"Will AI Kill Vertical SaaS? How To Study With A Highlighter: The Three Pitfalls That You Should Avoid"

"Will AI Kill Vertical SaaS? How To Study With A Highlighter: The Three Pitfalls That You Should Avoid"

In the ever-evolving world of technology, the rise of artificial intelligence (AI) has sparked debates and speculation about its impact on various industries. One such industry that has been the subject of discussion is Vertical SaaS (Software as a Service). Will AI render Vertical SaaS obsolete? This question has raised concerns among investors and software companies alike.

One of the main reasons why SaaS has been such a successful business model is the high switching costs associated with it. Once a company invests in a particular SaaS solution, it becomes difficult and time-consuming to switch to another one. However, with the advent of AI-based development tools, the process of migrating from one SaaS platform to another could become much simpler and quicker. This raises the question of whether companies will be more inclined to switch SaaS providers, ultimately leading to higher churn rates.

Moreover, the build vs buy decisions in the software industry could be heavily influenced by the decreasing costs of building software. Historically, buying pre-existing software solutions has been the norm due to the time and resources required to develop custom software. However, if building software becomes cheaper and more efficient with AI, companies might lean towards building their own solutions rather than buying them. This shift could have significant implications for software companies in general.

One possible outcome of cheaper software development is the proliferation of non-venture backable software companies. With the drop in software prices, we might witness a surge in smaller software companies that generate around $15 million in revenue, have a small team of five employees, and enjoy healthy net margins of 30%. While these companies might not be able to achieve the rapid growth associated with venture-backed startups, they can still thrive in a more fragmented software market.

However, it's important to consider the potential challenges that come with rapid and low-cost software creation. The prompt precision required for creating custom software can lead to complexity and overhead. This bottleneck can hinder the full realization of the benefits of rapid and low-cost software development. Therefore, it is crucial for software companies to strike a balance between prompt precision and efficient development processes.

Switching gears to a completely different topic, let's explore the art of studying with a highlighter. Many students and avid readers rely on highlighters to mark important points in texts and documents. However, there are pitfalls that one should avoid when using a highlighter.

The first pitfall is using a highlighter on the first pass of a text or document. Without fully understanding the content, it is impossible to determine what the important points are. It is advisable to read the text once, take a break, reflect on the main takeaways, and then revisit the material with a highlighter for a second pass. This approach ensures that the highlighted points are truly valuable and relevant.

Another pitfall to avoid is solely relying on highlighting without writing your own notes. While highlighting can be a helpful tool, it should never replace the act of note-taking. By putting information into your own words, you actively process and comprehend the concepts, leading to better understanding and retention. The renowned physicist Richard Feynman even developed a technique based on this principle, now known as the Feynman technique.

Lastly, it is crucial to maintain clarity when using a highlighter alongside note-taking. Using the same color pen for highlighting different purposes can quickly become confusing. To overcome this, it is recommended to use a smart highlighter that recognizes and adds the highlights below your notes. This way, your notes remain clear and readable without being overwritten by the highlights.

In conclusion, the rise of AI poses both opportunities and challenges for the Vertical SaaS industry. While the ease of switching SaaS providers and the potential shift towards building software might disrupt the current landscape, it also opens doors for smaller software companies to thrive. As for studying with a highlighter, avoiding the pitfalls of premature highlighting, neglecting note-taking, and maintaining clarity can enhance the learning experience. By staying adaptable and embracing new techniques, we can navigate the changing tides of technology and education.

Three actionable advice:

• 1. Embrace AI-based development tools: As a software company, explore the potential benefits of AI-based development tools to streamline your processes and lower costs. Assess the trade-offs between building and buying software solutions to make informed decisions.

• 2. Adopt a balanced study approach: When studying with a highlighter, resist the temptation to highlight on the first pass. Take the time to understand the material before highlighting the important points. Additionally, prioritize note-taking alongside highlighting to enhance comprehension and retention.

• 3. Invest in smart highlighters: To avoid confusion and maintain clarity in your notes, consider investing in smart highlighters that complement your note-taking. These highlighters can recognize and add highlights below your notes, ensuring a seamless and organized study experience.