Hamilton Helmer’s 7 Powers framework is a roadmap for companies looking to build and sustain competitive advantages in the market. 

In his book, 7 Powers: The Foundations of Business Strategy, Helmer identifies seven “powers” (scale economies, network effects, counter-positioning, switching costs, branding, cornered resources, and process power) that help businesses not only stand out, but stay ahead over the long term. 

By understanding and applying these powers, companies can create moats around their businesses, making it hard for competitors to catch up and easy for them to continue growing.

Companies can harness these powers by analyzing which of them align with their specific assets, customer base, or unique advantages. For example, businesses with large user networks can leverage network effects, while those offering complex, proprietary processes might focus on process power. 

When implemented thoughtfully, the 7 Powers framework becomes a strong foundation for building strategies, whether by lowering operational costs, creating robust customer loyalty, or innovating in ways competitors struggle to replicate.

Why VerifyWise is a perfect fit for the 7 Powers Framework

VerifyWise, an open-source AI governance platform, exemplifies the application of Helmer’s 7 Powers through its commitment to collaboration, community, and transparency in the AI space. 

Its open-source model gathers “network effects” by inviting contributions from diverse developers, lawyers, and AI experts, which enhances the platform’s value for all users. 

VerifyWise also benefits from counter-positioning by offering a democratized, community-driven alternative to proprietary AI governance tools, appealing to users who value transparency and control. 

Through thoughtful application of each of Helmer’s powers, VerifyWise is positioning itself to becoming a leading authority in AI governance, making it an outstanding example of how these foundational principles drive long-term impact and influence.

Let’s see how we are going to apply the 7 Powers Framework to VerifyWise.

Scale economies

VerifyWise can benefit from scale economies by efficiently managing its resources as it grows. 

As the number of contributors, users and partners increases, fixed costs (such as those related to infrastructure, security, and compliance) can be spread across a larger base. 

The key for VerifyWise would be to build scalable processes for maintaining code quality and handling contributions, which can reduce per-unit costs as its user base expands.

Network effects

Since VerifyWise is an open-source platform, network effects are important. As more contributors, lawyers, and AI governance experts join, the platform’s utility increases for all stakeholders. We expect a good amount of blog posts and WOM activities covering VerifyWise beginning of 2025.

This growth enhances the codebase and resources available. It also strengthens VerifyWise’s global reputation as a leading hub for AI governance. 

Counter positioning

Counter-positioning involves offering an innovative model that other vendors cannot easily replicate. 

VerifyWise’s open-source and community-driven approach is quite different from many proprietary AI governance tools. Traditional firms may hesitate to embrace open-source governance due to business model constraints. 

VerifyWise’s commitment to transparency and community contribution allows it to position itself as a democratized, flexible alternative, difficult for other players to “copy”.

Switching costs

Building switching costs can be challenging for open-source projects, but VerifyWise can achieve this by integrating deeply into users’ workflows and establishing familiarity and trust. 

For instance, as users become accustomed to the specific features, dashboards, or customizations available within VerifyWise, transitioning to a different tool could become costly in terms of learning and operational adjustment. 

Offering support, documentation, and community-based troubleshooting will help cement VerifyWise as an indispensable tool for its users.

Branding

Branding is crucial for establishing VerifyWise as a trusted authority in AI governance. As we develop thought leadership content, hosting webinars, and publishing materials like our new ebook “AI Bias and EU AI Act” will enhance the brand. 

As VerifyWise becomes synonymous with high standards in AI governance, it can attract more high-quality contributors, users, and partners who value reputation and expertise in their tools. We are working hard to make VerifyWise to have its own, unique brand and user experience.

Cornered resources

“Cornered resources” refer to exclusive assets that give a company an advantage. VerifyWise will leverage partnerships with legal experts, AI auditors, and governance specialists as a unique asset. 

By building strong, exclusive partnerships with influential AI ethicists or governance bodies, VerifyWise will secure resources that competitors may not access easily, creating unique value for users seeking cutting-edge governance practices.

Process power

Process power comes from unique operational processes that are difficult to replicate. VerifyWise will develop specialized processes for handling code review, vulnerability scanning, and security compliance in an open-source context, setting a standard for AI governance. 

We’ll invest in efficient, transparent processes for vetting contributions and managing data privacy as well. VerifyWise will create a replicable but complex process that becomes its operational backbone, making it hard for new entrants to match.

The road ahead

Through its open source approach, VerifyWise stands apart from closed AI governance tools. We combine Helmer’s principles, like network effects and counter-positioning, to make a lasting impact. 

By focusing on these powers, VerifyWise will not just become a growing  platform. It will also lead the way toward democratizing AI governance, making it fair, inclusive, and powerful for all.