How do we figure out if our proprietary software tool is actually a differentiator in our Three Year Picture or just expensive table stakes?

Question

Tyler Smith · Accepted Answer

A true differentiator in your V/TO® is something that makes your business unique, difficult to replicate, and highly appealing to your target market. If your custom AI tool simply speeds up a back-office process that everyone else in your industry is also automating, it is not a differentiator; it is expensive table stakes. If your AI tool combines proprietary, historical customer data with custom workflows to deliver a business result that your competitors cannot match, then you have a real differentiator. Be brutal in your assessment during your next quarterly planning session. Do not let a passion for technology cloud your actual business reality. Ask yourself if a prospect will actually pay a premium or choose you over a competitor solely because of this technology. If the answer is no, then keep the tool as an internal operational efficiency play rather than featuring it in your marketing strategy. True differentiation requires unique value, not just modern software. By focusing your strategic energy on proprietary datasets and unique human expertise that AI cannot replicate, you protect your market position and build real enterprise value.