Good book recommendation: digital transformation of leaders

        Author: Marco iansiti, Karin R. Lakhani

        Publishing House: World Culture

        Publication date: May 10, 2021

        In 2020, covid-19 epidemic swept the world, which not only changed human life style and work mode, but also had a great impact on industrial operation. The old-fashioned digital transformation in the past has become an important solution to combat the threat of the epidemic overnight, and its necessity and urgency are beyond doubt. Facing the crisis ridden new normal, every organization must take artificial intelligence as the driving force, embrace digital and accelerate change.

        The two authors of this book are professors of Harvard Business School. Through many enterprise examples, they sort out the business models and feasible practices in the AI era. Among them, ant group, a financial technology company, ocado, a British online shopping platform, and peloton, a health technology company, have successfully broken through the growth restrictions and redefined the company through the digitization of business processes. Ott service company Netflix also uses the concept of "Ai factory" to completely turn the face of the media industry with the power of artificial intelligence; Another successful case is Moderna vaccine. From R & D to all levels of the company, it adopts a data-centered operation mode, so that the vaccine can be manufactured rapidly. Therefore, each company should build its own "Ai factory", use "data" as fuel, "software infrastructure" as transmission pipeline, develop "algorithm" as machine, and verify with "experimental platform" to connect new fuel, new pipeline and new machine to the valve of existing operation system.

        In order to effectively use artificial intelligence, it is inevitable to transform the operation structure. A "platform" organization based on data and programs can unleash its digital technology potential and break the limitations of the company in scale, growth and learning. The enterprise's move towards digital business model does not mean the establishment of a new branch independent organization or a special artificial intelligence department. The focus is to complete the effective transformation through five principles: clear strategy, clear structure, agile organization focusing on products, team with deep digital ability, and interdisciplinary and interdisciplinary digital governance.

        Digital transformation is bound to reshape the economy, and the boundary between industries is gradually disappearing. Enterprises must examine strategies from a new perspective. "Network analysis" will replace "industrial analysis" and become an important basis for strategic thinking, so as to change the way companies create and seize value. In the AI era, the collision between digital and traditional companies is becoming more and more frequent, and the game rules are very different. First, the future changes will no longer be local, but driven by endless and systematic changes; Second, the demand for organizational capability is developing towards cross departmental and universal capability; In addition, industrial restructuring also brings opportunities and threats, which managers need to detect and overcome more quickly; Moreover, new leadership and governance challenges, as well as issues such as information, wealth concentration and digital gap, will be new challenges that leaders can not ignore.

        We are living at an important turning point of economic and social development. Digital transformation is urgent. The future of Far Eastern group depends on today's actions. Only by grasping the opportunity can we create a new trend and shaping the new models in the AI era and shape the new future of Far Eastern Group!

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