System of ActionUniverse

Thanks to Al, vertical software is evolving from a system of record that documents the work into the system of action that does the work, creating a 10x bigger prize.

By Dave Yuan, Founder and Partner0 essays in 0 sections

The Premise

From the system that documents the work to the system that does the work

Start here, then follow the acts in order.

We founded Tidemark with the view that vertical software companies are uniquely poised to transform their end markets. Six years ago, this perspective inspired me to write Tidemark’s Vertical SaaS Knowledge Project (VSKP) to provide language and playbooks for the establishment of Control Points as operating systems and platforms for various end markets and industries.

Today, AI has changed the playbooks and opportunities for vertical software. Instead of just documenting work and serving as a system of record, vertical software companies now do the work on behalf of their customers. This transformation creates opportunities 10X larger than before, but it demands new capabilities to succeed and shifts the foundation of moats.

This new series is what it takes for vertical software to win in the age of AI. Whether you are a Native AI challenger or a Control Point incumbent, we hope this pushes your thinking.

Please honor our effort by sharing it with others who could benefit, and let us know what we got right and what we got wrong ([email protected]).

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