What happens to Amazon’s strategy as their data scientists, engineers, and machine learning experts work tirelessly to dial up the accuracy on the prediction machine?
Amazon gains a higher share-of-wallet. Turning the prediction dial up far enough changes Amazon’s business model from shopping-then-shipping to shipping-then-shopping.
Strategists face two questions in light of all of this. First, they must invest in developing a better understanding of how fast and how far the dial on their prediction machines will turn for their sector and applications. Second, they must invest in developing a thesis about the strategy options created by the shifting economics of their business that result from turning the dial, similar to the thought experiment we considered for Amazon.
Read the rest here: How AI Could Change Amazon: A Thought Experiment Harvard Business Review
This was originally published from: https://hbr.org/2017/10/how-ai-could-change-amazon-a-thought-experiment on