


Category: Execution
Jan 31, 2025
Stop Spray-Painting AI — Target the Bottleneck, Bank the Value
AI Everywhere, Value Nowhere: Cutting Through the Hype to Pinpoint Impact
A few years ago, executives worried that they’d missed the mobile-app boom. Then it was cloud migration FOMO. Now the scramble is for AI—and the potential applications are so vast that most leadership teams are paralyzed by choice. One vendor promises autonomous forecasting, another guarantees AI-generated marketing copy that “sounds just like Hemingway (plus emojis),” and a third swears their model will predict when Karen in accounting is about to quit. Meanwhile, your board is asking why you don’t have a ChatGPT button in every workflow yet.
This is analysis paralysis at enterprise scale: an endless parade of use-cases, demos, and acronyms that obscure the single question that actually matters—where does AI create the most value for your business?
Step 1 — Start With Strategy, Not Shiny Objects
If “AI strategy” means “a list of cool proof-of-concepts,” you don’t have a strategy—you have an expensive hobby. Real strategy clarifies three things:
Where we’re going (competitive positioning and growth goals).
How we win (the unique capabilities that differentiate us).
The value we must unlock to fuel #1 and #2 (revenue growth, cost leverage, capital efficiency).
Until those are nailed down, every AI pitch is a solution in search of a problem. Skip this groundwork and you’ll soon be bragging about your chatbot while cash flow quietly bleeds out of the business.
Step 2 — Quantify Value Creation Levers
Most firms can move the dial in only four places:
Value Lever - Revenue Generation - Sell more, faster, at better prices
Typical AI Plays: Predictive lead scoring, dynamic pricing, personalized cross-sell
Gross Margin Improvement / COGS Reduction - Produce at lower unit cost
Typical AI Plays: Demand-driven inventory planning, quality-defect detection, process-control optimization
G&A Optimization - Run the back office leaner
Typical AI Plays: AP/AR automation, policy-compliant procurement, AI-assisted HR workflows
Cash & Capital Management - Keep cash in the business and taxes predictable
Typical AI Plays: Smart working-capital forecasting, currency-hedge recommendations, transfer-pricing analytics
Quantify each lever in plain dollars. “If we accelerate cash collection by five days, working-capital need drops by $3 million.” That number, not a vendor’s demo reel, should guide the next conversation.
Step 3 — Prioritize Ruthlessly
Trying to “do AI” everywhere is like installing sprinklers in the desert: you spend a fortune and still can’t grow tomatoes. Stack-rank the four levers above against:
Financial Impact — bottom-line potential in the next 12-24 months.
Feasibility — data availability, technical readiness, cultural appetite.
Strategic Relevance — how tightly the lever links to your chosen competitive edge.
A SaaS company with 90 percent gross margins shouldn’t burn cycles on COGS optimization when churn is skyrocketing. A high-volume manufacturer bleeding cash because of scrap rates shouldn’t start with AI-generated marketing copy. Ruthlessness is a virtue here.
Step 4 — Use Systems Thinking to Find High-Leverage Nodes
Now we get surgical. Picture the business as an air-traffic-control radar screen (indulge an ex-controller for a moment). Each blip is a process step, and everything is in motion—sales opportunities entering the pattern, invoices departing, inventory circling in a holding stack. If one aircraft drifts off course, the whole picture tilts.
Systems thinking forces two disciplines:
Mapping the Flow: Document how money, materials, and information move. Revenue isn’t a single event; it’s a chain from lead acquisition to cash in the bank.
Identifying Constraints: Spot the chokepoints where small improvements unlock outsized downstream gains.
Example: In a B2B software firm, revenue might be throttled not by marketing spend but by legal review time for enterprise contracts. Apply AI here—contract-clause risk scoring, auto-suggested edits—and the entire pipeline accelerates. Boosting ad targeting wouldn’t touch the true constraint.
Step 5 — Design AI Interventions at the Constraint, Not Around It
Armed with a ranked list of high-leverage nodes, you finally ask, “What flavor of AI actually fixes this?” Sometimes it’s machine-learning prediction; other times rule-based automation solves 80 percent of the pain for 20 percent of the cost. The coolness of the tech is irrelevant—the magnitude of the bottleneck and the ease of removal decide the winner.
Implement in slices, instrument everything, and confirm the value hypothesis with real-world data. If the needle doesn’t move, kill the project and head down the priority list. Sunken-cost fallacy is more lethal than any algorithmic bias.
The Non-Negotiable Truth
AI is neither a magic-wand nor a board-room talking point—it’s a scalpel. Aim it at the wrong organ and you create a mess; use it where the system bleeds most and you save the patient. Understand the interconnected machinery of your business, identify the constraint with the biggest price tag, and only then unleash the algorithms. Anything less is just another technology distraction masquerading as progress.
Until you see the whole system, you’ll never know where AI can be most effectively applied—so map first, model second, and watch value follow.
AI Everywhere, Value Nowhere: Cutting Through the Hype to Pinpoint Impact
A few years ago, executives worried that they’d missed the mobile-app boom. Then it was cloud migration FOMO. Now the scramble is for AI—and the potential applications are so vast that most leadership teams are paralyzed by choice. One vendor promises autonomous forecasting, another guarantees AI-generated marketing copy that “sounds just like Hemingway (plus emojis),” and a third swears their model will predict when Karen in accounting is about to quit. Meanwhile, your board is asking why you don’t have a ChatGPT button in every workflow yet.
This is analysis paralysis at enterprise scale: an endless parade of use-cases, demos, and acronyms that obscure the single question that actually matters—where does AI create the most value for your business?
Step 1 — Start With Strategy, Not Shiny Objects
If “AI strategy” means “a list of cool proof-of-concepts,” you don’t have a strategy—you have an expensive hobby. Real strategy clarifies three things:
Where we’re going (competitive positioning and growth goals).
How we win (the unique capabilities that differentiate us).
The value we must unlock to fuel #1 and #2 (revenue growth, cost leverage, capital efficiency).
Until those are nailed down, every AI pitch is a solution in search of a problem. Skip this groundwork and you’ll soon be bragging about your chatbot while cash flow quietly bleeds out of the business.
Step 2 — Quantify Value Creation Levers
Most firms can move the dial in only four places:
Value Lever - Revenue Generation - Sell more, faster, at better prices
Typical AI Plays: Predictive lead scoring, dynamic pricing, personalized cross-sell
Gross Margin Improvement / COGS Reduction - Produce at lower unit cost
Typical AI Plays: Demand-driven inventory planning, quality-defect detection, process-control optimization
G&A Optimization - Run the back office leaner
Typical AI Plays: AP/AR automation, policy-compliant procurement, AI-assisted HR workflows
Cash & Capital Management - Keep cash in the business and taxes predictable
Typical AI Plays: Smart working-capital forecasting, currency-hedge recommendations, transfer-pricing analytics
Quantify each lever in plain dollars. “If we accelerate cash collection by five days, working-capital need drops by $3 million.” That number, not a vendor’s demo reel, should guide the next conversation.
Step 3 — Prioritize Ruthlessly
Trying to “do AI” everywhere is like installing sprinklers in the desert: you spend a fortune and still can’t grow tomatoes. Stack-rank the four levers above against:
Financial Impact — bottom-line potential in the next 12-24 months.
Feasibility — data availability, technical readiness, cultural appetite.
Strategic Relevance — how tightly the lever links to your chosen competitive edge.
A SaaS company with 90 percent gross margins shouldn’t burn cycles on COGS optimization when churn is skyrocketing. A high-volume manufacturer bleeding cash because of scrap rates shouldn’t start with AI-generated marketing copy. Ruthlessness is a virtue here.
Step 4 — Use Systems Thinking to Find High-Leverage Nodes
Now we get surgical. Picture the business as an air-traffic-control radar screen (indulge an ex-controller for a moment). Each blip is a process step, and everything is in motion—sales opportunities entering the pattern, invoices departing, inventory circling in a holding stack. If one aircraft drifts off course, the whole picture tilts.
Systems thinking forces two disciplines:
Mapping the Flow: Document how money, materials, and information move. Revenue isn’t a single event; it’s a chain from lead acquisition to cash in the bank.
Identifying Constraints: Spot the chokepoints where small improvements unlock outsized downstream gains.
Example: In a B2B software firm, revenue might be throttled not by marketing spend but by legal review time for enterprise contracts. Apply AI here—contract-clause risk scoring, auto-suggested edits—and the entire pipeline accelerates. Boosting ad targeting wouldn’t touch the true constraint.
Step 5 — Design AI Interventions at the Constraint, Not Around It
Armed with a ranked list of high-leverage nodes, you finally ask, “What flavor of AI actually fixes this?” Sometimes it’s machine-learning prediction; other times rule-based automation solves 80 percent of the pain for 20 percent of the cost. The coolness of the tech is irrelevant—the magnitude of the bottleneck and the ease of removal decide the winner.
Implement in slices, instrument everything, and confirm the value hypothesis with real-world data. If the needle doesn’t move, kill the project and head down the priority list. Sunken-cost fallacy is more lethal than any algorithmic bias.
The Non-Negotiable Truth
AI is neither a magic-wand nor a board-room talking point—it’s a scalpel. Aim it at the wrong organ and you create a mess; use it where the system bleeds most and you save the patient. Understand the interconnected machinery of your business, identify the constraint with the biggest price tag, and only then unleash the algorithms. Anything less is just another technology distraction masquerading as progress.
Until you see the whole system, you’ll never know where AI can be most effectively applied—so map first, model second, and watch value follow.
AI Everywhere, Value Nowhere: Cutting Through the Hype to Pinpoint Impact
A few years ago, executives worried that they’d missed the mobile-app boom. Then it was cloud migration FOMO. Now the scramble is for AI—and the potential applications are so vast that most leadership teams are paralyzed by choice. One vendor promises autonomous forecasting, another guarantees AI-generated marketing copy that “sounds just like Hemingway (plus emojis),” and a third swears their model will predict when Karen in accounting is about to quit. Meanwhile, your board is asking why you don’t have a ChatGPT button in every workflow yet.
This is analysis paralysis at enterprise scale: an endless parade of use-cases, demos, and acronyms that obscure the single question that actually matters—where does AI create the most value for your business?
Step 1 — Start With Strategy, Not Shiny Objects
If “AI strategy” means “a list of cool proof-of-concepts,” you don’t have a strategy—you have an expensive hobby. Real strategy clarifies three things:
Where we’re going (competitive positioning and growth goals).
How we win (the unique capabilities that differentiate us).
The value we must unlock to fuel #1 and #2 (revenue growth, cost leverage, capital efficiency).
Until those are nailed down, every AI pitch is a solution in search of a problem. Skip this groundwork and you’ll soon be bragging about your chatbot while cash flow quietly bleeds out of the business.
Step 2 — Quantify Value Creation Levers
Most firms can move the dial in only four places:
Value Lever - Revenue Generation - Sell more, faster, at better prices
Typical AI Plays: Predictive lead scoring, dynamic pricing, personalized cross-sell
Gross Margin Improvement / COGS Reduction - Produce at lower unit cost
Typical AI Plays: Demand-driven inventory planning, quality-defect detection, process-control optimization
G&A Optimization - Run the back office leaner
Typical AI Plays: AP/AR automation, policy-compliant procurement, AI-assisted HR workflows
Cash & Capital Management - Keep cash in the business and taxes predictable
Typical AI Plays: Smart working-capital forecasting, currency-hedge recommendations, transfer-pricing analytics
Quantify each lever in plain dollars. “If we accelerate cash collection by five days, working-capital need drops by $3 million.” That number, not a vendor’s demo reel, should guide the next conversation.
Step 3 — Prioritize Ruthlessly
Trying to “do AI” everywhere is like installing sprinklers in the desert: you spend a fortune and still can’t grow tomatoes. Stack-rank the four levers above against:
Financial Impact — bottom-line potential in the next 12-24 months.
Feasibility — data availability, technical readiness, cultural appetite.
Strategic Relevance — how tightly the lever links to your chosen competitive edge.
A SaaS company with 90 percent gross margins shouldn’t burn cycles on COGS optimization when churn is skyrocketing. A high-volume manufacturer bleeding cash because of scrap rates shouldn’t start with AI-generated marketing copy. Ruthlessness is a virtue here.
Step 4 — Use Systems Thinking to Find High-Leverage Nodes
Now we get surgical. Picture the business as an air-traffic-control radar screen (indulge an ex-controller for a moment). Each blip is a process step, and everything is in motion—sales opportunities entering the pattern, invoices departing, inventory circling in a holding stack. If one aircraft drifts off course, the whole picture tilts.
Systems thinking forces two disciplines:
Mapping the Flow: Document how money, materials, and information move. Revenue isn’t a single event; it’s a chain from lead acquisition to cash in the bank.
Identifying Constraints: Spot the chokepoints where small improvements unlock outsized downstream gains.
Example: In a B2B software firm, revenue might be throttled not by marketing spend but by legal review time for enterprise contracts. Apply AI here—contract-clause risk scoring, auto-suggested edits—and the entire pipeline accelerates. Boosting ad targeting wouldn’t touch the true constraint.
Step 5 — Design AI Interventions at the Constraint, Not Around It
Armed with a ranked list of high-leverage nodes, you finally ask, “What flavor of AI actually fixes this?” Sometimes it’s machine-learning prediction; other times rule-based automation solves 80 percent of the pain for 20 percent of the cost. The coolness of the tech is irrelevant—the magnitude of the bottleneck and the ease of removal decide the winner.
Implement in slices, instrument everything, and confirm the value hypothesis with real-world data. If the needle doesn’t move, kill the project and head down the priority list. Sunken-cost fallacy is more lethal than any algorithmic bias.
The Non-Negotiable Truth
AI is neither a magic-wand nor a board-room talking point—it’s a scalpel. Aim it at the wrong organ and you create a mess; use it where the system bleeds most and you save the patient. Understand the interconnected machinery of your business, identify the constraint with the biggest price tag, and only then unleash the algorithms. Anything less is just another technology distraction masquerading as progress.
Until you see the whole system, you’ll never know where AI can be most effectively applied—so map first, model second, and watch value follow.

Jan 1, 1970
Stop Spray-Painting AI — Target the Bottleneck, Bank the Value
A few years ago, executives worried that they’d missed the mobile-app boom. Then it was cloud migration FOMO. Now the scramble is for AI—and the potential applications are so vast that most leadership teams are paralyzed by choice.

Jan 31, 2025
The Hidden Crisis in Business: When Optimization Masks a Lack of True Differentiation
When revenue stalls, leaders rush to optimize processes, trim costs, and demand more from teams. But what if the problem isn’t how well you’re executing—it’s that no one cares what you’re executing?

Jan 11, 2025
Strategy vs. Execution: Why Execution Must Come First
There’s a popular saying in business: “Vision without execution is just hallucination.” While a bit tongue-in-cheek, it captures an important lesson. Regardless of how impressive or innovative your strategy might be, if your organization can’t implement it effectively, the strategy itself is doomed.

Jan 1, 1970
Stop Spray-Painting AI — Target the Bottleneck, Bank the Value
A few years ago, executives worried that they’d missed the mobile-app boom. Then it was cloud migration FOMO. Now the scramble is for AI—and the potential applications are so vast that most leadership teams are paralyzed by choice.

Jan 31, 2025
The Hidden Crisis in Business: When Optimization Masks a Lack of True Differentiation
When revenue stalls, leaders rush to optimize processes, trim costs, and demand more from teams. But what if the problem isn’t how well you’re executing—it’s that no one cares what you’re executing?

Jan 1, 1970
Stop Spray-Painting AI — Target the Bottleneck, Bank the Value
A few years ago, executives worried that they’d missed the mobile-app boom. Then it was cloud migration FOMO. Now the scramble is for AI—and the potential applications are so vast that most leadership teams are paralyzed by choice.
NeWTHISTle Consulting
DELIVERING CLARITY FROM COMPLEXITY
Copyright © 2024 NewThistle Consulting LLC. All Rights Reserved
NeWTHISTle Consulting
DELIVERING CLARITY FROM COMPLEXITY
Copyright © 2024 NewThistle Consulting LLC. All Rights Reserved
NeWTHISTle Consulting
DELIVERING CLARITY FROM COMPLEXITY
Copyright © 2024 NewThistle Consulting LLC. All Rights Reserved