CEO

The recent backlash on diversity, equity, and inclusion (DEI) programs stems from both the lack of quantitative data showing how diverse teams improve performance and the discriminatory nature in how these teams were constructed. In 2015, a McKinsey study lauded the dividends to be gained from diversity. The well meaning Davos set used this study to launch a movement for diversity, resulting in hundreds of billions spent on diversity programs across businesses, the public sector, and non-profits over the past decade.

Take A Measured Approach To AI Adoption The rush to AI projects often comes as an all or nothing approach. However, lessons learned from Constellation's Executive Network (CEN) members show a gradual and measured approach. Constellation sees five phases to adoption from both a business and cultural point of view:

AI Begins And Ends With Nvidia Despite the massive buzz on AI, only a few core companies that power the Age of AI will succeed. The high capital costs of research and development investment, the time required to take a product to market, and the ability to cross competitive moats create a massive barrier to entry. In fact, only a few vendors have shown significant profits in AI:

IBM's Focus On AI Built From Data And Cloud Competencies Four and a half years after Arvind Krishna was elected as IBM's Chief Executive Officer, today's IBM is a much different organization. A tight focus on data and cloud has helped IBM think through what clients need to not only be AI ready, but also AI first. With over 30,000 attendees at the Boston Convention and Exhibition Center gathered at IBM's biggest event, the mood was energetic and excited about the possibilities for the Age of AI.

Margin Compression Is Pernicious, Disruptive, and Exponential In Impact Technologies for the enterprise have often been seen as enablers for disruption and change. Over the past five decades as one technology or vendor would come to prominence and dominate a market, challengers would apply new technologies or business models to topple the legacy market and create new markets. Silicon Valley built its credibility on these disruptive market entrants. This cycle would continue to repeat itself until the next challenger became the market leader and struggle to hold on to its lead while meeting the demands of investors and the market.

Expect Software Giants Hunters To Soon Be The Hunted In A Digital Giant's Quest For Growth Six of the Magnificent Seven (Microsoft, Apple, Nvidia, Alphabet [Google], Amazon, Meta [Facebook]) stocks have entered the four comma club -over $1 trillion in market cap. With a combined market cap of over $13.2 trillion, these six players continue to defy physics with continuous quarters of double digit organic growth. Digital giants by definition have deployed five key strategies:

What Every Tech Vendor CEO and CFO Should Know About Their CMO’s Wasted Investments In Vanity Metrics Marketing professionals face massive pressure to show that their marketing investments have paid off. In a zero-interest rate environment, budgets were flush and marketers had a lot of leeway in building brand, hosting amazing events, and buying ads to improve market presence. However, a shift to a five percent interest rate environment has many CMO’s focused on performance marketing, showing return on investment, and moving MQLs from SQLs as fast as they can.

New Chips, New Business Models Ahead In Accelerated Computing Nvidia stock is up 267% YoY. With over 10,000 people in physical attendance and up to 100,000 people virtually attending, this could be the largest AI conference. All eyes on the next wave for AI with CEO Jensen Huang ready to keynote at 1:00 pm PT at the SAP Center in San Jose. The key things to look for in the keynote:

Age of AI Ushers Exponential And Transformational Power In The Hands Of A Few Society has often swung to centralization and decentralization in the distribution of power and rights. Living in a culture of abundance versus a culture of scarcity can alter the prioritization of decisions, the quality of interactions, and the overall optimism or pessimism of a society. AI has the power to transform societies for both good and evil.

The Traditional Pyramid Is Under Attack Most professional services firms have operated in a pyramid model where the most senior owner of a P&L would have a staffing ratio of 1:3 to 1:5 and their next reports would have a staffing ratio of 1:5 to 1:10. This pyramid structure would continue until the last level. There could be as many as 8 to 10 levels in a structure that looks like this with billable rates per hour that would correspond to seniority and level of expertise.