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Why Service as a Service is the Last Defensible Frontier of Strategy

Anabel Emekene by Anabel Emekene
April 30, 2026
in Artificial Intelligence, AI & Automation, AI for Africa
Reading Time: 2 mins read
0
Why Service as a Service is the Last Defensible Frontier of Strategy

Why Service as a Service is the Last Defensible Frontier of Strategy

As Agentic AI Accelerates Competitive Convergence, RS Proves That Human Discernment Is the Only Non-Replicable Advantage

In a recent strategic dispatch, Viv Muthan (Pr Eng), Head of Export Sales and Operations at RS, warns that while digitalisation improves efficiency, it also increases sameness. As organizations scramble to adopt the latest digital tools for fear of obsolescence, they are inadvertently collapsing their unique value propositions into a cycle of imitation.

The Service as a Service framework posits that in a hyper-competitive, digitally accelerated landscape, technology delivers speed, but only humans deliver meaning.

Many organizations today misinterpret motion as progress. By investing heavily in automation and system integration, they often improve their operational effectiveness, performing similar activities better than rivals. However, as Michael Porter (1996) famously argued, this is not a strategy.

Strategy is about the unique fit of activities and, crucially, what a company chooses not to do. When every firm adopts the same AI-driven customer experience, the strategic differentiation collapses. The result is a market where brands are indistinguishable in their execution, leading to a race to the bottom on price and speed.

RS is taking a counter-intuitive approach: investing deliberately in people to protect the customer experience. The philosophy is built on three pillars:

  • Friction vs. Complexity: Automation is designed to reduce friction in transactions, but humans are required to resolve the complexity of real-world industrial problems.
  • Patterns vs. Significance: AI excels at identifying patterns in data, but people are necessary to interpret their significance within a specific context.
  • Transaction vs. Relationship: Platforms handle the back-end, while people handle the relational trust that cannot be reverse-engineered at scale.

In this context, Service as a Service is more than a play on words; it is a defensive moat. While algorithms can be trained and interfaces mimicked, human discernment, empathetic listening, and contextual understanding remain the last frontiers of differentiation.

By augmenting human capability rather than replacing it, RS aims to create a higher-quality omnichannel journey. In an industrial world operating under extreme pressure, the endurance of value lies in the intersection of high-speed technology and high-touch humanity.

References
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage.
Bharadwaj, A. et al. (2013). Digital Business Strategy.
D’Aveni, R. (1995). Hypercompetition.
McGrath, R. (2013). The End of Competitive Advantage.
Porter, M. (1996). What Is Strategy?

Tags: Agentic AI in Industrial OperationsService as a Service Strategy
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