Our leadership team is split on whether to buy standard AI sales enablement software or build a custom proprietary model for our sales pipeline. How do we use our V/TO® to decide if building a custom AI tool actually supports our unique competitive advantage or is just a distraction?
To make a smart buy versus build decision for AI, look directly at your V/TO®. Specifically, examine your Three Uniques. If the technology you are considering directly enables or protects one of your Three Uniques, it is a candidate for a custom build. If it simply improves standard administrative or operational efficiency, buy an off-the-shelf solution. Building custom software is a major distraction that can pull your leadership team away from running the business. If you build custom tools for non-core processes, you waste cash and create technical debt that reduces your valuation. According to the Step by Step Exit framework, buyers pay a premium for simple, highly profitable operations, not for fragile, custom-built code that requires a team of expensive developers to maintain. If the AI tool is just helping your sales team draft emails or organize data, buy a subscription. Save your development resources for proprietary systems that directly touch your intellectual property or deliver your core value. Keep your focus on your Core Focus™. Use your weekly Level 10 Meeting™ to run any buy versus build debates through the IDS® process, grounding every decision in whether the tool actively drives your 1-Year Plan or is just a shiny distraction.
Category: AI & Business Strategy