Intelligent enterprise is an organizational management concept that leverages knowledge and technology in an attempt to improve business performance. The concept, as articulated in James Brian Quinn's book Intelligent Enterprise, posits that intellect is the core resource in producing and delivering services. It goes on to say that managers are expected to provide a rewarding work environment through lower friction and an energetic conduct,[1] and auxiliary functions should be outsourced to vendors, so that firms may focus on their core components.[2]
Ming Yingzhao and Feng Dexiong stated that "the degree to which the Intelligent Enterprise can be successful depends on the competencies of the people and its operational capabilities",[3] such as structure, policies and systems. Asif Gill discussed the contemporary information-driven approach that uses data, analytics, and artificial intelligence/machine learning for "architecting intelligent enterprises".
During its early years, Honda competed with companies such as Toyota and other Japanese car producers. Outsourcing many of its components to achieve economies of scale and focusing more on the development and production of its manufacturing operations helped it gain a competitive advantage.[4]
Apple retailed for about $2000 when introduced to the highly competitive computer environment. Production costs were less than $500, as over 70% of its components were outsourced.[5] Instead, Apple focused on design, logistics, software and product assembly.[6]
Jatinder Gupta claims that increased availability of information leads to better decision-making which can be beneficial from a macroeconomic perspective.[6] Gupta classifies the advantages of Intelligent Enterprises into three distinct levels: Operations, Tactical and Strategies.
Gill Palmer, a doctoral candidate, identified a blind spot[7] among many corporations and businesses: the need for a harmonious integration between internal operations and external interactions.
The internal aspects of a business encompass several key components, including strategic planning, which involves the formulation of long-term goals and the development of actionable plans to achieve them. Resource efficiency refers to the optimal utilization of assets – such as human capital, technology, and finances – to minimize waste and maximize productivity. Additionally, businesses must continuously identify and assess opportunities that arise in the marketplace, allowing them to innovate and adapt to changing conditions.
Effective processes are crucial, as they dictate how tasks are carried out and how information flows within the organization. Lastly, the way a business interacts with its external environment, including stakeholders such as customers, suppliers, and regulatory bodies, can significantly impact its success. Therefore, both the internal dynamics and external relationships must work in concert to foster a truly intelligent enterprise.[8]
It is quite important to note that humans are the intelligence behind the technological systems, and to affirm the validity is still very limited. Human beings have many qualities that are different to that of a technology apparatus (e.g., psychological and sociological), which need to be taken into account. Therefore, limiting this theory to that of a technological approach should not be the sole focus of a corporation.[8]