One of our primary differentiators on our V/TO® has always been our proprietary data processing speed, but off-the-shelf AI tools have turned our speed advantage into table stakes. How do we run a strategic exercise during our next quarterly session to replace this outdated differentiator with something our competitors cannot easily copy?

Question

Tyler Smith · Accepted Answer

When technology commoditizes your legacy competitive edge, you must adapt your V/TO® or face declining margins. If off-the-shelf AI tools have turned your proprietary speed into standard table stakes, you cannot continue to claim speed as one of your Three Differentiators. You must find a new way to stand out.

During your next quarterly planning session, use the IDS® process to tackle this strategic vulnerability. Shift your leadership behavior from trying to protect your old operational methods to articulating a clear vision of what an indispensable partner looks like. Seek to be an indispensable complement to these cheap and plentiful AI tools. While your competitors are using AI to flood the market with cheap, fast deliverables, your focus must pivot to the human elements that machines cannot replicate, such as deep strategic advisory, customized integration, and relationship management.

Prioritize using AI to increase employee productivity as a starting point. This operational efficiency frees your team from low-value tasks, allowing them to invest more face-to-face time with your clients. Your new differentiators should reflect this high-value consultative relationship. Update your V/TO® to clearly state how your team combines cutting-edge technology with high-touch human expertise to deliver outcomes that competitors using raw AI output simply cannot match. This keeps your business highly differentiated, preserves your pricing power, and drives a premium valuation.