The Cost of Doing Things in a Better Way - How do you think about funding new initiatives?

  • 12 June 2023
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Every year in my state, I have to pay to renew our vehicle registration and pay property tax on my car. And every year I have 2 options:

  1. Wait in a gigantic line at the department of motor vehicles to simply say “here’s my check for my registration”
  2. Pay my registration online.

Seems like a super obvious answer - but the department of motor vehicles in my state didn’t always have option 2...nor did they have the budget (or expertise) to have someone set up an online payment system for them. 

So what did they do? They worked with a 3rd party payment platform called “PayIt” that specializes in delivering self-service payment options for government agencies. Cool - but you said they didn’t have the budget. That’s right, they didn’t. 

PayIt charges a “Cart Processing Fee” for each online transaction that you make. Could you avoid it? Sure - by spending all day at the DMV, but for $3, most sane people would choose to just pay the fee and save all that time.

 

What does this have to do with Generative AI? There’s a cost to doing business in a new way. Sometimes that means coming up with creative ways to fund initiatives that don’t break the bank for your business. In the world of automation, this could mean charging the cost of running and maintaining an automation “back to the business”, it could mean passing some of those charges on to customers, or it may mean looking at additional creative ways to fund an initiative.

When you think about funding your new generative AI projects or introducing brand new capabilities for your organization that may not have previously existed, how do you think about funding such initiatives?


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