Nov 16, 2024 3 min read

I Drive Like a Grandmother

I've learned to own that description of my driving.

I just rarely get in a hurry.

That could be the reason why I have never had what anyone would call a "fast car."

This past month my 91-year-old mom sold my first truck: a 1985 Chevrolet Silverado.

When I moved on to another car, my father continued to drive that truck until we convinced him to stop being behind the wheel (well, that's what we told ourselves; we are pretty confident that he still snuck out from time to time).

My mom has kept the truck covered and protected and finally decided it was time to sell it.

We don't do things fast in the country.

But today, this newsletter is all about speed.

Hang on.

Today in 5 Minutes or Less:

✅ How Most Companies View Competition
✅ The Rise of AI Agents
✅ How to Avoid Being Non-Competitive

YOU JUST HAVE TO OUTRUN THE BEAR

For most mature companies today, you almost always run neck and neck with your competitors.

Unless you have a data breach, CEO sex scandal, a bad Tylenol-type event, or a hostile takeover, most big companies move slowly.

This is true for both growth and decline.

In large companies, there is always a portion of the annual budget devoted to "product development" or "innovation."

Here's how it works:

Your entire company works independently on new ideas and "wants."
These are submitted to a big spreadsheet, often ending up with 47 or so things to do for success in 2025.
Senior executives review the list, align it with long-term strategy, and narrow it down to 15 or so projects.
Financial constraints reduce this to 7 or 8 projects.
Human capital availability means only 3 or 4 projects can realistically be pursued.
Delays and unforeseen challenges result in completing only 2 projects.

Because customers are rarely included in the design thinking process, most projects fail market testing. Eventually, only one innovation typically succeeds in adding significant value. The other projects are either duds or outpaced by competitors.

This is the product development cycle for most corporations today.

SPEED AND AI AGENTS

Executives today have become comfortable with this regular and consistent pace of change.

If your competitor gets to be 10% better than you are, you feel you can win it back. You borrow money, hire extra talent, improve marketing, and go win.

But all of this is about to change.

Companies investing in automation—especially AI agent-related automation—won’t be 10% better anymore. They will be 1,000% or even 3,000% better.

Incremental innovation won’t cut it anymore.

Think about Ford vs. Ferrari.
If your competitor has invested in a sleek, fast Ferrari, no amount of effort or improvement will allow your Ford truck to compete. It just isn’t possible.

AI agents and automation today (not tomorrow) have the power to transform work faster, better, and more accurately.
As Sam Altman from OpenAI says:

"The most transformative and beneficial technology humanity has yet invented."

Companies sticking to historic product development methods will be left behind. Quickly.

THE KEYS TO WINNING

The best advice I have for my clients today is: Stop walking and start running.

Learn everything you can about AI and automation.
Invest in your team's knowledge and tools to leverage these systems.
Incorporate these principles into your product design exercises.

This will require a radical transformation of your current processes.

Here’s what to do:

Forget the traditional hierarchy of CEO to SVPs to VPs, etc. Focus on product-to-solution flows.
Just as we implemented process improvements with Six Sigma in the '90s, use AI agents to automate tasks at every step.
Stop worrying about AI "hallucinations" or dismissing it as a fad. Embrace the opportunity to revamp your product design process.
If AI can’t solve a problem today, include placeholders—it’s likely the solution will emerge soon.
Start immediately before it’s too late.

The race has already started, and the clock is ticking.

I’m still sitting in meetings with venture capital investors discussing solutions that don’t involve AI. I've gotten really good at not rolling my eyes.

But let me be clear:
If you don’t have a robust pathway to include AI and automation in your company, there is no recovery from this wave of innovation.

These are strong words.
From a pickup driver.