Doing Things In House

Every time you build something new you create two assets: The product and the capability to build similar things

Every time you build something new you create two assets:
1. You build the end product
2. You build the capability to build similar things

Sometimes the second half, learning, is so important that what you actually produce is secondary. With every new release you learn to work better. Your team gets more industry experience. They understand why things are done the way they are done. The team grows to a level where they can use their knowledge and experience to push the industry forward.

It is a bad deal to outsource your core capabilities because while you can get things done cheaply outside you’re only getting half of what you paid for. You’ve paid for the learning but you are not taking it. You lose a chance to build your team’s capabilities.

Here is an imaginary scenario: You have a successful product and you have a team that has created that successful product. You are asked to pick one. You can keep one but you will lose the other. Would you choose owning the product and losing the team? Or would you choose to lose the product and start over with the same team?

If you choose the team they can probably build a much better product in a short time. If you choose the product it will take you very long time to build a new team that can maintain and advance it.

A capable team with industry experience is unstoppable.

Creating a product that people love is hard. But, once you learn the hard lessons things get easier. A capable team with industry experience is unstoppable.