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Familiarity is the enemy: On why Enterprise systems have failed for 60 years

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Why This Matters

This article highlights the persistent failure of enterprise knowledge systems over the past 60 years, emphasizing that risk aversion and reliance on established brands have hindered innovation and adoption of effective AI solutions. It underscores the need for the industry to prioritize practical, deployable technology over traditional insurance policies rooted in brand reputation. The message encourages continued innovation despite industry resistance, aiming to finally overcome long-standing barriers to enterprise AI adoption.

Key Takeaways

My thoughts on why enterprise knowledge systems have failed for sixty years, and what might finally replace them.

A couple of weeks ago I demoed one part of what I have been building to a senior exec at a global enterprise - someone who had been asked to lead and guide AI adoption in their part of this billion dollar company - our conversation was off the record, but what they told me - and why they couldn't buy my product - that is the basis of my essay.

First, they told me that what I had shown them was the first time they had seen an AI system for complex enterprise work that looked ready to deploy. Yes, they had familiar reservations: their data had to stay under their control (no problem, my architecture is designed around exactly that).

Next, they told me what the large consulting firms had been pitching them: the quotes sat in the hundreds of thousands, spread across a roughly threefold range. The high end was a gold-standard 99.5% accuracy promise while the low end was priced to be a deliberate foot in the door and the common thread was these firms were selling their own learning curve.

I had demoed a product that worked, while these behemoths - my competitors - were asking to be paid to build a product that worked.

Next I was told that they could not buy from me. Why?

Risk

And they put it succinctly: buying from a small innovative company is brave while buying from a big, well recognised name is an insurance policy and the risk-averse buyer must have the insurance.

That insurance - more than price and more than product - is what enterprise software has always traded on.

My conversation was not a one-off - of course - it is the shape of a sixty-year failure the industry has learned to call "prudent".

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