A new AI platform has completely wiped out the market demand for our secondary service line, which used to represent thirty percent of our revenue. How do we use our V/TO® Core Focus and the IDS® process to decide whether to fight for this business or abandon it completely?

Question

Tyler Smith · Accepted Answer

When a new AI platform threatens a service line that accounts for thirty percent of your revenue, panic is a natural reaction. However, making erratic strategic pivots will only compromise your core business. You must evaluate this threat using your V/TO® Core Focus and the IDS® (Identify, Discuss, Solve) process.

Your Core Focus is defined by your passion and your niche. Ask yourself if this threatened service line actually fits your long-term direction, or if it has simply been a profitable legacy distraction.

Bring this issue to your next leadership team meeting and run it through the IDS® process:
- Identify the root cause of the threat: Is the AI competitor actually delivering equivalent value, or are they just delivering a cheap, low-quality alternative?
- Discuss the long-term viability of the service: Do you have the conative strength and capital to modernize this service with AI, or is it better to gracefully sunset it?
- Solve the issue by making a firm strategic decision: Either fully commit to automating the service to match competitor pricing, or abandon the niche to double down on your most defensible, high-margin offerings.

Do not try to split the difference. Choose a clear direction to protect your operational sanity and profitability.