This study analyzes the successful digital transformations of CarMax and The Washington Post to advocate for a strategic shift from traditional IT project management to digital product management. It demonstrates how adopting practices like Agile and DevOps, combined with empowered, cross-functional teams, enables companies to become nimbler and more adaptive in a fast-changing digital landscape. The research is based on extensive field research, including interviews with senior executives from the case study companies.
Problem
Many businesses struggle to adapt and innovate because their traditional IT project management methods are too slow and rigid for the modern digital economy. This project-based approach often results in high failure rates, misaligned business and IT goals, and an inability to respond quickly to market changes or new competitors. This gap prevents organizations from realizing the full value of their technology investments and puts them at risk of becoming obsolete.
Outcome
- A shift from a project-oriented to a product-oriented mindset is essential for business agility and continuous innovation. - Successful transformations rely on creating durable, empowered, cross-functional teams that manage a digital product's entire lifecycle, focusing on business outcomes rather than project outputs. - Adopting practices like dual-track Agile and DevOps enables teams to discover the right solutions for customers while delivering value incrementally and consistently. - The transition to digital product management is a long-term cultural and organizational journey requiring strong executive buy-in, not a one-time project. - Organizations should differentiate which initiatives are best suited for a project approach (e.g., migrations, compliance) versus a product approach (e.g., customer-facing applications, e-commerce platforms).
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Today, we're diving into a fascinating study from the MIS Quarterly Executive titled "Transforming to Digital Product Management."
Host: It analyzes the successful digital transformations of two major companies, CarMax and The Washington Post, to show how businesses can become faster and more adaptive by changing the way they manage technology. With me to break it all down is our analyst, Alex Ian Sutherland. Alex, welcome.
Expert: Great to be here, Anna.
Host: So, let's start with the big picture. Why does a company need to transform its IT management in the first place? What's the problem this study is trying to solve?
Expert: The core problem is that traditional IT project management is often too slow and rigid for today's world. Businesses plan huge, year-long projects with fixed budgets and features. But by the time they launch, the market has already changed.
Host: So they end up building something that's already outdated.
Expert: Exactly. The study points out that this old model leads to high failure rates and a disconnect between what the tech teams are building and what the business actually needs. The Standish Group reports that only 35% of IT projects worldwide are successful. That’s a massive waste of time and money.
Host: A 65% failure rate is staggering. So how did the researchers in this study figure out a better way?
Expert: They went straight to the source. The author conducted extensive field research, including in-depth interviews with dozens of senior executives at companies like CarMax and The Washington Post who have successfully made this shift. They didn't just theorize; they studied what actually works in the real world.
Host: Let's get into those findings. What was the most important change these companies made?
Expert: The biggest change was a mental one: shifting from a 'project' mindset to a 'product' mindset. A project has a start and an end date. You build it, launch it, and the team disbands. A digital product, like an e-commerce platform or a mobile app, is never really 'done.' It has a life cycle that needs to be managed continuously.
Host: And that means you measure success differently, right? Not just on time and on budget?
Expert: Precisely. Success isn't about delivering a list of features. It’s about achieving business outcomes, like increasing customer engagement or driving sales. The study calls getting stuck on features the "build trap." The goal is to deliver real value, not just ship code.
Host: To do that, I imagine you need a different kind of team structure.
Expert: You do. The study found that successful companies build what they call durable, empowered, cross-functional teams. 'Durable' means the team stays together for the life of the product. 'Cross-functional' means it includes everyone needed—product managers, designers, engineers, and even data and marketing experts.
Host: And 'empowered'?
Expert: That's the key. They aren't just order-takers. An executive doesn't hand them a list of features to build. Instead, they give the team a business objective, like "increase online credit applications by 20%," and empower them to figure out the best way to achieve that goal.
Host: So, Alex, this all sounds great in theory. But for the business leaders listening, why does this matter to their bottom line? What are the practical takeaways?
Expert: The biggest takeaway is agility. In a fast-changing market, you need to be able to pivot. The CarMax CITO is quoted saying he doesn’t know what the world will be in three years, but his job is to position the company to be "nimble, agile, and responsive" to whatever comes. This product model allows for that.
Host: And it seems to fix that classic divide between the tech department and the rest of the business.
Expert: It absolutely does. When your teams are cross-functional, you stop talking about 'IT and the business' as two separate things. As one executive in the study put it, "IT is business. Business is IT." They are integrated into one team working toward a shared goal.
Host: So if a company wants to start this journey, where do they begin? Do they have to change everything overnight?
Expert: No, and that's a crucial point. The study recommends you start small and scale up. Identify one important initiative, form a true product team around it, give them the resources they need, and demonstrate the value of this new approach. Once you have an early win, you can expand it to other parts of the business.
Host: Fantastic insights, Alex. Let's try to summarize for our listeners.
Expert: It's a fundamental shift from viewing technology as a series of temporary projects to managing it as a portfolio of value-generating products. This requires creating stable, empowered teams that focus on business outcomes, not just project outputs.
Host: A powerful message for any company looking to thrive in the digital age. Alex Ian Sutherland, thank you so much for breaking down this complex topic for us.
Expert: My pleasure, Anna.
Host: And thanks to all of you for tuning in to A.I.S. Insights. Join us next time as we continue to connect you with the knowledge that powers business forward.
digital product management, IT project management, digital transformation, agile development, DevOps, organizational change, case study
Applying the Rite of Passage Approach to Ensure a Successful Digital Business Transformation
This study examines how a U.S. recruiting company, ASK Consulting, successfully managed a major digital overhaul by treating the employee transformation as a 'rite of passage.' Based on this case study, the paper outlines a three-stage approach (separation, transition, integration) and provides actionable recommendations for leaders, or 'masters of ceremonies,' to guide their workforce through profound organizational change.
Problem
Many digital transformation initiatives fail because they focus on technology and business processes while neglecting the crucial human element. This creates a gap where companies struggle to convert their existing workforce from legacy mindsets and manual processes to a future-ready, digitally empowered culture, leading to underwhelming results.
Outcome
- Framing a digital transformation as a three-stage 'rite of passage' (separation, transition, integration) can successfully manage the human side of organizational change. - The initial 'separation' from old routines and physical workspaces is critical for creating an environment where employees are open to new mindsets and processes. - During the 'transition' phase, strong leadership (a 'master of ceremonies') is needed to foster a new sense of community, establish data-driven norms, and test employees' ability to adapt to the new digital environment. - The final 'integration' stage solidifies the transformation by making changes permanent, restoring stability, and using the newly transformed employees to train new hires, thereby cementing the new culture. - By implementing this approach, the case study company successfully automated core operations, which led to significant increases in productivity and revenue with a smaller workforce.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a fascinating new study from MIS Quarterly Executive titled, "Applying the Rite of Passage Approach to Ensure a Successful Digital Business Transformation." Host: It examines how one U.S. company managed a massive digital overhaul by treating the change not as a project, but as a 'rite of passage' for its employees. Host: And here to unpack it all is our analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: So, let’s start with the big picture. Digital transformation is a huge buzzword, but the reality is, many of these initiatives fail. What’s the core problem this study addresses? Expert: The core problem is that companies get seduced by the technology and forget about the people. They focus on new software and processes but neglect the human element—the entrenched mindsets and legacy habits of their workforce. Host: It’s the classic "culture eats strategy for breakfast" scenario. Expert: Exactly. The study highlights a recruiting firm, ASK Consulting. Despite placing high-tech professionals, their own operations were largely paper-based and manual. They had a culture that was frozen in place, and simply introducing new tech wasn't going to be enough to thaw it. Host: So how did they break that pattern? What was this "rite of passage" approach? Expert: The researchers framed the company's transformation using a classic anthropological concept. A rite of passage is a universal human experience for managing profound change. It has three distinct stages: Separation, Transition, and Integration. The leader's role is to act as a 'master of ceremonies,' actively guiding people through each stage. Host: I like that framing. It sounds much more intentional than just a memo about a new system. Let’s walk through those stages. What did the 'separation' phase look like at this company? Expert: Well, for ASK Consulting, the trigger was the COVID-19 pandemic. The lockdown forced a sudden and complete physical separation. Employees were sent home from their bustling, bullpen-style offices. This wasn't just a change of scenery; it broke all the old routines, the casual interactions, and the old way of managing by just looking around the room. Host: It created a clean break from the past, whether they wanted one or not. So after that disruption, what happened during the 'transition'? Expert: This is where leadership becomes critical. The CEO, Manish Karani, stepped up as that master of ceremonies. He became incredibly visible, holding daily video calls and communicating a clear vision: to operate at digital speed with unmatched productivity. Expert: He fostered a new sense of community, sharing transparent performance data so everyone knew the stakes. And crucially, this phase was a test. Employees had to develop an expansive, open mindset and adapt to new, data-driven ways of working. Not everyone could. Host: That sounds intense. So, for those who made it through, how did the company make sure the changes would actually stick? What did the final 'integration' stage involve? Expert: This is how you lock in the transformation. First, the CEO signaled the transition was over by restoring the original pay structure. Then, he made a bold move: the offices in India were permanently closed. This sent a clear message that there was no going back to the old way. Expert: But the most powerful step was leveraging the newly transformed employees. They were the ones who trained the new hires, effectively making them the guardians and teachers of the new culture. Host: That's a brilliant way to cement new norms. Alex, this is a great case study, but the key question for our listeners is: why does this matter for my business? How can a leader apply this without a global crisis forcing their hand? Expert: That's the most important takeaway. You can be intentional about creating these stages. For 'separation,' you could move a team to a different building for a project, or symbolically retire old software and processes with a formal event. The goal is to create a clear boundary between the past and the future. Host: So you manufacture the clean break. Expert: Precisely. For 'transition,' the leader must over-communicate the vision and the 'why.' They need to pilot new processes, celebrate wins, and provide the tools for people to succeed in the new environment. It’s about creating psychological safety while also testing for adaptation. Host: And for 'integration'? Expert: Make it permanent and official. Formally declare the new processes as the standard. And just like ASK Consulting, empower your most adapted employees to become mentors. Let them tell the story of the transformation. This creates a powerful, reinforcing loop. Host: And the results speak for themselves, right? Expert: Absolutely. After the transformation, ASK Consulting accomplished significantly more with a smaller workforce. The study shows that in the first half of 2021, the number of client jobs they filled was over 400% higher than before the transformation. It’s a stunning testament to what happens when you transform your people alongside your technology. Host: A powerful lesson. So to summarize, business leaders should view major change not just as a project plan, but as a human journey. By framing digital transformation as a rite of passage with clear stages of separation, transition, and integration, they can actively guide their people to a new and better way of working. Host: Alex, thank you so much for these invaluable insights. Expert: My pleasure, Anna. Host: And thank you for listening to A.I.S. Insights, powered by Living Knowledge.
digital transformation, change management, rite of passage, employee transformation, organizational culture, leadership, case study
Strategies for Managing Citizen Developers and No-Code Tools
Olga Biedova, Blake Ives, David Male, Michael Moore
This study examines the use of no-code and low-code development tools by citizen developers (non-IT employees) to accelerate productivity and bypass traditional IT bottlenecks. Based on the experiences of several organizations, the paper identifies the strengths, risks, and misalignments between citizen developers and corporate IT departments. It concludes by providing recommended strategies for managing these tools and developers to enhance organizational agility.
Problem
Organizations face a growing demand for digital transformation, which often leads to significant IT bottlenecks and costly delays. Hiring professional developers is expensive and can be ineffective due to a lack of specific business insight. This creates a gap where business units need to rapidly deploy new applications but are constrained by the capacity and speed of their central IT departments.
Outcome
- No-code tools offer significant benefits, including circumventing IT backlogs, reducing costs, enabling rapid prototyping, and improving alignment between business needs and application development. - Key challenges include finding talent with the right mindset, dependency on smaller tool vendors, security and privacy risks from 'shadow IT,' and potential for poor data architecture in citizen-developed applications. - A fundamental misalignment exists between IT departments and citizen developers regarding priorities, timelines, development methodologies, and oversight, often leading to friction. - Successful adoption requires organizations to strategically manage citizen development by identifying and supporting 'problem solvers' within the business, providing resources, and establishing clear guidelines rather than overly policing them. - While no-code tools are crucial for agility in early-stage innovation, scaling these applications requires the architectural expertise of a formal IT department to ensure reliability and performance.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I'm your host, Anna Ivy Summers. Host: Today we're diving into a fascinating study from MIS Quarterly Executive called "Strategies for Managing Citizen Developers and No-Code Tools". Host: It explores how employees outside of traditional IT are now building their own software applications to boost productivity, and what that means for business. Host: To help us unpack this, we have our expert analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, to start us off, who exactly are these 'citizen developers'? Expert: Think of them as empowered employees. A citizen developer is anyone in a business role—sales, marketing, HR—who creates applications using no-code or low-code tools. These platforms let you build software visually, like using digital building blocks, without writing traditional code. Host: So they're solving their own problems without waiting for help? Expert: Exactly. And that gets right to the core issue this study addresses. Host: Which is the infamous IT bottleneck, I assume? Expert: Precisely. The study points out that the business demand for new digital tools is growing much faster than the capacity of central IT departments to deliver them. Expert: Business units have urgent needs, but they face long queues and costly delays. Hiring more professional developers is expensive and they often lack the specific business insight to build the perfect tool. Host: So departments are left waiting, and that's where citizen developers step in. Expert: Yes. The study highlights one of its case companies, a car dealership group called 'DealerKyng', whose process improvements were completely stalled by their remote, backlogged corporate IT department. That frustration is what sparks this movement. Host: How did the researchers actually study this phenomenon? Expert: They took a very practical, real-world approach. They conducted in-depth interviews with people at four different companies—two large, established firms and two fast-growing startups. Expert: This allowed them to capture the hands-on experiences, challenges, and successes of using these no-code tools from very different perspectives. Host: Let's get into those findings. The benefits of using no-code tools sound pretty significant. Expert: They are. The study found that organizations can circumvent those IT backlogs, reduce development costs dramatically, and enable rapid prototyping. Expert: For example, another company in the study, a startup called 'LegacyFixt', estimated a tenfold cost benefit by using a no-code approach over purchasing traditional software packages. That's a huge advantage. Host: That does sound powerful. But I imagine it’s not all good news. What are the risks? Expert: The risks are just as significant. The biggest concern is the rise of 'shadow IT'—technology being used without the knowledge or approval of the IT department. Expert: This creates major security and privacy vulnerabilities. The study found citizen-developed apps sometimes use insecure methods to access corporate data, simply because IT won't provide a proper, secure connection. Host: That sounds like a tug-of-war. Is that a common theme? Expert: It’s a fundamental finding. There’s often a deep misalignment between IT’s priorities and those of the citizen developer. Expert: IT departments focus on security, stability, and long-term architecture. Citizen developers are focused on speed and solving an immediate business problem. This friction leads to IT being viewed as what one manager called a "police force," and citizen developers being seen as rogue agents. Host: This is the crucial question for our listeners: how should a business actually manage this? What are the key takeaways? Expert: The study's main message is that you can’t ignore or simply ban this activity. The smart strategy is to manage it by providing support and clear guidelines. Host: So, enablement over strict control? Expert: Exactly. Instead of policing, businesses should support. This means identifying the employees who are natural problem-solvers and giving them the right resources. Expert: Companies can create a list of approved, secure no-code tools, provide training, and build a community for these developers to share knowledge and best practices. Host: What about when these small apps need to become big, important systems? Expert: That’s a critical point the study makes about scaling. No-code tools are perfect for agility and early innovation—building a quick prototype or solving a local problem. Expert: However, once an application becomes mission-critical or needs to handle thousands of users, it requires the architectural expertise of a formal IT department to ensure it's reliable and secure. The goal should be partnership, not replacement. Host: So, to summarize, this trend of citizen development is a massive opportunity for businesses to become more agile and innovative. Host: The key is to manage it strategically—by supporting these developers with the right tools and guidelines, you can avoid the risks of shadow IT. Host: And ultimately, it's about building a bridge between the business and IT, leveraging the strengths of both. Host: Alex, this has been incredibly clear and insightful. Thank you for joining us. Expert: My pleasure, Anna. Host: And thank you for tuning into A.I.S. Insights, powered by Living Knowledge. Join us next time.
citizen developers, no-code tools, low-code development, IT bottleneck, digital transformation, shadow IT, organizational agility
How Audi Scales Artificial Intelligence in Manufacturing
André Sagodi, Benjamin van Giffen, Johannes Schniertshauer, Klemens Niehues, Jan vom Brocke
This paper presents a case study on how the automotive manufacturer Audi successfully scaled an artificial intelligence (AI) solution for quality inspection in its manufacturing press shops. It analyzes Audi's four-year journey, from initial exploration to multi-site deployment, to identify key strategies and challenges. The study provides actionable recommendations for senior leaders aiming to capture business value by scaling AI innovations.
Problem
Many organizations struggle to move their AI initiatives from the pilot phase to full-scale operational use, failing to realize the technology's full economic potential. This is a particular challenge in manufacturing, where integrating AI with legacy systems and processes presents significant barriers. This study addresses how a company can overcome these challenges to successfully scale an AI solution and unlock long-term business value.
Outcome
- Audi successfully scaled an AI-based system to automate the detection of cracks in sheet metal parts, a crucial quality control step in its press shops. - The success was driven by a strategic four-stage approach: Exploring, Developing, Implementing, and Scaling, with a focus on designing for scalability from the outset. - Key success factors included creating a single, universal AI model for multiple deployments, leveraging data from various sources to improve the model, and integrating the solution into the broader Volkswagen Group's digital production platform to create synergies. - The study highlights the importance of decoupling value from cost, which Audi achieved by automating monitoring and deployment pipelines, thereby scaling operations without proportionally increasing expenses. - Recommendations for other businesses include making AI scaling a strategic priority, fostering collaboration between AI experts and domain specialists, and streamlining operations through automation and robust governance.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Today, we're diving into a challenge that trips up so many companies: taking artificial intelligence from a cool experiment to a large-scale business solution. Host: We're looking at a fascinating new study from MIS Quarterly Executive titled, "How Audi Scales Artificial Intelligence in Manufacturing." It's a deep dive into the carmaker's four-year journey to deploy an AI solution across multiple sites, offering some brilliant, actionable advice for senior leaders. Host: And to guide us through it, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. The study summary mentions that many organizations struggle to get their AI projects out of the pilot phase. Can you paint a picture of this problem for us? Expert: Absolutely. It's often called "pilot purgatory." Companies build a successful AI proof-of-concept, but it never translates into real, widespread operational use. The study highlights that in 2019, only about 10% of automotive companies had implemented AI at scale. The gap between a pilot and an enterprise-grade system is massive. Host: And what was the specific problem Audi was trying to solve? Expert: They were focused on quality control in their press shops, where they stamp sheet metal into car parts like doors and hoods. A single press shop can produce over 3 million parts a year, and tiny, hard-to-see cracks can form in about one in every thousand parts. Finding these manually is slow and difficult, but missing them causes huge costs down the line. Host: So a perfect, high-stakes problem for AI to tackle. How did the researchers go about studying Audi's approach? Expert: They conducted an in-depth case study, tracking Audi's entire journey over four years. They analyzed how the company moved through four distinct stages: Exploring the initial idea, Developing the technology, Implementing it at the first site, and finally, Scaling it across the wider organization. Host: So what were the key findings? How did Audi escape that "pilot purgatory" you mentioned? Expert: There were a few critical factors. First, they designed for scale from the very beginning. It wasn't just about solving the problem for one press line; the goal was always a solution that could be rolled out to multiple factories. Host: That foresight seems crucial. What else? Expert: Second, and this is a key technical insight, they decided to build a single, universal AI model. Instead of creating a separate model for each press line or each car part, they built one core model and fed it image data from every deployment. This created a powerful network effect—the more data the model saw, the more accurate it became for everyone. Host: So the system gets smarter and more valuable as it scales. That's brilliant. Expert: Exactly. And third, they didn't build this in a vacuum. They integrated the AI solution into the larger Volkswagen Group's Digital Production Platform. This meant they could leverage existing infrastructure and align with the parent company's broader digital strategy, creating huge synergies. Host: It sounds like this was about much more than just a clever algorithm. So, Alex, this is the most important question for our listeners: Why does this matter for my business, even if I'm not in manufacturing? Expert: The lessons here are universal. The study boils them down into three key recommendations. First, make AI scaling a strategic priority. Don’t just fund isolated experiments. Focus on big, scalable business problems where AI can deliver substantial, long-term value. Host: Okay, be strategic. What's the second takeaway? Expert: Foster deep collaboration. This wasn’t just an IT project. Audi succeeded because their AI engineers worked hand-in-hand with the press shop experts on the factory floor. As one project leader put it, you have to involve the domain experts from day one to understand their pain points and create a shared sense of ownership. Host: So it's about people, not just technology. And the final lesson? Expert: Streamline operations through automation. Audi’s biggest win was what the study calls "decoupling value from cost." As they rolled the solution out to more sites, the value grew exponentially, but the costs stayed flat. They achieved this by automating the deployment and monitoring pipelines, so they didn't need to hire more engineers for each new factory. Host: That is the holy grail of scaling any technology. Alex, this has been incredibly insightful. Let's do a quick recap. Host: Many businesses get stuck in AI pilot mode. The case of Audi shows a way forward by following a strategic, four-stage approach. The key lessons for any business are to make scaling AI a core strategic goal, build cross-functional teams that pair tech experts with business experts, and automate your operations to ensure that value grows much faster than costs. Host: Alex Ian Sutherland, thank you so much for breaking that down for us. Expert: My pleasure, Anna. Host: And thank you to our audience for tuning into A.I.S. Insights — powered by Living Knowledge. We’ll see you next time.
Artificial Intelligence, AI Scaling, Manufacturing, Automotive Industry, Case Study, Digital Transformation, Quality Inspection
Establishing a Low-Code/No-Code-Enabled Citizen Development Strategy
Björn Binzer, Edona Elshan, Daniel Fürstenau, Till J. Winkler
This study analyzes the low-code/no-code adoption journeys of 24 different companies to understand the challenges and best practices of citizen development. Drawing on these insights, the paper proposes a seven-step strategic framework designed to guide organizations in effectively implementing and managing these powerful tools. The framework helps structure critical design choices to empower employees with little or no IT background to create digital solutions.
Problem
There is a significant gap between the high demand for digital solutions and the limited availability of professional software developers, which constrains business innovation and problem-solving. While low-code/no-code platforms enable non-technical employees (citizen developers) to build applications, organizations often lack a coherent strategy for their adoption. This leads to inefficiencies, security risks, compliance issues, and wasted investments.
Outcome
- The study introduces a seven-step framework for creating a citizen development strategy: Coordinate Architecture, Launch a Development Hub, Establish Rules, Form the Workforce, Orchestrate Liaison Actions, Track Successes, and Iterate the Strategy. - Successful implementation requires a balance between centralized governance and individual developer autonomy, using 'guardrails' rather than rigid restrictions. - Key activities for scaling the strategy include the '5E Cycle': Evangelize, Enable, Educate, Encourage, and Embed citizen development within the organization's culture. - Recommendations include automating governance tasks, promoting business-led development initiatives, and encouraging the use of these tools by IT professionals to foster a collaborative relationship between business and IT units.
Host: Welcome to A.I.S. Insights — powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a fascinating new study titled "Establishing a Low-Code/No-Code-Enabled Citizen Development Strategy". Host: It explores how companies can strategically empower their own employees—even those with no IT background—to create digital solutions using low-code and no-code tools. Joining me to unpack this is our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: So, let’s start with the big picture. Why is a study like this so necessary right now? What’s the core problem businesses are facing? Expert: The problem is a classic case of supply and demand. The demand for digital solutions, for workflow automations, for new apps, is skyrocketing. But the supply of professional software developers is extremely limited and expensive. This creates a huge bottleneck that slows down innovation. Host: And companies are turning to low-code platforms as a solution? Expert: Exactly. They hope to turn regular employees into “citizen developers.” The issue is, most companies just buy the software and hope for the best, a sort of "build it and they will come" approach. Expert: But without a real strategy, this can lead to chaos. We're talking security risks, compliance issues, duplicated efforts, and ultimately, wasted money. It's like giving everyone power tools without any blueprints or safety training. Host: That’s a powerful analogy. So how did the researchers in this study figure out what the right approach should be? Expert: They went straight to the source. They conducted in-depth interviews with leaders, managers, and citizen developers at 24 different companies that were already on this journey. They analyzed their successes, their failures, and the best practices that emerged. Host: A look inside the real-world lab. What were some of the key findings that came out of that? Expert: The study's main outcome is a seven-step strategic framework. It covers everything from coordinating the technology architecture to launching a central support hub and tracking successes. Host: Can you give us an example? Expert: One of the most critical findings was the need for balance between control and freedom. The study found that rigid, restrictive rules don't work. Instead, successful companies create ‘guardrails.’ Expert: One manager used a great analogy, saying, "if the guardrails are only 50 centimeters apart, I can only ride through with a bicycle, not a truck. Ultimately, we want to achieve that at least cars can drive through." It’s about enabling people safely, not restricting them. Host: I love that. So it's not just about rules, but about creating the right environment. Expert: Precisely. The study also identified what it calls the ‘5E Cycle’: Evangelize, Enable, Educate, Encourage, and Embed. This is a process for making citizen development part of the company’s DNA, to build a culture where people are excited and empowered to innovate. Host: This is where it gets really practical. Let's talk about why this matters for a business leader. What are the key takeaways they can act on? Expert: The first big takeaway is to promote business-led citizen development. This shouldn't be just another IT project. The study shows that the most successful initiatives are driven by the business units themselves, with 'digital leads' or champions who understand their department's specific needs. Host: So, ownership moves from the IT department to the business itself. What else? Expert: The second is to automate governance wherever possible. Instead of manual checks for every new app, companies can use automated tools—often built with low-code itself—to check for security issues or compliance. This frees up IT to focus on bigger problems and empowers citizen developers to move faster. Host: And the final key takeaway? Expert: It’s about fostering a new, symbiotic relationship between business and IT. For decades, IT has often been seen as the department of "no." This study shows how citizen development can be a bridge. One leader admitted that building trust was their biggest hurdle, but now IT is seen as a valuable partner that enables transformation. Host: It sounds like this is about much more than just technology; it’s a fundamental shift in how work gets done. Expert: Absolutely. It’s about democratizing digital innovation. Host: Fantastic insights, Alex. To sum it up for our listeners: the developer shortage is a major roadblock, but simply buying low-code tools isn't the answer. Host: This study highlights the need for a clear strategy, one that uses flexible guardrails, builds a supportive culture, and transforms the relationship between business and IT from a source of friction to a true partnership. Host: Alex Ian Sutherland, thank you so much for breaking that down for us. Expert: My pleasure, Anna. Host: And thank you to our listeners for tuning into A.I.S. Insights. Join us next time as we continue to explore the ideas shaping the future of business.
Citizen Development, Low-Code, No-Code, Digital Transformation, IT Strategy, Governance Framework, Upskilling
The Promise and Perils of Low-Code AI Platforms
Maria Kandaurova, Daniel A. Skog, Petra M. Bosch-Sijtsema
This study investigates the adoption of a low-code conversational Artificial Intelligence (AI) platform within four multinational corporations. Through a case study approach, the research identifies significant challenges that arise from fundamental, yet incorrect, assumptions about low-code technologies. The paper offers recommendations for companies to better navigate the implementation process and unlock the full potential of these platforms.
Problem
As businesses increasingly turn to AI for process automation, they often encounter significant hurdles during adoption. Low-code AI platforms are marketed as a solution to simplify this process, but there is limited research on their real-world application. This study addresses the gap by showing how companies' false assumptions about the ease of use, adaptability, and integration of these platforms can limit their effectiveness and return on investment.
Outcome
- The usability of low-code AI platforms is often overestimated; non-technical employees typically face a much steeper learning curve than anticipated and still require a foundational level of coding and AI knowledge. - Adapting low-code AI applications to specific, complex business contexts is challenging and time-consuming, contrary to the assumption of easy tailoring. It often requires significant investment in standardizing existing business processes first. - Integrating low-code platforms with existing legacy systems and databases is not a simple 'plug-and-play' process. Companies face significant challenges due to incompatible data formats, varied interfaces, and a lack of a comprehensive data strategy. - Successful implementation requires cross-functional collaboration between IT and business teams, thorough platform testing before procurement, and a strategic approach to reengineering business processes to align with AI capabilities.
Host: Welcome to A.I.S. Insights, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we're diving into a very timely topic for any business looking to innovate: the real-world challenges of adopting new technology. We’ll be discussing a fascinating study titled "The Promise and Perils of Low-Code AI Platforms." Host: This study looks at how four major corporations adopted a low-code conversational AI platform, and it uncovers some crucial, and often incorrect, assumptions that businesses make about these powerful tools. Here to break it down for us is our analyst, Alex Ian Sutherland. Alex, welcome. Expert: Great to be here, Anna. Host: Alex, let's start with the big picture. Businesses are constantly hearing about AI and automation. What’s the core problem that these low-code AI platforms are supposed to solve? Expert: The problem is a classic one: a gap between ambition and resources. Companies want to automate processes, build chatbots, and leverage AI, but they often lack large teams of specialized AI developers. Low-code platforms are marketed as the perfect solution. Host: The 'democratization' of AI we hear so much about. Expert: Exactly. The promise is that you can use a simple, visual, drag-and-drop interface to build complex AI applications, empowering your existing business-focused employees to innovate without needing to write a single line of code. But as the study found, that promise often doesn't match the reality. Host: So how did the researchers investigate this gap between promise and reality? Expert: They took a very practical approach. They didn't just survey people; they conducted an in-depth case study. They followed the journey of four large multinational companies—in the energy, automotive, and retail sectors—as they all tried to implement the very same low-code conversational AI platform. Host: That’s great. So by studying the same platform across different industries, they could really pinpoint the common challenges. What were the main findings? Expert: The findings centered on three major false assumptions businesses made. The first was about usability. The assumption was that ‘low-code’ meant anyone could do it. Host: And that wasn't the case? Expert: Not at all. While the IT staff found it user-friendly, the business-side employees—the ones who were supposed to be empowered—faced a much steeper learning curve than anyone anticipated. One domain expert in the study described the experience as being "like Greek," saying it was far more complex than just "dragging and dropping." Host: So you still need a foundational level of technical knowledge. What was the second false assumption? Expert: It was about adaptability. The idea was that you could easily tailor these platforms to any specific business need. But creating applications to handle complex, real-world customer queries proved incredibly challenging and time-consuming. Host: Why was that? Expert: Because real business processes are often messy and rely on human intuition. The study found that before companies could automate a process, they first had to invest heavily in understanding and standardizing it. You can't teach an AI a process that isn't clearly defined. Host: That makes sense. You have to clean your house before you can automate the cleaning. What was the final key finding? Expert: This one is huge for any CIO: integration. The belief was that these platforms would be a simple 'plug-and-play' solution that could easily connect to existing company databases and systems. Host: I have a feeling it wasn't that simple. Expert: Far from it. The companies ran into major roadblocks trying to connect the platform to their legacy systems. They faced incompatible data formats and a lack of a unified data strategy. The study showed that you often need someone with knowledge of coding and APIs to build the bridges between the new platform and the old systems. Host: So, Alex, this is the crucial part for our listeners. If a business leader is considering a low-code AI tool, what are the key takeaways? What should they do differently? Expert: The study provides a clear roadmap. First, thoroughly test the platform before you buy it. Don't just watch the vendor's demo. Have your actual employees—the business users—try to build a real-world application with it. This will reveal the true learning curve. Host: A 'try before you buy' approach. What else? Expert: Second, success requires cross-functional collaboration. It’s not an IT project or a business project; it's both. The study highlighted that the most successful implementations happened when IT experts and business domain experts worked together in blended teams from day one. Host: So break down those internal silos. Expert: Absolutely. And finally, be prepared to change your processes, not just your tools. You can't just layer AI on top of existing workflows. You need to re-evaluate and often redesign your processes to align with the capabilities of the AI. It's as much about business process re-engineering as it is about technology. Host: This is incredibly insightful. It seems low-code AI platforms are powerful, but they are certainly not a magic bullet. Host: To sum it up: the promise of simplicity with these platforms often hides significant challenges in usability, adaptation, and integration. Success depends less on the drag-and-drop interface and more on a strategic approach that involves rigorous testing, deep collaboration between teams, and a willingness to rethink your fundamental business processes. Host: Alex, thank you so much for shedding light on the perils, and the real promise, of these platforms. Expert: My pleasure, Anna. Host: And a big thank you to our audience for tuning into A.I.S. Insights. We’ll see you next time.
Low-Code AI Platforms, Artificial Intelligence, Conversational AI, Implementation Challenges, Digital Transformation, Business Process Automation, Case Study
How GuideCom Used the Cognigy.AI Low-Code Platform to Develop an AI-Based Smart Assistant
Imke Grashoff, Jan Recker
This case study investigates how GuideCom, a medium-sized German software provider, utilized the Cognigy.AI low-code platform to create an AI-based smart assistant. The research follows the company's entire development process to identify the key ways in which low-code platforms enable and constrain AI development. The study illustrates the strategic trade-offs companies face when adopting this approach.
Problem
Small and medium-sized enterprises (SMEs) often lack the extensive resources and specialized expertise required for in-house AI development, while off-the-shelf solutions can be too rigid. Low-code platforms are presented as a solution to democratize AI, but there is a lack of understanding regarding their real-world impact. This study addresses the gap by examining the practical enablers and constraints that firms encounter when using these platforms for AI product development.
Outcome
- Low-code platforms enable AI development by reducing complexity through visual interfaces, facilitating cross-functional collaboration between IT and business experts, and preserving resources. - Key constraints of using low-code AI platforms include challenges with architectural integration into existing systems, ensuring the product is expandable for different clients and use cases, and managing security and data privacy concerns. - Contrary to the 'no-code' implication, existing software development skills are still critical for customizing solutions, re-engineering code, and overcoming platform limitations, especially during testing and implementation. - Establishing a strong knowledge network with the platform provider (for technical support) and innovation partners like clients (for domain expertise and data) is a crucial factor for success. - The decision to use a low-code platform is a strategic trade-off; it significantly lowers the barrier to entry for AI innovation but requires careful management of platform dependencies and inherent constraints.
Host: Welcome to A.I.S. Insights, the podcast at the intersection of business and technology, powered by Living Knowledge. I’m your host, Anna Ivy Summers. Host: Today, we’re diving into a fascinating case study called "How GuideCom Used the Cognigy.AI Low-Code Platform to Develop an AI-Based Smart Assistant". Host: It explores how a medium-sized company built its first AI product using a low-code platform, and what that journey reveals about the strategic trade-offs of this popular approach. Host: To help us unpack this, we have our expert analyst, Alex Ian Sutherland. Welcome, Alex. Expert: Thanks for having me, Anna. Host: Alex, let's start with the big picture. What's the real-world problem this study is tackling? Expert: The problem is something many businesses, especially small and medium-sized enterprises or SMEs, are facing. They know they need to adopt AI to stay competitive, but they often lack the massive budgets or specialized teams of data scientists and AI engineers to build solutions from scratch. Host: And I imagine off-the-shelf products can be too restrictive? Expert: Exactly. They’re often not a perfect fit. Low-code platforms promise a middle ground—a way to "democratize" AI development. But there's been a gap in understanding what really happens when a company takes this path. This study fills that gap. Host: So how did the researchers approach this? What did they do? Expert: They conducted an in-depth case study. They followed a German software provider, GuideCom, for over 16 months as they developed their first AI product—a smart assistant for HR services—using a low-code platform called Cognigy.AI. Host: It sounds like they had a front-row seat to the entire process. So, what were the key findings? Did the low-code platform live up to the hype? Expert: It was a story of enablers and constraints. On the positive side, the platform absolutely enabled AI development. Its visual, drag-and-drop interface dramatically reduced complexity. Host: How did that help in practice? Expert: It was crucial for fostering collaboration. Suddenly, the business experts from the HR department could work directly with the IT developers. They could see the logic, understand the process, and contribute meaningfully, which is often a huge challenge in tech projects. It also saved a significant amount of resources. Host: That sounds fantastic. But you also mentioned constraints. What were the challenges? Expert: The constraints were very real. The first was architectural integration. Getting the AI tool, built on an external platform, to work smoothly with GuideCom’s existing software suite was a major hurdle. Host: And what else? Expert: Security and expandability. They needed to ensure the client’s data was secure, and they wanted the product to be scalable for many different clients, each with unique needs. The platform had limitations that made this complex. Host: So 'low-code' doesn't mean 'no-skills needed'? Expert: That's perhaps the most critical finding. GuideCom's existing software development skills were absolutely essential. They had to write custom code and re-engineer parts of the solution to overcome the platform's limitations and meet their security and integration needs. The promise of 'no-code' wasn't the reality. Host: This brings us to the most important question for our listeners: why does this matter for business? What are the practical takeaways? Expert: The biggest takeaway is that adopting a low-code AI platform is a strategic trade-off, not a magic bullet. It brilliantly lowers the barrier to entry, allowing companies to start innovating with AI without a massive upfront investment. That’s a game-changer. Host: But there's a 'but'. Expert: Yes. But you must manage the trade-offs. Firstly, you become dependent on the platform provider, so you need to choose your partner carefully. Secondly, you cannot neglect in-house technical skills. You still need people who can code to handle customization and integration. Host: The study also mentioned the importance of partnerships, didn't it? Expert: It was a crucial factor for success. GuideCom built a strong knowledge network. They had a close relationship with the platform provider, Cognigy, for technical support, and they partnered with a major bank as their first client. This client provided invaluable domain expertise and real-world data to train the AI. Host: A powerful combination of technical and business partners. Expert: Precisely. You need both to succeed. Host: This has been incredibly insightful. So to summarize for our listeners: Low-code platforms can be a powerful gateway for companies to start building AI solutions, as they reduce complexity and foster collaboration. Host: However, it's a strategic trade-off. Businesses must be prepared for challenges with integration and security, retain in-house software skills for customization, and build a strong network with both the platform provider and innovation partners. Host: Alex, thank you so much for breaking this down for us. Expert: My pleasure, Anna. Host: And thank you for tuning in to A.I.S. Insights, powered by Living Knowledge. Join us next time as we continue to explore the future of business and technology.
low-code development, AI development, smart assistant, conversational AI, case study, digital transformation, SME