Gartner defines Algorithmic Business as “the industrialised use of complex mathematical algorithms pivotal to driving improved business decisions or process automation for competitive differentiation.”
That might be the definition of a business algorithm or rather an explanation of ‘how’ an algorithmic business works, but it is not the ‘definition’ of algorithmic business. Because it uses terminology that pre-assumes some degree of knowledge about the business algorithms and their applications.
There is a simpler and more accurate definition that can be understood by anyone.
Algorithmic Business is the execution of highly automated business strategies based on dynamic data-driven policies in response to emergent or anticipated opportunities or threats in extremely short time frames in the order of hours, days, or weeks instead of traditional time frames of quarters or financial years prevalent in traditional business that rely upon human decision making.