Business Applications are going to die, and most businesses won’t be ready!
Dan Coleby
We're about to go from Greenfield AI Agent development (creating a new capability with AI) to Brownfield AI business system transformation with multi-agent orchestrations. You will witness a seismic shift in how businesses manage their core processes, and traditional, monolithic business systems across all areas are the big prize for disruption.
You can gain significant commercial advantage by getting ahead of the game, or you can choose to not be ready.
Why Traditional Business Systems are Ready for Transformation
Business systems, such as Enterprise Resource Planning (ERP) systems have long been essential for managing operations. I’ve been in this business for nearly 26 years, and I cut my teeth as an SAP consultant when the early generation of ERP systems were in their heyday. They’re powerful, structured, and reliable. However, many are rigid, complex to implement, and notoriously hard to change.
Traditionally designed around human workflows, these systems often create data silos and rigid processes, and limit innovation in today's rapidly evolving market. Adding AI features to existing systems tends only to enhance their existing design rather than fundamentally transform business operations.
The Future: AI-Driven Agents and Multi-Agent Processes
We're moving into an era where breakthrough technology finally enables a different approach. Instead of relying on single, monolithic applications, imagine an ecosystem of AI-powered agents interacting seamlessly with a unified data lake containing structured and unstructured information. These intelligent agents can independently, or in collaboration with humans. They can carry out complex processes, learn continuously, and adapt rapidly to change.
People often ask me: what's the difference between an AI agent (or multi-agent process) and a traditional modular application or a set of microservices?
The critical difference is this:
-
Traditional systems, even modular ones, have fixed logic and fixed actions. They operate strictly on an If-This-Then-That basis and perform predefined, highly repeatable tasks.
-
Generative AI, however, has the ability to "think" and reason. By deploying GenAI Agents, you grant genuine agency to your business systems. These agents can assess complex situations, consider multiple options, and make contextually aware decisions, much like a human would. Depending on the specific scenario, an agent might reach out to other AI agents for assistance or consult with a human-in-the-loop, mirroring how humans collaborate in complex scenarios.
This creates an adaptive, intelligent process rather than a fixed, inflexible one that requires extensive human input and interpretation.
Benefits of AI-Driven Agents:
-
Greater Flexibility – rapidly adjusting to evolving business requirements.
-
Accelerated Innovation – introducing new processes swiftly without disrupting existing operations.
-
Enhanced Decision-Making – richer insights driven by integrated data and AI capabilities.
The Strangler Fig Approach
Transforming existing business systems doesn't require immediate replacement. This was the old approach which yielded multi-year projects which cost tens of millions of pounds to deliver. Instead, the recommended approach mirrors the "Strangler Fig" strategy: incrementally introducing modular AI-driven agents around existing systems. Over time, these agents gradually replace legacy functionality, thereby reducing risk, maintaining operational continuity, and controlling costs.
Getting Ahead: Your Next Steps
Proactive organisations are already exploring how to:
-
Create centralised data lakes for improved data governance and analytics.
-
Pilot AI-driven agents to test and refine new processes.
-
Gradually transition towards a modular, AI-powered, future-proof architecture.
Risks and Considerations
As with any significant transformation, there are challenges:
-
Complexity of integration and ensuring interoperability between agents.
-
Data governance and security concerns when centralising diverse data sets.
-
AI Agent governance: Are they doing the right thing when left to their own devices?
-
Operational complexity that arises from managing numerous independent AI agents.
-
Change management and developing new skills within your teams. And most importantly, getting them to embrace this change as a force for good, rather than feel threatened by it!
However, the commercial advantages for early adopters are clear: increased agility, innovation, and adaptability: all critical elements for success in today’s dynamic business landscape.
Get Ahead of the Curve
Now is the ideal moment to develop your strategy. Organisations that proactively embrace this shift will position themselves as leaders, while those who hesitate risk falling behind.
Ready to explore transforming your business systems or keen to discuss this further? I'd love to hear your thoughts: Let's connect!
Thank you for reading this edition of IT Strategy Matters. I hope you found it useful and informative. Please feel free to share it with your colleagues and friends who might benefit from it.
Until next time, remember: IT strategy matters!
Dan – The IT Strategy Coach
Might I be able to help you?
Click here to express interest in our upcoming online courses and coaching programmes.
Click here to enquire about a bespoke engagement with The IT Strategy Coach.
IT Strategy Matters
Newsletter from The IT Strategy Coach, sharing thoughts, ideas and IT strategy community insights. Sign up here! Note that you will receive an email asking you to confirm your subscription. If you don't get this, check your Junk email folder!
Responses