Chapter 1. The AI Organization Defined
Thirty years ago, every business was looking at software as a way to redefine how it ran its operations. New systems of record were able to manage every core process in the enterprise, from accounting to payroll, resource planning, and customer management. This change was the foundation of the digital transformation—but as big a change as it was, the digitization of the core processes didn’t alter the primary business of a company; it just made it more efficient.
In the past decade, however, systems of record have been extended with so-called systems of engagement. These systems redefine how companies engage with customers, how customers use and buy their products, and even what those products are. Along the way, software evolved from being focused on efficiencies to being a core aspect of business. Actually, it quickly became the part of business where the differentiation battle was fought. Companies using software cleverly were able to differentiate very quickly from more traditional companies: think Netflix, Airbnb, Uber, and Amazon. Even referring to these as media, real estate, transportation, and retail companies sounds weird; they are, in a sense, software companies, because they understand that software is a primary function inside the organization.
Modern companies look at software as something that is infused through every aspect of their business, a critical component of their operational efficiencies as well as their products ...