The Corporation as an Algorithm Factory

Abstract

We hear a lot about innovation these days. The “I-word” is woven into every mission statement and is on the lips of every executive. Believe me, I am not complaining—I welcome the resurgence of innovative thinking. But I also want results over talk, and I believe companies do as well. Yet I find they are so unprepared to “do” innovation that it rarely happens in practice, or worst, things that are only marginal improvements are branded as innovation. By turning the company into a metaphorical algorithm factory, not only do we encourage and instantiate innovation but we also begin the process of monetizing the algorithmic value of the company which is often hidden away from the balance sheet. In this chapter I will show you how to turn a company of any size and shape into an algorithm factory.