More small businesses will be able to punch-up with LLMs tearing down walled gardens that were reserved for those with capital to spend on lawyers, consultants and software engineering excellence.
It's doing the same thing as StackOverflow -- hard problems aren't going away, they're becoming more esoteric.
If you're at the edge, you're not going anywhere.
If you're in the middle, you're going to have a lot more opportunities because your throughput should jump significantly so your ROI for mom and pop shops finally pencils.
Just be sure you actually ship and you'll be fine.
Now, I'm not going to criticize anyone that does it, like I said, you have to, that's it. But what I had never noticed until now is that knowing that a human being was behind the written words (however flawed they can be, and hopefully are) is crucial for me. This has completely destroyed my interest in reading any new things. I guess I'm lucky that we have produced so much writing in the past century or so and I'll never run out of stuff to read, but it's still depressing, to be honest.
This new generation of tools add efficiency the same way IntelliJ added efficiency on top of Eclipse which added efficiency on top of Emacs/VI/Notepad/etc.
The more time that someone can focus on the systemsit takes certain types of high-time, [not domain problem specific] skill processes and obfuscated it away so the developer can focus on the most critical aspects of the software.
Yes, sometimes generators do the wrong thing, but it's usually obvious/quick to correct.
Cost of occasional correction is much less than the time to scaffold every punchcard.
That adopted mentality pays off tech debt fast.
> Our business operates in a specific niche and there are no other providers who cater specifically to our industry.
If you decide to do in-house, I’d recommend thinking about competing against existing as a new revenue stream, and spinning it off as a separate business unit as much as possible. I imagine this is implied in your question but it wasn’t specifically mentioned.
> Besides, can we even attract experienced developers to a non-glamorous industry like logistics?
Yes. Are you kidding? Non-glamorous reads as safe in uncertain times. It’s a positive point that will be a marketing multiplier for attracting talent, if coupled with other indications that your business has clear goals and good ideas.
A startup mindset is importantly for the first hires, but selling software is an aspiration not a requirement.
That aspiration can be distracting from simpler business problem solving solutions too, so be clear “new codebase” when we are ready to sell…
Shortcuts for us, no shortcuts on the software resell company.
With the express understanding that, if this is successful, you'd expect them to ultimately lead it (head of engineering, R&D, CTO, or whatever fits).
Greenfield development is appealing, and the big growth potential adds incentive to do that greenfield in a way that's aligned with the goals of the company.
Don't make it super-lucrative initially, to help weed out the serial job-hoppers and the transactional hours-billers who aren't as invested in the long-term success.
On your end, you only need buy-in that, if this succeeds, then company will want to follow through.
With that understanding, it's only a single hire to justify.
If, when you review every 3 months, it's not looking like it will work out, start over with a new champion. Your only lead time is to find one candidate who you're willing to give a shot at it.
It's their responsibility to make the skunkworks so successful that the company is confident in taking the next steps of greater investment.
A complementary possibility to keep in mind is that, if you really execute well on this system, maybe you could spin it off into a subsidiary that provides IT solutions to other companies in your field. (Especially since your own purchasing experience sounds like there's market opportunity.)
Great advice IMO.
With the express understanding that, if this is successful, you'd expect them to ultimately lead it (head of engineering, R&D, CTO, or whatever fits).
Greenfield development is appealing, and the big growth potential adds incentive to do that greenfield in a way that's aligned with the goals of the company.
Don't make it super-lucrative initially, to help weed out the serial job-hoppers and the transactional hours-billers who aren't as invested in the long-term success.
On your end, you only need buy-in that, if this succeeds, then company will want to follow through.
With that understanding, it's only a single hire to justify.
If, when you review every 3 months, it's not looking like it will work out, start over with a new champion. Your only lead time is to find one candidate who you're willing to give a shot at it.
It's their responsibility to make the skunkworks so successful that the company is confident in taking the next steps of greater investment.
A complementary possibility to keep in mind is that, if you really execute well on this system, maybe you could spin it off into a subsidiary that provides IT solutions to other companies in your field. (Especially since your own purchasing experience sounds like there's market opportunity.)
Great approach advice IMO.
I'm not in the market, but FYI, the tone of your post wouldn't make me want to buy your stuff. You sound too eager to lecture your customers instead of being eager to learn from them.
That said, my feeling is the guy doesn’t have a prebuilt fit for his company / he’s already shopped extensively.
One thing I think is key is making sure that whoever is leading this project (the lead developer, not just the person they’re reporting to) needs to know the business cold. They should spend serious time learning the roles of the people who will be using the software so they can design it well to solve the problems those roles face. I lead the development for us, and I attribute most of the software’s success to simply having spent so much time in so many roles in the company. It’s that cross-section of knowledge that makes all the difference.
Nothing off the shelf does that.
Integration is where cross departmental solutions live and that’s an underrated nightmare
My first question is to check the basic economics:
$2-300M in annual revenue, ~15% margins, you’re probably looking at earnings/profits around $30-45M. Building and running your own software team is probably around $5M/year, which feels like it could be a substantial hit to your margins. Is there a clear story for how this software will allow you grow to $300-500M in revenue or more? I like to have a credible story for 5-10x ROI on software development because the costs end up being so variable and uncertain.
Then the trick is figuring out how to hire, train, and establish a productive environment for the team. My customers approach was to hire a vendor [Pivotal Labs] to ship a first release and help hire in-house staff to replace vendor roles until the team was fully in-house. The customer got rapid feedback that the team and concept worked; we shipped working software. The new hire landed into a productive context, and could see that the company had an effective approach to software development (because it was already shipping working software).
These are very generous consultant pitch #s not reality. We doubled running 1-$200k/guy … 2x full stack devs (me) 2x data guys 1x MSP for IT.
That team was awesome and did serious buzz saw damage because we shipped solutions that made the company better every day.
Didn’t have to be huge. Just help someone do something better.