Oct 4, 2023 | AI, Blockchain, Innovation, Transformation
My Journey at the Intersection of AI and Blockchain in Business
Delve into a firsthand exploration of the powerful fusion of AI and Blockchain in the business landscape. Learn from personal experiences, understand the synergy between scarcity and abundance, and witness the democratization of AI. From enhancing compliance and transparency to redefining sectors like service and manufacturing, discover how these exponential technologies are reshaping business paradigms. Join this transformative journey to future-proof your enterprise.
Introduction: A Personal Reflection on Exponential Technologies
I wrote an article for ExO Insight Exponential Technologies in May: The Intersection of Blockchain and AI. Since then, I’ve witnessed an unprecedented acceleration in technological innovation. The merger of Blockchain and Artificial Intelligence (AI) has brought about a revolutionary shift that’s too compelling to ignore. If you’re a CEO of a mid-size business like many of the colleagues I’ve spoken to, you’ll find that the union of blockchain’s unparalleled security and transparency with AI’s intelligence creates incredible opportunities. These opportunities can transform your focus on growth, innovation in operational efficiency, and future-proofing your business.
Navigating the Duality: When Scarcity Meets Abundance
I recently tuned into an Ark Investment Bitcoin podcast, where a fascinating concept caught my attention: “The scarcity of Bitcoin is hitting the infinity of AI.” Think about it. AI can mass-produce endless content and analyze data sets that are virtually infinite. Meanwhile, the scarcity inherent in blockchain—especially visible in Bitcoin—brings value to each piece of data or content. This interplay between scarcity and abundance can be a strategic lever for decision-making. For instance, you can use blockchain to certify the quality and origin of products in your supply chain. Simultaneously, AI algorithms can streamline shipping routes and reduce transportation costs, enhancing operational efficiency.
Are Blockchain and AI Rivals or Teammates? A Case for Synergy
One of the questions I frequently consider is whether blockchain and AI are competitors or collaborators. What I’ve found is they are most effective as allies. For those focused on innovation, imagine blockchain enabling a new democratization of AI algorithms. Your organization could offer specialized AI services in a blockchain-secured marketplace, opening new revenue streams and making high-end AI services accessible to the masses.
To me, one of the most transformative applications of AI is around governance and compliance. Let’s say you operate in the healthcare industry. Smart contracts powered by AI algorithms could automatically enforce HIPAA regulations or GDPR compliance, thereby mitigating risks associated with human errors or oversight. This is a tangible solution to the constant struggle to ensure regulatory compliance.
I find the ability of blockchain to audit AI behavior nothing short of groundbreaking. This level of transparency is incredibly empowering for CEOs who need to report to stakeholders and regulators. Your company could, for example, maintain an immutable ledger of all AI-powered financial transactions, implanting an unparalleled level of trust and operational efficiency.
My Personal AI: A Lifelong Learning and Defensive Tool
The rapid developments in AI have made me realize that each of us needs a personal AI—not just to foster a growth mindset but as a defense mechanism. With platforms like ChatGPT evolving to include real-time internet browsing capabilities, we can leverage AI for a plethora of business functions—from quick market research to instant customer service responses. For example, you could use a personal AI to perform a sentiment analysis on customer reviews. This can offer valuable insights into your product’s strengths and weaknesses, helping you make data-driven decisions. But with great power comes great responsibility—it’s our duty to ensure that we utilize AI responsibly, mitigating the risks of misinformation.
Making it Real: Practical Applications Across Sectors
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I’ve found that applying AI and blockchain technology in the service sector can transform customer experiences. For example, an AI algorithm could predict customer needs based on past interactions, and thanks to blockchain, these transactions can be securely and transparently recorded. This paves the way for efficient, personalized customer service that can significantly impact your bottom line.
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If you’re in manufacturing, consider the profound implications of integrating AI and blockchain in your supply chain. I’ve seen AI applications that can predict machine failures while blockchain can verify the authenticity of replacement parts. The two together enhance the supply chain’s reliability and integrity, effectively augmenting operational efficiency.
Conclusion: The Time for Action is Now
As a CEO deeply committed to growth and responsibility, I see the convergence of blockchain and AI as a toolkit that addresses our common challenges.
From identifying growth opportunities to compliance oversight. As we embrace these technologies, we’re not just solving today’s problems but shaping the industry’s future. And in doing so, we’re actively future-proofing our business.
Sep 14, 2023 | AI, Challenges, Innovation, Opportunity, SMEs
Opportunities and Challenges with Generative AI
Dive into the dynamic world of AI transformation as we explore how Generative AI at Mastercard empowers workforces to become co-pilots of AI technologies. Discover the opportunities and challenges that await CEOs of scaleups and SMBs in this AI-driven era.
The rapid evolution of technology continues to reshape the way businesses operate, bringing both opportunities and challenges to the forefront. CEOs of scaleups and small to mid-sized businesses (SMBs) face the ongoing struggle of identifying new growth avenues, staying relevant in the digital age, and adapting to industry disruptors. In this dynamic landscape, two recent articles shed light on critical aspects of AI technology that can significantly impact organizations. The first explores Mastercard’s pioneering journey into Generative AI, while the second delves into the transformative potential of AI tools for the workforce. In this article, we dissect these insights and demonstrate how they are poised to revolutionize the future of AI transformation for businesses like yours.
Generative AI at Mastercard
The article “Generative AI at Mastercard: Governance Takes Center Stage” from MIT Sloan School of Management is fascinating. It details Mastercard’s dynamic exploration of Generative AI, a technology that has gained significant momentum in the past eight months. While AI has been part of the business landscape for two decades, Generative AI stands out as a game-changer. It has the potential to fundamentally reduce the costs of cognition and creativity, placing the power of this intelligence into the hands of anyone who can create a prompt.
What sets Mastercard apart is its proactive approach to governance. The company has established robust policies and governance processes for Generative AI. These processes involve various functions and stakeholders within the company, as well as external experts and regulators. Mastercard recognizes the importance of responsible AI practices in upholding its values and reputation.
The company’s experimentation with Generative AI primarily focuses on internal productivity gains. However, what’s truly exciting is Mastercard’s vision for the future. The company is poised to leverage Generative AI to offer customer-centric products and services. This strategic shift demonstrates the immense potential that AI transformation holds for organizations looking to drive growth and innovation.
Leading a Workforce Empowered by New AI Tools
The HBR IdeaCast’s podcast episode titled ” Leading a Workforce Empowered by New AI Tools” explores another facet of AI’s transformative power. In this episode, Tom Davenport, a renowned expert in leveraging citizen development and AI for competitive advantage, shares valuable insights.
Davenport argues that new AI technology has ushered in an era where anyone can become a programmer. This shift is driven by AI tools that enable employees to create applications and automate tasks without formal programming skills. While this democratization of programming holds immense potential, it also poses challenges.
Companies are now faced with a critical question: should their employees utilize these new AI tools to drive innovation? The answer is a resounding yes. These tools empower organizations to achieve faster analytics and innovation. However, they also raise concerns about security, quality, and governance.
Organizations must develop policies and strategies using these AI tools to effectively manage a workforce. These efforts should align with broader business goals and IT standards. The ability to harness the potential of AI tools while maintaining data security and quality is a critical aspect of AI transformation.
As a CEO of a scaleup or SMB, you may wonder how to navigate this transformative era of AI. The articles and insights shared above provide a glimpse into the vast potential that AI technology holds for organizations of all sizes. It’s an exciting development, especially for scaleups and SMBs, as technology once more levels the playing field.
The key takeaway is that AI transformation is not an option but a strategic imperative for CEOs looking to drive growth, enhance operational efficiency, foster innovation, and ensure regulatory compliance. It can reshape your workforce, enabling employees to become co-pilots of AI technologies.
To further explore how AI can be your strategic partner in this transformative journey, consider our AI Transformation Studio. It’s designed to empower CEOs like you to unlock the full potential of AI, driving your organization toward a future of growth, innovation, and competitiveness. Get on board, embrace AI transformation, and lead your company into a future where possibilities are limitless.
Learn more about how our AI Transformation Studio could become your strategic partner in this journey at AI Studio | EscalateGroup.
Aug 11, 2023 | Exponential Organizations, Innovation
Exponential Organizations 2.0: Transforming Developing Economies
Discover how Exponential Organizations 2.0 are transforming developing economies, leveraging innovation and technology adoption to drive exponential growth and sustainable development. Explore real-world examples like eTukTuk, a groundbreaking sustainable transportation project, and see how developing markets can leapfrog outdated practices and shape a brighter future.
In our rapidly changing world, developing markets hold tremendous potential for exponential growth and impact. These markets, driven by their hunger for progress and openness to new technologies, can leapfrog outdated practices and embrace innovation. This article explores the power of Exponential Organizations 2.0 (ExO 2.0) in developing economies, showcasing how innovation and technology adoption can drive transformation and sustainable development.
Introduction to Exponential Organizations
As defined in Salim Ismail’s book, exponential organizations are companies that leverage new technologies and organizational structures to achieve unprecedented growth and impact. These organizations operate in a world of abundance, empowered by technologies like AI, big data, and blockchain. Through disruptive approaches, they reshape industries and tackle grand challenges.
Accelerating Technology Adoption in Developing Markets
In the context of developing economies, the concept of Exponential Organizations becomes even more significant. These markets, often constrained by limited resources and outdated infrastructure, have the potential to embrace and adapt to new technologies rapidly. With a hunger for progress and sustainable development, they present a unique opportunity to leverage innovation.
My firsthand experience within the ExO ecosystem and the Fastrack Institute has allowed me to witness the transformative impact of technology adoption in cities like Medellin and Bogota, Colombia. Despite emerging markets with lower GDP per capita, these cities have demonstrated remarkable resilience and a willingness to embrace cutting-edge solutions. By inspiring and empowering citizens, we have witnessed the emergence of scalable and cost-effective approaches to address critical urban challenges.
Solving Urban Challenges in Developing Markets
Our initiatives in Medellín and Bogotá focused on addressing urban challenges that hindered residents’ progress and quality of life. From mobility and health to financial inclusion and air quality, we injected knowledge and technology to empower these cities to adapt to rapid technological change.
Through collaborations, impactful projects such as Omnivida (now Cielum) emerged, providing preventative health solutions through technology. Colective.io, another project, optimized data sharing and mobility management by drawing inspiration from nature.
These initiatives showcased the possibility of developing markets to create groundbreaking solutions with profound societal implications by bringing well-being to millions of people and generating sustainability in health systems. Meanwhile, Colective.io enhances efficiency, sustainability, and connectivity within communities.
Leapfrogging Industrial Practices through Innovation
The ExO 2.0 book highlights the ability of developing markets to leapfrog outdated industrial practices and embrace new technologies. An excellent example of this phenomenon is M-PESA, the mobile phone-based money transfer service launched in Kenya. By bypassing traditional banking infrastructure, M-PESA enabled financial inclusion and economic participation for millions.
Another notable example is OYO Rooms, an Indian hospitality disruptor that leveraged technology and data analytics to revolutionize the budget hotel industry. These success stories demonstrate that developing markets can foster innovative business models and drive exponential growth and impact.
Harnessing Exponential Organizations 2.0 for Development
Developing markets possess a unique advantage in embracing exponential growth and impact. With less rigid organizational cultures and hierarchical structures, they can readily adopt new technologies and approaches. This article delves into Exponential Organizations (ExOs) 2.0 and showcases eTukTuk—an innovative automotive project developed on Cardano in a developing country—as a compelling example.
Exponential Organizations 2.0 emphasizes that developing markets need not unlearn decades of industrialization. Instead, they can leverage their adaptability to leapfrog outdated practices and embrace innovative strategies. Kenya and India have already demonstrated this potential.
Case Study: eTukTuk and Sustainable Transportation Solutions
eTukTuk, announced at the World Economic Forum in Davos, Switzerland, in January 2023, exemplifies an Exponential Organization in a developing country. This project, built on the Cardano platform, focuses on developing sustainable transportation solutions for urban areas. ETukTuk combats air pollution and establishes an affordable, eco-friendly transportation network by manufacturing electric vehicles and reducing reliance on fossil fuels.
eTukTuk manufactures three-wheeled electric vehicles (EVs) and currently operates in Sri Lanka and Cambodia, with expansion plans. The project’s primary objectives are to reduce the number of traditional internal combustion engine (ICE) vehicles on Sri Lankan roads, combat air pollution, and establish an affordable transportation network that breaks away from fossil fuel dependency.
By leveraging the Interface attribute of an ExO, eTukTuk utilizes new electric and battery technologies to create a sustainable mode of transportation. The adoption of EVs helps eTukTuk achieve zero emissions, significantly reducing CO2 emissions and related health issues. This initiative aligns with the ExO mindset of employing new technologies and approaches for exponential growth and impact.
Furthermore, eTukTuk may also leverage the Autonomy attribute by operating independently and efficiently with its fleet of electric tuk-tuks. Additionally, the project potentially utilizes Social Technologies by employing peer-to-peer collaborative tools, facilitating transparent, real-time conversations with customers and communities.
Developing economies hold immense potential for exponential growth and impact. Through the lens of Exponential Organizations 2.0, these markets can leverage innovation, technology adoption, and disruptive business models to overcome longstanding challenges. By embracing new possibilities and fostering collaboration, developing markets can position themselves as leaders in the global economy.
Projects like Cielum, M-PESA, and eTukTuk showcase the potential of developing markets by adopting innovative approaches and technologies to solve critical challenges. As we continue to empower cities and regions, the convergence of technology, knowledge, and ambition will shape the future of developing economies.
By embracing exponential thinking, developing countries can make significant strides in sustainable development, creating a brighter and more prosperous future for themselves and the world.
Feb 22, 2023 | Engagement, Agility, Blockchain, Digital Asset, Experimentation, Innovation, loyalty
In recent years, blockchain technology has been making waves in various industries, offering innovative solutions that can give companies a competitive edge. One area where blockchain is making a significant impact is in the world of NFTs (non-fungible tokens). NFTs are digital assets that are unique, non-interchangeable, and cannot be replicated. They have several properties that can change traditional marketing practices. In this blog post, we’ll explore how NFTs can potentially revolutionize branding, channels, pricing, and promotions in the marketing world.
NFTs Revolutionizing Marketing Mix
First and foremost, NFTs’ digital nature allows for a new level of flexibility and versatility in branding. Companies can now create unique digital identities for their products and services that can’t be replicated or counterfeited. These digital identities can then be used to create unique and compelling stories that can engage customers and build brand loyalty. Additionally, NFTs can be used to develop limited-edition digital items, adding a level of exclusivity and rarity that can drive demand and increase perceived value.
NFTs also open up new channels for marketing, such as online marketplaces and social media platforms. These new channels can provide transparency and trustworthiness that traditional marketing channels can’t match. NFTs can also be used to create new and innovative pricing models, such as dynamic pricing, where the price of an NFT is determined by market demand.
NFTs can also revolutionize promotions. Companies can now create special promotions, such as limited-time offers or exclusive deals, that can only be accessed by owning a specific NFT. This creates a new level of engagement and loyalty among customers, who are now incentivized to hold and collect specific NFTs to take advantage of these promotions.
However, it’s important to note that several short- and long-term issues will significantly impact the usefulness and attractiveness of NFTs in marketing and the broader world. For example, competitive dynamics, the need for experimentation and ease of use, creator royalties, and the risk of bad actors will all need to be addressed as NFTs become more mainstream.
Unlocking the Potential of NFTs with Escalate Group
In conclusion, NFTs have the potential to change traditional marketing practices in several ways. However, it will take time and experimentation to fully realize the potential of NFTs.
Our company, Escalate Group, has a Web3 innovation studio that can assist businesses in identifying Blockchain web3 business opportunities, gaining a competitive advantage, and producing exceptional results. As NFTs continue to evolve and gain mainstream acceptance, they will become an essential part of a brand’s overall digital experience and drive new marketing practices. So, keep an eye on this technology, as it will be a disruptor in the future!
*I used OpenAI’s GPT-3 and Grammarly tools to generate some of the content for this post.
Dec 7, 2022 | Innovation, advanced technology, Agility, Digital Tools, Digital Value
As the business world becomes increasingly fast-paced and competitive, reacting quickly and flexibly to changing environments has become more critical than ever.
Mid-sized companies, in particular, face the challenge of competing with larger, more established organizations while also trying to keep up with the rapid pace of change. However, the good news is that today’s technological innovations are providing new opportunities for mid-sized companies to overcome the limitations of traditional diagnostic management control systems and gain a competitive advantage.
One key factor that enables mid-sized organizations to respond quickly and flexibly is advanced technologies and digital tools. Today’s technological innovations —the metaverse, cloud computing, AI, and more— are addressing collective challenges and unlocking new opportunities for organizations in various industries, helping them overcome the limitations of traditional diagnostic management control systems.
Example of the healthcare industry
To illustrate the concept, a customer company in the healthcare industry has successfully leveraged technology and its culture of innovation to respond quickly and flexibly. When a major supplier suddenly went out of business, the company faced the challenge of finding a new supplier on short notice.
Instead of relying on conventional diagnostic management control systems, they used real-time data visualization and machine learning algorithms to track key performance indicators (KPIs) and identify potential suppliers that could meet their needs. This allowed them to find a new supplier quickly and efficiently, rather than relying on slow processes that might have yet to identify the problem in time.
Using these tools and being proactive in its response, the company quickly identified and secured a new supplier, minimizing the impact on its operations and maintaining a competitive advantage.
Similarly, agile project management methodologies and tools can help organizations be more flexible and responsive to changing priorities and needs, enabling them to deliver value more quickly and efficiently.
Culture of innovation and experimentation
In addition to leveraging technology and digital tools, organizations can also benefit from building a culture of innovation and experimentation that encourages employees to test new ideas and approaches and learn from their successes and failures. This helps create a more agile and responsive organization that can better adapt to changing circumstances and needs.
In conclusion, the ability to respond quickly and flexibly is crucial for mid-sized companies looking to compete in today’s business environment. By leveraging today’s technological innovations and building a culture of innovation and experimentation, mid-sized companies can overcome the limitations of traditional diagnostic management control systems and maintain a competitive advantage in high-innovation settings.
*I used OpenAI’s GPT-3 and Grammarly tools to generate some of the content for this post.
Nov 11, 2022 | Web3, Blockchain, Community and Crowd, Competitive edge, Disruption, Experimentation, Innovation, Jobs to be done
During the fall of 2014, attending the executive program of Singularity University at the heart of the Silicon Valley, the idea that Blockchain would be as significant to the growth of the internet in the next fifteen years as the internet has been in the previous 25 years started to grow in my mind.
Two market cycles after, I have seen many of the world’s best minds and billions of dollars in investment pouring into the space to figure out how to use the technology to make a fully digital society a reality. The adoption of Bitcoin has increased its positioning as a store of value; smart contracts have enabled crowdfunding, stablecoins, non-fungible tokens (NFTs), and Decentralized finance (DeFi).
Companies in various industries use blockchain to streamline processes and foster greater transparency and trust. According to Fortune Business Insights, the global blockchain market is projected to grow from $7.18 billion in 2022 to $163.83 billion by 2029, at a CAGR of 56.3% in the forecast period.
Blockchain is more than Bitcoin, Stable Coins, NFTs, DeFi, and Crypto.
Considering the pandemic, we have seen that the two main factors driving the expansion of the blockchain market are the financial services sector’s competitiveness and the health sector’s digitalization. Also, growth is fueled by the increased demand for data security, and there is already noticeable progress in the supply chain, gaming, music, and the arts.
Our Web3 innovation practice has been helping firms in the fintech, financial services, energy, healthcare, entertainment, manufacturing, and telecommunications sectors to assess the impact of blockchain and other exponential technology and trends on their business, develop integrated programs to enhance their current business models, create new ones, and gain and track their competitive advantages.
We know from experience that blockchain is still in its infancy and that it has yet to demonstrate its potential to transform the current internet into the internet of the future. But every business needs to dip a toe into the web3 wave. While in most businesses, it might still be early to commit entirely, there are certain areas where the race has already started.
Why Blockchain?
We are moving from the sharing economy into the ownership economy with new ways people organize around a project; communities and decentralized organizations will play a critical role. Blockchain technology becomes essential for business and society if you believe that material contributions should have clear ownership and provenance.
Blockchain is a platform for disintermediation; it is about trust, decentralization, and ownership. Consumers can own their data, and the technology enables tools to reward contributors and user behavior, boosting creativity, collaboration, and digital communities.
Communities are starting to engage their members, simplifying the technology and the user experience, and from there, they are beginning to explore opportunities. Therefore, adoption driven by digital communities will be critical and effective.
When technology is simple to use and solves a real problem, it is quickly embraced by the public. As it is, blockchain will not be an exception. Businesses must explore, build, measure, learn, and repeat to develop the skills required to flourish in the web3.
How to gain web3 competitive edge?
Below are the components of a disruptive innovation system to help organizations embrace blockchain disruption, gain competitive advantages, and make web3 happen.
- Begin with a Massive Transformative Purpose that can be taken by your organization and your community or one that can draw a new community.
- Proactively and pragmatically assess market trends impacting your business to identify opportunities where trust, ownership, and disintermediation have the potential to change the future of your industry.
- Leverage your Purpose, develop relationships, and nurture community; this way, the right people will find you.
- Engage your community, and educate yourself on web3 to better identify the problems your organization can solve and the jobs to be done with the customer at the core.
- Set aggressive objectives and 3-5 measurable key results (OKRs), run experiments, fall fast, and learn quickly.
- Establish and maintain a business rhythm and help your team to identify what they need to create new business models and monetization mechanisms.
- Use data, dashboards, and real-time information to make informed decisions about where and how to invest across the web3 innovation portfolio.
- Understand and measure your key success factors (KSFs), and hold yourself and your team accountable. Identify the #1 most prominent specific and measurement activity to success.
- Wash, rinse, and repeat; and make sure you extend your web3 disruption innovation culture.
Those who don’t start climbing the web3 learning curve may miss the most significant value-creation opportunity of our lifetimes, just as many people did during the transition to the world wide web in the 90s and the second wave during the 00s, where the user-generated content business models emerged.
If you have any comments or suggestions or would like to continue the conversation, do get in touch with us.
