To Code or Not to Code?

How no- and low-code tools are driving tech-driven business forward

For the last few months, I’ve been interning with a pre-launch startup in the women’s health care space. They’re building a digital-first solution (not surprising) but haven’t hired any engineers (maybe more surprising). Five or ten years ago, this would have been impossible. Now, with the growth of no-code and low-code tools, founders can get a minimum viable product to market without any technical experience. While it turned out that I’d already been using no-code tools without knowing the label (for ex: Notion), I was intrigued by the concept and wanted to know more.

Here’s the TLDR:

Start from the beginning…what are no-code tools?

No-code tools are software programs that allow non-technical users to design software and apps without programming skills. There is of course coding involved in the creation the no-code tool, but the “no code” terminology is in reference to the end-user experience. Webflow, one no-code tool, described these tools as as an “abstraction layer of code. Meaning, they take the fundamentals of code and translate them into simple drag and drop solutions.” (Source)

The no and low-code category is not new — from a technical standpoint, Microsoft Excel might actually be one of the first examples of these tools that allows data manipulation without code. Still, they’re getting a lot more hype as the tools have become more sophisticated and are helping drive the growth of many tech-enabled startups. Plus, the emergence of remote work also forced more organizations to adopt no-code tools as they adjusted to a virtual world (Source). No-code tools are now used across industries and functions, spanning everything from app and website development (e.g., Bubble) to project management (e.g., Airtable), to communication (e.g., Mailchimp).

To put some numbers on it: in February, Zapier, a no-code tool and workflow automation company, surveyed 1,500 US business professionals who use no-code tools for jobs or side gigs. 82% of respondents said they started using no-code tools sometime in the past two years; half said they started using within the last year. Their reasons for starting with these tools varied: 28% said that no-code tools were the quickest way to achieve a task at work, 24% said their teammates started using them, 18% said they started a side gig, 16% had to learn for a new job, and 13% just wanted to learn something new. But the reasons why they stuck with them were more consistent: 83% said they were time-saving and76% said they helped automate tasks. (Source)

So what are the benefits?

The no-code “movement rests upon the fundamental belief that technology should enable and facilitate creation, not be a barrier to entry” (Source). While specific benefits will depend on the intended use, no-code tools overall help companies and individuals work faster and more efficiently. They empower teams and individuals to move forward with tasks, without relying on or coordinating with a programmer.

In many ways, no-code also democratizes access to tech talent, particularly in the early phases of a company’s lifecycle. As long as the company is building something within the confines of existing technological processes, they can test hypotheses, show proof of concept to investors, or even get to MVP without a technical hire. Not only does this mean a company can get to market faster, they can also do so with greater autonomy and fewer expenses.

What’s the catch?

While enormously beneficial, there are some drawbacks. No-code development tools designed to execute on straightforward, predetermined tasks. Put another way, they’re dependent on the functionality of the platform and thus constrained by what’s already been done. Moreover, they rely on the platform for security, which can be problematic when building and designing in high-risk industries like financial services or health care (which additionally will often require HIPAA compliance).

For these and other reasons, no-code tools are unlikely to put developers out of work (this is even notwithstanding the fact that you need developers to make the tools). Sure, they might help coders work smarter and faster, but with the rate of innovation within tech, a tool that’s constrained by what already been “done” is unlikely to replace the individuals who are pushing the bounds of what’s possible.

What does the market look like?

There are 250+ no-code tools on the market today and they’re being used by professionals and amateurs alike. A 2022 market research report projected that the global market will reach $39 billion by 2027at a CAGR of 30.9% between 2020 and 2027 (Source). Others predict that no- and low-code will account for more than 65% of application development by 2024 and be adopted by 75% of businesses (Source).

Last week, Thunkable, the world’s largest no-code mobile app development platform, raised $30M in a series B round of funding (Source). While I would have assumed a company like this was just serving bootstrapped startups without the capital to bring in developers, I was interested to learn that 40% of Fortune 500 companies are now listed among Thunkable’s customers. Leaders say that this customer segment is looking to “bring the development closer to the teams that are actually needing the apps.” As they continue to grow, it will be interesting to see how this customer mix shifts and what it says about the overall value proposition for these tools.

So where do we go from here?

While no-code tools may not be an end-all-be-all and they’re unlikely to replace engineering talent (the startup that I’m working with does intend to hire a developer after they test proof of concept with the soft launch), I think they play an interesting role in pushing the tech industry forward. In class this we talked about how so much of the tech stack has become abstracted from the end-user; the no-code movement pushes that one step further. Sure, we might end up with websites and apps that never see the light of day as more people try their hand a “development.” But we’ll also probably see entrepreneurs fail faster (and in turn get to success faster) and teams work smarter, both of which is net positive for the industry.

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