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I have helped a company do something like this in the past. My advice is go for it, but understand that there's going to be some landmines. The biggest benefi
by tristor 2y ago
I have helped a company do something like this in the past. My advice is go for it, but understand that there's going to be some landmines.
The biggest benefit is that you likely have a stronger understanding of your needs than any third-party, and if there are other businesses in your niche, it provides you a pathway to build a revenue stream selling your custom solution to your competitors to capture part of their revenue. If you think about it from the perspective of value capture, it means even if you lose a deal on the front end to a competitor, you are capturing a percentage of it on the backend because it gets your competitors reliant on your platform. To do that though without running afoul of antitrust, you should try to set it up so in-house development of the platform operates relatively independently of the larger business (the legal term is "chinese wall").
As an outcome, you can actually generate a new revenue stream that's profitable while correctly serving the needs of your business.