Key points
- Polanyi's Paradox: We know more than we can tell - Michael Polanyi
- GO as the main benchmark for intelligence
- mastering Go with deep neural networks
- utilizing the crowd
Trends
- Machine: getting to human level intelligence
versus human mind
- Platform: Facebook and AirBnb dominating their verticals with none of the traditional assets
versus products
- Crowd: crowd sourcing of ideas and value
versus core - knowledges, processes, expertise, and capabilities companies have built over their supply chain
**Machine Age phases **
- Phase 1: take over large amounts of routine work. mid-1990s
- Phase 2: stuff of science fiction, performing non-routine work like self-driving. now
Machine versus human
- Psychology - Daniel Kahneman
Fast thinking (intuition)
used as data point
- show it lots of examples and give it frequent and rapid feedback about accuracy
- Slow thinking (deliberate)
come to conclusion with it but taking data point from intuition
- Proposed reversal:
machine take human judgement as input
- instead of machine presenting data to human for judgement
- Kids learn with no priorly defined rules
- entrepreneurship very rewarding to individuals and societies
Machines not very good at large scale creativity and planning
- humans are really good at it
Platform
- Unbundling of offerings
- Curation counters the corruptors
reputation system
- keep out bad and encourage good
- High reputation beats high similarity - stranger-danger biases
- Information asymmetry leads to market breakdown
Crowd versus Core
- new knowledge is constantly created
- new knowledge slow to enter into core
- Need core principals for crowd to come together to build things of great value
openness
- noncredentialism
- core is often mismatched for the problems its most interested in
knowledge comes from domain far away from problem itself
- unbundling of the firm
- managers fall back on process of iteration and experimentation
avoid biases and judgments
- how technology is used is more important than how easy it is to access it
References
- *The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies*
- *Why Fintech who kill Banks?*