On May 14, 2022, Liverpool FC with the German manager Juergen Klopp repeated their Carabao Cup final win over Chelsea Football Club from February this year (when they successfully converted all 11 penalties!), once again in penalty shootout. Afterwards, Klopp praised the important impact made by neuro11, a German neuroscience company, in preparing for penalties and other set-pieces in the game. Liverpool FC started to collaborate with the company in 2021, and this neuroscience twist is just the most recent extension of the club’s continuous focus on data analytics and artificial intelligence.
The power of data analytics, AI and neuroscience
In my recent
article
in the Journal of Business Strategy, I have examined Liverpool FC as a somewhat surprising example for achieving a competitive advantage from combining data analytics and AI with human expertise. In recent years, Liverpool FC has experienced a major revival in terms of sporting success and financial performance. Concerning sporting success, for example, the club won the Champions League title in 2019 and the Premier League title in 2020. This year, Liverpool finished the Premier League again as a very close second. Regarding financial performance, the brand value of the club and the market value of the players have substantially grown.
However, the club’s emphasis on data analytics and AI only contributed to this impressive evolution when it was complemented with the emotional intelligence and people skills of its manager Juergen Klopp. Definitely, Klopp is one of the best football managers, but the revival of the club is a more complex story. The recent success strongly builds on the combination of Klopp’s emotional intelligence and people skills with the club’s data analytics and AI capabilities – now extended by neuroscience. Without the Head of Research at Liverpool FC, Ian Graham, and his team, Klopp would not even have been hired by Liverpool FC back in 2015. After a partly disastrous last season at Borussia Dortmund, Klopp was heavily criticized in the press, but Ian Graham’s AI-based data analytics showed that Dortmund simply had been very, very unlucky in that season and that Klopp still was one of the best managers.
On May 28, 2022, Liverpool FC will once again be in the Champions League final, for the third time since Klopp took over. The particular way of using the power of data analytics, AI and neuroscience has a strong impact on these achievements. Liverpool and other major football clubs use AI and data analytics to determine which players should be signed or to analyze the opposing team’s tactics. While performance data, such as shots, ball possession or the speed of players, are considered in the analyses, Klopp’s personal assessment of team dynamics also remains essential at Liverpool. Thus, looking at algorithms, data analyses and neuroscience is not enough for success. The insights gained with the help of these technologies have to be combined with individual human skills. At Liverpool FC, this is particularly Klopp’s emotional intelligence and empathetic leadership style. Artificial and human intelligence thus complement each other productively. Of course, this is only possible because both sides, i.e. Klopp as well as the data analytics and neuroscience teams, are open to working together.
Integrated Intelligence beyond sports management
This combination of human intelligence and skills with artificial intelligence, data analytics and neuroscience is what
Integrated Intelligence
is all about. This hybrid intelligence can be used not only in football, but in just about any industry. Although AI is being used in more and more companies, often only incremental innovations are implemented that make existing processes somewhat cheaper and more efficient. The competitive advantage that results is then only short-lived, as these incremental improvements become standard after a short while.
To stand out from the competition in the long run, companies have to open up completely new fields and solutions. Here, human intelligence can be the critical factor. Precisely because humans will be superior to AI in certain fields, such as emotions or empathy, for the foreseeable future, entirely new solutions can be developed in this way. Even if not all insights may be transferred to other industries, Liverpool’s Integrated Intelligence approach may indeed serve as a best-practice example for managers and executives far beyond sports management. For further details, please feel free to contact me for a
keynote or talk
about ’Integrated Intelligence – What managers may learn from Juergen Klopp and Liverpool FC’.