In today’s competitive landscape, innovation centers have become indispensable for forward-thinking organizations. But how many of these centers deliver real, transformative outcomes? For enterprises and service providers navigating this terrain, the question isn’t whether to invest in innovation centers, but how to maximize their value to ensure they serve as catalysts for meaningful business transformation.

Innovation centers are more than just places for experimentation – they are strategic engines driving the future of business success. They must evolve to address challenges, deliver value, and stay at the forefront of disruption.

At Everest Group, we’ve examined how innovation centers are transforming into engines of strategic advantage. Based on our latest research, we see clear opportunities – and challenges – for businesses looking to leverage these centers to stay ahead of the curve. Let’s dive into the key insights and guidance that can help shape your future strategy.

Learn more in my blog on Forbes

Enterprises are investing in change management to navigate complex organizational transformations due to technology advances and evolving business models. Historically, several organizations struggled to realize their digital transformation initiatives’ full potential due to the absence of a strategic change management approach. Thus, change management consulting has become pivotal in ensuring digital transformation success by offering roadmaps to address organizational culture, leadership alignment, and employee engagement.

Effective change management requires a balanced focus on human and operational aspects of change. With innovation, sustainability, and employee experience becoming increasingly important, providers must integrate technology with their change management capabilities and offer post-implementation support for change initiatives’ long-term sustainability. Additionally, monitoring change initiatives’ performance, analyzing stakeholder feedback, and refining strategies based on data-driven insights are vital for efficient change adoption.

• Digital Transformation Consulting Services PEAK Matrix® Assessment 2024 – Change Management

  

  Scope

  • All industries and geographies
  • This assessment is based on Everest Group’s annual RFI process for the calendar year 2024, interactions with leading sales service providers, client reference checks, and an ongoing analysis of the sales services market

  Contents

  In this report, we:

  • Examine the sales services market
  • Position the providers on the Everest Group’s PEAK Matrix® framework as Leaders, Major Contenders, and Aspirants
  • Compare providers’ key strengths and limitations

  READ ON

What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

LEARN MORE ABOUT Top Service Providers

In today’s evolving business landscape, digital transformation has become a pivotal force driving enterprise adaptability and growth. Both Europe and North America are at the forefront of this shift, navigating a complex environment characterized by macroeconomic uncertainties, geopolitical volatilities, technological advancements and a change in customer interest and purchasing behavior.

As these regions face ongoing economic challenges, including recession fears and persistent inflation, businesses are now approaching further investments with caution. However, after facing a continuous decline in demand, digital transformation in consulting services is experiencing a bounce back in recent quarters, as new opportunities are being explored by service providers.

Amid these dynamics, generative AI (gen AI) has emerged as a disruptive force, fundamentally altering how organizations approach digital transformation, making it a critical component for formulating strategies to drive innovation and value realization for enterprises across both regions

This blog explores the evolving landscape of digital transformation consulting in Europe and North America by analyzing the key trends driving this sector.

Reach out to discuss this topic in depth.

Measuring the Digital Transformation Consulting Maturity Continuum

(Scale: Very High, High, Medium, and Low)

The digital transformation consulting landscape in Europe and North America diverges significantly. Europe emphasizes regulatory compliance, sustainability, and operational efficiency, with investments in building the necessary digital infrastructure, cloud, and gen AI driven by data protection laws like General Data Protection Regulation (GDPR).

Geopolitical tensions also contribute to a conservative pace of transformation. In contrast, North America, being the early adopters of digital transformation, has a comparatively robust infrastructure with focus on scalability in already existing infrastructure. It prioritizes innovation, agility, and a competitive advantage, with higher investments in artificial intelligence (AI), machine learning, and customer experience technologies. Generative AI plays a significant role in both regions but focuses on compliance in Europe and innovation in North America.

Global Digital Transformation trends shaping the Enterprise landscape

Conclusion

Amid economic instability, enterprises are placing a greater emphasis on cost effectiveness and resilience. They are adapting digital transformation offerings that focus on measurable business outcomes and meet the ever-changing markets.

Service providers must leverage their existing ecosystem of innovation hubs, products, and platforms to enhance its Digital Transformation offerings specific to different industries.

Keeping in mind the human aspect of digital transformation, talent transformation and training on generative AI technology stacks such as hyperscalers, niche product vendors and open-source frameworks plays an equally vital role. Given the above trends, opportunities for digital consulting are on the rise and service providers must now prepare themselves to bring these services to their customers.

If you found this blog interesting, check out our blog focusing on Mid-Market Enterprises: The New Frontier for Digital Transformation Services | Blog – Everest Group, which delves deeper into another topic worked on by our Engineering and Information Tech service line.

If you have any questions, would like to gain expertise in Digital Transformation Consulting, or would like to reach out to discuss these topics in more depth, contact Swagata Sarkar (swagata.sarkar@everestgrp.com) and Parul Trivedi (parul.trivedi@everestgrp.com)

Join Everest Group Managing Partner Chirajeet Sengupta and other industry experts in the upcoming webinar, Assuring the Rewards of Generative AI. Gain insights into what enterprises should consider to effectively harness generative AI’s potential. In this webinar, you’ll learn how to achieve higher rewards from generative AI with the right approach to risk management and quality assurance.

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Chirajeet Sengupta
Managing Partner, Everest Group
Marco Kortman
Assistant Vice President, Cognizant

Digital Experience 

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Join Everest Group Practice Director Era Singh and other industry experts to explore digital adoption platforms (DAPs) market trends, including the impact of generative AI. Discover what enterprises should look for in their DAP.

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In this webinar, you’ll learn how to:

• Navigate the shifting DAP landscape and understand AI’s impact
• Build your DAP shortlist based on analyst assessments and your needs
• Maximize the value of your DAP with expert-led best practices, and more.

Register

Era Singh
Practice Director, Everest Group
Russell Martin
Product Marketing Strategy Director, Pendo

The digital transformation landscape is rapidly evolving, and mid-market enterprises (MMEs) are emerging as significant drivers of demand.  

While they may be smaller than Fortune 500 companies, MMEs are often more agile and willing to adopt innovative technologies  to gain a competitive edge.  

This has led service providers to recognize the untapped potential of this market and tailor their solutions to meet the specific needs of mid-sized businesses. 

Read on to discover how this has led to service providers recognizing the real untapped potential of this market, as they tailor their solutions to meet the specific needs of mid-sized businesses, and get in touch if you’d like to speak to an analyst on this subject. 

The Demand-Side Perspective: What Mid-Market Enterprises Want

Mid-market enterprises, traditionally overshadowed by larger corporations, are increasingly becoming the focus of digital transformation services. Unlike giants, MMEs demand personalized, cost-effective, and agile solutions. Their digital transformation initiatives often center on several key priorities, such as: 

• Operational Efficiency: Leveraging technology to streamline operations and reduce costs. 

• Customer Experience: Using digital tools to enhance customer interactions and satisfaction. 

• Scalability: Implementing scalable technologies like cloud computing, artificial intelligence (AI), and data analytics to allow rapid growth. 

A notable trend is the growing adoption of cloud computing and AI-driven automation, which help MMEs extract valuable insights from their data, improve decision-making, and optimize operations.  

Additionally, many MMEs prefer bite-sized, phased digital transformation projects that minimize risks and provide quicker returns on investment. This preference for shorter, milestone-based engagements creates an opportunity for service providers to establish long-term partnerships based on incremental, success-driven outcomes. 

The Supply-Side Perspective: How Service Providers Are Responding

Service providers are increasingly adapting their strategies to align with the unique needs of mid-market enterprises. Key approaches include: 

• Flexible Pricing Models: Given the limited budget MMEs typically have for large-scale, long-term transformation projects, service providers are adopting innovative pricing models that reflect the need for flexibility and scalability. These models include subscription-based or usage-based pricing, which can grow with the client’s evolving needs. 

• Scalability and Hybrid Solutions: Cloud solutions, automation tools, and data analytics platforms are some of the most in-demand services. Providers are responding by offering scalable andhybridand hybrid solutions that allow MMEs to gradually expand their capabilities. 

• Client Intimacy and Agility: Smaller service providers often have an edge when it comes to client intimacy, as they can deliver more personalized engagement and quicker responses compared to larger competitors. MMEs value hands-on support and strong partnerships, and they prefer service providers who demonstrate agility and a deep understanding of their business challenges. 

Strategic Partnerships and Co-Innovation

To effectively serve the mid-market segment, service providers must emphasize strategic partnerships and co-innovation with technology vendors. This is particularly evident in collaborations with hyperscalers and cloud service providers, where smaller vendors team up with larger players to develop solutions tailored to mid-market needs.  

These partnerships enable service providers to offer proven tools and accelerators, which can significantly reduce the time and cost required to implement digital transformation initiatives. 

Moreover, consulting-led engagements are another way service providers differentiate themselves. By providing strategic guidance alongside implementation services, providers position themselves as long-term partners, helping MMEs navigate complex digital landscapes while consistently delivering value. 

Growth Opportunities in the Mid-Market Segment

The mid-market segment is experiencing rapid growth, with service providers specializing in this area seeing compound annual growth rates (CAGR) of 9-10%. This surge is fueled by MMEs’ desire to modernize legacy systems, enhance customer experiences, and secure a competitive advantage through digital innovation.  

Unlike their larger counterparts, MMEs are often more willing to embrace  generative AI  (gen AI) and other cutting-edge technologies due to their agility and lower complexity. 

For service providers, this presents an excellent opportunity to engage with a forward-thinking, fast-moving segment of the market that is eager to invest in the future. 

Conclusion

The mid-market enterprise segment is ripe for digital transformation, offering a wealth of opportunities for service providers that can meet their unique needs.  

As MMEs continue to prioritize agility, cost-effectiveness, and customer experience, service providers must adjust their strategies to offer scalable, innovative solutions that can deliver tangible business outcomes.  

By focusing on flexibility, personalized engagement, and strategic partnerships, service providers can position themselves as indispensable partners in the digital journeys of mid-market enterprises. 

Looking to capture the untapped potential of mid-market enterprises? Connect with our team to explore strategic insights from our recent study— Digital Transformation Services for Mid-Market Enterprises PEAK Matrix® Assessment 2024. 

If you found this blog interesting, check out our blog focusing on How Has Generative AI Evolved And Is Its Evolution Now Supporting CX Leaders More On The CXM Journey? | Blog – Everest Group (everestgrp.com), which delves deeper into another topic in the world of artificial intelligence. 

If you have any questions, would like to delve deeper into the Engineering & Information Tech market, or would like to reach out to discuss these topics in more depth, please contact Alisha Mittal and Parul Trivedi.

Join Everest Group Partner Yugal Joshi for a webinar titled Realizing the Gen AI Journey in Modern Organizations where he’ll feature in a panel of experts to explore the latest trends in generative AI adoption and uncover unique strategies to achieve scalable AI success.

In this session:

• Learn the biggest challenges in scaling AI and how to address them
• Explore real examples of successful AI implementations
• Discover how to align people, technology, and strategy for AI success

Learn more and register

Yugal Joshi
Partner, Everest Group
Tony Rylands
Senior Director, Zones LLC
Robert J. Gates
Principal Cloud Solution Architect, Microsoft

The digital age has transformed the way businesses operate, raising the bar for efficiency and innovation. They are now expected to be more agile and responsive than ever. As a result, integrating Artificial Intelligence (AI) in business operations has become a necessity for businesses aiming to stay competitive in the market.

Advanced AI engines are reshaping both front and back-office processes for enterprises by driving efficiency, accuracy, and scalability at new levels. In this blog, we explore how these cutting-edge AI engines are transforming business operations.

Reach out to discuss this topic in depth.

Unleashing the potential: how advanced AI is reshaping business operations

From rigid rules to cognitive flexibility

Use of AI for business operations has evolved beyond early AI systems that were limited by predefined algorithms and effective only for basic tasks, often failing when faced with complex queries. Advanced AI engines are at the core of the next generation of business operations. AI systems today are designed to learn, adapt, and improve over time, ushering in a new era of cognitive flexibility that elevates customer interactions across every touchpoint.

These AI engines are becoming integral to business operations, automating mundane tasks, providing deep insightsand unifying disparate operational silos. They help identify inefficiencies and drive end-to-end automation, enabling organizations to operate with greater efficiency and agility in an ever-evolving market

Foundations of advanced AI engines

Three pillars form the foundation of advanced AI engines:

Generative AI (gen AI), built on the robust foundations of advanced AI engines, is revolutionizing business operations by automating complex tasks, enhancing decision-making, and enabling hyper-personalization. AI-driven tools are helping streamline workflows, optimize supply chains, and improve data analysis, leading to greater efficiency and cost savings.

These solutions also elevate customer experiences through personalized interactions, advanced self-service options, and consistent, context-aware engagement across all touchpoints. By bridging the gap between front office and back-office, AI solutions also enable quicker, more seamless, and richer experience for the customers. By adopting gen AI, enterprises can gain a competitive edge by streamlining customer service processes, anticipating customer needs, and delivering tailored experiences that drive customer acquisition, loyalty, and retention.

Human-AI collaboration: enhancing, not replacing

Contrary to dystopian predictions, AI isn’t here to replace human agents—it’s here to supercharge them. This collaboration between AI and humans enhances overall efficiency and customer satisfaction with AI efficiently managing lower complexity and repetitive queries, freeing up human agents to focus on intricate problem-solving that requires empathy and nuanced understanding, while leveraging insights from AI engines for a better experience.

This synergy between AI and human workers not only enhances operational efficiency but also drives innovation, allowing businesses to stay competitive in an increasingly digital world.

Front office evolution: delivering smarter, faster customer engagement

Front office operations, the heart of customer interaction, have traditionally been resource-intensive, often requiring significant human input. Advanced AI engines are now revolutionizing these operations, creating smarter, faster, and more personalized customer experiences:

• Smarter customer interactions: AI engines empower front office teams with real-time data and actionable insights, enabling them to engage with customers more effectively. This allows for enhanced customer satisfaction and loyalty as interactions become more personalized, context-aware, and relevant
• Automation at scale: Integration of AI systems enable seamless automation of tasks such as scheduling, responding to queries, and follow-ups, now freeing up human agents to tackle more complex issues. AI-driven chatbots efficiently manage a high volume of inquiries, ensuring customers receive quick, accurate responses while enhancing the overall experience
• Proactive customer engagement: With predictive analytics, advanced AI engines can anticipate customer needs and behaviors, allowing businesses to engage proactively. Whether it’s offering personalized recommendations, addressing potential issues before they escalate, or optimizing marketing efforts, AI helps businesses boost customer lifetime value and drive revenue growth

Back-office revolution: streamlining operations for maximum efficiency

Advanced AI engines are also revolutionizing back-office operations streamlining critical processes, driving operational excellence, and enabling businesses to focus on strategic growth:

• Automation and efficiency: AI is automating repetitive and routine tasks including data entry, invoice processing, and inventory management. Gen AI technologies are expected to deliver significant benefits across business operations. When successfully implemented, they could lead to 15-25% cost savings across operations within 18-36 months. Additionally, agent training time is projected to decrease by 20-30%, as these technologies continuously learn from past interactions, providing agents with targeted training tailored to specific areas for development. The result is a leaner, more efficient operation that can adapt quickly to changing demands
• Intelligent decision-making: Advanced AI engines analyze vast amounts of data in real-time, providing insights that inform better decision-making. In finance, AI forecasts cash flow, detects fraud, and optimizes investments. In HR, AI streamlines talent acquisition by matching candidates with roles that best fit their skills. This data-driven approach enables businesses to make quick, informed decisions, gaining a competitive edge
• Optimized supply chain: AI is revolutionizing supply chain management by enhancing demand forecasting, inventory control, and logistics planning. By analyzing historical data and market trends, AI ensures optimal inventory levels and efficient logistics, reducing costs and improving delivery times

The AI-driven future: innovation, efficiency, and growth

As businesses increasingly adopt advanced AI engines, their transformative impact on both front and back-office operations is set to accelerate. These tools are doing more than just automating routine tasks—they’re unlocking new business models and driving innovation. Integrating AI into operations is allowing enterprises to unlock unprecedented efficiency, creativity, and growth.

By enhancing customer engagement and streamlining processes, AI empowers businesses to operate smarter, faster, and leaner. The real question isn’t whether to adopt AI—it’s how quickly businesses can harness its potential to lead the future.

If you found this blog interesting, check out our recent blog focusing on Revolutionizing Customer Journeys: Creating a Unified Customer Experience through AI).

If you have questions or want to discuss these topics in more depth, please contact Jagrit Kasera or Sharang Sharma.

The initial hope for Gen AI in businesses was that companies could apply Gen AI to most business functions and get a significant impact. But that is not turning out to be the case.

Many companies have experimented with Gen AI over the past two years, and we now have a better understanding of what the technology will allow companies to achieve.

It is now clear that there is a continuum of impact. At one end is a disruptive impact, which changes the business function to which Gen AI is applied. And the change is significant. At the other end of the continuum, there are incremental impacts; the technology makes only a modest change for the business function or people in it.

Now, with two years of experience of companies experimenting with Gen AI, it is clear that achieving a disruptive impact requires a very significant investment in both technology and operations.

Learn more in my blog on Forbes