Creative agencies and building software
Should creative agencies build products and complex business software?
With the fast progress in technology, it became more and more challenging to stay on top of trends development. The tech has become more accessible in general, but requirements and expectations from clients have come to a point where many creative agencies are struggling to deliver the software.
Should you build software?
The software is a commodity nowadays. Yes, one content management system is better than another, but at the end of the day, your clients want either more income or fewer costs. With that in mind, you should only care about delivering results. Many agencies start building their own software that they want to resale as a product. I have never seen a company running a successful agency and a successful product at the same time. Let’s take Basecamp for example. Basecamp used to be 37signals, a digital agency specialised in building websites. To run successful projects, they built project management tools called Basecamp, Campfire and Highrise. A couple of years in they realised they had to shut down the agency business to scale their product business. Soon after they even decided to only focus on one product, Basecamp.
Yes, product business looks sexy and straightforward but that is only because there was so much buzz created by the startup industry with lot’s of cash to invest in the next unicorns. In reality, product business is not any different than agency business. You need to provide value to your customers and keep your people happy.
Focus on what you are good at
My next statement could a bit controversial, so please bear with me. With the upcoming changes that AI (artificial intelligence) will bring us, who do you think will become less valuable: people writing algorithms or people creating art. I still don’t want you to make business decisions based on Skynet-possible future but do understand your value as a creative business. People don’t have the right ideas and innovative solutions, so they come to you to help them. The idea for a new campaign or design of a new brand identity will have such a significant impact on your client’s business, making your services more valuable. If strategy, design and innovative solutions are your strong point, then you should be focusing 100% on those services.
How do you stay competitive?
Development of software is an essential part of the deliverables, and many agencies do offer full-service solutions to their clients. Clients like to deal with the single agency, and they often expect the agency will deliver strategy, design and development. To stay competitive and secure deals, you will need to find a way to provide software development services to your clients in a way the client will see them and unified solution coming from your agency.
Many agencies solve this problem with partnerships. If you have to record a video ad, would you go and buy expensive equipment and hire video editors? Of course not. You would look for a video production company and outsource that part of-of the project to them. Like you hire a video production studio you can also hire development studios. Now here it can get a bit tricky. Many vendors that can help you with development are agencies themselves, and they work with you because of the necessity, means to get through the month before they land a new client. Those vendors will not try to build a longterm relationship with you (even if they say so) as their ambitions are to compete with you.
My suggestion would be to look for development companies that position themselves as development vendors, providers of services for agencies. I hope this gives you some insights about how to think about outsourcing development to external partners.
If your agency is looking for a reliable partner to help you build complex online business solution and taking over maintenance and support while you do what you do best, schedule a call with me: https://calendly.com/iztok
