Our head of product wants to build a proprietary AI routing engine from scratch, but our COO says we should just buy an off-the-shelf middleware platform. How do we use our Core Focus and our Accountability Chart to decide whether this is a strategic IP build or a costly distraction?

Question

Tyler Smith · Accepted Answer

This is a major capital allocation decision that can derail your entire operational focus if you make the wrong call. To resolve this, you must run the debate through your Core Focus on the V/TO.

Your Core Focus consists of your passion and your niche. Ask your leadership team: Is building proprietary AI middleware our core niche, or is it just a tool to help us deliver our actual niche? If you are not a software company selling AI infrastructure, building this from scratch is almost certainly a distraction. You will end up running a shadow software development firm inside your business, complete with high developer headcount and endless technical debt.

Take this issue to your next Level 10 Meeting and use the IDS process to challenge your product head. Ask them to clearly define why an off-the-shelf platform cannot achieve eighty percent of the desired result. If the commercial tool does eighty percent of the job, your accountability lies in buying that platform and using your internal talent to customize the remaining twenty percent.

Keep your Accountability Chart lean. Do not add developer seats to your chart unless those seats directly generate proprietary intellectual property that a buyer will pay a massive premium for during an exit. Keep your team focused on delivering your core service, and buy your infrastructure from companies whose sole Core Focus is building it.