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Study Finds Profitability Top Benefit of Machine Learning Adoption

Written by Dan Wellers, Global Lead, Digital Futures, SAP

Nearly half (48 percent) of the companies who say they have already benefited from machine learning cite increased profitability as the top benefit they have realized, according to a new study from SAP SE.

A similar share of companies who are already benefiting from machine learning also expect revenue growth of more than 6 percent for the two-year period of 2018-2019, the study showed. The study was conducted by the Economist Intelligence Unit (EIU) and written in discussion with SAP.

The results also reveal leading companies - called Fast Learners - that are already seeing substantial benefits from machine learning. These benefits span the entire organization and include increased profitability and revenues, greater competitive differentiation, and faster, more accurate and more cost-efficient processes.

Machine Learning Leaders:

  • Make machine learning a C-level strategic priority: Fast Learners have senior management who understand the strategic value of machine learning and are more open to embracing change. Seventy-five percent of Fast Learners plan to retrain employees displaced by machine learning to perform more interesting and higher-value tasks that keep them within their organization.
  • Drive competitive differentiation and innovation: Fast Learners see machine learning as a way to stand apart from the competition. Thirty-one percent say machine learning has already resulted in business model or business process innovation.
  • Recognize potential for new revenues and profitability: Fast Learners have realized that machine learning can increase profitability and impact new revenue streams, due in part to faster, more accurate and more cost-efficient processes - including the ability to identify revenue opportunities more accurately.
  • Keep key processes close to home: Fast Learners are spending more today on business functions - such as finance and HR - sourced locally (58 percent) than they are in low-cost regions (22 percent) - and they expect that trend to continue. Business relevance and customer value will increasingly take precedence over cost in important decisions on sourcing priorities.
  • Implement an enterprise-wide strategy: Fast Learners are implementing machine learning enterprise-wide, rather than within individual business units or functions. They have also done more to integrate machine learning into key customer-facing and product development functions. Forty-one percent say machine learning is translating into higher customer satisfaction.

"Making the Most of Machine Learning: 5 Lessons from Fast Learners" is based on survey results from 360 senior executives across four geographic regions: North America, Europe, Asia Pacific and Latin America.

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About the Author

 

Dan Wellers leads Digital Futures at SAP Global Marketing, an initiative which explores emerging technologies and their effects on the future of business and society. He is also the founder of the SAP Center for Business Insight, which develops and publishes new research-based thinking for business executives to address the challenges and opportunities of digital transformation.

Published Wednesday, November 14, 2018 7:29 AM by David Marshall
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