Need: Value Creation
Unleashing Business Potential with AI: Beyond Open Source Tools
Artificial intelligence has evolved from a futuristic concept into a business norm. The advent of Language Learning Models (LLMs), like ChatGPT, Gemini, Perplexity and Claude, is only the tip of the iceberg.
While these consumer-focused models are noteworthy, they form only a fraction of AI’s potential. Businesses stand to gain significantly by exploring AI further and integrating advanced models.
Let’s examine how AI is revolutionizing private equity firms, their portfolio companies and other private and public businesses.
Beyond Data Availability and Hygiene
AI models are adept at analyzing and interpreting massive datasets, providing businesses with valuable insights that drive decision-making. With data being produced at an unprecedented rate, AI’s role in sifting through this sea of information and drawing actionable conclusions is invaluable.
READ MORE: The Road to AI Implementation: Precursor Activities
Ken McLaren, partner at Frazier Healthcare Partners, spoke to this on a recent AI-focused webinar hosted by BluWave.
“We do a lot of prototyping on desktops,” McLaren said. “As we prove the value and the use cases, we then start getting ready for production. But don’t build in production first. Get the proof value with your customer market in place before you start building.”
He elaborated on the importance of having clean data that is also production-ready, which means having a quality data lake infrastructure.
“Having your data pipes with things like Azure Data Factory, having good storage…or using Databricks Delta Lake on top of that, having a production-ready data environment is important,” he said. “Once you’ve got your models ready…you can plug in a lot of open source tools. So there’s really no one platform to rule at all.”
Protecting Your Sensitive Data
With AI tools new and old evolving so rapidly, there’s also concern from business leaders that the data they share with these same tools is not safe.
“If you’ve got history turned on, then it becomes part of that AI system,” said Keith Thomas, National Practice Lead, Cybersecurity Operations, at AT&T. “It gets built into the models, and there’s the ability for the model to use that data.”
Since McLaren’s firm exclusively works with healthcare companies, they err on the side of holding back data from open tools that could otherwise compromise privacy.
“We still guide our portfolio companies for sensitive business data, customer data – keep it out of any open tool,” McLaren said.
BluWave CEO and founder Sean Mooney also cautioned about sharing propriety data that gives your company an edge:
“If that’s something that’s competitively sensitive or advantageous your business,” he said of adding it to an open-source tool, “you’ve just given it to the world.”
Beyond Open-Source AI Tools
Tech stacks at innovative businesses are changing faster than ever. Not only are the tools themselves changing, but they’re also becoming easier to use for team members who aren’t as technically skilled.
“In software development in general, there’s this movement more and more toward no-code, low-code solutions,” said Alex Castrounis, Why of AI founder and CEO. “Part of the benefit of those things is, one, accessibility and making it easier for people in organizations to sort of build software, or in this case, train models, iterate on models, tune them, optimize them, deploy them and so on.”
He added that the future of AI could look more like J.A.R.V.I.S. in Ironman than simply getting help summarizing large sets of data or writing an email.
He describes this potential technology as an “interface that becomes sort of an information-retrieval system or a question-answering system on top of your data. …It solves a lot of those issues that I know a lot of organizations are wondering when it comes to proprietary data and confidential data.”
Other tools like LangChang – used in conjunction with other tools – can help users make templates out of their existing prompts and iterate them for future inputs. These can then be set up with outside sources such as Wikipedia, as well as databases and APIs.
These, however, are just a small sample of the growing list of possibilities.
While OpenAI, Microsoft and Google continue to grab the lion’s share of attention when it comes to new AI tools, there are countless others being developed and improved every day.
Business leaders must strike the delicate balance between experimenting and staying ahead of the curve against protecting proprietary, and even sensitive data. Miscalculating could not only compromise competitive advantages, but also user safety.
The Business Builders’ Network is full of expert, trustworthy service providers who are on the leading edge of artificial intelligence technology. When you’re ready to connect with an industry-specific resource for your business, contact our research and operations team to set up a call.
Financial Integration Support for Chemical Manufacturer
Service Area: Financial Operations
Client Type: Lower-Middle Market Private Equity Firm for Portfolio Company
Service Provider Type: Financial Integration Consultant
Industry: Chemical Manufacturing
The Need
Financial Integration for Add-On Acquisitions
A chemical manufacturer operating in the specialty treatment chemicals industry sought assistance with financial integration for their add-on acquisitions. With a focus on bridging the gap in financial onboarding and consolidating reporting packages, the client needed a specialized team to provide hands-on support and help streamline their financial processes.
The Challenge
Improving Financial Systems and Reporting
The client faced challenges in their financial systems and reporting due to the use of QuickBooks and the need for scalable solutions. With add-on acquisitions and plans for growth, they required an evaluation of their current systems and the implementation of appropriate ERP and CRM systems, along with adequate security, governance and controls.
How BluWave Helped
Connecting for Accelerated Growth
BluWave connected the client with a specialized financial integration consultant that provided on-the-ground support in putting together reporting packages, consolidating financials and assisting with financial onboarding. This person was able to hit the ground running and better prepare the portco for its rollup strategy.
The Result
A Solid Foundation for Expansion
Through the assistance of the financial integration consultant, the chemical manufacturer successfully improved their systems and reporting capabilities. This set them up to move into their buy-and-build phase and begin making acquisitions. The financial consultant stayed on for some of the initial acquisitions, buying the company time to select a perfect-fit CFO.
We are grateful to be able to partner with the new team we acquired and look forward to helping them further accelerate growth.
-Portco VP of Operations
CEO Search for Rapid Expansion of Residential Services Portco
Service Area: Executive Search
Client Type: Lower-Middle Market Private Equity Firm
Service Provider Type: Executive Search Firm
Industry: Residential Services
The Need
CEO Search for Rapidly Growing Home Services Company
A home services company, focused on consolidation and rapid growth, was in need of a new CEO. Having completed nine acquisitions and added key executives to their leadership team, they sought a strong executive recruiting firm that could identify and place a CEO with the right industry experience and a track record of leading decentralized teams in rapidly expanding companies.
The Challenge
Connecting with a Middle Market-Focused Executive Search Firm
The client had previously used various executive search firms but had experienced inconsistent results. They were seeking an executive search firm geared toward the middle market, with a solid process for candidate identification, screening and reference checks. They required a partner who could effectively navigate the residential services and facility services industry and deliver consistent results.
How BluWave Helped
Specialized Executive Search for Residential Services
BluWave tapped into its Business Builders’ Network to connect the PE firm with a short list of exact-fit executive search firms. Leveraging their expertise and industry connections, the recruiting group selected by the firm identified and vetted relevant candidates with extensive experience in leading large, decentralized residential services teams. The firm’s rigorous process paid off as they not only found a great fit for the role, but also the portfolio company’s growth strategy and culture.
The Result
Successful CEO Placement, Continued Growth
A new Chief Executive Officer with more than 20 years of experience was appointed to lead the company. He had previously worked in route-based businesses, including successful merger and acquisition strategies, and was the ideal candidate to lead the company through its growth and consolidation plans. The former CEO transitioned to the role of Executive Chairman of the Board, providing ongoing support with acquisitions and strategy.
The client expressed their satisfaction with the search process and the selection of the new CEO. His leadership skills, extensive experience and alignment with the company’s culture and values were highlighted as key factors in his appointment.
We are thrilled by the growth that the company has experienced so far and look forward to seeing it reach another level under the new CEO’s leadership. We could not imagine finding a more perfect leader to take the team through the next phase of growth.
-PE Firm Co-Founder
The Road to AI Implementation: Strategic Planning, Data Management, Cybersecurity
What’s worse than not implementing artificial intelligence tools into your business?
Implementing them without a plan.
While it might feel like you’re falling further behind competitors every day you’re not adding AI to your tech stack, you’re better off waiting a little longer to get it right. Rushing out a half-baked product will only cause you more harm in the long run.
Let’s dive in to some of the key precursor activities for implementing artificial intelligence into your business.
Aligning AI with Business Strategy
As you choose your AI use cases, it’s essential to align them with your broader digital and business strategies.
Nik Kapauan, principal at Access Holdings, recently talked about this on a BluWave-hosted webinar, Activating AI.
“Your strategy for using AI obviously needs to tie to your broader digital strategy, which needs to tie to your broader business strategy as a firm,” Kapauan said. “I’d also bifurcate it because when we say AI, it’s a broad spectrum of things. You have your traditional analytics, which is descriptive analytics, just getting stuff on a screen and reporting. And then you have your more predictive analytics for predicting the future.”
In either case, Kapauan reiterated the importance of aligning with your overall goals, noting that predictive analytics allow for more flexibility.
“The way you’d approach that strategy is a bit more iterative, a bit more experimental,” he said, “trying to get use cases and experimenting as soon as you can to figure out where the value is.”
Tackling Data Challenges
Data is at the heart of any AI initiative. The service providers in our network say the number one hurdle businesses face to adding artificial intelligence tools is not having a good sense of data availability or hygiene, respectively.
“A lot of people want to jump to the model or the technology. ‘What if we could do this with customers?’ I think it’s really important to start with, ‘What is the space of data that we have at our disposal?’” Michael Woods*, the CEO of an AI consulting firm BluWave works with regularly, said in an interview. “Then just as importantly, ‘Do we have any sense of the inaccuracies or things that could really lead us astray in that data?’
On the AI webinar, Kapauan said that handling data is often the most significant part of large analytics projects.
“That centralization of data, the cleaning of data, the ongoing maintenance of data, is the lion’s share of the effort,” he said.
BluWave CEO & Founder Sean Mooney said the effort, however, is worth it.
“You’ve got to do the unglamorous data cleanliness part… the only thing worse than no data is bad data,” he said. “Keep [the data] good because it’s like a piece of equipment that’s gotta be maintained. Anytime there’s rotation and force in anything, it wants to lose calibration.”
READ MORE: AI Data Analytics: BI Tools
Change Management: A Key Component
Kapauan emphasized the need for a high-level leader to drive the change internally when significant changes are being made to the way a business operates.
“I think one of the biggest predictors of success is a champion inside the organization that could really own the vision and drive the opportunity. And often that’s the CEO or someone the CEO directly holds accountable for the digital agenda,” Kapauan said. “Having that leadership voice to set the vision and drive the organization and mobilize change is critical to success for analytics and any other kind of major digital transformation.”
Mooney added that this is a key part of change management.
“AI’s going be part of your strategy,” he said. “It’s a tactic, it’s not your strategy.”
Securing Your Data Assets
Finally, as businesses build up their data assets, it is vital to safeguard them.
“We want to make sure that we protect [our resources] from theft, making sure that if someone gets into our organization that they can’t pull that model out and take it with them to use somewhere else,” said Keith Thomas, the Cybersecurity Operations National Practice Lead at AT&T. “There are some ways that we protect using different security tools, and different security capabilities support the idea of a [data] model theft by attackers.”
Thomas also emphasized the importance of having a robust disaster recovery plan. If an AI system goes down, the team must be prepared to mitigate any negative impact on data and analytics.
“Even if it is to go to a manual approach, that’s OK. Having the plan is the most important part of that,” Thomas said.
Mooney pointed out that various resources are available to help businesses of all sizes protect their most critical asset: their data.
“Once again, we’re seeing this theme of, ‘failing to prepare is preparing to fail,'” Mooney said. “You’ve gotta do the work in advance. Not just even on the data and the analytics side, but also in protecting your data.”
BluWave has seen a rapid uptick in demand for AI-related services recently. What many firms lack, though, is the necessary foundation to get started.
Aligning your AI tactics with your overall business strategy, preparing your data, identifying an internal champion and protecting your data assets are crucial precursors to implementing these powerful new tools.
Whether you’re at a private equity firm, portfolio company or private or public organization, BluWave’s Business Builders’ Network is full of expert third-party AI resources. These highly vetted service providers can not only help you with the aforementioned preparations, but will also work with you to implement these tools.
Contact our research and operations team to learn more, and we’ll connect you with an industry specific expert to assist your digital transformation using artificial intelligence.
*Privacy is important to us. While the source and company name have been changed, these are real quotations from a real service provider in the BluWave Business Builders’ Network.
Q2 Snapshot: Key Findings from BluWave’s Private Equity Insights Report
Driving Digital Transformation: IT Expert for Logistics Company
Service Area: Specialized Recruiter
Client Type: Transportation and Material Management
Service Provider Type: Recruiting
Industry: Environmental – Recycling
The Need
Specialized Recruiter for IT Expert
A logistics company specializing in utilities services was going through a rapid growth stage and felt the need for digital transformation. Lacking the internal expertise to embark on this journey, they sought a specialized recruiter with industry-specific experience to land a skilled IT professional. Specifically, they needed a hands-on leader who could manage critical systems, including a transportation management system (TMS) and databases.
The Challenge
Hiring Digital Transformation Leader
The client required an IT-focused recruiter who understood the unique challenges of the logistics industry and could identify candidates with expertise in digital transformations, system implementation and database management. They needed a versatile individual who could take ownership of the systems, dive into sequel tables and drive improvements. The position would report directly to the company president, making it a critical leadership role.
How BluWave Helped
Identifying the Perfect Candidate
BluWave engaged its network of IT-focused recruiters experienced in digital transformations and systems implementation and connected the business with an exact-fit resource. The recruiter conducted an extensive search to identify candidates who matched the client’s specific requirements. Through a rigorous screening and selection process, they identified a skilled IT professional with the necessary experience, technical expertise and leadership capabilities.
The Result
Successful Digital Transformation and Operational Efficiency
The collaboration between the logistics company and the recruited IT expert resulted in a successful digital transformation. The IT professional took ownership of the systems, managed the databases and project-managed the implementation of new technologies. His hands-on approach and deep understanding of the logistics industry enabled the company to streamline operations, enhance efficiency and adapt to the digital age.
The client was deeply satisfied with the recruiter BluWave selected for them and provided overwhelmingly positive feedback.
We had a really good experience with you guys. The recruiter was extremely helpful and ended up finding us a tremendous candidate. Well done!
-Company Partner
Cici Zheng, ParkerGale Capital | Private Equity Advice on Pricing, Human Capital and More
Professional Healthcare Recruiters: Specialized Human Capital Resources
The healthcare industry is in a constant state of flux. It’s a field that requires a dedicated workforce to manage patient care effectively.
With the growing demand for healthcare services, the need for specialized professional healthcare recruiters has never been higher. Especially in areas such as multi-location healthcare services and chief medical officer searches, both on the clinician and corporate side.
“Specialized recruiters will not only know the subset of candidates really well,” says Scott Bellinger, BluWave’s co-head of research and operations, “but they’ll also understand what candidates are relative for certain size companies.”
We’re going to explore why a people expert with industry experience is essential for health and medical organizations.
Benefits of Working with a Professional Healthcare Recruiter
Healthcare providers save time and money when they work with recruitment experts. An experienced talent leader will have access to a large pool of candidates and can quickly identify the most qualified applicants for your specific need.
They know how to guide employers through the hiring process, from defining the job description to negotiating compensation and benefits.
CASE STUDY: Chief Medical Officer Search for a Healthcare Services Firm
“A specialized provider will be able to more quickly identify and recruit candidates,” Bellinger says.
Job seekers also benefit from working with professional healthcare recruiters. They can match their skillset and experience to the ideal opportunity so that both sides feel like they win in the end.
What to Look For
When selecting a specialized recruiter in the healthcare industry, it’s important to consider their experience, expertise and personalized attention to your needs.
Look for a recruiter who has experience in your industry, as well as a deep understanding of the recruitment process. A good recruiter should also have the skills to provide personalized attention to your needs, offering tailored advice and guidance.
CASE STUDY: Maintaining Rapid Healthcare Services Growth with Specialized CFO
It’s also important to work with a recruiter who stays up-to-date with the latest industry trends, compensation and benefits.
“When you work with specialized healthcare recruiters, they’re focused on serving the middle market and their network of candidates reflects that,” Bellinger says.
In today’s labor market, finding the right job or candidate can be a daunting task. That’s why professional healthcare recruiters exist, and why they are such an important resource for both job seekers and healthcare providers.
BluWave has the best specialized recruiting resources in healthcare on standby. Our expertly vetted network has what you need on standby before you even contact us.
Set up a scoping call today with our research and operations team and get presented with two or three best-fit options in less than one business day.
David Hellier, Bertram Capital | Harnessing Data to Innovate, Differentiate and Evolve
Streamlining Data Insights: Creating a Real-Time Dashboard Solution
Service Area: Business Intelligence and Analytics
Client Type: Buyout PE Firm
Service Provider Type: Data Analytics and Visualization Firm
Industry: Utilities
The Need
Building a Comprehensive Dashboard Solution
A company in the field services industry faced challenges with managing and extracting valuable insights from their vast amount of data. With data spread across 15 different sources, the client lacked a centralized view and struggled to gain meaningful intelligence. They sought the expertise of an analytics and visualization firm to build a scalable dashboard solution that would integrate multiple disparate sources and provide real-time insights.
The Challenge
Unifying Data Sources and Enabling Data-Driven Decision-Making
The client required a partner who could assist in organizing and integrating data from programs including Microsoft XL, ServicesApp, Salesforce, Paycore and ARI. The aim was to create a data warehouse and develop a user-friendly, real-time dashboard that would consolidate the data and provide actionable insights.
How BluWave Helped
Connecting to an Experienced Service Provider
BluWave connected the client with a data analytics and visualization firm experienced in handling complex data integration and visualization projects. The service provider worked closely with the client to understand their data sources, requirements and desired outcomes. They developed a comprehensive plan to organize and clean the data, integrate it into a centralized data warehouse and create a real-time dashboard solution.
The Result
Enhanced Data Insights and Future Collaboration
The collaboration between the client and the data analytics and visualization firm resulted in the successful creation of a scalable and user-friendly dashboard solution. The integrated data from multiple sources provided a comprehensive view of the company’s operations, enabling data-driven decision-making. It also empowered the client with valuable insights and intelligence to monitor key performance indicators, track progress and identify opportunities for improvement.
The positive experience with the service provider led the client to consider future collaboration for the next phase of the project. The reliable and effective solution provided by the service provider demonstrated their expertise and commitment to delivering high-quality data analytics and visualization services.
We had a great experience with the service provider and we may hire them for the next phase of the project.
-Senior Vice President at the PE Firm
Unlocking Organizational Success: The Role of Leadership Coaching
Effective leadership lies at the heart of any successful business. The ability to guide, motivate and inspire teams is what separates great leaders from the rest. But these skills don’t just appear overnight; they require nurturing and development, which is where leadership coaching comes into play.
Leadership coaching serves as a compass for potential leaders, helping them navigate the complexities of modern business environments. By partnering with third-party resources who specialize in this exact service, your top managers, directors and executives can take their teams to the next level.
Let’s discuss how the exact-match third parties in the Business Builders’ Network can help you solve this exact problem.
The Benefits of Leadership Coaching for Organizations
Leadership coaching offers far-reaching benefits that ripple across an organization. It has a profound impact on leadership development, employee performance and overall organizational growth.
Enhancing Leadership Development
Leadership coaching shapes leaders to be more self-aware, enabling them to tap into their full potential. It’s not a one-size-fits-all process. The goal is to tailor the journey to each individual’s unique strengths and areas of improvement.
The personalized nature of coaching encourages deeper introspection and a greater commitment to professional growth. This individualized approach is more likely to yield effective, long-lasting results.
Improving Employee Performance
The effect of effective leadership transcends the leader themselves. It extends to the performance and job satisfaction of their teams. Leaders who have undergone coaching are better equipped to engage and motivate their teams, fostering a positive work culture and higher productivity. Leadership coaching is not just about developing leaders; it is also a vital strategy to increase your company’s value.
Driving Organizational Growth
The innovative thinking and decision-making prowess fostered by leadership coaching can be pivotal for success. Leaders, shaped by coaching, can inspire their teams to break new ground and achieve their fullest potential. This cumulative effect of individual improvements significantly contributes to organizational growth.
Strengthening Communication and Collaboration
Effective leadership coaching can significantly enhance communication within teams. It also fosters a culture of collaboration built on mutual trust and respect, leading to more productive and synergistic cooperation.
Key Components of Effective Leadership Coaching Programs
A successful leadership coaching program stands on a robust foundation of clear goals, personalized development plans, continuous feedback and accountability.
Clear Goals and Objectives
Defined coaching goals serve as a roadmap for success. These goals, when aligned with organizational objectives, provide a sense of direction and focus for the leader being coached. The clarity offered by these goals helps ensure the coaching process yields effective, measurable results.
Individualized Development Plans
Leadership coaching should not be a one-size-fits-all process. It should be tailored to individual needs and aspirations. Personalized development plans ensure that coaching interventions are targeted and effective, addressing specific areas of growth and improvement.
Ongoing Feedback and Support
Feedback serves as the backbone of any successful coaching relationship. It provides insights into the leader’s progress and areas of improvement, thus spurring further growth. The role of the coach does not end with feedback. Ongoing support and mentorship from the coach are crucial to sustaining leadership development efforts.
Accountability and Measurement
Accountability is a vital aspect of a coaching relationship. Measuring progress and outcomes helps track the effectiveness of coaching initiatives and provides a clear picture of whether goals are being met.
Strategies for Implementing Leadership Coaching Programs
Implementing a successful leadership coaching program requires a strategic approach, right from identifying coaching needs to selecting qualified coaches and establishing a supportive coaching culture.
Identifying Coaching Needs
Understanding the leadership development needs of an organization is the first step in implementing a successful coaching program. These needs can be identified through various tools, including 360-degree feedback reviews, performance assessments and employee surveys.
Selecting Qualified Coaches
Selecting the right coach is crucial to the success of the coaching initiative. Coaches should be experienced, credentialed, and their coaching philosophy should align with the organization’s culture and values.
Working with a exact-fit third-party can save you wasted time and money but connecting with the exact resource you need for your specific situation.
Establishing a Supportive Coaching Culture
Creating an organizational culture that values coaching and continuous learning can greatly impact the success of leadership coaching initiatives. Leaders should demonstrate their endorsement of coaching by participating in it themselves and sharing their experiences.
Integration with Leadership Development Initiatives
Combining coaching with other learning opportunities such as workshops and seminars provides a comprehensive approach to leadership development. This integration ensures practical application of new knowledge and skills in the workplace, reinforcing the learnings from leadership coaching.
Unlocking your organization’s full potential through effective leadership coaching need not be an overwhelming task. BluWave’s expert research and operations teams can connect you to the perfect service provider to help navigate this transformational journey. Connect with BluWave today and let us help you unlock the full potential of your leaders.