Monday, October 11, 2021

g-f(2)558 THE BIG PICTURE OF THE DIGITAL AGE (10/11/2021), HBR, How Midsize Companies Can Compete in AI


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"g-f" fishing of golden knowledge (GK) of the fabulous treasure of the digital age, Artificial Intelligence, Midsize Companies (10/11/2021)  g-f(2)426 


Opportunity 

How Midsize Companies Can Compete in AI, HBR 


    • Midsize companies are not too late to the party!
    • In the upcoming age of AI, two very different classes of companies appear well-positioned to leverage AI’s capabilities: startup ventures and multi-billion-dollar giant corporations. 
    • Considering the importance of midsize businesses for national economies and employment across the globe, it is critical to envision how they can strengthen their AI competitiveness. 
    • One lesson we have drawn from our research is that midsize firms should consider joining forces by pooling data and talent in an AI-centered joint venture structure.


      Genioux knowledge fact condensed as an image



      References


      How Midsize Companies Can Compete in AI, Yannick Bammens and Paul Hünermund, September 6, 2021, Harvard Business Review, HBR.



      Extra-condensed knowledge


      Opportunity 

      If midsize companies want to thrive in the AI era, they need to look for new ways to compete — including options that they may never have considered before, HBR


      • Big data and AI talent (e.g., data scientists, machine learning engineers) are two of the most critical resources for building successful AI applications. By combining the innovative talent of AI startups with the vast amounts of process and user data held by giant corporations, strong synergies can be created.
      • In this field, midsize companies — many of whom are family-controlled — have difficulties keeping up. Earlier research documented how midsize firms were already struggling in last decade’s winner-takes-all economy. That struggle is likely only going to intensify.
      • These midsize companies, which have between €50 million and €1 billion in annual revenue, are of sufficient scale and complexity to derive substantial value from an AI strategy, but often lack the data and talent resources to implement such as strategy. 




      Condensed knowledge




      Opportunity

      Joint AI venture, Good Agreements Make Good Friends, HBR 



      • The potential benefits of setting up a joint AI venture outweigh its risks. This collaborative approach involves a shift in focus from an individual firm’s short-term self-interest to a network- and ecosystem-centered perspective.
      • Pooling data and data analytic skills from across firm boundaries may be one of few options available to midsize firms to remain competitive in the new data-fueled economy. These joint AI ventures can be set up by vertical value-chain partners, horizontal sector partners, or a combination of both. 
      • Joint AI ventures can source and organize data from across multiple participating firms to train and deploy machine learning (ML) algorithms for a variety of cost-saving and revenue-boosting business applications. 
      • Building successful AI applications requires a critical mass of data scientists and ML engineers, who are in high demand — and attracting the necessary talent is particularly challenging for midsize firms lacking the appeal of startups and the resources of giants. By sharing financial resources in an ambitious joint AI venture initiative, these companies will be better able to build in-house AI talent and ML algorithms capable of leveraging unique cross-firm data lakes.
      • While data and talent pooling are the primary aims of a joint AI venture, at a later stage they also enable wider and deeper startup engagement by connecting a pooled CVC fund to the venture. Numerous novel and disruptive ideas in AI are developed at startups, and many giant corporations have built strong links with these innovation hotbeds, particularly through CVC investments. 
      • Data and talent pooling in a joint AI venture is not free of risk. As with any type of joint venture, executives must carefully evaluate decisions along each phase of the joint venture partnering process — including decisions on partner selection, time horizon, invested resources, IP management, performance assessment, and conflict resolution mechanisms. Of particular importance for joint AI ventures is the security and management of firm-level data.
      • When negotiating joint venture agreements, including data protocols, for international joint AI ventures, a complicating factor will be (supra)national differences in data regulations.
      • Notwithstanding their collaborative nature, joint ventures allow participating firms to remain largely independent and to continue their legacy — which is of the utmost importance for the many midsize firms controlled by families. Several AI applications have already been introduced, but the biggest opportunities still lie ahead.




      Some relevant characteristics of this "genioux fact"

      • Category 2: The Big Picture of the Digital Age
      • [genioux fact deduced or extracted from HBR]
      • This is a “genioux fact fast solution.”
      • Tag Opportunities those travelling at high speed on GKPath
      • Type of essential knowledge of this “genioux fact”: Essential Analyzed Knowledge (EAK).
      • Type of validity of the "genioux fact". 

        • Inherited from sources + Supported by the knowledge of one or more experts.


      References


      “genioux facts”: The online programme on MASTERING “THE BIG PICTURE OF THE DIGITAL AGE”, g-f(2)558, Fernando Machuca, October 11, 2021, blog.geniouxfacts.com, geniouxfacts.com, Genioux.com Corporation.


      ABOUT THE AUTHORS


      PhD with awarded honors in computer science in France

      Fernando is the director of "genioux facts". He is the entrepreneur, researcher and professor who has a disruptive proposal in The Digital Age to improve the world and reduce poverty + ignorance + violence. A critical piece of the solution puzzle is "genioux facts". The Innovation Value of "genioux facts" is exceptional for individuals, companies and any kind of organization.




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