If every business is now a tech business, as the cliché would have it, we should pause to consider whether the standard of what constitutes a ‘tech business’ has actually changed over the course of the Covid-19 pandemic. In our ‘new normal’ should we really consider a good-looking website to be the hallmark of a digitally sophisticated business? Probably not.

Put simply, if consumers couldn’t access an app, easily navigate a website, or receive their goods and/or services quickly, in the last 18 months, then it’s likely they won’t have returned – whether you’re a big brand or not. Winning customer engagement and loyalty has certainly become more challenging in the last two years.

The pandemic has been a great digital leveller and has been kinder to those who made an earlier investment in technology that could elevate customer experience; supply chain operations; smoother online payments, and much more. Recent data from Accenture echoes this point and even suggests that those companies that had the foresight to make a tech leap some years ago, were actually growing their revenues twice as fast as the so-called ‘laggards’ even before the pandemic struck.

So, where does all of this leave businesses that are slightly late to the party when it comes to tech evolution? What steps should they take to ensure they’re not only boosting their digital capabilities, but also ensuring they have the skills and strategy in place to stay relevant in a world of digital hyper-acceleration?

One of the biggest questions many business leaders will wrestle with is whether to outsource the development of their digital infrastructure or nurture their in-house talent through up-skilling and rigorous training so that they can deliver the bespoke tech solutions needed. Unfortunately, there is no right or wrong answer to this particular conundrum. However, there are some important things business leaders need to consider before they race to implement a digital overhaul.

Powering-up your in-house capabilities

When it comes to boosting your organisation’s tech capabilities, your first option may be to look at acquiring the skills you need in-house to build the digital platforms and solutions your business, and its customers, need. This could be done via recruitment or the upskilling of existing technologists working within your business.

This approach has some excellent long-term benefits, particularly when it comes to delivering digital products, platforms, and services that fit your customers’ niche requirements. As the technology to meet customer needs is being driven and delivered by people that are passionate about your company and its customers, you can be assured that no stone will be left unturned when it comes to the delivery of something truly unique. What’s more, any intellectual property (IP) your team generates as a result will be kept in-house too.

Although this all sounds straightforward enough, there are some pitfalls to be mindful of.

Firstly, as we established at the beginning of this article, many businesses are not intrinsically ‘tech businesses’. Any digital footprint they have – or aspire to have – will often be driven by market needs and competition. Hence, they may know full well what tech they need to compete in their respective market, but not necessarily know the means to achieve an effective build / rollout.

When it comes to having the right talent, a business may not have the knowledge or experience to know what types of technologists it needs to deliver its vision, or the upskilling required to move the needle. In the current climate, a large proportion of digital transformations fail – Forbes’ most recent statistics suggesting 84% of projects. The in-house knowledge gap is certainly, in my experience, a contributing factor to this.

Secondly, recruitment and upskilling take time and continued investment. With technology constantly evolving, organisations need to move quickly to be able to carve out their own digital proposition in the market, while also ensuring they are constantly investing in their technologists to stay ahead of the innovation curve. Providing sporadic training and upskilling opportunities and doing one-off recruitment drives will only lead to stagnation. In-sourcing for an ambitious business is a commitment that can pay off in the long term if done strategically rather than tactically.

As the ‘Great Resignation’ continues to bite the entire industry, even with the right recruitment and strategy in place, the skills you require might be difficult to acquire and retain. As well as making the necessary financial investment in technologists, companies need to think about how they can realign their values and principles with those of potential recruits. It’s not a case of throwing money at the problem anymore, organisations need to actively think about how they can bring a sense of purpose and empowerment to their tech teams – going far beyond financial reward. Laying this additional foundation can be time consuming but is vital in attracting the right in-house talent to drive a truly tech enabled business.

Outsourcing is an option

Building the in-house capabilities to design and deliver digital platforms, services and products may not be the best option for those businesses in a rush to capitalise on trends in their own market right now. Outsourcing to a digital agency or contractors may be the next best option for some.

The main advantages of this approach are that a company can realise its digital vision quickly and without the extra costs associated with powering-up their own workforce. Time is certainly of the essence in the current climate, particularly for those companies operating in emerging or less mature markets.

However, as with all decisions, there are ‘cons’ as well as ‘pros’. The main disadvantage of this approach is that anything that is built may not be done with the same precision, insight, and passion compared to the in-house alternative. What’s more, although building a digital product quickly may be a tactical victory, organisations need to think carefully about the whole lifecycle of the digital offerings they create. It’s vital that enhancement, maturity, maintenance and future flexibility are given the due consideration they need. This won’t necessarily happen when you enter into a contract with an external supplier.

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Is there a third way?

Without sounding like a political sloganeer, there is a third way when it comes to boosting your company’s digital capabilities. At AND Digital we’ve developed a framework known as ‘Guide, Build, Equip’ which provides organisations with a sustainable and strategic route to digital success.

The secret to building fit for purpose digital offerings is all in the research, planning and preparation stage. The ‘Guide’ part of our framework sees us collaborating at the earliest possible point with clients to ideate, plan, and advise on what they’ll need to bring their digital vision to life. This is a vital stage in the process and means that we can bake into our plan the exact technologies that will best fit a brief, the skills required to deliver the plan, and ensure that we can support them to create something that is sustainable in the long term –  once we are demobbed.

Next comes the build. You’ll notice that I’ve used the word ‘collaborate’ when talking about the way we work with clients. At AND we ensure we understand client briefs inside out, and really get under the bonnet of what they and their customers really need. When taking a collaborative approach, we take the client on a journey with us as we build their technology. That way they’re fully engaged and can develop the knowledge they need, in a way that wouldn’t happen with a more traditional outsourcing supplier.

One of the most important aspects of the AND framework is the ‘Equip’ phase. Here, we actively support clients in recruitment, upskilling and training so that they have the in-house skills they’ll need to ensure that the tech we’ve built together can be managed, updated and evolved over a longer period of time. This makes a lot of sense from a financial perspective as continuously building technology year-after-year using third party suppliers can be a costly strategy and produce a “lock in” effect.

In essence, our approach means that as well as getting clients to market quickly with new products, platforms and digital services – akin to an outsourced approach, only with greater engagement and collaboration – we’re also supporting organisations to expand their organic digital capabilities. This means the work we do together has benefits that are sustainable and long-lasting.

In conclusion, it turns out there really is a way to ‘have your cake and eat it’ when it comes to boosting your organisation’s digital capabilities while maintaining pace. But, this only comes from choosing a supplier who can take you through the lifecycle as a trusted advisor, through high-quality, collaborative delivery, and who will leave you equipped for the future.

Jeff Watkins is Chief for Technology at AND Digital, a technology company that helps Scottish businesses and public sector bodies to enhance their digital capabilities from its Edinburgh and Glasgow clubs.

Find out more at https://www.and.digital/