Value Capture from Enterprise AI

The School of EECS is hosting the following HDR Progress Review 2 Seminar:

Value Capture from Enterprise AI

Speaker: Nova Sepadyati

The use of AI in enterprise systems, known as enterprise AI, has grown significantly recently. However, many organisations struggle to operationalise AI, resulting in cost overruns and challenges in demonstrating ROI. The root cause is AI’s unique characteristics (e.g., opacity and autonomy) that make its value creation process distinct from traditional IT systems. As AI risks become evident, governance is the difference between scaling successfully and staling out. 

The first year study analysed five successful case studies from various industries and sizes to develop a process model of how organisations can create and capture value from enterprise AI. We identify two types of AI use: internal use (e.g., improving operational efficiency) and external use (e.g., enhancing customer experience). This distinction helps contextualise the triggers for different value propositions. Moreover, our study identifies six episodes, both at the project and enterprise levels, as processes leading to value capture. 

The second-year study conducted 12 number of semi-structured interviews with Siemens, focusing on how an enterprise-level risk management process influences value capture from AI. Specifically, we learnt about the opportunities and challenges Siemens faced in embedding GenAI in their products. We identified recommendations for how large incumbent firms can build responsible AI‑enabled products at scale. The third year will focus on utilising these findings towards developing novel artefacts of value capture processes from Enterprise AI. 

Keywords: Enterprise AI, Value Capture, Process-centric, Enterprise-level risk management

Biography: Nova Sepadyati is a PhD student in Data Science group advised by Prof Shazia Sadiq, Prof Marta Indulska and A/Prof Ida Asadi Someh. Nova completed her bachelor’s in industrial engineering from Parahyangan Catholic University and master’s in operations, projects, and supply chain management from The University of Manchester. Since then, she has worked in several companies in FMCG industry before becoming a faculty member at Petra Christian University, Indonesia.