Monday Insights #2
Subject: Thriving in an Era of Abundant Expertise
Good morning!
As we dive into 2025, one of the most pressing questions for business leaders is how to remain competitive in an environment where artificial intelligence (AI) is democratizing expertise. This week, I want to share some powerful insights from a forthcoming article in the Harvard Business Review titled Strategy in an Era of Abundant Expertise. It’s an eye-opener for anyone navigating today’s fast-evolving business landscape.
Thriving in an Era of Abundant Expertise
The Shifting Foundations of Expertise
At its core, every business is a unique bundle of expertise, orchestrated to solve problems and deliver value. From Toyota’s mastery of lean manufacturing to Walmart’s prowess in distribution, companies have historically distinguished themselves through specialized know-how. Yet, as AI accelerates, the very nature of expertise—its accessibility and cost—is transforming.
Take Nokia, for instance. Once a leader in mobile phones, Nokia’s edge lay in hardware manufacturing. However, the advent of smartphones—which demanded expertise in software ecosystems—left the company scrambling. This shift underscores a critical reality: companies must continuously refine and adapt their core expertise to stay relevant.
Two Forces Reshaping Strategy
The authors identify two key forces reshaping business strategy today:
The Expansion of Expertise: Technological advancements, particularly in AI, are rapidly increasing the volume of domain knowledge. In biotech, for example, the number of academic papers citing AI in drug discovery skyrocketed from under 200 in 2001 to over 45,000 in 2021. Keeping pace with such an explosion of knowledge is daunting for any organization.
Falling Costs of Expertise: AI and digital tools have dramatically reduced the cost of acquiring expertise. Platforms like Instagram and TikTok exemplify how creator tools enable amateurs to produce professional-grade content quickly and cheaply. Similarly, businesses now leverage AI for coding, customer service, and even marketing, making it easier for newcomers to challenge incumbents.
Implications for Businesses
The interplay of these forces means that companies must rethink their operational models. Here’s how:
Refocus on Core Competencies: Companies like FocusFuel, a startup in the wellness space, are excellent examples. By using AI to handle noncore activities such as market analysis and supply chain logistics, FocusFuel’s founders could devote their resources to understanding customer needs and refining their products—key differentiators that drive competitive advantage.
Augmenting Workforce Productivity: AI tools are transforming the workplace. GitHub Copilot, for example, helps developers complete tasks 20-55% faster by automating routine coding processes. These tools elevate low performers to average levels and allow high performers to focus on more strategic tasks.
Streamlining Operations with AI: Companies like Moderna have shown how to scale AI adoption across an organization. With 900 specialized AI assistants, Moderna optimized everything from clinical trials to regulatory compliance, achieving in minutes what once took weeks.
Key Strategic Questions
As AI reshapes the competitive landscape, businesses need to ask themselves:
What problems can our customers solve using AI? Travel agents, for instance, have seen their roles disrupted by AI-enabled booking tools. To stay relevant, they may need to offer unique experiences rather than basic itineraries.
How must our expertise evolve? In healthcare, AI may outperform doctors in diagnosing images, but human empathy and team collaboration remain irreplaceable. Developing these nontechnical skills will be crucial.
What enduring assets can we build? Companies should focus on developing assets that AI cannot easily replicate, such as strong customer relationships, brand loyalty, and proprietary data.
Take Action
If you’re wondering where to start, the authors suggest beginning with digitized, software-centric processes like coding or customer service. Additionally, investing in employee training through initiatives like AI academies—as Moderna did—can accelerate adoption and help embed AI capabilities across your organization.
Finally, don’t underestimate the importance of governance. With risks like bias, misinformation, and cybersecurity threats, clear AI safety protocols are essential.
Final Thoughts
As AI continues to redefine the rules of competition, the winners will be those who can adapt their strategies and operations at speed. Whether you’re a small business owner or the CEO of a multinational corporation, the path forward involves leveraging AI to streamline processes, upskill teams, and focus resources on areas that truly matter.
To explore these ideas in greater depth, I’ve included a link to the full article. I hope it inspires you to rethink how your organization can thrive in this new era of abundant expertise.
Until next week, keep pushing boundaries and refining your strategy.
Best Regards
Werner Mouton, CGMA