companies must listen in new ways because consumers do not give feedback like they used to do.
These four key trends will define the consumer experience in 2024, according to the 2024 Consumer Experience Trends Report from experience management (XM) creator Qualtrics.
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In the first trend, the report says a winning AI strategy must address consumer fears of losing the human connection. Despite surging interest in AI, less than half (48%) of consumers are comfortable getting help from a chatbot or using AI-powered self-service. Furthermore, skeptical consumers worry about the loss of human connection, the potential for poor service, and the possibility that people could be replaced by AI in their jobs. The challenge for brands in 2024 will be to identify the tasks that AI can do and cannot do well—and in aligning those capabilities with consumer preferences.
The second trend projects that despite rising prices and the risk of inflation, price will not be the primary driver of consumer purchase decisions in 2024. Instead, organizations that provide excellent customer service are more likely to gain repeat business from customers. In fact, customer service and support rank above low prices as factors influencing consumer purchase decisions; only product quality ranks higher.
In the third trend, the report notes that strong digital support can have an outsized impact on customer loyalty. Consumers are more likely to return by a factor of 2.7 if they experienced great digital support. At the same time, however, consumers are still less likely to be satisfied by digital customer support when compared with human support.
The fourth trend notes that although only a third of consumers provide direct feedback every time they have a bad experience with a company, customers still supply feedback in less direct ways, such as in call-center conversations, online chats, product reviews, and social media posts. The share of consumers providing feedback directly to companies following a bad experience has fallen by 7.2 percentage points, according to the report. As a result, organizations need to be smart about gathering feedback in the areas where it is being provided by customers, with the companies then taking action to address any issues.
The Qualtrics report is based on a survey of more than 28,000 consumers in 26 countries, asking about their expectations and what companies should do to win—and keep—their business.
Disqo: CX is More Effective Than Influencers in Driving Social Media Shopping
A new report about social media usage and e-commerce activity from enterprise CX platform provider Disqo shows that social media marketing is falling short in building trust with consumers, even as the medium continues to drive in-app purchases. The findings from the report, Social Media Shopping, also reveal that CX is a more effective factor than influencers in driving social shopping.
David Grabert, vice president of brand and communications at Disqo, says those who buy within social media are not confined to digital natives alone (such as member of Gen Z, born 1997-2012) but now also now include members of the older generation. With the holiday shopping season underway, Grabert adds that brands should use the period to test bespoke social content for different cohorts and platforms while also considering the overriding impact of CX over influencer marketing.
A key finding of the report is that CX factors are the most influential in driving in-app purchase decisions. Consumers report product reviews (28%), discounts (24%), and seller trustworthiness (22%) as the top considerations in social media sales. In contrast, influencer recommendations were the least impactful across generations, cited by just 2% of those surveyed.
In the second key finding, the report also shows consumer trust in social media ads to be very low, with only 5% of consumers professing even moderate trust. Brands could win over skeptical consumers by serving up content emphasizing positive reviews and promotions, which respondents say are more likely to drive them to a purchase action.
A final finding discloses that conventional assumptions about age and social media shopping usage are antiquated. More Millennial (born 1981-1996) and Gen X (born 1965-1980) consumers, 45% and 39%, respectively, use in-app shopping on social media than Gen Z (37%). Moreover, there was less than a 10-point difference with in-app shopping between generational cohorts and the general population (40%), suggesting a strong opportunity for brands to reach consumers across generations, the report notes.
Insights for the report were sourced from 19,294 consumers in the Disqo audience during the October 7-8, 2023, survey period; the results were then weighted to represent the US population. Glendale, California-based Disqo is recognized in Deloitte’s Fast 500 and Ad Age’s Best Places to Work, and has won ad measurement awards from Digiday and Cynopsis media.
Author Information
Alex is responsible for writing about trends and changes that are impacting the customer experience market. He had served as Principal Editor at Village Intelligence, a Los Angeles-based consultancy on technology impacting healthcare and healthcare-related industries. Alex was also Associate Director for Content Management at Omdia and Informa Tech, where he produced white papers, executive summaries, market insights, blogs, and other key content assets. His areas of coverage spanned the sectors grouped under the technology vertical, including semiconductors, smart technologies, enterprise & IT, media, displays, mobile, power, healthcare, China research, industrial and IoT, automotive, and transformative technologies.
At IHS Markit, he was Managing Editor of the company’s flagship IHS Quarterly, covering aerospace & defense, economics & country risk, chemicals, oil & gas, and other IHS verticals. He was Principal Editor of analyst output at iSuppli Corp. and Managing Editor of Market Watch, a fortnightly newsletter highlighting significant analyst report findings for pitching to the media. He started his career in writing as an Editor-Reporter for The Associated Press.
