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    Businesses have long relied on AI to automate specific tasks—from predictive maintenance in manufacturing to customer service chatbots. These systems have streamlined processes, reduced costs, and improved efficiency. But despite these advancements, automation remains limited:

    • AI-powered procurement tools can place orders, but they don’t dynamically adjust based on supplier risks.
    • Chatbots answer customer inquiries but don’t predict retention risks or proactively adjust sales strategies.
    • Predictive maintenance prevents breakdowns, yet it doesn’t optimize production schedules based on machine performance.

    This is where agentic AI marks a fundamental shift. Unlike traditional automation, AI agents don’t just assist humans—they make autonomous, cross-functional decisions. For enterprises, the challenge isn’t just implementing AI, but ensuring AI operationalizes the functions required to enable business capabilities.

    For enterprises to truly harness AI’s potential, they must embed agentic AI into their business capability models (BCMs), ensuring AI systems can self-optimize and drive transformation at scale.

    This blog explores:

    • How BCMs structure business capabilities
    • The limitations of traditional AI automation vs. agentic AI
    • The transition from AI automation to AI-driven enterprise transformation
    • How AI-first enterprise architecture ensures a scalable, interconnected strategy

    Understanding business capability models (BCMs)

    A Business Capability Model (BCM) defines the core functions that an enterprise needs to deliver value. Instead of focusing on isolated processes, BCMs map how capabilities—such as supply chain, manufacturing, and customer engagement—interconnect.

    By integrating AI agents into BCMs, businesses can automate decision-making, improve operational efficiency, and enable real-time responsiveness.

    AI transformation in Industrial Machinery Manufacturing (IMM)

    To understand how AI maturity impacts business functions, consider the industrial machinery manufacturing sector, where companies like Caterpillar, John Deere, Komatsu, and Siemenshave long used AI to optimize operations. These organizations rely on AI for many operational capabilities like supply chain and logistics execution, manufacturing operations, and quality and compliance management. But until now, most AI applications have been process-level enhancements requiring human intervention —not full-scale intelligence embedded into the enterprise.

    To truly transform business operations, organizations must move beyond process-level automation to Agentic AI, where AI systems can autonomously execute cross-functional tasks, optimize processes in real-time, and make data-driven decisions without human oversight. This transition enables seamless integration across business functions, allowing enterprises to anticipate disruptions, self-adapt to new challenges, and drive continuous optimization.

    By embedding AI agents in workflows and processes within these capabilities they can:

    • Dynamically adjusts the business function of demand planning, procurement, and inventory levels based on predictive maintenance insights, preventing material shortages or overstocking
    • Optimize the business function of production planning ensuring operations adapts in real time, by proactively rescheduling operations, repairs and replacements to minimize downtime
    • Automate the business function of defect management by leveraging maintenance data to preemptively identify quality risks, reducing defects and improving overall product reliability

    The Impact of Agentic AI on Key Business Capabilities

    The table below examines how AI maturity transforms core business capabilities in manufacturing.

    Business Capability Traditional AI Automation Limitations Agentic AI Transformation
    Supply Chain & Logistics Automated procurement tools manage supplier selection. Procurement bots don’t adjust orders based on real-time supply chain risks. AI autonomously reconfigures procurement, reroutes logistics, and prevents stock issues.
    Manufacturing Operations AI-powered quality control detects defects on production lines. Quality control operates in isolation, failing to adjust production when defect rates rise. AI dynamically adjusts production schedules based on machine performance and defect rates.
    Sales & Customer Engagement AI chatbots handle inquiries with predefined responses. Chatbots lack predictive capabilities to adjust sales strategies. AI predicts churn, personalizes outreach, and optimizes sales strategies in real time.
    Customer Experience & Service Automated warranty and claims processing. AI lacks insights into supply chain delays, leading to inaccurate delivery estimates. AI dynamically adjusts service timelines and warranty extensions based on production and logistics data.

    AI Maturity Journey: From Automation to Agentic AI

    AI transformation is a gradual process. To ensure success, businesses must:

    • Establish trust in AI systems through governance frameworks
    • Start with AI-assisted decision-making before transitioning to full autonomy
    • Ensure AI is integrated into an enterprise-wide strategy rather than isolated use cases

    Enabling Enterprise AI Architecture (EAIA)

    For businesses to fully integrate Agentic AI, they must align AI with their Enterprise Architecture (EA)—a structured framework for managing business functions, data, applications, and technology. This means embedding AI at every level of architectural layer to ensure business functions, applications, data, and infrastructure work together seamlessly and autonomously:

    • Business Architecture– AI-driven BCMs ensure decision-making happens in real time across functions.
    • Data Architecture– AI models continuously learn and adapt using enterprise-wide data streams.
    • Application Architecture– AI integrates into ERP, CRM, and supply chain management systems.
    • Technology Architecture– AI agents leverage cloud and edge computing to process and act on data instantly.

    By embedding AI into every layer, organizations create an intelligent, self-learning enterprise that continuously adapts and improves. Organizations that successfully integrate AI into their Enterprise Architecture are able to:

    • Scale AI-driven business functions beyond isolated use cases towards complete business functions
    • Ensure data interoperability, allowing AI to make informed, cross-functional decisions
    • Enable real-time AI execution, reducing reliance on human intervention for critical operations

    How Neudesic enables AI-driven BCMs

    Neudesic helps enterprises move beyond automation by embedding AI into business capability models. This approach ensures AI isn’t just a tool—it becomes a strategic driver of transformation.

    Neudesic’s approach includes:

    1. AI business strategy & BCM alignment
    • Identifying where AI creates the most value in business capabilities and their functions
    • Developing an AI roadmap that scales beyond isolated use cases
    1. AI-driven enterprise architecture implementation
    • Integrating AI into all enterprise architectural layers from platforms, data, applications and systems
    • Deploying cloud, edge, and AI-first architectures
    1. AI agent development & governance
    • Implementing AI governance models to ensure trust, compliance, and security
    • Designing AI agent frameworks that autonomously optimize workflows

    By embedding AI into Business Capability Models, Neudesic helps enterprises move beyond automation and develop intelligent, self-adaptive business functions that enhance efficiency, agility, and decision-making.

    Conclusion: The future of AI-driven enterprises

    The shift from AI automation to agentic AI represents a fundamental transformation in how organizations become intelligent businesses. Companies that successfully integrate AI-driven intelligence and autonomous execution are able to compete in an AI-first ecosystem, gain a competitive advantage, and unlock efficiency, agility, and innovation at scale.

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    Sarrah Shah

    Vice President Growth & Expansion Strategy

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