Madhavan Ramanujam · Lenny's Podcast
Plot autonomy against attribution. The top-right is outcome-based.
Madhavan Ramanujam has spent two decades pricing AI and SaaS products at Simon-Kucher. His 2x2 lives at the heart of it. The horizontal axis is attribution: how clearly can the buyer see the value your product produced. The vertical axis is autonomy: how much of the work does the AI do without a human in the loop.
Low autonomy plus low attribution is a per-seat business. High attribution with a co-pilot mode is the hybrid quadrant where most AI companies sit today. The top-right corner is outcome-based pricing, and Ramanujam is direct that this is where AI is uniquely capable of going. About 5% of companies are there today.
The ones that are recover 25 to 50% of the value they create instead of the classic SaaS 10 to 20%.
Steal it
Draw the 2x2 for your product today. Plot autonomy on one axis, attribution on the other. If you sit anywhere except the bottom-left, per-seat is leaving money behind.