Can AI create a wholistic experience like an OS?
- Sahil Dhakla
- Mar 26
- 1 min read
Its time to look for AI process innovation to take over once the product innovation settles down.
With rising ambition and greater customization possibilities, also, smaller team sizes (meaning lower cost of development), a new balance 〽️ between Volume & Gross margin should be expected in the era of AI products.
Until the Rate of innovation transfers towards Process innovation [1], the adoption S curve [4] will see a paradigm shift across all stages.
Things to focus on-
a) Activation [2] requirement will be lower due to pin-point customization. Given that accessibility is ensured for a mass, higher volumes can be achieved.
b) Retention will become difficult, until dominant design emerges (creators have to imitate Repeated early innovation[3])
Will this impact the investments & the exit strategy?
Feel free to share your thoughts!
Ref:
1. Fig. 1, A Dynamic Model of Process and Product Innovation, Utterback & Abernathy.
2. The Ultimate Guide to Product Adoption: Strategies for SaaS Success.
3. Joanna Leng (2023), FFEA software: Repeated early innovation.
4. S-Curves for Trend Forecasting. https://www.lesswrong.com/posts/oaqKjHbgsoqEXBMZ2/s-curves-for-trend-forecasting
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