Build vs Try: A New Way to Accelerate GTM Iteration

Build vs Try: A New Way to Accelerate GTM Iteration

In the world of B2B software, one of the classic dilemmas is the decision between building a solution from scratch or buying an existing tool. This age-old debate, known as Build vs Buy, has been a topic of discussion among businesses for years. The decision-making process typically involves considering various factors, such as the tool's impact on competitive differentiation, data exposure restrictions, and the need for a more robust solution.

When faced with the Build vs Buy decision, it is common to look for low-hanging constraints that can simplify the choice. For example, is the tool a core competitive differentiator that requires complete control? Are there proprietary or regulatory factors that restrict the external exposure of data? Or perhaps the current internal resources are insufficient to build a more robust solution. If the answer is yes to any of these questions, then the decision becomes straightforward.

However, in reality, we rarely have the luxury of black or white choices. The world we live in is full of shades of gray, where complex and dynamic factors constantly come into play. Making decisions with imperfect information is a challenge, especially considering that the information we have today may become obsolete tomorrow.

In a recent study titled "Noy_Zhang_1_0.pdf," 444 college-educated professionals were given incentivized writing tasks. Half of them were randomly exposed to ChatGPT, an AI-powered language model. The results of the study were fascinating. It was found that ChatGPT substantially increased average productivity among the participants. The time taken to complete tasks decreased by 0.8 standard deviations, indicating a significant improvement in efficiency. Moreover, the output quality also improved by 0.4 standard deviations, highlighting the model's ability to enhance the overall work quality.

Interestingly, the study also revealed a decrease in inequality between workers. ChatGPT seemed to compress the productivity distribution, benefiting low-ability workers more. This finding suggests that AI-powered tools like ChatGPT have the potential to bridge the gap between high-performing individuals and those who may struggle with certain tasks. By leveling the playing field, businesses can ensure that their teams are equipped with the necessary resources to excel.

Considering the insights gained from both the Build vs Buy dilemma and the impact of AI-powered tools like ChatGPT, it becomes evident that there is a new way to accelerate GTM (Go-to-Market) iteration. Instead of viewing the decision as an either-or scenario, businesses can combine the advantages of both approaches. By leveraging existing tools and technologies, businesses can build upon them to create a more tailored and efficient solution.

So, how can businesses apply this new approach to their GTM strategies? Here are three actionable pieces of advice:

1. Evaluate your core differentiators: Identify the aspects of your product or service that truly set you apart from the competition. These are the areas where having complete control over the tool may be crucial. By focusing your resources on building in-house solutions for these core differentiators, you can ensure that you maintain a competitive edge.

2. Leverage existing tools and technologies: Don't reinvent the wheel. Take advantage of the wealth of tools and technologies available in the market. By integrating these solutions into your workflow, you can save time and effort, allowing your team to focus on areas that require customization and innovation.

3. Embrace AI-powered tools: AI-powered tools, like ChatGPT, have shown tremendous potential in improving productivity and enhancing output quality. Consider incorporating these tools into your processes to streamline tasks and empower your team members. Keep in mind that AI is not meant to replace human expertise but rather augment it.

In conclusion, the Build vs Buy dilemma is no longer a binary choice. Businesses can now adopt a new approach that combines the advantages of both building and trying existing tools. By evaluating core differentiators, leveraging existing technologies, and embracing AI-powered tools, businesses can accelerate their GTM iteration and stay ahead in an ever-evolving market. The key is to embrace the gray areas and make informed decisions based on the unique needs and challenges of your business.