Exercise. Top 3 Workshop Objectives Primary Challenges

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2 Exercise Top 3 Workshop Objectives Primary Challenges

3 Mark Stuyt Founder Chief Engagement Officer, Neural Impact Inc. 10 Years management consulting to global Microsoft community 25 year sales professional (CA, Pivotal CRM, PeopleSoft, SAP) Developed Microsoft Accelerated Cloud Selling Methodology (Cloud SureStep) Developed Microsoft Industry Acceleration Content

4 Our Focus. Building Your AI Practice Designing Your Minimum Loveable Offer Defining Your Focus Defining Your AI Business Model Communicating Your Value Building Your Business Case

5 Workshop Files

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7 Artificial Intelligence Opportunity AI PRACTICE DEVELOPMENT PLAYBOOK How to develop an AI strategy Gain Knowledge and Skills Market & Sell Service Offerings

8 Defining your AI practice

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10 Evolving an AI practice

11 The pre-built and custom AI spectrum

12 Pre-built and custom AI

13 Healthcare

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18 AI Engagement Strategy small wins lead to growth Phase 1 MVP/MLO Phase 2 Extend & Production Phase 3 New features & Stabilize Phase 4 Expand/Sustain Financial Services $200K (6 weeks) $927K (3 months, extended team) $3.6M (12 months, global delivery Manufacturing $200K (6 weeks) $400K (3months) $360K (8 weeks extension) $2.2M (12 months, global delivery) Automotive $122K (4weeks) $786K (8 months, includes new features)

19 Partner Win Rates 80% 50% 20% >3 Industries (service) 1-3 Industries (teach) 1 Industry (disrupt)

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22 Agriculture

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24 Where to Focus?

25 Core Defensible Differentiation Refine by Industry Agriculture Distribution Financial Services Government Healthcare (LS) Manufacturing Professional Services Retail + consumer goods Education Expertise in a specific business function or workload, across industries (i.e. cybersecurity, customer service and engagement, disease diagnostics, HR management: recruitment, retention, engagement, workload automation and predictive maintenance

26 Success in AI is found not only in verticalization, but delivering horizontal solutions

27 Horizontal use cases by projected revenue Static image recognition, classification, tagging Localization and mapping Prevention against cybersecurity threats Converting paperwork into digital data

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30 Defining Your Focus

31 What industry verticals are partners targeting? 39% 61%

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33 Defining Your Focus

34 Industry Competitiveness Assessment Tool

35 Exercise Complete the vertical assessment tool or reflect on your customer portfolio and strategic organizational competencies to determine your core focus.

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37 Differentiation 2.0 Logical Differentiation Product advantage Pricing advantage Geographical advantage People advantage Emotional Differentiation Industry/vertical solutions Knowledge advantage new information Simplicity Safety (limited risk)

38 Tribal Engagement

39 Industry Drivers & Market Forces EXTERNAL pressures that FORCE organizations to invest in new business systems! Industry Drivers & Market Forces Measurable Impacts Economy Regulatory Change Suppliers Competition Customer Behavior Declining Revenue Margin Pressure Limited Differentiation

40 Project Trigger Events Technology Failure Security Breech Lost Data Provider Outage Lost customer Lost bid Inaccurate estimate Project write-off Traditional IT Professional Services Firm Regulatory change New product/service Declining profitability Litigation/Fine Acquisition Financial Services Healthcare Provider Compliance violation Patient incident Regulatory change Resource shortage

41 Business Process Challenges The ROOT CAUSE/SOURCE of the Trigger Event Business Challenge or Business Process Key Solution Requirements Inventory Management Scheduling Billing Merchandising Loyalty Mgmt. Cognitive Services, ML, BOT

42 Emotional Messaging Framework - Retail Industry Driver Impacts WHY (Trigger Event) HOW WHAT Benefit/Outcome Business Process Key Requirement Economic: Rebounding economy More disposable income Regulatory: EMV (chip & pin) Taxation/Minimum Wage Suppliers: Opening new channels B2B to B2C Longer lead times Competitors: New online entrants Heavy discounting New specialty entrants Free shipping (Amazon) Click & collect Customers: On-line shopping increase Declining brand loyalty Fast fashion: value (cheap) Off-price shopping Show-Rooming New payment forms Aging demographic Marketing Costs Returns Gross Margins Profits Labour Costs Customers Differentiation Working Capital YOYSS Sales Inventory Levels Sales Per Sq. Foot Inventory Turns Leasing/Real Estate Costs Average Purchase Value Merchandising Costs Business Issue Leadership M&A (Growth) Expansion (geo) New product/service Negative PR Event Security Breach Decline in YOY Sales Missed Earnings Call Market Share Loss Inventory Write-Off Store Closure Technology Failure Lost Contract Change of Control Bad Decision Fine/Penalty Chip & Pin Reg. Theft/Shrinkage Incurred Tax Liability Function Management Omni-channel Merchandising Inv. Control/Mgmt. Warehouse Mgmt. Forecasting Loyalty Mgmt. Pricing/Promotions Social Rebates Reporting Store Management Service Distribution Demand Planning Contract Management Solution IT/End User Social Listening IoT Machine Learning RFID 3PL Point of Sale IFRS Mobile Chat Support Multi-X POS Integration EDI IP/Product Development Prioritization Marketing Messaging & Collateral Sales Engagement & Assets

43 Exercise: Emotional Messaging Framework As a result of <industry drivers > we <trigger event> which is impacting our <key operating metrics>. We struggle with <business challenge> because of our inability to <operational limitation>. This issue would be resolved if we could <new capability>.

44 Retail

45 Lunch

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47 MLO Design Framework Impacts Minimum Lovable Offer Enhances Accelerates Replicates Minimum Viable Offer

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49 Emotional Product Functionality Map Emotional Trigger Event Food Safety Recall Avoidance Operational Business Challenge/Limitation Legacy system incapable of keeping detailed records of production, inventory and distribution so that the exact the location of delivery of finished product can be determined quickly and accurately. New Desired Capability New Desired Capability

50 Exercise New Desired Capability Emotional Trigger Event Operational Business Challenge/Limitation New Desired Capability

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57 Partner Value Delivery Differentiation Differentiated Relevant to Advisory Competitive position Outsourcing Needs of customer Solutions Undifferentiated Irrelevant to Commodities Market Pricing Premium The Experience Economy Pine & Gilmore (2011)

58 Not all revenue streams are created equal

59 Exercise Determine your current state AI practice business model and your desired future state model.

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61 Custom AI models for individual customers Pre-packaged solutions with added offerings at scale Owned IP services to provide customers

62 Services Offers Current State Project Services Managed Services $ $ $ Services $ $ $ Consult Design Implement Integrate Maintain Manage Adopt

63 Services Offers - Future Selection Services Acceleration Services Optimization Services $ $ $ Services $ $ $ Consult Design Implement Integrate Maintain Manage Adopt

64 AI Services Strategy Convert Project Services into IP Business Case Selection Services Project Acceleration Services Optimization Services Industry Benchmarking

65 Selection Services AI Envisioning Workshop Business Value Assessment Business Alignment Workshop Business Impact Assessment Vision and Scope Definition Business Case Expansion/Validation Business/Project Risk Assessment AI/Cloud Readiness Assessment POC

66 Optimization Services In addition to managed services (support, monitoring etc.), a range of recurring optimization services can be packaged including: AI solution performance management AI solution benchmarking Annual updating of visualizations, dashboard design, report creation and maintenance Model performance support and review Annual Envisioning session Analytics as a Service

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69 Brainstorm 2-3 selection, acceleration and optimization service offerings that support your AI offering.

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71 P&L Impact

72 Practice Development Model

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74 Next Steps Technical workshop preparation Select a focus! Identify a business problem/opportunity Market Use Case Target Prospects Identify your AI practice business model Develop a high-level business case for investment

75 Workshop Evaluation

76 What landed today? Directions: