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Over the last few years, the digital transformation trend has seen mixed results.

At the peak of the movement, 90% of C-suite leaders felt underwhelmed by the outcomes.

The impact on businessproductivityfell short of expectations.

Digital was not a mirage, but it was a misplaced priority.

It should have been transformation first, digital second.

But so many put the cart before the horse.

It was so easy to make it all about digital-first - and forget about transformation entirely.

We are now at a new era of transformation.

On one hand, companies are at risk of the same error.

On the other hand, this new era is an opportunity to break old habits.

SVP for Strategic Initiatives at Workato.

Nassim Taleb would call these “fragile” and “antifragile” companies.

The fragile companies broke down in response to the system shock.

The intelligence revolution that is now upon us is yet another system shock.

A keen observer may ask why since AI has been around for 30+ years.

Companies have been harnessingdata-driven intelligence for many years.

Like much of digital transformation, these have resulted in incremental gains.

GenAI is something different; it is going to change business operations at the genetic level.

Never before has every business competitor had AI at their fingertips.

AI by itself will not disrupt businesses, but competitors wielding AI will.

This new wave ofartificial intelligence, however, is a system shock unlike any that has come before.

If we have learned anything from the digital transformation era, it is that technology is not priority one.

Even in the era of AI, winners will place transformation and mindset above technology.

Transformation first, AI second.

In this world, we rethink old frameworks and consider a new approach.

Digital Brains, in many ways, need to be treated likeemployees.

They bring unprecedented reach into unstructured data, and enormous potential to understanding and even making business decisions.

Contending with this new world requires a new mindset.

We believe an organization’s mindset around transformation was always important and will matter more in the future.

It will dictate how we choose to apply AI."

In a way, this makes organizational mindsets nearly as important as AI itself.

Does our existing process make sense in the era of AI?

Today, change is the only constant.

Reinforce with the scale mindset: AI has unprecedented reach and capabilities.

Automation grants great power to those who wield it.

Because digital brains are making decisions - decentralized decisioning becomes the norm.

Once that occurs - an entirely new kind of organization will arise.

The rise of the organic enterprise

Many years ago, professors Tom Burns and G.M.

Stalker proposed a business theory comparing organic and mechanistic structures in organizations.

Mechanistic structures were centralized, rigid, hierarchical, and highly specialized.

At the time, this point of view sounded like science fiction.

The possibilities are breathtaking.

As organizations add digital brains to their processes - the experience of work will completely change.

Intelligence, judgment, and decision-making will take on a completely new form.

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The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc.

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