What executives should do

The following five actions are dynamic capabilities you need to build – routines organizations need to run continuously as the floor rises.

1 – Sort your project portfolio by model year, not just ROI.

Ensure tasks are routed to the right model. Commodity initiatives get bought cheaply and deployed broadly. Frontier initiatives get funded selectively, with real evaluation attached.

In practice: At the next capital review, add one column to the project list – the expected date each capability hits the commodity floor. Anything under 18 months gets bought, not built.

2 – Avoid long vendor lock-ins for capabilities that are falling in price.

If a frontier lab can only charge premium prices for a limited…