It's a Service Business, I think
Updated Saturday, March 20, 2010
Let’s try to indicate what a service business is.
- It’s a service business if you are judged more on how you deliver it
- It’s a service business when you define the solution
- It’s a service business when the customer brings more problems than solutions
- It’s a service business when your customer has complex obstacles you must help them figure out
- It’s a service business when the product you deliver isn’t commoditized.
A software development business adds even more complexity to the mix. Many times customers come to us with a dream, and we act as advisers on how to turn that into reality. The roles and process look like this:
- Advise
- Create a plan
- Make software
I think there is so much turnover in the industry because these roles are generally combined into one company. Bixly specializes on the last two. Generally we are contracted because a customer knows what they want in a technical sense.
The difficulty is in the complexity. The first and last step are the big ones. The plan usually follows a template. Think of this industry compared to car repair. The advice needed is generally something with a couple choices, or one main direction. The plan, the customer doesn’t care about. Performing the work is much like any other time. In a software company, defining this process and these roles helps a customer understand who does what. I am finding that simplification and definition is our main role these days.
In conclusion, both service and product business have (generally) the same components. The differentiation is the emphasis. Product business have much less emphasis on unique solutions and delivery process, while service businesses are largely about the solution and process. Framing it this way is helpful in improving each part.
About the author. I'm Adam Temple. After a degree in religion I ended up in the business world and just love it. Sermonspice.com was my first big splash as it's now a multi-million dollar company (which I love saying!). Bixly.com is the next notable effort. Expert programming seriously low prices. It came about as a last ditch effort to avoid working security detail. Bixly reminds me of adolescence: thriving with health and potential, but still learning.