Notebook · Business as an information system

Making a business
legible to AI.

My view of a business as a system of roles, information, and decisions, and what that implies for AI.

Eight mental models · Two surfaces · One governed bus A set of working mental models

Part one · The mental models

Eight mental models I keep returning to.

01Governance as the objective functionEvery optimization needs an objective. Leadership's first job is to define the summit, so a system has a shared goal against which its behavior can be evaluated.
02The layered enterpriseI work from objectives down to functions and decisions. The point is to make the connection between a local action and the larger goal visible.
03Enterprises are information systemsA company is information flowing between people making decisions. I can start describing a department through what it consumes, transforms, and produces.
04Functions before departmentsDepartments are human conventions. Functions create value, and functions are reusable, exposed by one team and consumed by many.
05Intelligence is a layer, not an appI find it more useful to ask which decisions need better context and reasoning than to begin with a new application.
06Judgment is the scarce resourceExecution is becoming cheap: code, content, analysis, automation. Judgment is becoming decisive: which market, which feature, which customer.
07Learning should carry forwardI want experiments to leave reusable knowledge, evaluation cases, and infrastructure. A deployment should teach us something useful for the next one.
08Organizations transform by becoming legibleThe centerpiece. Before you automate a business you must understand it; before you understand it you must model it.

Mental model 08 · The centerpiece

I think useful AI starts with making the organization legible.

First, become legible

Before you can automate a business, you must understand it. Before you understand it, you must model it: what each function does, consumes, produces, and decides, and where judgment is required.

Then, the design questions become clearer

An explicit model of the organization helps me identify candidate uses for copilots, automation, and prediction. It also reveals where context is missing or human judgment must remain. Those are hypotheses to test, not guarantees of safe automation.

Mental model 02, in depth

The layered enterprise.

Start at the top and work your way down. Executives design at the highest level of abstraction; intelligence lives at the core.

6Executive StrategyWhat objective are we optimizing toward?
5Business FunctionsWhat capabilities must the organization possess to achieve it?
4WorkflowsHow are those capabilities delivered today?
3Tasks & DecisionsWhat decisions are made at each step?
2Applications & InformationWhere is the information required to make each decision well?
1IntelligenceHow can AI improve those decisions?
Figure 01

From purpose to a specific decision

  • StrategyChoose the objective and acceptable tradeoffs.
  • Functions and workflowsDefine the capabilities and how work moves.
  • Tasks and informationLocate decisions and the evidence they require.
  • IntelligenceApply context and reasoning where they can improve those decisions.
Read from the objective toward implementation. Evaluation travels in the other direction: did the action serve the purpose?

The map · Surfaces of intelligence

Two surfaces, one system.

Intelligence improves how the company operates, and what the company sells. The same discipline, applied inward and outward.

Surface 01

Enterprise Intelligence: how the business operates

I can imagine a different decision context for each function:

Finance: forecasting, margin optimization, anomaly detection · Sales: qualification, account planning, renewal prediction · Customer Success: churn prediction, health scoring · Support: routing, copilots, predictive escalation · Product: prioritization, telemetry, roadmap simulation · Engineering: copilots, review, incident investigation · Operations: scheduling, capacity, exception detection · HR · Legal · Data: search, contract review, data quality.

Surface 02

Product Intelligence: what the company sells

From telling customers what happened to telling them what to do:

Predictive maintenance: “These assets will likely need service within their next operating window.” · Utilization: “Reallocate this resource to avoid renting another.” · Efficiency: “You're spending more than comparable operations due to idle behavior.” · Safety: “This pattern correlates with elevated risk.”

I’m interested in interfaces that bring relevant context to a decision, rather than adding another place to search for it.

The wiring · Role Programming Interface

The real-time enterprise.

I imagine a system organized around roles: each has its own ThoughtSpace and exposes a bounded set of capabilities. A Role Programming Interface is my model for how those capabilities could communicate through explicit contracts.

01 · The problem

The translation tax

Today, one department needs something from another and a human relays it, losing fidelity and time at every hop.

02 · How it works

Exposed functions

Each department publishes callable functions: request_quote, validate_budget, flag_churn_risk. The org becomes an API.

03 · The result

Real-time at the edge

Shared contracts can connect capabilities without requiring a single database. Access checks, routing, and audit records belong in the system surrounding the model.

Sales exposes account state and expansion signals. Finance exposes budget validation and discount approval. Customer Success exposes account health. Product exposes usage telemetry. The RPI bus routes the call, enforces the contract, governs the data, and writes the audit log.

Figure 02

A governed capability handoff

  1. SalesSends account context and an expansion request.
  2. Shared boundaryAuthenticates the caller, validates the contract, routes the request, and records it.
  3. FinanceChecks pricing and authority; escalates exceptions.
  4. Customer successReceives the approved result and the context needed to act.
Illustrative handoff: shared contracts connect functions while each owner retains control of its data and decisions.

The possibility that interests me is less time spent reconstructing context, and more attention available for judgment.

Related notes

How I work through these ideas in practice.