Should UST Global prioritize expanding its AI-powered automation services to new industries or focus on deepening capabilities within existing client sectors?

Introduction

The trade-off question at hand is whether UST Global should prioritize expanding its AI-powered automation services to new industries or focus on deepening capabilities within existing client sectors. This scenario involves balancing growth through market expansion against strengthening our core offerings. I'll analyze this trade-off by examining our current position, potential impacts, and key metrics, then design an experiment to inform our decision.

Step 1

Clarifying Questions (3 minutes)

• Context: I'm thinking our AI-powered automation services are a significant revenue driver. Could you share how much of our current revenue comes from these services, and how it's split across industries?

Why it matters: Helps quantify the potential impact of expansion vs. deepening Expected answer: 30-40% of revenue, with 70% from top 3 industries Impact on approach: High concentration would favor deepening; more even split might support expansion

• Business Context: Based on our market position, I assume we're facing increasing competition. How has our market share in existing sectors trended over the past year?

Why it matters: Indicates whether we need to defend our position or if there's room for expansion Expected answer: Slight decline in market share due to new entrants Impact on approach: Declining share might prioritize deepening capabilities to maintain position

• User Impact: Considering client satisfaction, I'm curious about the depth of our current AI solutions. What's the average number of use cases we're addressing per client in our top sectors?

Why it matters: Reveals potential for deepening services within existing clients Expected answer: 2-3 use cases per client on average Impact on approach: Low number suggests opportunity for deepening; high number might favor expansion

• Technical: Regarding our AI capabilities, I'm wondering about the adaptability of our current solutions. How much customization is typically required when entering a new industry?

Why it matters: Assesses the technical feasibility and resource requirements for expansion Expected answer: 30-40% customization needed for new industries Impact on approach: High customization needs might favor deepening existing capabilities

• Resource: Thinking about our team structure, how are our AI and industry experts currently allocated between existing clients and new market development?

Why it matters: Indicates our current capacity for expansion vs. deepening Expected answer: 80% on existing clients, 20% on new market development Impact on approach: Heavy allocation to existing clients might limit immediate expansion capacity