K&S Consulting

Ltd.

Mercer GenAI case study

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Problems with existing Solution Ltd.
• The present solution is both time-consuming and expensive
• Approximately 17.5% of the RFPs remain unanswered in the current process
• There is a lack of standardization in responding to RFPs across different geographic regions
• The existing process incurs a revenue loss of around 20.6%
• About 12.1% of the revenue is allocated to RFP responses.
• Additional resources need to be incorporated into the current process to adequately respond to all RFPs.

Advantage of Gen AI over automation of RFP :-

• Ease of Customization
• Reduction in bias
• System is easily adaptable
• Decrease in effort and time

Some observations from above data:-

• UK unit has either better resources or more number of
resource
• Manual process has high win rate as compared to semi
automated process
• US&C has the highest inflow of RFP and Asia has the
lowest
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Build vs Buy Ltd.
Buying is favorable over Build because of following reasons:-
• Foundational models can accumulate substantial initial training and deployment expenses.
• The amount of computing resources needed for training large AI models doubles approximately every 3.5 months.
• The complexity of these foundational models has rapidly escalated in recent years.
• Some other factors have been listed in the table

Following are the two ways we can use off the shelf models:-
• Using model provide directly by Vendor
• Fine tuning the model provided by Vendor

Accuracy range
of the estimate is
-20% to +50%

Fine tuning the

Vendor model is
most suitable
Solution.
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RFP application Ltd.
The delivery timeframe for the solution is set at 18 weeks, with an additional 2-week contingency period included.
Decision factor is a multiplication of the RFP response percentage and average win rate, a higher value indicates a greater likelihood of
product success.
Deployment of the solution will prioritize Zone rank, with rank 1 signifying the initial deployment.
For product deployment, priority will be given based on product rank, with the highest-ranked product receiving deployment precedence.

Solution layer from bottom to top

Compute Cloud Foundation RFP

Hardware Platform model application

Iterative
Process
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RFP Application Ltd.
Immediate next steps include:
• Engage in discussions with the RFP team and senior management to present this proposal. Hardware
• Capture their feedback and integrate it into the proposal accordingly. team
• Upon approval of the proposal, initiate the search for vendors for the RFP solution.
Procurement
Client
team

RFP application
stakeholders

During the initial phase, the solution will operate independently. Once it has demonstrated RFP team Vendor

effectiveness exceeding 99%, integration with the procurement system will enable end-to-end
automation. Development
Team

Development team will look into the

existing level of automation and try
to reuse it as much as possible.
Support will be required from all the
stakeholders during the
development and testing stages.