Competing in the Age of AI Strategy and Leadership When Algorithms and Networks Run the World (Karim R. Lakhani, Marco Iansiti) (Z-Library)
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Contents 1. Title Page 2. Copyright 3. Dedication 4. Contents 5. 1. The Age of AI 6. 2. Rethinking the Firm 7. 3. The AI Factory 8. 4. Rearchitecting the Firm 9. 5. Becoming an AI Company 10. 6. Strategy for a New Age 11. 7. Strategic Collisions 12. 8. The Ethics of Digital Scale, Scope, and Learning 13. 9. The New Meta 14. 10. A Leadership Mandate 15. Notes 16. Index 17. Disclosures
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18. Acknowledgments 19. About the Authors Guide 1. Cover 2. Table of Contents 3. Start of Content 4. Index 5. Acknowledgments Pagebreaks of the print version 1. Cover Page 2. iii 3. iv 4. v 5. vii 6. viii 7. 1 8. 2
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COMPETING IN THE AGE OF AI Strategy and Leadership When Algorithms and Networks Run the World MARCO IANSITI KARIM R. LAKHANI HARVARD BUSINESS REVIEW PRESS BOSTON, MA
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HBR Press Quantity Sales Discounts Harvard Business Review Press titles are available at significant quantity discounts when purchased in bulk for client gifts, sales promotions, and premiums. Special editions, including books with corporate logos, customized covers, and letters from the company or CEO printed in the front matter, as well as excerpts of existing books, can also be created in large quantities for special needs. For details and discount information for both print and ebook formats, contact booksales@harvardbusiness.org, tel. 800-988-0886, or www.hbr.org /bulksales. Copyright 2020 Harvard Business School Publishing Corporation All rights reserved No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@harvardbusiness.org, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. The web addresses referenced in this book were live and correct at the time of the book’s publication but may be subject to change. Library of Congress Cataloging-in-Publication Data Names: Iansiti, Marco, 1961- author. | Lakhani, Karim R., author. Title: Competing in the age of AI : strategy and leadership when algorithms and networks run the world / Marco Iansiti and Karim Lakhani.
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Description: Boston, MA : Harvard Business Review Press, [2020] | Includes index. Identifiers: LCCN 2019024137 | ISBN 9781633697621 (hardcover) Subjects: LCSH: Artificial intelligence—Industrial applications. | Competition. | Leadership. | Business planning. Classification: LCC Q335 .I323 2020 | DDC 658/.0563—dc23 LC record available at https://lccn.loc.gov/2019024137
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To my mother, Laura, my wife, Malena, and to all my amazing kids. —M. I. To Shaheen, Sitarah, and Doulat, the women in my life who make it all worthwhile. —K. R. L.
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Contents 1. 1. The Age of AI 2. Artificial intelligence is transforming the way firms function and is restructuring the economy 3. 2. Rethinking the Firm 4. Software, networks, and AI are changing the fundamental nature of companies—the way they operate and compete 5. 3. The AI Factory 6. The core of the new firm is a scalable decision factory, powered by software, data, and algorithms 7. 4. Rearchitecting the Firm 8. To use the full power of digital networks and AI, firms need a fundamentally different operating architecture 9. 5. Becoming an AI Company
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AI Reading Assistant
Whole-book reading guide from stratified index samples; jump to passages in the text
AI guide
【One-Line Pitch】
A strategic playbook for leaders navigating the shift from traditional operational models to AI-driven, network-centric businesses, showing how data, algorithms, and digital platforms redefine competitive advantage. Ideal for executives, strategists, and managers in industries facing digital disruption.
【Book Arc】
- **Opening (~0%–5%)**: Introduces the "Age of AI" as a fundamental break from the past, arguing that AI and network effects are not just tools but new operational foundations that reshape entire industries.
- **Early (~5%–20%)**: Redefines the firm, contrasting traditional pipeline businesses with modern platform-based models, and introduces the "AI Factory" as the core engine for data-driven decision-making and value creation.
- **Middle (~20%–50%)**: Explores how to rearchitect an organization around AI, covering the technical, operational, and cultural changes needed to become an AI company, including data infrastructure and workflow redesign.
- **Middle (~50%–70%)**: Shifts to strategy, examining how competitive dynamics change when scale, scope, and learning are driven by digital networks, and how firms can navigate "strategic collisions" with new entrants.
- **Late (~70%–90%)**: Addresses the ethical and societal implications of digital scale, including issues of bias, privacy, and concentration of power, and discusses the "New Meta" of interconnected platforms.
- **Ending (~90%–100%)**: Concludes with a leadership mandate, urging executives to take responsibility for guiding their organizations through this transformation with a clear vision and ethical grounding.
【Key Takeaways】
- **AI is a new operational paradigm, not just a technology** (Early): The book argues that AI fundamentally changes how firms operate, shifting from human-led processes to algorithm-driven systems that learn and improve continuously. This matters because it redefines the core of competitive strategy.
- **The "AI Factory" is the new engine of value creation** (Early): A centralized, data-driven system that standardizes decision-making and scales learning across the organization. This concept is crucial for leaders to understand how to build and manage the technical core of a modern firm.
- **Digital scale, scope, and learning are the new strategic levers** (Middle): Unlike traditional firms, AI-driven companies can scale without proportional cost increases, expand into adjacent markets easily, and learn faster from every interaction. This shifts the basis of competitive advantage from physical assets to data and algorithms.
- **Rearchitecting the firm is a prerequisite for AI success** (Middle): Simply adding AI to existing processes is insufficient; firms must redesign their workflows, data infrastructure, and organizational structures to fully leverage AI. This is a hard, often underestimated, operational challenge.
- **Strategic collisions are inevitable and redefine industries** (Middle): As AI companies expand their scope, they collide with traditional players and each other, creating new competitive dynamics. Leaders must anticipate these collisions and prepare for a landscape where industry boundaries blur.
- **Ethical considerations are strategic, not just moral** (Late): Issues like algorithmic bias, data privacy, and the concentration of power are not side effects but core strategic risks. The book argues that addressing these is essential for long-term sustainability and trust.
- **Leadership must evolve to manage the new meta** (Ending): The interconnected nature of AI platforms creates a "meta" level of competition and cooperation. Leaders need a new mandate to navigate this complex ecosystem, balancing innovation with responsibility.
【Reading Tips】
- **Deep-read Chapters 2 and 3** (Rethinking the Firm, The AI Factory): These are the conceptual core of the book, providing the foundational frameworks for everything that follows. Skim the early industry examples if you're already familiar with digital disruption.
- **Focus on the "Strategic Collisions" chapter** for practical competitive analysis: This section is most useful for applying the book's ideas to your own industry context and identifying potential threats and opportunities.
- **Pay close attention to the ethics chapter**: It's not a peripheral topic but a central strategic argument. Understanding this will help you see the full scope of leadership responsibility in the AI age.
- **Use the "Leadership Mandate" chapter as a call to action**: If you're a decision-maker, this is your checklist. Revisit it after finishing the book to distill actionable steps for your organization.
- **Skim the notes and disclosures** at the end: They provide sources and context for the authors' claims, useful for deeper research but not essential for the main argument.
【Coverage Limits】
This guide is based on a sample of excerpts covering the book's structure and early-to-middle content. It does not cover detailed case studies, specific technical implementations, or the full depth of the later chapters on ethics and leadership.
Passage locations
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