Business objec�ves Reduce high net working capital (NWC) by focusing on sales forecas�ng, demand planning, and inventory planning Convert machine sales into product-service subscrip�on revenues Use KPIs to focus on performance improvements, minimize down�me, and increase customer sa�sfac�on using a remote monitoring service. (For example, use predic�ve AI to proac�vely improve maintenance of machines and safety of workers, and to prevent unnecessary machine maintenance by customers) Benefits and implica�ons of AI implementa�ons Transforming the company from a product sales organiza�on to a bundled product-service subscrip�on business. Predic�ve maintenance has generated revenue through so�ware subscrip�ons and increasing machine sales while ensuring sustainability by op�mizing servicing schedules, reducing down�mes and crea�ng cost-savings for customers. Measurable performance gains in demand forecas�ng, with a 20% reduc�on in error rates, enhancing forecast accuracy. Greater innova�on within the organiza�on's specific areas, par�cularly in predic�ve maintenance, recondi�oning plants, and produc�on line automa�on. AI is playing a vital role in improving produc�vity and quality inspec�on processes, which ul�mately enhances the overall quality of products. With Genera�ve AI, customers can address a substan�al por�on of issues independently, diminishing the need for a large service technician workforce. Sa�sfied customers result in higher sales and subscrip�ons, further boos�ng revenue. The integra�on of AI into ERPs is also an�cipated to enhance internal efficiencies. AI is differen�a�ng the company from its compe�tors, promp�ng strategic considera�ons of building versus buying AI solu�ons. Lessons learned Leverage edge compu�ng for data access Get buy-in and trust of business leaders in AI ini�a�ves Use central funding to create success stories Ensure internal oversight of external data partnerships Recruit top talent Establish centralized AI enablement teams to navigate decentralized organiza�ons effec�vely Maintain a focus on digital upskilling, ethical considera�ons, and fostering a community of prac�ce to ensure successful AI integra�on while addressing evolving technological and organiza�onal needs The Genera�ve Era is not only about doing more with less, but also genera�ng ac�onable business value. We should measure the impact of AI against our ability to predict and personalize before we look to produc�vity. – Phil Fersht, CEO and Chief Analyst, HFS Research TCS AI for Business Study Key Findings Report 09