Our biggest competitor just announced an AI-driven self-service portal that cuts their delivery time to zero, and our leadership team is in a panic trying to copy them. How do we use the V/TO® Three-Year Picture and the IDS® process to avoid reacting blindly and instead double down on our true differentiator?
It is natural to feel anxious when a competitor rolls out shiny new technology, but reacting in a panic is a guaranteed way to burn cash and alienate your team. First, you must separate a problem from a predicament. Your competitor adopting AI is a predicament: a permanent change in your operating environment that you cannot control. Your own lack of strategic clarity is the actual problem.
Take this issue straight to your next weekly Level 10 Meeting. Use the IDS process to identify the root cause of your panic. Ask yourselves if your competitor's self-service portal actually threatens your target market, or if they are simply chasing a different, lower-margin buyer. Refer to the Target Market on your V/TO® to confirm who you are actually serving.
Next, look at your Three-Year Picture. If your plan is built on high-touch consulting and deep relationship building, trying to build a low-touch self-service portal will destroy your positioning. If your competitor is going low-cost and high-speed, your strategic play may be to go high-value and high-trust. Use Charles H. Green's Trust Equation to double down on intimacy and selflessness in your service delivery. Let your competitor have the transaction-oriented buyers while you secure the high-margin, relationship-driven accounts.
Category: AI & Business Strategy