Selling SystemsForge
It is an interesting position to be in. We can build rich, custom web applications much more quickly than most anyone else as we've developed an extremely efficient process for doing so. The question then is how best to take this to market.
Initially we were focused on working with resellers, providing wholesale web apps. That is still a focus, but we are also considering other approaches to selling our services.
I've been doing a lot of work around a process for managing application development from concept to completion and believe we're now in a great position to develop web applications directly - specially in the $10,000 - $50,000 price range (we don't do tiny projects and as the scale and the amount of custom development and consulting required by a project grows, the benefits of our systems become less compelling).
The question then is how best to take our capabilities to market. In the early days I was very excited about the benefits that the software product line offered. Being able to "build anything, change everything" focused on the fact that we were able to get the efficiencies of off the shelf software while still providing the flexibility of custom build applications in terms of customizability. Of course, while that is cool and benefit focused, it isn't a benefit that most people building web applications care about. It'd be like selling application development based on the fact that you use agile processes or test driven development - unless you're selling to an extremely sophisticated client it simply isn't solving a problem that they know they have.
There are way too many website developers out there for me to be interested in positioning us as "yet another website firm" without a unique position. The question is what USP to choose . . . What are the problems that someone buying a web app has that we are uniquely able to solve?
Industry Experience
One approach we could take is to pick our key industries and either create micro-sites for each or to pick one and go with it. We most frequently develop content management systems for professional service companies, e-commerce applications for retailers and sites for not-for profits. It would be fairly straightforward for us to create practice areas around any or all of these and it would also be quite easy to market to these specific niches - from trade shows and industry publications to speaking at events. The downside is that this doesn't really take advantage of any of our unique benefits - it would just allow us to show that we were smart, capable and able to build better apps more quickly and at a fair price. We could definitely build a practice out of this, but it would take a while.
Smart Clients
We consistently do better when selling to more knowledgeable clients. We're really good at what we do (very few people with the skills we bring to the table are working on such inexpensive apps) and we're usually more successful selling to clients that value our expertise and knowledge and who have a better understanding of what can go wrong with a project and the value of hiring great people to build their applications. This isn't a bad point, but it isn't exactly a positioning or a strategy - just something to bear in mind when developing our initial client questionnaires.
Time to Market
One thing we can do that is very hard for most firms to replicate is deliver projects quickly. We're often backed up with other activities, but it would be fairly easy for us to restructure the business around building "websites in a week" - including capturing requirements and custom programming. The SPL really allows us to build rich applications quickly, so for the small number of people who genuinely need an app in a hurry we could offer a pretty compelling proposition. The issue of course is (a) that most people don't need an app in a week and (b) that most people who THINK they need an app in a week don't. For people who really needed an app quickly for a good reason it'd be great, but this could also attract the "hurry up and wait" crowd who need a quote tonight and the app live by Friday and then don't call back for another three months because they got busy with some other emergency.
Solving Business Problems
Another big story is the fact that we're capable of solving business problems rather than just writing code. We understand sales, marketing and the operational drivers for productivity apps and can help companies to ensure they're solving their business problems efficiently rather than just building them a buzz-word compliant site.
Reducing the Risk
One of the areas that interests me the more is reducing the risk of website development. From a clients perspective, website development kinda sucks. You look at a list of proposals by people you don't know to complete a process you don't understand and you hope that the one you pick will complete the project on time and within budget. Of course, as website developers we know that (unless we just work on an hourly basis), the risk cuts both ways. The risks to the client are that we'll not deliver, take too long, or create a buggy app. The risks to us are that the client will need a huge amount of hand holding, want a large number of revisions, or be unable to provide content and decisions in a timely manner - dragging out the project and therefore the time that it takes. One thing I'm thinking seriously about is a way of structuring the business to allow us to build a website and then the client only pays for it if they like it. There are a lot of details to iron out in terms of pre-qualifying the prospects and managing the risk, but if four companies are offering a proposal and we're offering a completed website, I've got to believe it'd be more attractive for the client to see what they're getting before they pay for it and I believe the extra production time would pay for itself in lower sales and marketing costs if we structured it just right.
How do you position your capabilities? What do you think of the above approaches? Input appreciated!





I don't think it would be useful to try one approach for 6 months, then another for 6 months, and then another, because then you are working in time frames that could be seasonal and not have good data (unless you can control for that in some way), but if you did it in smaller timeframes it could be worthwhile.
Of course, you take a risk that way if you focus too much of your time on approaches that prove to be useless. However, the upside is that you ought to be able to find the best one. Finally, you may be able to map what approach works best with certain types of clients, and then shift your strategy depending on who you are looking at working with that week. This loses value if your goal is to have people come to you, rather than you seeking clients, I would think.
What do you think?
Thanks as always for the comment!
Right now I'm working up a website that blends all of the above. We're focusing on "we remove the risk" which is the big, memorable, viral statement, but have sections showing our solutions, explaining our experience in given industries, and we're putting together a pre-qualification checklist to make sure we only offer the no risk web apps to smarter prospects. Working on copy now, so I'll let you know when it launches (rough cut next week, then we'll add look and feel once we're happy with the messaging and content). I actually wrote this posting earlier in the week, but still wanted to get feedback to see what other ideas people had.
I am skimming over Your blog entries in a loosely manner for a longer time now; and they
are always an interesting read :-) ! Because I am actually interested myself in
efficient/progressive ways to build outstanding/efficient/progressive (web based)
sites/software apps.
And an approach like Yours of which You claim it was a ColdFusion based Software Product
Line (SPL) approach is still not found so widespread.
But now, admittedly, I need some butter to the fish: I have revisited RIAForge recently
and downloaded Your CFTemplate project, for example; but I have yet to see Your whole
solution approach; so that I can TRY to build myself an opinion about its capabilities;
before I have not had it in my greedy hands, I cannot provide any constructive input about
potential strategies for a profitable market entry ...
So yes: Please give us Your solution approach; hopefully guided by proper documentation !
If I am convinced by Your approach, You don't need big troops in Your marketing/sales
force to make me using it :-)
Tschüss
Kai
Glad you're enjoying the ideas. We're actually not planning to release the Software Product Line as a product at all, but rather to use it to build sites for our clients and resllers more efficiently.
I just don't see any model where we could make real money by selling the SPL to developers (although if you have any thoughts, I'd be very open to hearing about them!).
That's disappointing news, very disappointing indeed ! I have read Your mouth-watering
articles for a long time and was so curious to finally be able to test-drive Your SPL
approach :-(. Only to hear now that You will NOT release it but use it only in-house. To
be honest: From a developer's perspective that's really disgusting; as long as I don't ask
You to do a project for me, I am interested in Your in-house processes only in so far that
You make them available to a broader audience !
If I could build up a business over here in Germany which is based on Your released SPL
solution approach, that could be a win-win situation for both of us, couldn't it ? I
suppose You as SystemsForge cannot do ALL the business out there alone, even using Your
potentially shining unique in-house approach ...
Of course I would accept a NDA if that's an issue for You :-)
Anyway: Should I have a budget for web projects, I have Your SystemsForge in the back of
my head ...
Tschüss
Kai
I'm sorry that your disappointed, but why is it disgusting that I share many of my ideas but don't also give away all of my code for free? Unless you can persuade my landlord, the local car dealership and the local grocery store to give me whatever I would like from them for free, I'm going to continue to charge for some of the stuff I develop!
I am actually very open to you building up a business in Germany (and hope it works really well for you). I don't own the idea of a SPL, so you could definitely develop your own software product line using ColdFusion. I'm also open to any win-win commercial agreement for you to use the SPL over there. Question is, how would you like to structure something like that? Always open to partnering where it makes business sense!
My answers are:
- I have currently no clients at all; let alone commercial ones
- I am trying to develop a web 2.0 gaming site with special flavour; which shall be run in
a commercially light sense :-)
- In order to do that, I am still open for approaches to use; I have been researching the
development arena high and low now for a longer time; since it have been - and still are
- changing times in this field, I have not yet settled on all
methodologies/approaches/technologies I will use; but I intend to commit myself soon ...
- Should I build the gaming site using Your approach, You could get some percentage of
potentially generated revenues
- Of course I can somehow understand that You want to eat well, drive fast, be housed
properly and so on :-); but as we all know the clocks tick in another way in our
business; I would be willing to pay for Your SPL approach AFTER I have test-driven it
and decided to go with it; NOT before ...
Question:
- Do You make an offer to test-drive Your SPL approach for free ? Which is a common
pattern in our complex software business ?
And again: Should I have commercial web projects in the pipeline, I may contact You again.
Tschüss
Kai
Sounds like an exciting project! We're looking at the best ways to commercialize the technology, but right now the cost of packaging the system for third party developers and then supporting them doesn't seem to me as the best business model, so for now we're focused on other approaches. I'll drop you an email offline though, so if you ever have a question or want some input I'll do what I can.
You may also want to check out commercial SPL tools like MetaEdit+ from MetaCase (www.metacase.com) which are less expensive than anything it would make sense for us to offer!