Tech companies are obsessed with their technology instead of solving actual customer problems.

They build products that engineers love but customers don't understand.

Then they incentivise salespeople to push whatever makes the most commission this quarter.

No wonder 80% of software features are never used.

In this episode, Kieron and Andrew dissect the fundamental challenges plaguing technology companies today, revealing why brilliant technical capabilities often fail to translate into business success. From OpenAI's struggle to monetize their sophisticated AI models to the strategic chess match between tech giants, discover why focusing on features rather than customer problems is killing even the most innovative companies.

The conversation explores the fascinating contrast between OpenAI's vertical integration strategy (including their Johnny Ive acquisition) and Anthropic's horizontal utility platform approach. Plus, get ready for some entertaining detours, including Kieron's passionate hatred of AirPods and why he thinks Apple has lost its innovative edge.

🎯 On the Docket

• 00:00:00 - OpenAI's monetization struggles: sophisticated tech, unclear positioning
• 00:04:36 - Tech companies' core problem: focusing on technology instead of customer problems
• 00:08:26 - Apple's strategy: communicating benefits, not technical specifications
• 00:13:20 - The 80% rule: most software features are never used by customers
• 00:17:00 - Winning deals: understanding business problems vs. procurement games
• 00:20:48 - Strategy for tech companies: focus on doing one thing exceptionally well
• 00:23:36 - OpenAI vs Anthropic: two radically different go-to-market approaches
• 00:32:00 - Product vs services dilemma: why most companies struggle with both
• 00:36:58 - Sales remuneration plans: how incentives drive all salesperson behavior
• 00:44:22 - Post-sale neglect: why most tech companies fail at customer success

⚡ Key Insights

• Apple gradually steals markets until competitors become irrelevant (cameras, photography)
• "Man on Clapham Omnibus" principle: even CTOs don't understand deep technical details
• Sales remuneration plans drive behavior more than product quality or strategy
• Two AI strategies: OpenAI's vertical integration vs Anthropic's horizontal platform
• 80% of software features are unused, yet companies add more instead of focusing
• Procurement teams weaponize feature comparisons for negotiation, not genuine need
• Customer success has shifted from value delivery to cross-selling and upselling

💬 Notable Quotes

"I think even for companies that are as sophisticated as OpenAI... I think they're still working out exactly how they position this, right? They haven't made money out of it yet."

"They start with their capability or their technology, and then they go, 'What can we do with this?' And they don't do it the other way around."

"I can't tell you how much I hate the AirPods... They have shitty quality sound. They don't stay in your ears. They are a shit product as far as I'm concerned."

"So basically 80% of software features are never used. 80%. And 12% of software features account for 80% of the usage."

"Every single quarter, when the new remuneration plan came out, we would stop for a day and read it. And we would know absolutely everything we could do to maximize our sales."

"Salespeople don't sit there going, 'What's the best thing for executing the strategy of my employer?' They think about, 'What am I going to make the most money out of selling?'"

"We maxed out on every point in his selection criteria, and we had the highest score... The senior leaders said, 'Oh, we've not heard of those guys. We're going to go with these guys because we've heard of them.'"

🔗 Where to find A Few Good People:AFGP: https://www.afewgoodpeople.co.uk/

Andrew Radley

Kieron McCann