System of Action — Part 2: Replacing Cousin Richie

Recap: System of Action — Part 1: Hero Users

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.)

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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.

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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? 

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Most workers don’t get to choose their tools. No matter how good the chef, if he doesn’t own the restaurant, he’s not picking the POS. The superstar insurance rep crushing her quotas every month is not picking the CRM.

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So, how does a Native AI dislodge the Control Point incumbent when there is no Hero User? 

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You’re back to selling to the business owner, solving “Sticky Jobs, handled by Cousin Richie.” 

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Let’s dig in.

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