Measuring and Quantifying Value: A Case Study With Ericsson
Hyperautomation and intelligent automation investments (inclusive of artificial intelligence) have continued unabated for over five years. The growth has been brisk. While adoption and spending were consistently growing, the trigger of generative AI awareness (spurred by the release of ChatGPT in November 2022) has fueled the growth even more. ChatGPT hit 100 million users in one week and has over 1 billion monthly views on its website. However, only a small percentage of organizations can showcase value or benefits that are identifiable, traceable and quotable on an “earnings call.” This is because few organizations have determined the appropriate or best ways to measure these initiatives, which span myriad technologies such as AI, low code, robotic process automation (RPA) and integration platform as a service (iPaaS). Therefore, Gartner launched a research study called “Gartner’s Hyperautomation 100.” The focus is on capturing case studies that feature organizations that have delivered over $100 million in value or triple digit benefits (over 100%) and consistently quantitatively measure those benefits across many different initiatives.In this podcast, we unveil the first of several enterprises that Gartner interviewed. We captured their multiyear journey to not only delivering over $100 million in value but also to measuring it, quantifying it and publicly sharing these achievements because they are traceable and part of an ongoing consistent process of vetting and approving the funding of these initiatives. This podcast features Ericsson, the world leader in the rapidly changing environment of communications technology. It develops, delivers and manages hardware, software and services to enable the full value of connectivity. The official name of the organization is Telefonaktiebolaget LM Ericsson (parent), but it is commonly referred to as Ericsson. Founded in 1876, Ericsson worldwide revenue in 2022 exceeded $26 billion and the company had over 104,000 employees. In 2016, Ericsson started from scratch with no staff and no capabilities in its Enterprise Automation and AI team. At the very beginning, it followed a mantra: “Think big, start small, scale quick.” The terminology it used internally was to set a course for “Radical Transformation Driven by Exponential Technologies.”During the first two years (2016-2017), six initiatives were funded and delivered. Fast forward to mid 2023, when the aggregated number of initiatives has surpassed 300. All the initiatives are funded by the business units as there is no predefined budget. As such, the Enterprise Automation and AI team at Ericsson must prove its value and build confidence with the business unit leaders to get funding for the next project. One of the many ingredients for this success was to measure and quantify the value for each initiative. Internal stakeholder demand (i.e., the amount that business units fund) has increased 22 times since the 2016 launch of the team. It has essentially doubled every year since 2016.