
Designing Co-Intelligent Ecosystems
Beyond Digital Transformation
Strategic Frameworks for Adaptive, Ethical, and Scalable Change

About the book
Creative Transformation of Organizational Ecosystems (CTOE) advances the theory and practice of creative transformation in organizational ecosystems for the age of co-intelligence. Integrating category theory, AI ethics, and design-based innovation, it offers a strategic and technical foundation for aligning emergent technologies with human values, stakeholder needs, and systemic imperatives.
CTOE builds on Dynamic Relationality Theory (DRT) to propose a next-generation framework centered around Machinic Life-Experience Ecosystems (MLXEs). These infrastructures interweave AI, human agency, and ecosystem dynamics, enabling real-time adaptation, distributed governance, and systemic coherence. The book illustrates these constructs and methods through 36 organizational examples, translating these insights into actionable methodologies for strategy, operations, and transformation.
In a Nutshell
Theory
CTOE redefines transformation through co-intelligence—a continuous interplay between human and machinic capabilities across Nature-Society-Economy-Technology (NEST) systems. Central to this are MLXEs, integrating existential, signaletic, symbolic, and systemic domains. It leverages advanced mathematical formalisms such as sheaf theory, gauge theory, and higher category structures to model the ontogeny of value, identity, and meaning in organizational systems.
Methodology
Building on relational ontologies and topological logics, CTOE introduces design tools like:
- Sheaf morphisms for local-global coherence
- Gauge-theoretic models for institutional ethics and dynamics
- Functorial diagrammatics for strategic visualization
- Differential and monadic architectures for cognitive and structural adaptation
These tools allow practitioners to model, simulate, and redesign ecosystems across operational, symbolic, and experiential layers.
Practice
CTOE is a sequel to Dynamic Relationality Theory (DRT) that activates its theoretical foundation—relational ontology, category theory, and gauge modeling—into practical application. Each chapter (from #6 to #15) introduces a Creative Transformation Blueprint, applying DRT tools like functors and sheaves to real-world challenges, demonstrated through semi-synthetic cases (e.g., Siemens, Infosys, TVA). CTOE centers on implementation, showing how organizations become MLXEs—adaptive infrastructures for AI–human co-creation and systemic transformation.
Reviews
“One certainty of the AI-imbued future is continuous change. Ozcan and Ramaswamy model the human-AI dynamic by weaving together strands from business co-creation, mathematical field theory, and post-structuralist philosophy. Pithy case studies illustrate the heady concepts. This book is overflowing with ideas for anyone hoping to understand the future of AI and organizations!”
Kentaro Toyama, W. K. Kellogg Professor of Community Information (School of Information), University of Michigan (USA)
“Creative Transformation of Organizational Ecosystems offers a powerful and timely synthesis—uniting rigorous frameworks, such as Dynamic Relationality Theory, with actionable blueprints for systemic change. This is a culmination of ideas developed in earlier works by the authors and collaborators and offers a compelling vision for human-allied AI ecosystems, emphasizing co-intelligence and relational adaptivity. Anchored in a robust theoretical framework, the book empowers organizations to align ethical, experiential, and technological dimensions. This fieldbook’s practical, reflective approach will enable diverse leaders and practitioners to reimagine value creation and drive meaningful impact within evolving intelligent ecosystems.”
Balaram Ravindran, Head of Wadhwani School of Data Science and AI, IIT-Madras (India), and Fellow of Association for the Advancement of Artificial Intelligence (AAAI) and the Indian National Academy of Engineering (INAE)
“Ozcan and Ramaswamy offer a bold and timely rethinking of how organizations transform in today’s AI-driven, interconnected world. Rich in practical application, this book equips leaders with the tools to navigate complexity, foster co-intelligence, and reimagine stakeholder value. For those working at the intersection of CRM, marketing, and innovation, it provides both strategic insight and actionable frameworks. A compelling resource for anyone shaping the future of organizational ecosystems.”
Werner Reinartz, Professor of Marketing and Vice Rector of Transfer to Society, University of Cologne (Germany)
“No organisation, public or private, small or global can operate without connected digital, agentic and human ecosystems anymore. Mastery of managing the intersection of ecosystems is not easy and requires organizational vision, flexibility and stamina. Ozcan and Ramawamy expertly outline the complexities ahead and provide tangible examples to navigate the plethora of moving parts. This book brings theory and practice together. It is a powerful lighthouse for anyone who wants to see the big picture of what is awaiting all of us in the next decade.”
Alp Kabatepe, Head of CRM Advisory, Infosys Consulting (UK)
“As a seasoned IT executive with over 30 years of leadership experience across logistics industry, I recognize the critical need for adaptive and intelligent digital transformation frameworks. Creative Transformation of Organizational Ecosystems delivers exactly that—an integrated methodology for aligning human, technological, and systemic dynamics at scale. The book’s fusion of co-creation thinking with dynamic relational modeling offers valuable tools for logistics leaders seeking to design interoperable, resilient, and future-ready ecosystems. Its strategic depth and applied relevance make it an essential reference for driving sustainable digital transformation.”
Yusuf Koç, Vice President Information Technology (Turkey & STAN), CEVA Logistics (Turkey)
“Creative Transformation of Organizational Ecosystems is not just another strategy book — it’s a rare blend of vision, depth, and practical wisdom. It reimagines how organizations can thrive in an AI-augmented, interconnected world showing us that transformation is not a one-time leap, but a living, evolving journey. The way it bridges advanced thinking with real-world impact is truly inspiring. Every chapter sparks new possibilities for collaboration, innovation, and ethical growth. For leaders, innovators, and change-makers who dare to think beyond the conventional, this is a guide that both challenges and empowers you to shape the future.”
Murat Atici, CEO, Bimser Software & Solutions (Turkey)
“Creative Transformation of Organizational Ecosystems provides a remarkably well-founded framework for shaping organizational ecosystems in the era of digitalization, AI, and the transformation toward electrified and autonomous mobility. It combines theoretical depth with practical relevance and offers strategic tools to intelligently navigate complex value systems and technological convergence in dynamic markets. Especially in the automotive industry, which is undergoing profound change, the book delivers valuable impulses for cross-system innovation. As a leader in a global technology company, I particularly value its integration of product perspective, organizational development, and co-intelligent transformation.”
Denis Cesmeci, Group Product Manager, BMW Group (Germany)
“This book provides a brilliant answer to today’s most pressing organizational question: how to harness the dynamic interplay between humans and machines while keeping what differentiates organizations at their core—a pragmatic handbook for transformation that turns organizational uniqueness into an accelerator for innovation in the AI era. Ozcan and Ramaswamy’s Machinic Life-Experience Ecosystems framework offers leaders a transformative methodology to navigate complexity through co-creative engagement across human, machine, and institutional dimensions.”
Lale Kof, Head of Information Technology, Clariant (Switzerland)
CTOE Use Cases
Organizational Ecosystem Transformation
CTOE provides architectures for reconfiguring modular, siloed systems into adaptive, interoperable ecosystems using MLXEs. Applicable to firms navigating digital-physical convergence and AI integration.
AI-Integrated Strategy and Governance
Using gauge theory and sheaf logic, CTOE enables ethical, adaptive governance of AI systems. Tools such as tokenized digital intelligence and sentient AI design structures support cross-sector coordination and real-time recalibration.
Digital Twin and Infrastructure Innovation
The book explores AI-mediated infrastructures such as digital twins, Lagrangian feedback models, and machinic general intelligence to align operational flows with stakeholder narratives.
Co-Intelligent Decision Systems
CTOE models how knowledge, identity, and operational intelligence can be distributed across human-AI systems. Palantir, Siemens, and TVA demonstrate how layered architectures support resilience and value co-creation.
Cross-Domain Platform Design
Stacked sheaf-based strategies provide models for ecosystems operating across healthcare, mobility, manufacturing, and services. CTOE supports design and governance of such platforms at strategic, ethical, and experiential levels.
CTOE in Detail
Part 1: Foundations of Creative Transformation
Part 1 establishes the ontological, technological, and experiential foundations for creative transformation within organizational ecosystems. It introduces the concept of co-intelligence—a relational paradigm in which human and artificial intelligences co-evolve through continuous interaction across digital, physical, and symbolic domains.
- Chapter 1 opens with the proposition that value in contemporary organizations is no longer extracted through static processes or efficiency metrics, but is dynamically co-produced in Machinic Life-Experience Ecosystems (MLXEs). These ecosystems operate within the Life-Xverse, a real-time interface for strategic, operational, and experiential flows that intersect Nature, Society, Economy, and Technology (NEST). Anchored by the case of NVIDIA, the chapter reframes organizational intelligence as participatory and ontogenetic, emphasizing adaptive architectures such as digital twins, immersive platforms, and generative AI.
- Chapter 2 constructs the anatomy of MLXEs through four interdependent domains: Existential Life Territories (L), Energetic-Signaletic Flows (E), Incorporeal Experience Universes (X), and Abstract Machinic Phyla (M). These form the L-E-X-M system that mediates meaning production, signal processing, and systemic abstraction. The Microsoft case illustrates how cloud infrastructure, platform integration, and adaptive governance can instantiate these architectures at scale.
- Chapter 3 addresses the relational dynamics of creative transformation, positioning AI as a force of counter-actualization that enables organizations to traverse virtual and actual domains. Drawing on Deleuzian assemblage theory, the chapter explores how feedback loops, rhizomatic trajectories, and real-time sensing allow organizations to navigate complexity. Continuing the case of Microsoft, strategic transformation is thus grounded in the alignment of intention, experience, and machinic capability.
- Chapter 4 introduces category theory to model organizational complexity across heterogeneous domains. Concepts such as agential assemblages, functorial mappings, and natural transformations are applied in the case of L’Oréal to demonstrate how distributed strategic coherence can be maintained without central control.
- Chapter 5 deepens this modeling through sheaf theory and gauge theory, offering formal tools to manage local-global alignment in organizational values and practices. The Lockheed Martin case shows how such tools can coordinate innovation, compliance, and ethics in complex, high-stakes environments.
Part 1 thus lays the groundwork for understanding MLXEs not just as digital systems, but as relational infrastructures that transform how organizations define value, govern operations, and structure transformation.
Part 2: Dynamic Relationalities in Organizational Ecosystems
Part 2 transitions from foundational architecture to the modeling of systemic innovation and transformation within organizational ecosystems. It critiques conventional network and systems theories for their static orientation and introduces rhizomatic logic, topological modeling, and adaptive feedback infrastructures as alternatives.
- Chapter 6 reframes network complexity through the lens of emergent interdependence, advancing a rhizomatic model in which innovation arises through multi-scalar, nonlinear connections. The Deere & Company case exemplifies how AI, robotics, and ecological sensing can be mobilized as entangled innovation flows across agriculture, engineering, and platform ecosystems. Here, innovation is modeled as a dynamic interaction between territorialization (stabilizing forces) and deterritorialization (adaptive escapes).
- Chapter 7 focuses on aligning internal operations with external ecosystem dynamics, using tools such as vector fields, stratification, and functorial coherence to model real-time adaptive behavior. The Infosys case illustrates how organizational infrastructures—including skilling platforms and stakeholder ecosystems—can be configured to deliver systemic impact, harmonizing AI-driven machinic desires with human strategic intention.
- Chapter 8 turns to the transformative role of artificial intelligence as a driver of experiential cognition and epistemic realignment. Rather than replacing human judgment, AI is framed as an adaptive modeling force that engages in sentient alignment with human systems. The Siemens case reveals how industrial AI systems can enable both operational optimization and learning-driven innovation. Concepts such as machinic general intelligence (MGI) and cognitive metamorphosis describe the co-evolution of identity, knowledge, and decision-making under AI-augmented regimes.
- Chapter 9 introduces differential transformation as a principle for organizational evolution, using mathematical tools such as differential forms, de Rham cohomology, and homotopic structures. The DIKSHA case demonstrates how India’s national education platform has implemented differential design principles to align central goals with localized practices in real time. Organizations are presented as morphogenic systems, capable of continuous self-differentiation through ethically calibrated transformation flows.
Part 2 equips leaders and researchers with tools to understand and govern organizations as adaptive systems of becoming, capable of evolving through coordinated experimentation, feedback integration, and AI-enabled sensemaking.
Part 3: Creative Transformation of Organizational Dynamics
Part 3 turns to the organizational application of CTOE principles, addressing how global strategies, local actions, and stakeholder ecosystems can be aligned through systemic design. It operationalizes sheaf morphisms, diagrammatic reasoning, and categorical diagnostics to create transformation blueprints that are both scalable and ethically grounded.
- Chapter 10 analyzes how global strategic visions are deployed through molar-molecular translation mechanisms, ensuring that high-level imperatives retain coherence while accommodating local specificity. Using transductive logicsand sheaf-theoretic architectures, the Unilever case illustrates how supply chain, brand design, and consumer insights are coordinated across distributed infrastructures.
- Chapter 11 introduces diagrammatic thinking as a mode of organizational intelligence. Building on category theory, it models organizations as functorial trajectories that visualize and govern convergence (limit objects) and divergence (colimit objects) across functional and stakeholder domains. Apple is presented as a paradigmatic case, where design, product ecosystems, and user values are continuously aligned through real-time feedback and diagrammatic governance.
- Chapter 12 focuses on stakeholder ecosystem evolution, presenting a typology of organizational morphotypes: structured corporations, agenced corporations, structuring collectives, and agencing collectives. It frames stakeholder alignment as an emergent diagnostic process, enabled by transversality, gauge dynamics, and co-intelligent sensing. A healthcare Ecosystem (focusing on CVS Health, Cleveland Clinic, Pfizer, and WHO) case study shows how care providers, regulators, and platforms are realigned through adaptive infrastructures.
Part 3 offers a practical framework for organizational design and redesign, where strategy, operations, and stakeholder engagement are governed by relational coherence, not top-down command structures. This enables organizations to become co-creative living systems capable of sustained adaptation.
Part 4: Co-Intelligence Architecture of Organizational Ecosystems
Part 4 presents the integrative architecture for designing and implementing co-intelligent organizational ecosystems. It introduces stack-based sheaf extensions, tokenized digital intelligences, and fractal models of emergence to construct transformation systems that are modular, interoperable, and ethically aligned.
- Chapter 13 formalizes a multi-layered architectural model using stack theory, enabling simultaneous transformation across symbolic, operational, and experiential layers. The mobility ecosystem (focusing on Toyota, Mercedes-Benz, Ford, and Catena-X) case demonstrates how regulatory infrastructure, AI platforms, and stakeholder needs can be aligned through diagrammatic transformation blueprints.
- Chapter 14 focuses on reconciling modular differentiation with ecosystemic coherence, using double articulation to synchronize semiotic (identity) and material (operations) evolution. The Tesla case illustrates how AI modules, feedback systems, and manufacturing processes are orchestrated across automotive, energy, and software sectors. A new structure of monadic intelligence is introduced to support distributed but integrated innovation.
- Chapter 15 addresses systemic change through gauge-theoretic modeling of well-being, empowerment, wealth, and welfare. It introduces the NEST Ecosystem Transformation framework to ensure that AI infrastructures support distributed adaptability and social coherence. The Tennessee Valley Authority (TVA) case exemplifies how cross-sector coordination and risk-managed adaptation can be operationalized at scale. Concepts such as co-intelligence risk management and cascading resilience architectures position organizations as stewards of planetary-scale transformation.
- Chapter 16 concludes with a twelve-point agenda for next practices, using Palantir’s platforms (Foundry, Gotham, Apollo) as working exemplars of MLXE instantiations. It details how ontological integration, machine-ethics coupling, and stakeholder orchestration can be embedded into living systems of intelligence. These platforms are presented not merely as technologies, but as ethical infrastructures for adaptive governance and transformation in high-stakes contexts such as defense and public health.
Part 4 converges all prior layers of theory and application into a meta-architectural framework for designing organizations that are adaptive, ethically grounded, and relationally intelligent—poised to operate in an AI-integrated, co-intelligent world.
Authors

Kerimcan Ozcan

Venkat Ramaswamy
More about the authors
Dr. Kerimcan Ozcan is an Associate Professor of Marketing at the School of Business and Global Innovation, Marywood University, USA. His expertise spans co-creation, digitalization, strategy, branding, customer service, and B2B marketing, with a focus on the strategic fusion of human–AI interactions within evolving ecosystems. His current work explores how machinic ecosystems and lived experiences intersect to drive systemic organizational transformation. He is co-author (with Venkat Ramaswamy) of Dynamic Relationality Theory of Creative Transformation: Grounding Machinic Ecosystems in Life Experiences (Elsevier, 2024), which introduces the DRT framework—an interdisciplinary, mathematically rigorous model for designing ethically aligned AI-human ecosystems in clinical, medical, and organizational contexts. His earlier co-authored book, The Co-Creation Paradigm (Stanford University Press), builds on this trajectory, alongside articles in Journal of Marketing, Journal of Business Research, International Journal of Research in Marketing, and Harvard Business Review. He previously taught at the University of Michigan and the International University of Japan, and worked in engineering roles in industry. His research has been supported by the Japanese Ministry of Education and the University of Michigan Tauber Manufacturing Institute. He holds a Ph.D. in Marketing and an M.A. in Applied Economics from the University of Michigan, an M.S. in Management from Georgia Tech, and a B.S. in Electrical and Electronics Engineering from Boğaziçi University.
Dr. Venkat Ramaswamy is Professor of Marketing at the Ross School of Business, University of Michigan, Ann Arbor, USA. Internationally recognized for his work on innovation, strategy, and interactive value creation, he co-developed the concept of Co-Creation with C.K. Prahalad in The Future of Competition (Harvard Business School Press, 2004), and expanded it through The Power of Co-Creation and The Co-Creation Paradigm. His recent work focuses on systemic transformation through digitalized ecosystems and co-intelligent architectures. He is co-author of Dynamic Relationality Theory of Creative Transformation (Elsevier, 2024), which advances a life-experience-first perspective on AI–human convergence through the concept of Machinic Generalized Intelligence (MGI). His latest book, The Co-Intelligence Revolution (Penguin Business, with Krishnan Narayanan), articulates how humans and AI co-create new value across industrial, public, and plural ecosystems. His research has appeared in Harvard Business Review, Sloan Management Review, and other top-tier journals, and he advises enterprises globally on co-creative innovation. In addition to academic contributions, he actively collaborates with technology leaders and institutional stakeholders to prototype real-world co-intelligence platforms. He holds a Ph.D. in Marketing from the Wharton School, University of Pennsylvania, and a B.Tech. in Mechanical Engineering from the Indian Institute of Technology.
