THE CORNERSTONE OF ECONOMIES OF INTELLIGENCE
In the dynamic and ever-evolving landscape of the digital age, a revolutionary force is reshaping economies and industries. At the epicentre of this transformation lies the concept of Systems of Intelligence — built on next generation technologies – that are redefining both operational and businesses models.
This paper explores the fundamental essence of Systems of Intelligence and their pivotal role in enabling the emergent Economies of Intelligence. Understanding their significance and application is essential for any business looking to thrive in a world where data reigns supreme!
Defining Systems of Intelligence:
Essentially, Systems of Intelligence constitute an interconnected framework that extends beyond the realms of traditional data processing. Built on the Next Wave Digital Platform, their architecture comprises a fusion of next generation technologies with Artificial Intelligence (AI) at the core. Unlike traditional systems, they possess the remarkable capacity to evolve and adjust continuously, drawing insights from data, identifying intricate patterns, and orchestrating responses that go beyond the limitations of conventional rule-bound systems.
This transformative leap positions Systems of Intelligence as indispensable assets when navigating todays ever-changing environment.
The Foundation of Economies of Intelligence:
Historically, economies have thrived on the basis of various "Economies of Scale", which focus on mass production and cost reduction. However, in today's information-driven world, Economies of Intelligence are taking center stage. The term, derived from Systems of Intelligence, refers to a paradigm where organizations recognize data as a critical resource. In such economies, the ability to harness, interpret, and leverage data intelligently becomes a key driver of economic growth and competitive advantage. However, Economies of Intelligence don’t replace, or displace Economies of Scale, rather they augment, working in tandem to accelerate value creation.
This transition from traditional economies, where tangible assets held sway, signifies a shift towards additional data-driven innovation and resilience.
The Pivotal Role of Data
AI, in isolation, is inert; it relies on data as its lifeblood. In the context of human cognition, we can extend the analogy: just as a human brain continuously receives a stream of data through a high-speed, high-bandwidth nervous system and the five senses, AI similarly depends on data as its sensory input to function effectively.
Quality and accessibility of data are critical factors for success. Organizations that prioritize data governance, security, and ethical utilization are better positioned to unlock the full potential of Systems of Intelligence. In this evolving landscape, businesses need to adopt a data-centric mindset, recognizing data as not just a resource, but a strategic asset.
The ‘Next Wave Digital Platform‘ Systems Perspective:
To unlock the true value of Systems of Intelligence, organizations must recognize the intricate interplay between data and technology. While AI often takes the spotlight for its transformative potential, it is vital to recognize that Systems of Intelligence encompass a wider spectrum of next generation technologies to effectively tap into rich sources of data. From an architectural perspective, these form the ‘sensing and nervous systems’ needed to capture, transmit, store and process data. The next-generation technologies, from which Systems of Intelligence are assembled, can be thought of as the Next Wave Digital Platform as follows:
Artificial Intelligence (AI)
Internet of Everything (IoE),
Mixed Realities (MR),
Cloud & Edge Computing,
and near Ubiquitous Connectivity.
Additionally, whilst AI is described as being ‘at the core’ of these intelligent systems, the actual application of AI processing can occur across the systems architecture – on the End Point device, at the Edge, or in the Cloud itself.
In essence, comprehending Systems of Intelligence requires viewing the entire system as a cohesive entity rather than isolating AI as a standalone component. Perhaps the best way to illustrate this is by way of an example.
Example – The Passenger Economy and Autonomous Vehicles:
The Passenger Economy illustrates the concept of an Economy of Intelligence, driven by the advancements in Autonomous Vehicles. This economy fundamentally offers an on-demand service where self-driving cars can be readily summoned to transport individuals from one location to another, simplifying point A to point B travel. Projections indicate that this market is poised to reach a substantial value of approximately $10 trillion by 2050, coinciding with an estimated 33 million driverless vehicles expected to be in operation by 2040. When we integrate the previously mentioned Next Wave Digital Platform technologies it becomes evident how integral these pillars will be in enabling this market segment.
Internet of Everything - vision and scanning capabilities (e.g. LiDAR) sense the vehicles surroundings to build a real-time 3600 dynamic map
Artificial Intelligence – ‘In flight’ AI enables the intelligent decisions that improve safety and efficiency
Cloud to Edge Computing – a car becomes a ‘datacenter’ on wheels, with split second edge processing enabling responses ‘faster than human reflexes’
Pervasive Networking - Lightning fast, low latency 5G supports massive numbers of simultaneously connected cars
Mixed Realities – AR/VR and Digital Twin simulation environments accelerate autonomous vehicle development and improve safety
Autonomous driving also promises improved safety, better energy usage and less pollution through intelligent routing. None of which would be possible without a System of Intelligence.
Winning Companies Embrace Economies of Intelligence:
Within the global economic landscape, six out of the top eight of today’s most valuable companies, by market capitalisation (i.e. Apple, Amazon, Microsoft, Alphabet, Tesla, and Meta), have all adopted Economies of Intelligence as a core underpinning of their business models. This strategic approach involves leveraging technology to maximize the inherent value contained within data. This significant shift in business model by such industry titans emphasises the growing importance of data-driven strategies.
In Summary:
Systems of Intelligence represent a dynamic and interconnected web of technologies that redefine the boundaries of what is possible in the digital age. While AI is a central component, it is just one facet of an intricate architecture and ecosystem. The harmonious interplay between data and technology is the driving force behind the transformative potential, making them a linchpin for organizations seeking to both “Do things better”, and “Do better things”.
In the next article in this series on we’ll shine a light on Systems of Intelligence through the lens of Manufacturing, showing how they are intrinsically linked to the journey to Industry 5.0.
Thanks for reading.
Andrew and Jim.
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