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The slower adoption in non-tech sectors isn't just cultural lag - the integration surface is genuinely harder. Legacy ERP systems, compliance review cycles for
by rnagulapalle 3mo ago
The slower adoption in non-tech sectors isn't just cultural lag - the integration surface is genuinely harder. Legacy ERP systems, compliance review cycles for what data the model can touch, and change management overhead all front-load costs before any efficiency shows up in margins.
I've seen this in payment/API systems: the actual model integration takes weeks, but getting legal and security sign-off on the data pipeline takes months. Non-tech companies face the same pattern but with less internal tooling to manage it.
The margin signal might also be appearing at the wrong level. Gains in these sectors often show up first as headcount flatness or throughput improvements before they hit EBITDA. Measuring at the P&L level on a 2-year horizon is probably too early and too coarse - the operational metrics are moving, the accounting just hasn't caught up yet.