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Learn the key ideas of the book by Karim R. Lakhani , Marco Iansiti

Competing in the Age of AI

Seizing the new opportunities of business in the digital economy

Companies like Amazon, Facebook and Microsoft are revolutionising the global market thanks to the use of data, algorithms and networks. In their book Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World, the two authors Marco Iansiti and Karim L. Lakhani, both professors at Harvard business school and luminaries of economics and innovation, reveal the secrets of business operating models behind this competitive advantage in the age of artificial intelligence, providing us with glimpse at future developments.

Competing in the Age of AI
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Many useful tips to:

  • Understand new business operating models behind digital companies such as Amazon and Microsoft to gain competitive advantage.
  • Harness the power of growth, reach and learning of digital operating models based on artificial intelligence, data and algorithms.
  • Understand how to embrace future business opportunities in the new digital economy.

The author of the book:

Karim L. Lakhani is an expert in technology and innovation management. He is a Professor of Business Administration at Harvard Business School and founder and co-director of the Harvard Scientific Innovation Laboratory.

Marco Iansiti graduated from Harvard University in 1983 with a first class honours degree in Physics. He has focussed his academic career on the study of technological innovation for the improvement of business operations. Today he is a Professor of Technology and Operation Management at Harvard Business School and co-director of the Harvard Information Science Laboratory.

IDEA CHIAVE 1/10

Understanding new discoveries and strategic collisions is essential as we approach the artificial intelligence revolution

As each day goes by, before our eyes we witness the development of a new and innovative model, which is substantially different from the traditional business model. At the core of this model is the digitisation of every aspect of the social and financial lives of individuals and companies, and the exploitation of the power of networks to improve the distribution of products and services through the use of artificial intelligence, big data and increasingly complex, yet meticulous algorithms.

If we are to seize the opportunities of this new era of the world economy, we must learn to understand its dynamics, to make them ours and open our eyes to the fact that digital networks and artificial intelligence are transforming business and society, actually bringing the analogue and digital worlds closer together, until they eventually merge and become part of one another.

The use of artificial intelligence in a highly digitised world is not a trend to be ignored, but a signal that we must heed in order to prepare for change, especially in light of the strong impact this will have on competition between companies.

When companies with a strong digital base enter the market and compete with traditional companies, a strategic collision takes place. In this scenario, companies from the old market, which have enjoyed decades of success, obtained using classic strategies, do not recognise the risk posed by the new digital strategies used by the competition. Once these companies reach the level of data and technology required to get the artificial intelligence machines up and running, a cycle of exponential growth will be triggered, putting the work and the very existence of traditional companies at serious risk. There are countless examples in recent years of giants in the global market being swept away for not having heeded the warning of the imminent digital revolution; just think about Kodak or Nokia.

Having said that, it is possible to both resist and compete in an AI based system, as long as you are ready to embrace the profound change that is required: an example of a company that has done so is Microsoft, who decided to reinvent themselves, focussing on their Azure product and on artificial intelligence to evolve into a provider of cloud services. And then there are companies that are born of the digital era such as Uber, Airbnb and WeChat, which as such, already have all the right tools to be able to compete in their markets.

Whether they are formerly traditional companies, or whether they created in the digital era, these companies all have one thing in common: a new business approach, based on the digital enhancement of their scale, scope and learning, which allows them exponential growth. This also makes them almost unstoppable, scalable and adaptable for expansion across multiple fields, thanks to their use of data algorithms and artificial intelligence. Today more than ever, one must be aware of all these dynamics to be able to prepare for them: the next ones to have to adapt and implement artificial intelligence and virtual systems could be us.

  

The key ideas of "Competing in the Age of AI"

01.
Understanding new discoveries and strategic collisions is essential as we approach the artificial intelligence revolution
02.
The secret of new companies lies in the enhancement of scale, scope and learning
03.
The AI factory concept and its revolutionary mechanisms
04.
Identifying the problems of traditional business architecture to overcome them and compete on the new digital market
05.
The five principles of transformation to become an AI-based company
06.
The four steps to creating a strategy based on the digital operating model
07.
Becoming a new company founded on the digital operating model…and the new ethical problems that accompany it
08.
The changes in the world economy and the factors to be taken into account by future leadership
09.
Quotes
10.
Take-home message
 
 
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