the health strategist
institute for strategic health transformation
& digital technology
Joaquim Cardoso MSc.
Chief Research and Strategy Officer (CRSO),
Chief Editor and Senior Advisor
October 6, 2023
One page summary
What is the message?
In the rapidly evolving landscape of artificial intelligence (AI), companies must establish effective technology strategies to stay competitive.
This article outlines three key principles of technology strategy for navigating the age of AI.
Key Takeaways
Value Creation:
Successful technology strategy involves investing time and resources in research and development. Companies should aim to converge on dominant technological paradigms to make progress efficiently.
For instance, Google’s introduction of the transformer architecture in late 2017 laid the foundation for many generative AI models.
However, companies must also be aware of when to move beyond existing paradigms to avoid stagnation.Example: Google’s release of the transformer architecture set the stage for advancements in generative AI, including models like ChatGPT.
Value Capture:
To profit from AI innovations, firms must consider two critical factors. Appropriability involves maintaining control of knowledge generated by innovations, which can be challenging in the era of open-source AI.
Complementary assets, such as proprietary data and technology, can help create additional value from generative AI products.
Example: When Meta’s generative AI model leaked online, it spurred the emergence of open-source models that rivalled industry leaders like ChatGPT and Google’s Bard.
Value Delivery:
Successful technology adoption depends on how organizations respond to innovation, particularly incumbent companies whose existing business models may be disrupted.
These organizations should anticipate discontinuities caused by innovation and leverage complementary assets to navigate transitions smoothly.
Example: Established companies can achieve significant gains by simultaneously managing their old and new businesses. This ambidexterity can foster corporate culture and synergy between legacy and innovative sectors.
Statistics
- In late 2017, Google introduced the transformer architecture, a deep learning model that revolutionized natural language processing and became a foundation for generative AI models.
- Open-source models emerged after Meta’s generative AI model, Llama, was leaked online, competing with industry leaders like ChatGPT and Google’s Bard.
- Organizations that effectively manage both legacy and innovative business simultaneously often experience significant benefits, potentially improving corporate culture and synergy.
This article highlights the importance of creating, capturing, and delivering value through technology strategy in the AI age.
Companies that understand these principles can navigate the evolving AI landscape more effectively and gain a competitive edge.
DEEP DIVE
This summary was written based on the article “How to set technology strategy in the age of AI”, published by MIT Management Sloan School and written by Brian Eastwood, on July 19, 2023.
To read the full article, click here
