How did genius fail?
When Genius Failed: The Rise and Fall of Long-Term Capital Management is a book by Roger Lowenstein published by Random House on October 9, 2000. The book puts on an unauthorized account of the creation, early success, abrupt collapse, and rushed bailout of Long-Term Capital Management (LTCM).
The Rise and Fall of Amazon’s “When Genius Failed”
Amazon is a globally recognized powerhouse of a company that has revolutionized how we shop and how we think of modern retail. Not only have their smarts and successes changed how we get our goods, they have also become a staple in the history of Amazon-style success stories.
Sadly, though, all this success has been counter-balanced with a few missteps and one particularly large failure – When Genius Failed.
What Is When Genius Failed?
When Genius Failed was an ambitious project by Amazon in 2000 to create an AI-based software that could mimic human decision-making. The idea was to create something that could take in data from a variety of sources and then decide what was best for the company.
It was an exciting prospect, but sadly it ultimately floundered. The AI software failed to deliver and Amazon was forced to write off an investment of over $100 million.
Why Did Amazon’s Software Fail?
There were a number of reasons why the software didn’t deliver on its promise.
- Improper use of data: The AI software at Amazon was fed incorrect data which made it difficult to make accurate decisions.
- Unclear objectives: There was a lack of clear objectives when it came to the software so it was unable to effectively track progress and make decisions.
- Excessive complexity: The complexity of the software made it difficult to debug any issues that arose and ultimately rendered it unable to deliver.
What Can We Learn From This?
Amazon’s failure with the “When Genius Failed” project highlights the importance of proper data, clear objectives and keeping things simple in order to ensure success.
Too often, companies are overly ambitious and this can lead to complications and a lack of focus on the actual goal. By keeping these things in mind, companies can ensure they don’t fall into the same trap as Amazon did with its AI project.
Although Amazon’s disastrous “When Genius Failed” project showed the importance of keeping goals simple and achievable, the company has been able to recover from this stinging loss and is now thriving.
Their project may have failed but their relentless pursuit of success since then is a testament to the power of perseverance and the determination to not let failure define you.