The Intelligence Network

Most firms are a disconnected brain - AI is the connective tissue

Hi there,

AI is transforming everything, with companies evolving into intelligence networks of interconnected AI systems.

These companies will generate compounding value that differs from traditional network effects, leading to significant implications for the workforce.

The Firm as a Disconnected Brain

What is an operating model? It’s people, process, and technology. Firms decide how to structure based on whether it's cheaper to do a task in-house or pay a supplier.

Digital transformation has enabled firms to build highly automated operating models. Amazon has distribution warehouses, and Netflix streams content to millions.

Even automated firms have a weak point: we automate tasks without automated coordination. Human coordination via meetings and emails is needed for System A to interact with System B.

A pre-transformation firm resembles a disconnected brain with little connective tissue. It hears with dashboards and reports, but can’t combine systems into coherent information. Human w…