Research from Boston Consulting group found that 30% of software development projects were late or over budget with 50% of these projects still producing unsatisfactory outcomes. According to Justin Megawarne, managing partner at Megaslice, the next generation of UK founders are being failed by developers that churn out ready-made solutions to support complex and multifaceted business ventures.
“The majority of development companies operate on a model that will give you a modest estimate on what something might cost, then bill you by the day until the budget runs out,” Megawarne explains. “The problem is you could be pouring money into something that takes far longer than you thought to build before you even begin to question whether or not it’s actually going to work for your business.
“You probably need to realign your understanding of when the right time is to engage with a software developer. They key is to sell it before you build it and ensure you have market validation first, otherwise the industry will continue to fail organisations and drain them of their cash.
“Too many organisations act solely as a body shop, happy to put a brand new engine in a car that nobody actually wants to buy. If you aren’t willing to be challenged, there are AI tools that will build things for you that don’t work.”
The swamp of genius ideas
Megawarne: “Even a genius idea ends up failing when it goes unchallenged. That’s why what you ask your software development team for and what you need are rarely the same thing.
“Founders believing their own hype should be ready for a reality check. The quality of your idea holds little significance to your chances of success if you aren’t making something that people want. Technology can no longer be viewed as the magic fairy dust that will make a success of your ideas. Technology is inevitable, how it is targeted is the key to unlocking positive outcomes.
“At the beginning of a partnership, spend time ensuring that your needs and your customers’ needs are understood by having honest conversations and seeking out realism on what is desirable, how much it needs to cost and how long it will take you to get there. To avoid missing out on the potential of your idea, seek out a partner that will challenge, ridicule and break it because they genuinely care about its success. Then they’ll improve upon it and turn it into something robust that genuinely stands a chance of success.”
To outsource or not to outsource
Megawarne: “The best advisor is likely not a software team or consultant. Instead, find someone you trust in your industry that has done it before and is on the way to making their idea a success.
“Not every job needs an external partner but ultimately, a non-technical founder doesn’t know how to scope out a software development job and will likely be sold an expensive dream by the wrong person. A founder you trust that is five steps ahead of you will have wisdom to share on where they went right and wrong, so seek out their advice and have honest conversations about the process.
“Then you can start to understand the best course of action to realise your idea and in doing so, save yourself some money in the long-run. A small prototype might be manageable on your own and be a useful starting point before seeking external support. Long-term projects might benefit from an in-house specialist but if you’re cash rich and time poor, you can probably lean on external support.”
Business first, technology second
Megawarne: “If you’re set on a partner, the best software teams will truly engage with your business and act as a co-founder who wants the best for your business.
“Facilitate conversations between your end-users and developers to gain a better understanding of their needs. Ensure that the team have a good understanding and planning for your budget and also discuss the revenue or valuation targets behind the work.
“Through quality research and strategic insights, the right team can intimately understand your market, your target personas and their actual needs before kicking off on developing any technology.
“It’s important to remember that there are always multiple solutions for every problem, some more cost effective than others. To add to that, a developer with your best interests at heart won’t bill you on their hourly or daily rates, that only leads to being overcharged. The best businesses are happy to do the heavy lifting first to find out what you need and work backwards from your budget.
“Ultimately, a partner keeps one eye firmly on costs and ensures they align with outcomes that will work for your business. A run-of-the-mill software developer counts your money while it delivers something that doesn’t work, waiting for your call asking them to fix it so they can carry on billing you.”
About Megaslice
Megaslice is a leading technology consultancy that helps traditional business founder pursue a technological opportunity in their market and achieve a tech valuation. By combining new venture business skills and deep technological expertise, Megaslice empowers founders to disrupt their industries and achieve the valuation they’re looking for. Trusted by organisations across multiple industries, Megaslice delivers innovative, impactful solutions that turn technology into the foundation for a valuable business.