Capability-Value-Scale Software Maturity
New software passes through three stages — what's possible, then what's valuable, then what scales
- Difficulty
- Easy
- Time to result
- ~ongoing to results
- Steps
- 3
- Confidence
- 82%
A mental model for where a new software category sits in its adoption life cycle. Software first goes through a capabilities stage (exploring what is possible), then a value stage (how do I get value from this), then a scaling stage (which parts of my life/work it enters). Use it to diagnose your category's stage and set expectations — early categories monetize on exploration, not proven ROI.
Origin
Elena credits this framework to John Cutler, saying it is 'completely stuck in my mind.' She places vibe coding firmly in the capability stage, where what's possible changes every one-to-three months, so users must keep returning to see what's new.
Core principles
- 01Capability stage first: users explore what is possible to create
- 02Value stage next: users work out how they get value from it
- 03Scale stage last: users decide which aspects of life and work it enters
- 04In the capability stage the frontier of 'what's possible' shifts monthly, pulling users back repeatedly
How to run it
- 1
Diagnose your category's stage
Determine whether users are still exploring capabilities, evaluating value, or scaling usage across their life and work.
Pro tip If people are still asking 'what can I even do with this?', you are in the capability stage.
- 2
Monetize the act of exploring
In the capability stage, monetize on the act of building and exploring rather than on proven, quantified ROI, since value is not yet the primary driver.
Pro tip Lovable 'monetizes on the act of building' while users progress toward their own product-market fit.
- 3
Keep expanding what's possible
Because capability changes every one-to-three months, keep pushing the frontier so users must return to see what has changed.
Pro tip The frequent capability change is itself a re-engagement driver — users 'constantly need to come back' to see what's new.
In the wild
Elena places vibe coding in the capability stage: 'everybody's just exploring what can I do' and what you can do changes every month to three months.
→ Revenue comes from exploration and building, not yet from proven value or scaled workflows.
Common mistakes
Demanding proven ROI too early
Expecting value-stage or scale-stage behavior (quantified ROI, embedded workflows) while the category is still in the capability stage where users are just exploring.
Is it for you?
Best for
Founders and strategists diagnosing where a brand-new software category sits and how to monetize it
Not ideal for
Established categories with proven value and mature workflows where the stages are long settled
From the transcript
“software always goes through capabilities stage first like what is possible uh to actually create with this then it needs to transition into value of…”
“we're right now very much in the capability stage with vibe coding because everybody's just exploring what can I do”
From the episode
The new AI growth playbook for 2026: How Lovable hit $200M ARR in one year
Elena Verna (Head of Growth)