#USA #New York #HFS Research #Hitachi Digital #Human+Machine

Enterprises Struggle with Human+Machine Adoption

A recent collaboration between HFS Research and Hitachi Digital Services has unveiled a pivotal report titled The Human+Machine Era Will Reward Orchestrators, Not Integrators. The findings indicate a substantial gap between the rapid technological adoption by enterprises and their operational readiness to capitalize on these advancements. The study presents a critical revelation: while nearly 40% of enterprises are investing in technologies like industrial IoT, digital twins, and private 5G, only 20% of enterprise leaders feel adequately prepared for a Human+Machine operating model.

Key Insights from the Report

The report emphasizes several critical statistics:

• - Nearly 60% of respondents believe that end-to-end process redesign is their most significant hurdle.
• - 59% of enterprises highlight weaknesses in data foundations, governance, and compliance as major barriers.
• - Only about one-third of companies feel that their current technology partners can adequately support a Human+Machine framework.
• - Planned investment areas reflect increasing prioritization of cybersecurity (71%), AI model development (63%), and AI-driven IT operations (61%).

The term 'Human+Machine' in this context refers to an integrated operational model where human efforts, data, artificial intelligence, and physical assets work cohesively. This model connects digital information technology (IT) with operational technology (OT), enabling organizations to sense, make decisions, and take actions in real-time.

The Disconnect Between Ambition and Action

According to Phil Fersht, CEO and Chief Analyst at HFS Research, many enterprises exhibit great enthusiasm to harness AI's potential but find themselves unprepared in terms of operational models. "They are enamored with shiny new tools, yet are apprehensive about altering their existing work processes. The truly successful companies will be those who are bold enough to overhaul their operational frameworks to align with Human+Machine delivery," he stated.

Roger Lvin, CEO of Hitachi Digital Services, echoed this sentiment, stressing that advancements in digital twins, edge computing, and AI are fundamentally ineffective if IT and OT remain disconnected. He noted, "Unified orchestration is essential for achieving superior performance and safety across industries. Our mission is to help organizations integrate their digital and physical operations, allowing for measurable and impactful results."

The report, which draws insights from over 500 executives from Global 2000 companies, highlights that while there is a significant push to adopt digital solutions that bridge the gap between digital and physical operations, many businesses still operate based on outdated and overly integrated workflows. This discrepancy gives rise to what HFS refers to as a 'readiness chasm', a widening divide between lofty technological goals and the practical capabilities needed to realize them. This gap is particularly pronounced within the industrial, energy, and mobility sectors, where value creation hinges upon the coordinated functioning of IT and OT systems.

Addressing Foundational Issues

A predominant finding from the report is that fundamental issues, rather than technology itself, inhibit progress towards a Human+Machine model. Sixty percent of enterprise leaders pinpoint end-to-end process redesign as their greatest impediment, while 59% note shortcomings in data foundations and compliance standards. The report posits that without addressing these core challenges, significant investments in AI could ultimately lead to isolated pilot programs that fail to result in widespread transformation.

Ashwin Venkatesan, Executive Research Leader at HFS Research and the report's chief author, emphasized that processes and data—not technology—serve as the main barriers. He argued, "If enterprises do not reconfigure their workflows or establish reliable data foundations, even the most cutting-edge AI projects will not yield the desired value. Orchestration is key to unlocking the potential of the Human+Machine era."

Seeking Innovative Partnerships

The study also uncovers a growing dissatisfaction with current technology service providers. Less than a third of survey respondents believe that their existing partners are adequately equipped to facilitate a Human+Machine operational model. Enterprises are now pursuing relationships with partners who can orchestrate data, AI, infrastructure, operational technology, and business processes into cohesive, outcome-oriented systems.

Hidetaka Sasaki, Chief Lumada Business Officer at Hitachi Digital Services, affirmed the necessity for collaboration in evolving AI's role in physical domains. He remarked, "Companies will benefit most by collaborating with partners who can orchestrate intricate physical-digital ecosystems, particularly in sectors such as industrial, energy, and mobility, where effective IT-OT convergence is critical for achieving genuine performance outcomes."

Future Investment Directions

Investment trends further illuminate this transformative shift. Enterprises aim to increase spending in crucial areas: 71% on cybersecurity, 63% on AI models and operations, and 61% on AI-driven IT management. This indicates a notable reallocation of resources towards capabilities that promote real-time intelligence and operational synergies essential for effective Human+Machine models.

The study underscores the burgeoning trend of outcome-based commercial models. More than half of enterprises now show a preference for performance-based or value-driven engagement frameworks, marking a significant departure from traditional labor-centric pricing.

Phil Fersht highlighted the urgency for immediate action among businesses, stating, "The real winners will be those who transform convergence into speed, resilience, and measurable business value. It’s no longer merely about upgrading technology; it’s about restructuring your entire organization for rapid AI-driven operations. Companies must choose to orchestrate or risk being left behind."

For more detailed insights, the full report is accessible online.