tyler-smith.com · Questions & Answers

Our Core Focus has always been providing bespoke business consulting, but low-cost AI tools are rapidly commoditizing our entry-level strategic deliverables. We are tempted to pivot to a high-volume, tech-enabled subscription model. How do we evaluate this major strategic shift without losing our core identity on the V/TO?

Before you dismantle a proven business model, you must run it through the filters of your Core Focus™ and your V/TO®. A sudden pivot to a high-volume software or subscription model is a major strategic risk that often leads to operational chaos and brand dilution.

First, look at your Core Focus™, which consists of your passion and your niche. Your passion is likely helping businesses solve complex problems, not managing SaaS retention metrics. Your niche is bespoke, high-touch guidance. If you pivot to low-cost subscriptions, you are entering a completely different business category that requires a different team, a different Accountability Chart, and a different cost structure.

Instead of abandoning your core, use AI to elevate your delivery. Let AI handle the entry-level data processing and basic reporting in the background. This lowers your delivery costs and increases your gross margins, but you must keep your client-facing front end bespoke and premium.

Your 3 Uniques on the V/TO® should focus on the human expertise, context, and relationships that AI cannot replicate. Use the strategic framework of scaling up your execution: use technology to make your operations incredibly efficient so your experts can spend more high-value time with your clients. Do not run away from your premium position just because the baseline of execution has been commoditized. Charge a premium for human-in-the-loop certainty and let your competitors fight in the low-margin AI subscription mud.

Category: AI & Business Strategy

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