Digital transformation (2/2): Power change

The previous article described how, in the past, the top-down hierarchical model of organisation was the norm. There always had to be somebody in charge (a tribal chief, a king, a CEO). Modern-day democracies are still top-down hierarchies, although the people in charge are elected. Technological innovations, however, have brought about changes.

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Now thanks to technological innovations, peer-to-peer networks can be an effective form of social organisation.

That wasn’t possible before. Digital technology has provided people with the means to self-organise so that now there are volunteers who work with no boss and no pay on a basis similar to that of Wikipedia, which has even overtaken the more than 200 years old market leader. How can a structure without a boss be so successful?

Transformation of power 

In the market place, a network usually operates far faster and far more intelligently than hierarchies. Networked structures of collective intelligence reduce the ill effects of individual human biases which are inherently present in the top-down hierarchical structures of the past.

The human-machine symbiosis will eventually morph into a super-intelligent artificial intelligence system, meaning there will be a giant leap in how decisions are made in society. The ultimate manifestation of AI is not an army of robots, but a holistic integration of human and machine learning, according to an article on the management-issues.com website.

New control mechanisms

AI networked intelligence is not limited by the capacity of our brains. It can transfer the complete knowledge of the system to any of the individual actors (such as autonomous vehicles) in no time. Actors still have the freedom to make the decisions, but those decisions will be much better informed ones.

No single individual will be able to seize control. Frauds or hacking will decrease or even disappear, since every action will be first validated by the collective intelligence protocols of blockchain before it is executed.

-jk-

Article source Management Issues - British website cntaining practical information, tips and advice to managers
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Digital transformation (1/2): Collective intelligence

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Digital transformation (2/2): Power change