The New Logic of Competition

#artificialintelligence 

Learning has long been considered important in business. As Bruce Henderson, BCG's founder, observed more than 50 years ago, companies can generally reduce their marginal production costs at a predictable rate as their cumulative experience grows. But in traditional models of learning, the knowledge that matters--learning how to make one product or execute one process more efficiently--is static and enduring. Going forward, it will instead be necessary to build organizational capabilities for dynamic learning--learning how to do new things, and "learning how to learn" by leveraging new technology. Today, artificial intelligence, sensors, and digital platforms have already increased the opportunity for learning more effectively--but competing on the rate of learning will become a necessity by the 2020s.