From Data To Profit

CHAPTER 8Who Survives Disruption?

This chapter introduces the core-rim framework, which can handle part of the technology model decision-making process. Technical strategy addresses the value creation aspects of moving parts of the business and operating models into the technology model. If data and models followed a digital paradigm, that would be enough.

Models don't work the way software does. I write code, and the computer executes the instructions I give it. There's no variance from the behavior I describe in the code. There are defects, and complex applications can perform unpredictably, but everything traces back to the instructions I wrote.

Models learn from data sets and feedback. Once trained, they are no longer rules-based like software is. Core-rim handles this unique aspect of data and AI products. C-level leaders need this framework to make decisions about reliability.

Automation taking over workflows moves parts of the operating model into the core, the business's technology platform. From a value standpoint, everything that's cost-effective and technically feasible should be moved into the core. Some complexity is irreducible because, even though the models can be built, they are not reliable enough to take on that complexity.

That's where core-rim comes into play.

Using Frameworks to Maintain Autonomy

You could be forgiven for thinking this all sounds horrifically dystopian. There's a euphemism hiding in transferring from the operating model to the technology ...