While the largest bank in Brazil celebrates its 100th anniversary, the second-largest bank in Brazil marks the same milestone in just 10 years! This case perfectly illustrates the foundation of the philosophy taught at SingularityU, the iconic school in Silicon Valley previously based at NASA’s research center.
I am here in the Valley for the “The Future of AI” training, the first edition of the school focused solely on artificial intelligence. On this first day, the main topic was the almost inconceivable speed of the AI Revolution. This concept is crucial for success in the future.The Law of Accelerating Returns
Many years ago, author, inventor, and futurist Ray Kurzweil introduced us to the idea of this law in his seminal work, “The Singularity Is Near,” which also gives the school its name. The concept is simple but hard to grasp: the power of computers is growing at an exponential rate. Since everything we create or use relies on computers, more powerful computers create even more powerful technologies, leading to an exponential cycle of development on top of exponential development.
To illustrate, when I was studying Telecommunications Engineering back in 2006, I had a class on fiber optics. At that time, our professor proudly told us that we had achieved speeds of 4Mbps on a single fiber optic strand. Today, an enterprise data transmission system can handle 100Gbps per fiber (25,000 times more)! More powerful computers creating more powerful data transmission technologies!
The Cloud Mobile Era
The last period of technological acceleration, driven by the adoption of smartphones and the growth of the cloud, led to a true revolution in customer experience (CX). What we used to call online suddenly became inundated with different channels, each with different audiences and goals. Brands that once had a unidirectional voice now had to adapt to an era of dialogue, and more challenging, in an omnichannel manner.
In this era, new business models emerged, such as platforms and marketplaces. The speed of access to products and experiences reduced exponentially, and the democratization of these technologies spurred the exponential growth of a new audience in the economy.
The AI-Powered Consumer
What changes from the previous revolution is the even more democratic effect of artificial intelligence. A few years ago, creating an AI system was completely prohibitive for most people. Today, with $20 a month, you can train ChatGPT to become “your own AI.”
The risk of our lack of perception or action in the face of the Law of Accelerating Returns is the transversal impact of technology in previously unthought-of segments. Professor Hod Lipson today used the example of Tesla, which behaves much more like a software company than a car manufacturer, with features being updated via car updates.
In the Cloud Mobile revolution, we saw the rise of the Creator Economy, a new challenge for brands, with a competitor never before seen competing for the attention of their customers. The best way for brands was to embrace the concept and build relationships with these influencers. Now, the challenge is the transversal impact of AI across all segments. For example, Amazon’s cashier-less stores (recently involved in a controversy) also generate revenue by selling camera data to advertisers to create personalized ads based on customer interactions within the store.
Today, on the Character.ai platform, there are more than 450 AI therapists! Who would have thought that an AI company could disrupt the mental health market?
Realize that in this new era, you are not only competing with other brands or for your customer’s attention with other channels and influencers. You are competing with your own consumer, who can disrupt your business with a few clicks.
Brazil vs. Germany
On this first day, what struck me the most was realizing that I have no significant memory related to AI in 2014. The only thing that comes to mind is the infamous 7-1 match at FIFA World Cup 2014.
Today, 10 years later, we have been talking non-stop about AI for the past two years, and considering the Law of Accelerating Returns, we are living through one of the most transformative phases of these technologies.
Imagine what AI will look like in 2034.
Avaya ENGAGE Overview
Innovation Without Disruption – ENGAGE Coverage
While driving a Tesla through the streets of Silicon Valley, I began to notice a clear difference between traditional vehicle manufacturers, with whom I was involved for five years, and electric vehicle manufacturers. This difference was highlighted when the Uber driver I took said, “I had to relearn how to drive because I don’t need to brake for anything with the latest update. Plus, I can already test autonomous driving. Want to see?” And for a few blocks, passing through traffic lights and intersections, I was there, contemplating the unparalleled ingenuity of humanity in building AI.
You may be wondering, what does Tesla have to do with Avaya’s global event, ENGAGE, held last week in Denver, which is the focus of this article? There are three common elements that I will discuss: Innovation, Leadership, and AI.
Innovation
The big challenge for traditional vehicle manufacturers in transitioning to EVs is moving from a mechanical and product mindset to a digital and platform mindset. If you look, you will see that Tesla and other EV manufacturers have far more electrical engineers and software developers than mechanical engineers. The nature of a digital product involves Agility, Updates, and Integrated Services, forming the core of what a platform is.
This same concept has been masterfully applied by the new leadership at Avaya. The company has moved away from a focus on products and an extensive list with over 100 different elements, besides the hardware SKUs, to transform into a CX services platform with just two solutions:
1. Avaya Experience Platform CCaaS
2. UC Suite
Here we can already see the difference in company vision from five years ago to today. Software is eating the world, and no single player dominates the market! All the major players in the digital world have achieved success with a platform strategy, and this is exactly what we saw Avaya present during ENGAGE. New partnerships with relevant players like Zoom to meet the new language of the world, video. The acquisition of Edify with a focus on Orchestration, the Holy Grail of excellent CX, and an AXP architecture design with resources and partnerships at every stage of the CX journey.
This type of business transformation doesn’t happen without a crucial aspect…
Leadership
The new CEO, Alan Masarek, who will soon complete two years with the company, believes that “if you can’t imagine the future, you can’t turn it into strategy,” and what a beautiful future he has imagined for Avaya. The same motto that Elon Musk has lived by, leading him to impact different industries such as Financial, Mobility, Energy, and Space.
First, there was a reshuffling of the company’s top management, bringing in professionals with vast experience in what… Cloud and Platform solutions! Moreover, he confessed to me in a closed session that the two main characteristics he sought in the reshuffling were Intellectual Capacity and Adaptability. Since the digital invasion and the opportunity for cloud solutions to be constantly updated, it is impossible for a leader to be rigid. Perhaps the best term for what Mr. Masarek has done is to build an Anti-Fragile leadership.
With the new team, it’s time to share the vision composed of three key elements:
Voice of the Customer
– Ricardo Gorski, Country Manager here in Brazil, told me that Brazil was the first country Alan visited outside the US when he took over and that he spent his days getting to know people, talking to teams, visiting customers. This was clear in Josh Mueller’s, CMO, speech when he took the stage: “My role as CMO is to listen to the Voice of the Customer and make sure it is understood by the WHOLE company.”
Choose Your Journey
– With the customer’s voice heard, it became clear that Avaya needed to regain their trust. Initially, this was done through a financial recovery process in less than a year. Subsequently, understanding that many customers had a legacy base and that the battle is not On-Premises vs. Cloud and the company’s leadership is adaptive, the choice was to make the platform flexible for the customer to choose what they prefer. An internal challenge that has proven successful with big cases on stage like Comcast Business.
Innovation Without Disruption
The above item reveals the motto the company has followed over the past two years: we will accompany you on your innovation journey without disrupting your business. With this phrase applied to its solutions, Avaya’s leadership has managed to re-establish customer trust and return to market leadership.
But Doesn’t AI Cause Disruption?
Certainly, and that’s why the team is so attentive. The acquisition of Edify was already a step in this direction, the platformization of AXP allows various market players to integrate their AI solutions into the platform, creating a seamless experience for the customer. Here in Brazil, the creation of MakeOne Lab, a GenAI and Innovation Lab within the market-leading partner, shows our belief in the power of this new platform.
According to the company’s leaders, the formula for business success is CX + EX = BG, and AI solutions were presented for each of these elements. In CX, the possibility of creating AI Agents to handle simpler calls and integration with Generative AI platforms points to the future of brand-consumer relationships. In EX, Agent Assist solutions such as Real-time Strategy, Conversation Wrap-Up, and AI Insights in Analytics point to the Agent of the Future! A great example of what we call here at the LAB Amplified Intelligence.
There is no doubt that these solutions will lead to Business Growth, and with global leadership in installed customer service bases, it is clear that Avaya will quickly reap the benefits of this formula.
While Elon Musk had a blank slate to shape the future of Mobility as he wished, providing great freedom of imagination, Alan had an entire base built in a leadership position but under technology already disconnected from current times.
Perhaps it is more challenging to make the leader of the pack Roaring Back than to create a new pack, but as he himself said on stage, Avaya’s option has been to Roaring Forward!
