Is AI another DotCom bubble ?

Author

Venkatesh Krishnamurthy
August 24, 2025

Jidoka - Connecting the Dots book

As I had announced in the previous newsletter, I am co-authoring a groundbreaking book “Connecting the Dots.. Reflections on the Toyota Production System” in collaboration with Harish Jose, a fellow systems thinker, mentor and a highly experienced Lean Thinker

Here is one of the snippets from the book about Jidoka

Jidoka, the Governing Principle for Built-in-Quality Harold Dodge said “You cannot inspect quality into a product; it must be built into it.” This fundamental insight reveals that quality must be viewed as an intrinsic attribute of a manufacturing process.

The idea of quality being part of the process cannot be brought out by talking to employees or with slogans or short-lived programs. For quality to be a part of the process, it has to be a part of the process intrinsically!
 
This profound principle forms the foundation of Jidoka

When visiting Toyota plants, Ohno would often point to machines and ask, “Is that a Jidoka machine?” His question was not about technology alone but about whether the principle of autonomy and responsibility was being honored.

This book would be initially available for the Cyb3rsyn community, before we launch on Amazon and other platforms.

AI Section

Is AI going to be another Dot-com bubble ?

Recently, someone shared the above image…. There’s growing debate around the sustainability of today’s AI business models. As the post above illustrates, customers might pay $200 a year for an AI app, but the economics behind the scenes are shaky. App makers pay more to access APIs, API providers pay even more for cloud compute, and cloud platforms pour billions into GPUs—often propped up by venture capital at each step. The result is a “house of cards” where costs far exceed revenues, raising the question: can AI truly scale sustainably without constant VC subsidies?

If the business don’t see the ROI, the investors will pull the plug for many of these AI initiatives. At the moment, most AI investments are running under loss.

LeSS Section

Opportunity Solution Tree to resolve the tension

The Opportunity Solution Tree is a powerful visual tool that helps product teams connect their desired outcomes to the opportunities in front of them, and then to the solutions they might try. At its core, it ensures we are not jumping straight into solutions but instead exploring the full landscape of opportunities that could lead us to the outcome we want.

What it is:
A structured map that starts with a business outcome, branches into customer opportunities, and then explores multiple solutions—each validated with assumption tests.

Why we need it:
Too often, teams fall into the “solution-first” trap. OST shifts the focus back to outcomes and opportunities, ensuring alignment with customer needs and business goals. It creates clarity, transparency, and a shared mental model for decision-making.

 Benefits:

  • Keeps teams outcome-focused, not just output-driven.

  • Encourages exploring multiple paths before committing.

  • Makes assumptions explicit and testable.

  • Provides a living map for strategic product discovery.

  • Builds stronger alignment between stakeholders, teams, and customers.

In short, OST is not just a diagram—it’s a way to continuously discover, validate, and deliver value. If you would like to more about OST, read “Continuous Discovery habits” book

Systems Thinking Section

Why You Need Systems Thinking Now?

Recently came across this wonderful HBR article addressing the urgent need to have Systems Thinking now. You can read the completely article, but here is the gist

The Challenge with Traditional Innovation Conventional approaches like breakthrough innovation and design thinking often fall short because they overlook the broader, interconnected ripple effects of change—such as environmental degradation from plastics, water pollution from fracking, or financial collapse from credit default swaps .

Why Systems Thinking Matters In an era defined by complex, multi‑layered challenges such as climate change, sustainability, and fragile economic systems, systems thinking offers a more resilient and holistic path forward. It enables us to anticipate unintended consequences, better engage with stakeholders, and design solutions that create long-term, scalable value

A Four-Step Framework for Action

  1. Define a desired future state – Envision the end goal in clear, systemic terms.

  2. Reframe the problem – Use language that resonates across stakeholders and captures interconnectedness.

  3. Focus on flows and relationships – Prioritise dynamics over discrete products or services.

  4. Implement small nudges – Test gradual shifts that can influence the system iteratively

Not a Replacement—But a Powerful Complement Systems thinking isn’t meant to replace existing innovation methods. Rather, it addresses their blind spots when it comes to tackling "wicked problems"—those complex, interconnected challenges that don't yield to linear solutions. By encouraging coalition-building, foresight, and adaptability, it enables transformative change

If you are keen on learning more about Systems Thinking or addressing organisational challenges through Systemic Coaching, please reach out to me.

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