Architecture as Strategy
A Practical Path Through Enterprise AI Disillusionment
The UC Berkeley Haas × Keenan Vision study that reframes AI adoption around Value–Cost–Risk and Overlay vs Embedded — and shows how leaders are executing hybrid portfolios.
Research conducted June–September 2025
Research Team: Abhishek Nagaraj, Ph.D. • Stanley Choi, MBA • Alecia Wall, MBA (Fall 2025) • Vernon Keenan • Chris Pearson
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Inside the Report
Based on 48 interviews with enterprise executives, our research reveals the practical frameworks leaders use to navigate AI adoption.
Why AI Pilots Stall
Four root causes of AI disillusionment: executive pressure without strategy, skills gaps, the promise-reality gap, and confusing capability with technology.
The VCR Framework
Nine decision factors across three dimensions:
- Value: Use case, Time-to-Value, Performance, ROI
- Cost: Activation energy, Data readiness, TCO
- Risk: Security & Governance, Choice & Flexibility
Overlay vs Embedded
Two architectural patterns with distinct tradeoffs. Overlay solutions offer speed and flexibility; Embedded solutions provide deep integration and control.
The Hybrid Strategy
How leaders execute pragmatic portfolios: “Overlay now, embedded forever.” Migration logic, governance implications, and portfolio management.
Stakeholder Guidance
Specific recommendations for executives (portfolio strategy), line-of-business leaders (use case prioritization), and vendors (positioning and product roadmaps).
Research Methodology
Transparent methodology: 48 interviews with CIOs, Product leaders, and AI executives at enterprise organizations. Partnership with UC Berkeley Haas School of Business.
Who This Is For
ISV & Product Leaders
Use the VCR framework to position your AI products and make informed roadmap decisions. Understand how to communicate Overlay vs Embedded tradeoffs to customers.
Learn about our ISV Advisory services →Enterprise AI & Platform Organizations
Navigate architecture tradeoffs for your AI platform. Build hybrid portfolios that balance innovation speed with governance and control.
Learn about our Enterprise AI Architecture services →Ready to Move Beyond Pilot Purgatory?
Download the paper now and discover the frameworks leaders are using to make AI work.