Artificial Intelligence and Machine Learning will have deep implications for the organization of the future. To some degree, every company will have to become a math house. This will require more than hiring new kinds of expertise and grafting new skills onto the existing organization. Many companies will need to substantially change the way they are organized, managed, and led. Every organization will have to make use of algorithms in its decision-making. The use of algorithms will have to become as much a part of tomorrow’s management vocabulary as, say, profit margins and the supply chain are today. And every member of the executive team will need to understand his or her role in growing the business.
The single greatest instrument of change in today’s business world, and the one that is creating major uncertainties for an ever-growing universe of companies, is the advancement of mathematical algorithms and their related sophisticated software. Never before has so much artificial mental power been available to so many—power to deconstruct and predict patterns and changes in everything from consumer behavior to the aIn combination with other technological factors—including broadband mobility, sensors, and vastly increased data-crunching capacity—algorithms are dramatically changing both the structure of the global economy and the nature of business.
The companies that have the new mathematical capabilities possess a huge advantage over those that don’t. Google , Facebook , and Amazon were created as mathematical corporations. Apple became a math corporation after Steve Jobs returned as CEO. This trend will accelerate.
“Legacy companies that can’t make the shift will be vulnerable to digitally minded competitors”
(Ram Charan, renowned Fortune 500 business advisor)