Madhavan Ramanujam: recommendation

Transcript context

…So is the way to use this two-by-two figuring out your model? Is it like, "Okay, I'm like Cursor. I'm going to go in this quadrant," or is it, "How do I get to outcome-based no matter what? That's where I need to be"? Yeah, so that's a great question. The first one is to actually figure out what is your right archetype based on where you are today. I think that is most important. If you try to rush into an outcome-based pricing model but cannot prove attribution, you will fail. So it is really coming up with what is the right archetype based on what I'm doing today, but also use this two-by-two to say, "How do I paint a vision to actually get to outcome based? And can I get close to that? Or can I be purely an outcome-based model? How do I evolve into that? " What that would mean is, how do I build functionality in the products to actually show attribution, how do I build more agentic workforces to take the human out of the loop and be more autonomous, and being thoughtful about your vision and strategy so that you will orient yourself towards more outcome-based pricing models. So when you think about increasing attribution, that means, first of all, understanding what are the KPIs of your customers. How do they track their business performance? Can you impact it? Can you productize things in your product that showcase that you are actually affecting those KPIs in a positive manner? Can you build dashboards to show value attribution? Can you do those value audits that we talked about on an ongoing basis to actually show that you're bringing a lot of value to the table and is attributable to you? So how do you create these kind of attribution mechanisms become important and also autonomous based on building more agentic workforces that can actually be on an autonomous mold? So pick the right archetype and plan to get to as close as you can to the outcome-based pricing model. That's how I would use the two-by-two. And you actually kind of see this happening with certain industries, right? If you think about coding as a overall category... Like back in the day with GitHub, everyone, they started with a seed-based model. They've now moved to the hybrid-based pricing model with Cursors and everyone else, but the natural move would be more towards a outcome-based pricing model where a AI agent can probably code everything at the same time, debug it, and you're kind of almost hiring a AI developer or AI QA person. And that actually becomes more closer to a outcome-based model because it's attributable and autonomous. So that is picking the right archetype and then figuring out your pathway is the key way to interpret this two-by-two. This explains why everyone's pulling agents. That's where the money's at, what you're telling us here.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.