Software salespeople keep pitching us AI-driven ERP extensions that promise to double our operational efficiency, but the pitches are full of technical jargon. How do we cut through the sales theater to evaluate whether these tools will actually improve our bottom line?
The market is flooded with software vendors selling flashy AI capabilities that promise to revolutionize your business. To protect your margins, you must cut through the sales theater and evaluate these tools based on cold, hard operational metrics.
Never buy technology for the sake of saying you use AI. Instead, pitch operational improvements that machine learning will enable, and relegate the technical details to a footnote.
When evaluating a vendor, ask them to show you exactly how their software will reduce your operating expenses or cost of goods sold. Demand concrete proof of how the tool increases your team's capacity or shortens your cash conversion cycle.
If a vendor cannot explain their tool's financial impact without using technical jargon, walk away. Focus your investments on tools that solve specific bottlenecks on your issues list. Your goal is to build a highly efficient, system-dependent business, not to fund a software company's technological experiments. Keep your procurement standards tied directly to your quarterly planning and financial targets.
Category: AI-Powered Operations