By Steven Muir-McCarey - May 2024

In the rapidly evolving digital landscape, a seismic shift is underway.  

Consumers are increasingly turning to AI-powered curated responses to meet their needs, leaving traditional websites and marketing channels in the dust. This tectonic change has significant implications for businesses that rely on digital engagement models to deliver products and services, many of which business leaders are seemingly unaware of. 

The Rise of AI-Powered Curated Responses 

Gone are the days of scouring through websites, sifting through marketing materials, and enduring lengthy sales pitches. In the same way that social media is creating an instant dopamine hit experience of doom scrolling, today's business consumers are craving instant gratification, personalized experiences, and bite-sized information to help them make decisions. For many marketers and product marketers, AI-powered curated responses have emerged as the perfect solution, providing: 

• Neatly summarized information: with complex responses curated into concise, easily digestible answers, saving time and effort. 
• Tailored to specific requests: when the prompts are set up correctly, context and intent can be injected into the response, delivering pinpoint-accurate responses that meet individual needs. 
• Actionable insights: many AI tools can deliver responses including clear calls-to-action, instilling a sense of action to the consumer. 

The Impact on Digital Businesses 

As consumers flock to these AI-powered curated responses, traditional digital engagement models are feeling the pinch. Websites and marketing channels, once the lifeblood of digital businesses, are seeing dwindling engagement and conversion rates. This shift has significant consequences, including: 

• Loss of control over messaging: Businesses can no longer rely on their websites and marketing channels to curate their message and showcase their brand. 
• Decreased brand visibility: As consumers bypass traditional digital touchpoints, businesses risk fading into obscurity. 
• Losing control of your sales funnels: AI-powered curated responses are taking the quatum of sales processes from its training models and redefining an individuals customer journey, which in many cases is different to your idea of your specific funnel.  

Adapting to the AI Revolution 

To thrive in this new landscape, companies of all types will need to a minimum be conscious of what the LLMs and AI tools are telling the world about your brand, and in many cases business will need to evolve and innovate. Consider the following strategies: 

• Accuracy of public information: In a world where marketing is empowered to create a story to compete, accuracy of information around capability and value proposition is critical. LLM’s are scraping your content and using it as the foundation of decisions when curating responses. 
• Age and longevity of public information: As your solution and product grows, your age and volume of information will change. Employing a robust strategy for archiving, deleting, correctly tagging and managing your public information is critical. 
• Embrace AI awareness: Integrate AI awareness into your customer engagement strategy to provide curated responses that meet the evolving needs of your audience. 
• Focus on value-added content: Develop high-quality, informative content that complements AI-powered responses and establishes your brand as a trusted authority. 
• Rethink your sales funnel: Adapt your sales strategy to accommodate the changing customer journey, leveraging AI-powered curated responses to drive conversions. 

Conclusion 

The AI revolution is transforming the digital landscape, and businesses must adapt to survive. By embracing AI-powered curated responses and rethinking their digital engagement strategies, companies can stay ahead of the curve and thrive in this new era of consumer-centricity.  

Don't get left behind – join the AI revolution and redefine your digital engagement model today. 

The Composable DXP Explained

A composable DXP breaks down the traditional DXP into more manageable, interchangeable components that can be used to tailor digital experiences more precisely to specific business needs and customer expectations. This approach leverages modern technology standards like microservices, APIs, and cloud-native services, enabling businesses to selectively integrate various functionalities that best suit their strategic goals. Arguably we have been in a generally composable world for some time, this diagram aims to point out some of the decision making and buying behaviour we have seen in market.

• We have typically idealised the "all in one stack" approach, believing that the stack can be "brilliant" at everything.
• We may, however, have our benchmarks wrong, we benchmark the all-in-one against the single capability vendors, assuming that is the standard.
• We ended up buying standalone tools anyway, either through legacy, frustration, disconnected departments or more complex scenarios such as acquisition.

The reality is many of us got here today through a blind technology-led decision making and the necessity to get content, campaigns and experiences in market.

The question is, are we making the same mistakes again when moving into this "new" composable world?

The Benefits of Composability

The shift to a composable DXP offers numerous advantages, for the right organisation. In theory it allows you to be more agile in your operations, enabling quicker adaptation to market changes or customer demands. Businesses can also achieve a better return on investment by only deploying the components they need, reducing overhead and focusing resources on areas that provide the most value. All sounds great right? 

Moreover, composable DXPs foster innovation by making it easier to test new features or integrate cutting-edge technologies without overhauling the entire system. This flexibility is crucial for staying competitive in a digital-first world where consumer behaviours and technologies evolve rapidly. Oh my, I kind of thought this was buy I bought the "all in one stack", but go on... tell me more. Ok, well... maybe we can talk about the practical reality.

The Warning Signs of Transitioning to a Composable DXP

Despite these benefits, the transition to a composable DXP is not without its challenges and contentious aspects, which businesses need to consider carefully:

1. Complexity in Integration: One of the main challenges is the complexity associated with integrating multiple standalone components. Each component needs to work seamlessly with others to deliver a coherent digital experience, which can be a significant technical challenge (think money spent and arguably lost...).

2. Vendor Lock-in Risks: While composable DXPs are intended to reduce vendor lock-in by allowing components from different vendors to be integrated, in practice, achieving this interoperability can be difficult. Businesses may find themselves locked into specific technologies or vendors due to compatibility issues, which can limit flexibility and increase costs.

3. Increased Management Overhead: Managing multiple components and ensuring they are all updated, secure, and running efficiently requires a significant amount of oversight. This can strain resources, especially for smaller teams or those without specialised expertise.

4. Skill Gap: There is a skill gap in the market when it comes to implementing and managing composable architectures. Organizations might struggle to find qualified staff who are adept at navigating these new technologies, which can delay deployment and reduce the effectiveness of digital initiatives.

5. Cost Implications: Although a composable DXP can be more cost-effective in the long run, the initial investment and the ongoing costs of managing multiple vendors and systems can be substantial. Organisations need to carefully evaluate their financial capability to handle these expenses.

Why Businesses Need to Be Aware

The shift to a composable DXP in Sitecore is indicative of broader trends in digital technology, emphasizing flexibility, customer-centricity, and adaptability. However, businesses must approach this transition with a clear understanding of not only the benefits but also the significant challenges involved.

Organizations considering this shift should conduct thorough due diligence, considering their existing digital infrastructure, technical capabilities, and strategic goals. It's also crucial to engage with experienced partners who can guide the transition and help mitigate the risks associated with adopting a composable DXP.

Conclusion

The move to a composable DXP represents a paradigm shift in how businesses deploy and manage their digital experience platforms. While the benefits of such a system are clear, the challenges are significant and warrant careful consideration. By understanding and preparing for these challenges, businesses can better navigate the complexities of this transition and set themselves up for success in a rapidly evolving digital landscape.