Artificial intelligence, AI, is already revolutionizing our world and what we have seen so far is not even the tip of the iceberg! We cannot imagine today the profound changes AI will bring to our planet in the coming years!
So, what is your business doing about it? How are you leveraging AI inside your business? What are you doing to prepare your business for the changes that AI will usher into your marketplace?
What is Artificial Intelligence?
This week’s book review is The Inevitable by Kevin Kelly.
Kelly is one of the founders of Wired Magazine and is a well-respected futurist. The Inevitable describes 12 trends that Kelly predicts will have a major impact in our society over the next 20+ years. These are listed below:
In 1998 Google burst onto the Internet scene and went from $0 market cap to $1 billion in 8 years. This was unheard of growth! A typical Fortune 500 company takes 20 years to achieve that same $1 billion mark.
However, since 1998, the time to grow from $0 to $1 billion market cap has steadily decreased. Facebook did it in five years, Tesla in four years, Uber in two years and Snapchat and Oculus Rift did it in just under two years!
According to the book Exponential Organization (by Salim Ismail, Michael Malone and Yuri van Geest) an “ExO” or Exponential Organization is an organization that display an exponential level of growth.
As you can imagine, any organization that undergoes exponential growth also undergoes exponential change. This change can easily destroy the organization completely or severely impact its growth unless it is handled correctly.
Way too frequently business leaders set the price for their products or services based solely on their own perception of the value of what they offer. They do not look at things from the perspective of what the customer wants, needs or values.
Consequently, they price too high, which limits their ability to grow. Or, they price too low and leave “money on the table.”
What Does History Teach Us About Price?
A single point of failure, SPoF, in your business can literally devastate your business overnight yet many business leaders spend little or no time at all protecting their business against these risks!
In 1995, a rogue trader brought down Barings Bank through fraudulent, unauthorized, speculative trading. The bank, which had been established in 1762, had a single point of failure and did not have controls in place to protect itself. It’s SPoF destroyed it!
Similarly, uncontrolled trading of oil futures has crippled more than one oil company in recent years. Other businesses have been bankrupted due to manufacturing shutdowns caused by natural disasters, social uprisings, political unrest, wars, etc.