If the three little pigs from that well known nursery rhyme taught us anything, it’s that building your own house, or in this case tech, can go very wrong. One strong wind and it can all fall down. For B2B marketers, the big bad wolf comes in the form of security issues, low traction and dwindling UX. But choose correctly and you could have the delights of a system that has everything you want, services your every marketing need and is comfortable to use.
Having overseen Agent3’s in-house team of 10 create (and recreate) the business’ own solutions platform, Clive Armitage, the company’s CEO, admits that doing it yourself is a task riddled with hurdles. Yet the success its solution has received in the market demonstrates what can be achieved.
Where do you start once you’ve decided to build your own tech?
Clive: If you’re ambitious enough (or mad enough given the quality and amount of existing martech solutions) to build your own tech, you must start by really understanding the problem you want to solve. From there, you must determine the outcome you need to deliver. Remember, technology is a means to an end, not the end itself, so first work out where your value is going to come from.
What resources does the build require?
If you’re building a solution for internal use then you obviously have to cost the process closely to ensure you avoid scope creep and consequent delays. You must have access to the right skills to both manage and develop the project.
If you’re building software as a market solution, you must have enough funding to develop the product without the commercial pressure to drive revenue. So you need to have a well-designed business plan that details your product’s ‘time to value’ and then secure funding that will support you through that process.
How long does it take to build a piece of tech?
This is impossible to answer. It’s a bit like asking how long does it take to build a house – it depends on the size, complexity and sophistication of what you’re building. One thing is for sure though, it will take longer to build something if you don’t have prior experience. There are so many ways to screw that up. What can be a straightforward task can quickly unravel into something that takes much longer than originally anticipated.
Are there some areas of tech that are better suited to a DIY build than others?
On one level this is really down to commercial need; if there’s no solution out there that meets your requirements and your need is great enough, you’ll obviously have to develop something. That said, if you are going to build, it’s best to focus on smaller solutions that enable quick outcomes. Often the best piece of technology is that which leverages existing products but enhances or complements what is already in existence.
How do you overcome common challenges when building tech?It’s an obvious thing to say, but bears repeating; building great software is hard. You can’t tinker with it and hope it’ll be successful. To overcome hurdles you need: Deep pockets.Access to suitable skills.Determination to focus on the core objective behind building your solution (without being distracted by other avenues of development).Patience – because great software takes time, consideration and nerve.
It’s becoming popular for agencies to build their own tech for clients. Is this threatening the vendor space?
Most agencies I see building their own tech are not really building commercially viable ones insomuch that they’re not fit as standalone solutions people would buy outright. Instead, they’re building solutions that allow them to sell more consultancy services because that’s agencies’ main goal. This is common sense from a financial perspective because it provides a commercial differentiator as well as not demanding huge levels of funding and resource to build software that will fall to external scrutiny. On that basis, these kinds of technology projects are not going to threaten the specialist tech vendors.
Why do companies choose to rent instead of build?
Because it’s cheaper, easier, and quicker to deliver value. It’s also, pragmatic, because most businesses are smart enough to recognise that they need to focus on the thing they’re most proficient in, then find solutions from others with specialist skills and products.
Is a lack of resources for building tech a primary driver for renting?
It’s obviously a significant one (and when we say resources, we mean everything from funding to skills). But there are other reasons; not least the obvious one, that building tech can be a distraction to your core business. And if there is a cost effective, efficient and robust solution already available to meet your needs, why try and reinvent it yourself?
Are there alternative rent options that can be explored with vendors?
Ultimately, this is always going to come down to a negotiation. Experience tells me that vendors are flexible in agreeing commercial terms and will work with the buyer to find a structure that works for both parties. You just need to ask.
What are the main drivers for building tech?Ultimately, building your own tech means one of four things: You have an amazing idea and someone has funded you in building a solution that is commercially viable.You’re already a software company and building tech is part of what you do.You’re an ‘enthusiast’ and just want to create tech.You can’t find a suitable solution for the particular business challenge or opportunity you face (this is the most common reason).
