Start Simple: The Key to Successful Internal Software Development

When embarking on the journey of internal software development, it’s crucial to resist the temptation of immediately aiming for a comprehensive platform akin to Amazon Web Services. While the allure of substantial subscription revenue is undeniable, beginning with a smaller, more straightforward internal application is often a wiser approach. This strategy allows your organization to test its software creation capabilities without the added complexities of a full-fledged software sales operation.

Starting small offers several advantages:

• Increased likelihood of success: Small wins are instrumental in building momentum and garnering support (and funding) for more ambitious projects.
• Low-risk environment: It provides an opportunity to test your teams’ capabilities and support mechanisms, from tech support to ongoing maintenance, in a less risky setting than launching a major commercial platform.
• Focus on point solutions: Look for opportunities to build discrete solutions that address specific problems. This approach reduces complexity and risk while allowing you to deliver tools to users more quickly and start collecting valuable feedback.

Remember, with thoughtful planning, it’s often more effective to create a small set of point solutions designed for future integration rather than attempting to build a digital Swiss Army knife with multiple tools solving related but fundamentally different problems. This strategy can lead to reduced costs, minimized risks, and faster deployment of tools to your users.

From a commercial perspective, a well-designed point solution can often be better tested and supported than a complex application. Moreover, releasing additional, interconnected functionality in the future provides an opportunity for added revenue or value to your customers. This approach mirrors the success of early subscription software like Adobe Creative Suite or Microsoft Office 365, where the constant addition of new applications to the subscription kept users renewing, even if they only used a handful of the available tools.

Engage the End Users: The Cornerstone of Effective Software Design

Incorporating end users into the software design and development process is a fundamental principle of modern software development approaches. However, many companies fall short in this area, mistakenly assuming that adding one or two team members with experience in the relevant content area will suffice. This limited approach often fails to capture the full breadth, depth, and nuances of a particular business problem.

To truly engage end users effectively, consider the following strategies:

1. Diverse representation: Ensure that you involve a wide range of end users from different departments, teams, and user types. This diversity will help you understand how various groups will interact with and utilize the platform.
2. Build advocacy: Engaging more end users creates an opportunity to build support for your software before and during launch. These involved individuals are likely to become personally committed to the success of your software development effort and serve as advocates among their peers.
3. Identify influential individuals: Even if you don’t need dozens of end users involved, identifying and seeking input from influential individuals can significantly impact adoption and change management.
4. Continuous feedback loop: Establish a system for ongoing communication with end users throughout the development process, allowing for regular feedback and iterative improvements.

Remember, effective end-user engagement goes beyond mere consultation. It involves creating a collaborative environment where users feel invested in the software’s success. This approach not only leads to better-designed software but also facilitates smoother adoption and implementation processes.

Understanding the Difficulties of Software Development

It’s crucial to recognize that excellence in one domain doesn’t necessarily translate to immediate success in software development. Many companies have learned this lesson the hard way, struggling to conquer what seemed like a superficially easier industry or discipline. The automotive industry provides a compelling example of this phenomenon, with both traditional manufacturers and tech-savvy newcomers facing significant challenges as they navigate the intersection of hardware and software.

To avoid underestimating the complexities of entering the software development domain, consider the following points:

• Unique skill set: Software development requires a specific set of skills and knowledge that may not be present in your current workforce, even if your company excels in other technical areas.
• Different project management approaches: Software development often employs agile methodologies, which can be quite different from traditional project management techniques used in other industries.
• Rapid technological changes: The software industry evolves at a breakneck pace, requiring constant learning and adaptation.
• Complex integration challenges: Software often needs to integrate with existing systems and processes, which can be more complicated than anticipated.

It’s essential to set realistic expectations and objectives when venturing into software development. Avoid the hubris of assuming your current skills will seamlessly translate to this new competency. Instead, approach the challenge with humility and a willingness to learn and adapt. Consider bringing in experienced software development professionals or partnering with established software companies to bridge the knowledge gap and accelerate your learning curve.

Don’t Forget Support and Maintenance: The Often Overlooked Aspects

Successfully building and launching software within your organization is only part of the battle when creating a new internal application. Many tech organizations make the mistake of assuming that pre-existing support mechanisms will be adequately equipped for software support. However, this assumption often falls short of addressing the full spectrum of needs that arise with new software implementations.

To ensure comprehensive support and maintenance for your internal software, consider the following aspects:

1. Specialized support team: Develop a dedicated team that understands not only basic issues like logins and defect reporting but also how to productively use the software tool and integrate it into existing applications and business processes.
2. Ongoing maintenance plan: Establish a robust maintenance schedule that includes regular updates, security patches, and performance optimizations.
3. User training and documentation: Create comprehensive training materials and user guides to empower end-users and reduce the burden on your support team.
4. Feedback mechanism: Implement a system for collecting and acting upon user feedback, allowing for continuous improvement of the software.

If you’re considering launching your application commercially, be prepared for significantly different customer expectations. Service Level Agreements (SLAs) and reporting tools that suffice for internal tech platforms are likely to be inadequate for paying commercial customers. You’ll need to develop more robust support systems, including:

• 24/7 customer support capabilities
• Sophisticated ticketing and issue-tracking systems
• Dedicated account management for key clients
• Regular software updates and feature releases

Remember, software applications require ongoing attention and resources, unlike hardware that can be released “into the wild” with minimal intervention. As business processes and market conditions change, your software will need updates. If it’s well-received, you’ll likely face an increasing number of enhancement and integration requests. Planning for these ongoing needs from the outset will help ensure the long-term success and sustainability of your software development efforts.

Get the Right Help: Leveraging External Expertise

Creating software internally comes with numerous challenges, and seeking outside expertise can provide valuable insurance for success, both for your current effort and in building capabilities for future software endeavors. When considering external help, it’s essential to focus on two fundamental types: strategic assistance and capability augmentation.

Strategic Help:

• Develop an appropriate operating model for effective software production
• Establish relevant performance indicators and productivity measurements
• Assess how well your software teams understand the user community they’re assisting
• Identify core capabilities of a high-performing software organization
• Evaluate gaps or weaknesses in your current structure

Capability Augmentation:

• Acquire new tools to enhance your software development process
• Outsource specific software development tasks to third-party experts
• Build internal teams with specialized skills that align with your company’s unique advantages
• Consider complete outsourcing of software production for internal or commercial consumption

When seeking external help, it’s crucial to approach the process with an open mind and a willingness to acknowledge areas for improvement. This exercise may feel uncomfortable for technology leads, as it’s rare that no gaps exist. However, understanding the capabilities required to meet your objectives and developing a plan to acquire those capabilities sets your teams up for long-term success.

Remember to carefully consider which capabilities you want to build internally. They should provide your company with a unique advantage, while other capabilities can be acquired as needed. For instance, if your company has a significant field service force, having an in-house team with mobile app experience might be incredibly beneficial. Conversely, if your focus is on consumer products, an internal team that understands remotely updated hardware could be more important than in-house app development.

Be Cautious About Commercialization: Navigating the Transition

The idea of turning internal software applications into commercial products can be alluring, especially for companies without recurring revenue streams. However, it’s crucial to approach commercialization with caution and a realistic understanding of the challenges involved. Many companies underestimate the difficulties of marketing and supporting commercial software products, as well as the higher standards of service and support expected by paying customers.

Key considerations when contemplating commercialization:

1. Market understanding: Develop a deep knowledge of the external market, including potential customers, competitors, and positioning strategies.
2. Product adaptability: Assess whether your internal software can be adapted to meet the diverse needs of a broad customer base.
3. Support infrastructure: Evaluate your ability to provide the level of support and service expected by commercial customers.
4. Sales and marketing capabilities: Determine if you have the necessary skills and resources to effectively market and sell software products.
5. Revenue model: Develop a sustainable pricing and revenue model that aligns with market expectations and your business goals.

It’s important to remember that the unique advantage of internal software—customization for your particular business processes and strategy—may become a detriment in the open market. A tool that optimizes a differentiated process can be a great advantage internally but a handicap to a broad set of customers with varying needs.

Avoid the common pitfall of assuming that great software will sell itself. Like any other product, software requires deep market knowledge, competitive analysis, and strategic positioning. Merely offering something cheaper, more technically sound, or with some minor benefit is rarely enough to generate sales traction.

As you develop and launch a product you’re considering for commercial offering, pay close attention to what the market tells you. Be prepared to pivot or make significant changes based on customer feedback and market demands. Remember, your customers generally don’t care about your company’s history, technical prowess, or unique features if the product doesn’t solve their specific problems effectively.

By approaching commercialization cautiously and with a thorough understanding of the market and customer needs, you’ll be better positioned for success in transitioning from internal software development to a commercial software provider.