๐ ๐น๐ผ๐๐ ๐ด๐ฐ% ๐ผ๐ป ๐จ๐ถ๐ฃ๐ฎ๐๐ต, ๐ฏ๐๐ ๐ต๐ฒ๐ฟ๐ฒ’๐ ๐๐ต๐ ๐ ๐ฐ๐ฎ๐ป’๐ ๐น๐ผ๐ผ๐ธ ๐ฎ๐๐ฎ๐…
10 years ago, I started following UiPath’s journey & even wrote a book about it. Here’s what’s happening:
โ
What UiPath did right:
โข Built an amazing community, especially with the free version
โข Consistently innovated – the best in the space
โข Showed better financial growth than others
๐จ But here’s the painful truth nobody’s talking about…
They have an identity crisis.
– Be a UI-based automation (RPA) company?
– Become a hyper-automation company (RPA vs Everything company)?
– Be an Agentic process automation company or Agentic automation company (RPA vs AI company)?
๐ก But a better time to solve RPA / UI automation with AI has never been.
Nandan Mullakara
My Response
Markus Hoerr shared your post with me and asked, “Will the same thing happen with ProcureTech?”
So here is my initial response in the form of a question: Why is a company with $1.5 billion in revenue, year-over-year growth of 19%, 10,810 customers, and over 2,100 clients generating $100,000 or more in ARR stock crashing?
Could it be because the foundation of its business plan is built on sand?
Here is the first in a series of articles on the difference between Agentic AI and the importance of using Agent-based models – https://bit.ly/40fJxNY
You cannot become a “True AI company” using a technology-led equation-based development and implementation model. You can only become a “True AI company” using an agent-based development and implementation model.
Nandan Mullakara Reply
Jon W. Hansen Thanks for sharing. Just โpositioning โ and few AI tid bits does not make you an AI company.
My Response
Nandan Mullakara, exactly, and that happens with the continuing use of tech-led equation-based development and implementation models.
Agent-based modeling is where you ultimatelyโand not overnightโtrain Agentic AI to make the right decisions. UiPath is using an equation-based model, which is its fatal flaw.
This is also why a significant segment of ProcureTech companies will not exist after the 2025 AI Bubble Burst.
Today’s Takeaway
Q. Why is a company with $1.5 billion in revenue, year-over-year growth of 19%, 10,810 customers, and over 2,100 clients generating $100,000 or more in ARR stock crashing?
A. Because they are pushing technology versus solving problems, reducing their role to product sales versus providing needed business expertise to the industries they seek to serve.
Q. Why did UiPath, a leading company in robotic process automation (RPA), report a net loss of approximately $261.8 million for its fiscal year ending January 31, 2023?
A. Because they use a tech-led equation-based development and implementation model versus a consultative agent-based development and implementation model.
Like the restaurant industry, especially full-service and fine-dining establishments, generate a significant portion of their profits from alcohol sales compared to food, most ProcureTech solution providers rely on licensing for the bulk of their revenue, bringing in very little, if anything, for their consulting, implementation, and maintenance fees.
As a result, they don’t generate enough profit from product licensing/sales alone.
Going forward, ProcureTech solution providers that step out from behind their technology to assume a consulting and strategic advisor role based on their industry experience and expertise to generate the lion’s share of their revenue will ultimately succeed.
Furthermore, their clients will achieve greater success working directly with “consultative” ProcureTech solution providers versus being handed off to third-party players like professional services firms.
30
Procurement Insights
How to avoid the wrong UiPath or Why is a company with $1.5 billion in revenue stock tanking?
Posted on November 14, 2024
0
๐ ๐น๐ผ๐๐ ๐ด๐ฐ% ๐ผ๐ป ๐จ๐ถ๐ฃ๐ฎ๐๐ต, ๐ฏ๐๐ ๐ต๐ฒ๐ฟ๐ฒ’๐ ๐๐ต๐ ๐ ๐ฐ๐ฎ๐ป’๐ ๐น๐ผ๐ผ๐ธ ๐ฎ๐๐ฎ๐…
10 years ago, I started following UiPath’s journey & even wrote a book about it. Here’s what’s happening:
โ What UiPath did right:
โข Built an amazing community, especially with the free version
โข Consistently innovated – the best in the space
โข Showed better financial growth than others
๐จ But here’s the painful truth nobody’s talking about…
They have an identity crisis.
– Be a UI-based automation (RPA) company?
– Become a hyper-automation company (RPA vs Everything company)?
– Be an Agentic process automation company or Agentic automation company (RPA vs AI company)?
๐ก But a better time to solve RPA / UI automation with AI has never been.
Nandan Mullakara
My Response
Markus Hoerr shared your post with me and asked, “Will the same thing happen with ProcureTech?”
So here is my initial response in the form of a question: Why is a company with $1.5 billion in revenue, year-over-year growth of 19%, 10,810 customers, and over 2,100 clients generating $100,000 or more in ARR stock crashing?
Could it be because the foundation of its business plan is built on sand?
Here is the first in a series of articles on the difference between Agentic AI and the importance of using Agent-based models – https://bit.ly/40fJxNY
You cannot become a “True AI company” using a technology-led equation-based development and implementation model. You can only become a “True AI company” using an agent-based development and implementation model.
Nandan Mullakara Reply
Jon W. Hansen Thanks for sharing. Just โpositioning โ and few AI tid bits does not make you an AI company.
My Response
Nandan Mullakara, exactly, and that happens with the continuing use of tech-led equation-based development and implementation models.
Agent-based modeling is where you ultimatelyโand not overnightโtrain Agentic AI to make the right decisions. UiPath is using an equation-based model, which is its fatal flaw.
This is also why a significant segment of ProcureTech companies will not exist after the 2025 AI Bubble Burst.
Today’s Takeaway
Q. Why is a company with $1.5 billion in revenue, year-over-year growth of 19%, 10,810 customers, and over 2,100 clients generating $100,000 or more in ARR stock crashing?
A. Because they are pushing technology versus solving problems, reducing their role to product sales versus providing needed business expertise to the industries they seek to serve.
Q. Why did UiPath, a leading company in robotic process automation (RPA), report a net loss of approximately $261.8 million for its fiscal year ending January 31, 2023?
A. Because they use a tech-led equation-based development and implementation model versus a consultative agent-based development and implementation model.
Like the restaurant industry, especially full-service and fine-dining establishments, generate a significant portion of their profits from alcohol sales compared to food, most ProcureTech solution providers rely on licensing for the bulk of their revenue, bringing in very little, if anything, for their consulting, implementation, and maintenance fees.
As a result, they don’t generate enough profit from product licensing/sales alone.
Going forward, ProcureTech solution providers that step out from behind their technology to assume a consulting and strategic advisor role based on their industry experience and expertise to generate the lion’s share of their revenue will ultimately succeed.
Furthermore, their clients will achieve greater success working directly with “consultative” ProcureTech solution providers versus being handed off to third-party players like professional services firms.
30
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