What the Questions Reveal Together
The five questions are not independent. They interact and compound to reveal structural reality.
Strong Ceiling Profile (4-5 Yes Answers)
- AI cannot easily replicate—value comes from integration and data
- Switching cost exceeds 24 months due to services investment and integrations
- The product is the system of record for critical business data
- 20-40% services revenue demonstrates organizational embedding
- Data gravity compounds—5-year customers far more locked-in than 1-year customers
Weak or Vulnerable Profile (3 Yes Answers)
- One or two structural weaknesses exist that competitors can exploit
- May be able to maintain Ceiling position with exceptional execution
- Requires ongoing investment in deepening the moat
- Remains vulnerable to well-funded competitors with stronger structural positions
Floor Profile (0-2 Yes Answers)
- AI can replicate core functionality
- Switching costs are low enough to be a routine decision
- The product is a tool, not a system
- Self-service model with minimal services
- Data value is static, not compounding
The Compound Effects
AI replicability + low switching cost = Rapid commoditization. Even current customers can be poached.
System of record + compounding data gravity = Deepening moat. The fortress gets stronger every year.
Services layer + deep integrations = Organizational embedding. Load-bearing infrastructure through human investment.
This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.
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