WinSystem of Action — Part 2: Replacing Cousin Richie
Most workers don't get to choose their tools. So how does a Native AI challenger win when the buyer isn't the person doing the work? The answer lies in targeting Sticky Jobs — and someone called Cousin Richie. Part 2 of our System of Action series reveals the alternative path to supremacy.
The race to become the System of Action is on, and the stakes couldn’t be higher. Vertical SaaS incumbents are facing a serious challenge from native AI upstarts. As I laid out in Part 1, the VSaaS winners of the future won’t simply be tools to run the business; they’ll do the work. E.g., A legaltech won’t just help run the practice, but it will also help practice the law. (See how our portfolio company Clio is leading the way on this.)
To become the System of Action, a Native AI needs a wedge. In Part 1, I described creating a wedge by targeting the Hero User who has agency to choose their own software. To win hearts and minds by helping the Hero User do their good work, and automating away the administrative work. And to engage that Hero User with PLG tactics — easy to try, easy to buy, to gain enough user adoption to force integration with the Control Point.
But what if there is no Hero User who can choose their own software? What if the person doing the work is stuck using tools chosen by someone else?
At Tidemark, we try to open-source our thinking as much as possible to help founders win; however, as investors, we can’t give everything away in public. If you’re an operator or founder, you can request access to the rest of this piece below.
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