Found 4 article(s) for author 'Marco Iansiti'

Design in the Age of Artificial Intelligence

Design in the Age of Artificial Intelligence. Marco Iansiti, 2020, Paper, “Artificial Intelligence (AI) is affecting the scenario in which innovation takes place. What are the implications for our understanding of design? Is AI just another digital technology that, akin to many others, will not significantly question what we know about design? Or will it create transformations in design that our current frameworks cannot capture? To address these questions, we have investigated two pioneering cases at the frontier of AI, Netflix and AirBnB (complemented with analyses in Microsoft and Tesla), which offer a privileged window on the future evolution of design. We found that AI does not undermine the basic principles of Design Thinking (people-centered, abductive and iterative). Rather, it enables to overcome past limitations (in scale, scope and learning) of human intense design processes. In the context of AI factories solutions may even be more user-centered (to an extreme level of granularity, i.e. being designed for every single person), more creative, and continuously updated through learning iterations that span the entire life cycle of a product. Yet, we found that AI profoundly changes the practice of design. Problem solving tasks, traditionally carried on by designers, are now automated into learning loops that operate without limitations of volume and speed. These loops think in a radically different way than a designer: they address complex problems through very simple tasks, iterated exponentially. The article therefore proposes a new framework for understanding design practice in the age of AI. We also discuss the implications for design and innovation theory. Specifically, we observe that, as creative problem solving is significantly conducted by algorithms, human design increasingly becomes an activity of sense making, i.e. to understand which problems make sense to be addressed. This shift in focus calls for new theories and brings design closer to leadership, which is, inherently, an activity of sense making.Link

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Network Structures and Entry into Platform Markets

Network Structures and Entry into Platform Markets. Feng Zhu, Marco Iansiti, December 2018, Paper, “While some platform markets exhibit strongly interconnected network structures in which a buyer is interested in purchasing services from most providers, many platform markets consist of local clusters in which a buyer is primarily interested in purchasing services from providers within the same cluster. We examine how network structures affect interactions between an incumbent platform serving multiple markets and an entrant platform seeking to enter one of these markets. We find that having more mobile buyers, which increases interconnectivity among markets, reduces the incumbent’s incentive to fight and increases the entrant’s incentive to expand. Incumbent profits increase with interconnectivity. When advertising is inexpensive and mobile buyers consume in both local markets and the markets they visit, greater interconnectivity increases the entrant’s profit, thus encouraging entry.Link

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Managing Our Hub Economy

Managing Our Hub Economy. Marco Iansiti, Karim Lakhani, September/October 2017, Opinion, “The global economy is coalescing around a few digital superpowers. We see unmistakable evidence that a winner-take-all world is emerging in which a small number of “hub firms”—including Alibaba, Alphabet/Google, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent—occupy central positions. While creating real value for users, these companies are also capturing a disproportionate and expanding share of the value, and that’s shaping our collective economic future. The very same technologies that promised to democratize business are now threatening to make it more monopolistic.Link

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What the Companies on the Right Side of the Digital Business Divide Have in Common

What the Companies on the Right Side of the Digital Business Divide Have in Common. Marco Iansiti, Karim Lakhani, January 31, 2017, Paper, “In just a few years digital technology has connected an ever-growing number of people, sensors, and devices. It’s created new business and social networks, resulted in new ecosystems, and transformed our economy. Of course, not all organizations have responded to it in the same way. While some have invested significantly in technology, operational, and cultural changes, others are lagging behind. Our research shows that digital transformation is paying off for those who embrace it: Digitally transformed organizations (“digital leaders”) performed much better than organizations that lagged behind (“digital laggards”), effectively creating a “digital divide” across companies.Link

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