A digital product studio can provide a range of benefits, but it's good to keep in mind the potential downsides as well.
If you’re launching a business, sadly the odds are against you: two-thirds of start-ups never show a positive return. Things are arguably harder for businesses with innovative product ideas: since startup concepts often revolve around emerging technologies aimed at disrupting innovation, they naturally come with even more uncertainties.
This means making the right strategic decisions at the right time is even more crucial.
One of the critical choices is whether to develop your product in-house or to partner with a digital product studio. A studio can provide a range of benefits, but it's always good to keep in mind the potential downsides as well.
Today we’ll explore the pros and cons of working with a digital product studio to help you make the right decision.
Ok, so what are the benefits of working with a digital product studio?
A startup is a bit like a Formula 1 car preparing for a race. The driver (the startup team) has a great car (a brilliant product idea), but they can't win the race without the help of a skilled pit crew (the digital product studio).
With limited resources the driver of a startup might have to build their pit crew from scratch, spending precious time finding the right specialists.
But when a startup partners with a digital product studio, it's like having a pre-assembled, highly skilled pit crew ready to jump into action. Product studios can get started within a few weeks, without the same time needed for onboarding and learning. They can plug skills gaps and get things moving. This quick ramp-up time is invaluable for startups that need to act fast.
Hiring a full team of strategists, advisers, UX researchers, product managers, designers, and developers can be prohibitively expensive and, actually, quite unnecessary. It can be difficult to know how much input you’ll need from each, and you should manage that on a day-to-day basis. You may also be paying for expertise you just don’t need. A digital product studio on the other hand allows you to access these experts as needed, providing just enough capacity to meet your project’s requirements without the hassle of recruitment or ongoing management.
Digital product studios like us often specialise in taking companies from 0 to 1, having done so multiple times across a variety of contexts. This breadth of experience can help you leverage the lessons learned from previous projects. We’ve successfully guided over 30 startups from concept to launch – we can help you avoid expensive mistakes by sharing what we’ve experienced.
Partnering with a digital product studio not only helps with short-term project needs, but also offers a learning curve for your existing team. As your company grows, your people can learn from the studio’s expertise in developing businesses, finding product-market fit, and introducing innovations. This collaboration can establish strong processes and a culture of continuous improvement that’s then embedded for the long term.
With the ability to scale up development resources, product studios can accelerate the shipping process. This flexibility allows multiple developers to work on a project simultaneously, ensuring deadlines are met.
Engaging with a product studio can be cheaper and less risky than hiring full-time staff. You can scale resources up or down based on project needs, controlling costs without the complexities of hiring or firing employees.
Downsides of working with a digital product studio
In the interests of balance, there are a few things to be aware of!
Investors often prefer if key technology is developed internally, as they invest in the team's ability to innovate and scale. Relying on external studios may raise concerns about the internal technical capabilities and long-term vision.
When a product studio develops unique technology for your company, it's crucial to clearly define who owns the rights to the IP. Ambiguities in these agreements can lead to disputes and potential legal challenges down the line.
At Lumi, we make sure that our agreements provide clear ownership rights and avoid intellectual property issues.
In conclusion then, a good product studio can help you maximise benefits and minimise drawbacks. Product studios like us excel at building and launching products quickly and efficiently, on time and within budget. They might not be suited for long-term management and operations, but a shrewd product studio will not only help you ship a great product but also help you to hire the right people to manage and grow it after launch.
By utilising our wealth of experience and specialist knowledge, we enable teams at startups to grow and accomplish their objectives. If you're looking to bring your vision to life, we might be just the strategic partner you need.
Please get in touch if you’d like to know more.
