Agreed. “Success is gauged by market share, speed of boundary changes, reconfiguration costs, error rates, retention from past experiments, and sustainable unit economic changes.”
This touches upon a very fundamental reality many firms are not seeing. Since at least the dawn of industrialization specialization has been valued because the cost of it is high but once invested in, it brings about benefits. Hence the complex supply chains. But with advanced machine intelligence as we are starting to have, the cost of specialization is dropping, which means instead of outsourcing certain parts of the production process to external suppliers, firms can do it themselves, or, as explained above find leaner ways of obtaining (APIs etc).
As I have been writing in my series, in the era of AI, specialist silos are on the way out.
It's an interesting shift, because many knowledge workers have built profitable businesses leveraging specialised knowledge. Soon, if it's not an API endpoint for an AI agent to call, it won't exist.
Brilliant analysis.
Agreed. “Success is gauged by market share, speed of boundary changes, reconfiguration costs, error rates, retention from past experiments, and sustainable unit economic changes.”
This touches upon a very fundamental reality many firms are not seeing. Since at least the dawn of industrialization specialization has been valued because the cost of it is high but once invested in, it brings about benefits. Hence the complex supply chains. But with advanced machine intelligence as we are starting to have, the cost of specialization is dropping, which means instead of outsourcing certain parts of the production process to external suppliers, firms can do it themselves, or, as explained above find leaner ways of obtaining (APIs etc).
As I have been writing in my series, in the era of AI, specialist silos are on the way out.
It's an interesting shift, because many knowledge workers have built profitable businesses leveraging specialised knowledge. Soon, if it's not an API endpoint for an AI agent to call, it won't exist.