Integrated Strategy Application
Jump to navigation
Jump to search
An Integrated Strategy Application is a strategy application that is an integrated application.
References
2016
- Martin Reeves, and Daichi Ueda. (2016). “Designing the Machines That Will Design Strategy.” In: HBR, APRIL 18, 2016
- QUOTE: An integrated strategy machine is the collection of resources, both technological and human, that act in concert to develop and execute business strategies. It comprises a range of conceptual and analytical operations, including problem definition, signal processing, pattern recognition, abstraction and conceptualization, analysis, and prediction. One of its critical functions is reframing, which is repeatedly redefining the problem to enable deeper insights. Within this machine, people and technology must each play their particular roles in an integrated fashion.
Amazon represents the state-of-the-art in deploying an integrated strategy machine. It has at least 21 data science systems, which include several supply chain optimization systems, an inventory forecasting system, a sales forecasting system, a profit optimization system, a recommendation engine, and many others. These systems are closely intertwined with each other and with human strategists to create an integrated, well-oiled machine
… - To design such an integrated strategy machine, we believe there are six requirements:
- Relevant, specific strategic aim. ...
- Design appropriate to the aim. ...
- Correct human-machine division of labor. ...
- Integrated solution. ...
- An interface that allows for detailed analysis. ...
- Unique tools, data, or process. ...
- Business leaders can start to design an integrated strategy machine by asking themselves these questions:
- What strategic aims do I want to realize through a technology-enhanced process? ...
- What technology, people, and design do I need to address these aims? ...
- How can people and machines interact in a way that augment each other? ...
- How can the machine evolve and update itself? ...
- How can the broader organization embrace the strategy machine? ...
- General purpose technologies, such as the steam engine, electricity, and information technology, always take several decades to unleash their full potential, because businesses need to learn and organize themselves to best leverage their power. When electricity initially replaced the steam engine, engineers just placed electric motors where the steam engine used to be — with limited productivity gains. Electricity led to enormous productivity gains only when factory layout was revisited and optimized for the new technology.
- QUOTE: An integrated strategy machine is the collection of resources, both technological and human, that act in concert to develop and execute business strategies. It comprises a range of conceptual and analytical operations, including problem definition, signal processing, pattern recognition, abstraction and conceptualization, analysis, and prediction. One of its critical functions is reframing, which is repeatedly redefining the problem to enable deeper insights. Within this machine, people and technology must each play their particular roles in an integrated fashion.
We believe that the integrated strategy machine is the AI analog of what new factory designs were for electricity. In other words, the increasing intelligence of machines could be wasted unless businesses reshape the way they develop and execute their strategies.