tyler-smith.com · Questions & Answers

Our leadership team is arguing over whether we should build a proprietary AI pipeline from scratch or just stitch together existing off the shelf software, and the debate is stalling our progress. How do we use the V/TO® to make a final, objective decision on this build versus buy dilemma?

To resolve this debate, you must look at your Core Focus on your V/TO®. Ask your leadership team if custom software engineering is truly your core business. If it is not, building a proprietary AI pipeline from scratch is a massive distraction that will drain your cash and lower your exit valuation under the Step by Step Exit framework. Technical debt is a major liability during an acquisition.

Instead, prioritize using AI to increase employee productivity as your starting point. Employees are a major P&L item, and much of their time is spent on low-value tasks. You can achieve ninety percent of your efficiency goals by integrating existing off-the-shelf software into your operations. Identify the cumbersome processes that keep your people in low-value tasks, then use API-driven off-the-shelf solutions to streamline them.

If your leadership team remains split, run the issue through the IDS® process in your next weekly Level 10 Meeting™. Ask your technology leader to present a simple business case comparing the operational costs and timelines of both paths. Unless your proprietary model is a core differentiator that you can patent and sell, buy the tools and focus your team on executing your core mission.

Category: AI & Business Strategy

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