Approaches to understanding the world will undergo a revolution as data reflects the physical world on a broad spectrum from the macro to micro; as algorithms conduct reasoning, experiments, and simulation in the digital realm; and as computing power enhances digital accuracy and reduces the digital granularity. Eventually the digital world will generate optimal results that can be immediately applied to transforming the physical world.
Intelligent economy leverages digital technology, algorithms, and a computing power-based decision-making model to address uncertainty. It differs from either the free market mechanism that takes price as the signal or the enterprise mechanism that depends on human coordination.
The emerging intelligent economy has three main features:
(1) Data serves as the key factor of production;
(2) Human-machine coordination becomes the primary mode of production and service, in contrast with the model of workers operating machines in the Industrial Age;
(3) The goal of the economy becomes satisfying the personalized needs of massive amounts of consumers.
The new intelligent economy landscape:
We examine signs in the market to depict the future landscape of the intelligent economy
(1) A new economic operating system. A new-generation of IT infrastructure incorporating AI, cloud computing, big data, IoT, block chain, and 5G technology is taking shape to serve as a new economic and social operating system.
(2) A new organizational form. With more micro-sized, cloud-based organizations, more organizations adopting fluid operation and open boundaries, and human-machine coordination as the new norm, a borderless coordination network is becoming the mainstream organizational form.
(3) A new industrial form. An emerging intelligent industry and subsidiary service industry are rising quickly as intelligent transformation of traditional industry deepens.
(4) A new set of primary principles will be built for the intelligent economy, including ecological transformation, personalization, elasticity, socialization and de-centralization.
(5) New customs and values like open Internet, sharing, transparency, and accountability will become essential qualities in the Internet age and be incorporated into everyday beliefs.