AI only matters when it changes business outcomes

Few people have witnessed the evolution of Microsoft Business Applications as closely as Cecilia Flombaum. During her 25 years at Microsoft, including two decades in Business Applications, she has seen every major technology shift: from on-premises software to the cloud and now to AI. But according to Cecilia, AI is different. Not because the fundamentals of business have changed, but because for the first time technology is fundamentally changing how people work every single day.

Cecilia and I have known each other for many years. As Microsoft's Executive Sponsor for our partnership, she has a front-row seat to the growth of Companial, our partners, and the wider Microsoft ecosystem. That made me curious: after seeing multiple generations of technology come and go, what stands out about AI? Where should partners invest? And who is best positioned to win? One message came through loud and clear: AI is only successful when it delivers tangible business outcomes.

Louis: Cecilia, you've spent 25 years at Microsoft, including 20 years in Business Applications. That's a long time in one industry. What keeps you excited?

Cecilia: I love this business, and especially Business Applications. It's so directly connected to the work people do every day. You can immediately see what technology means for someone in sales, procurement, manufacturing, or finance.

I also fell in love with working with partners early on. I come from a family of politicians. A lot of that work is about making deals, finding compromises, and identifying shared goals. For me, working with partners is the practical version of that: how do we find a win-win, what do we have in common, and how do we make sure everyone has the opportunity to grow?

Louis: You have lived through several major technology transformations. Everyone says AI is different. Is it really?

Cecilia: In some ways, yes. In others, no. The fundamentals haven't changed. Partners still need to differentiate themselves, customers still judge us on results, and time-to-value still matters. But the pace is different.

The cloud was primarily about infrastructure. It changed how technology was delivered, but it didn't fundamentally change how people worked with their applications every day. AI is different because it changes the interaction between people and technology. It affects almost everyone, in almost every role, at almost every company.

Louis: If you were advising partners today, where would you invest first?

Cecilia: Three things. First, use AI within your own organization. If you tell customers they need to change the way they work but don't do it yourself, you won't have credibility. Second, invest in delivering value faster, better, and more efficiently. If an implementation used to take six months and AI helps you do it in three or four, customers will notice the difference. Third, develop an AI advisory service.

Louis: That's interesting. Why do you believe AI advisory will become such an important service?

Cecilia: Because customers don't wake up thinking, "How can I implement AI?". They're focused on their own businesses. They make socks, run bakeries, manufacture products, or operate restaurants. Their real question is: How can I run my business better?

That's where partners have an enormous opportunity. You're not just helping customers with technology. You're helping them adopt it. How does the organization need to change? How should employees work differently? Where can AI create value?

To do that successfully, you need three things: change management capabilities, technology expertise, and industry knowledge. The next big question is how to monetize these services.

AI is evolving constantly, which is why I see AI advisory becoming a managed service. Customers will need ongoing guidance for years to come. That also matters for partner business models. Revenue per project will likely decrease because implementations become faster. What used to take six months may soon take three or four. You can take on more projects, but projects don't grow on trees. Partners will need to sell more and develop new value-added services.

Louis: There is a lot of hype around AI. Where are you already seeing real impact today?

Cecilia: Sales is a very clear example. AI can process conversations, emails, and customer interactions and extract relevant insights almost instantly. That helps salespeople prepare better, deliver stronger demos, understand customer needs faster, and ultimately close deals sooner.

Within Business Applications there are also obvious opportunities. Think about purchase orders, invoice processing, reconciliations, and financial close processes. In supply chain, I see opportunities around demand planning, inventory management, and order optimization.

Procurement, quality management, and legal processes are also interesting because they involve large amounts of structured and unstructured information. Those are areas where organizations can save significant time today.

Louis: Microsoft is bringing Business Applications, Modern Work, Azure, and AI closer together. Some partners worry they now need to become experts in everything. Do they?

Cecilia: No. My advice is simple: stay excellent at what you already do and build from there. You don't suddenly need to become a traditional Azure partner. Of course, if you're creating industry-specific AI agents, you'll likely need Azure Foundry. And on the Microsoft 365 side, Copilot is now the door to delivering AI value. But the key question is: can you master it well enough to create genuine customer value? Stay true to what makes you unique. If your strength is business processes and industry expertise, start there. Then build additional AI and Copilot capabilities on top of that foundation.

Louis: You've been the Executive Sponsor for our partnership for many years. What makes the Microsoft and Companial partnership special?

Cecilia: You're unique because you've made Business Applications your core business and built an international organization around that foundation. Your partner ecosystem reflects that focus. Because you specialize in business processes, your partners do too. That's a meaningful competitive advantage. In many ways, you're a very close relative of Microsoft's Business Applications business. We share the same objective: helping partners grow and succeed.

What also differentiates Companial is the value you add beyond traditional distribution. Learning services, professional services, technical services, and ISV services all play an important role. You're not simply a distributor. You're a value-added distributor with deep expertise in business processes.

Louis: You've led teams through years of change. What leadership lessons do you still apply every day?

Cecilia: Three things. First, being disciplined about where I spend my time. I enjoy helping people and diving into details, but I simply can't be involved in everything. Second, partnering. I'm always looking for the common goal. What do we share? Where is the win-win? And third, never stop learning. The world is moving so quickly that continuous learning is no longer optional. It's part of the job.

Louis: Final question. If there is one message you'd like every partner in our ecosystem to remember about AI, what would it be?

Cecilia: You may not fully realize how well positioned you are for the future of AI. Knowledge of business processes is one of the biggest competitive advantages a partner can have. AI is only successful when it creates tangible business outcomes. Not more technology. Processing more orders with the same number of people. Closing the books significantly faster. Improving customer service. Increasing productivity. To achieve those kinds of results, you need to understand how a business really works. And that's exactly what Business Applications partners do. I believe many partners have a stronger position in the AI future than they realize today.

Closing thoughts

As our conversation came to an end, one theme kept returning. The AI opportunity is not primarily about technology. It's about business value. Customers don't buy AI. They buy growth, productivity, efficiency, better decisions, and better outcomes. Partners that understand industries, processes, and change management are uniquely positioned to help customers achieve those outcomes. And that is exactly why Cecilia is so optimistic about the future of the Business Applications ecosystem.

AI only matters when it changes business outcomes!