Why Stitching Together Technology Companies Doesn’t Work

On the most basic amount, it is difficult to stitch jointly platforms for the reason that they’re often prepared in distinctive coding languages. You cannot duplicate-paste the code for the similar explanation that you can’t duplicate-paste a paragraph of Spanish into a ebook published in English.

Even if you could, it just would not line up. Just about every of these four components are tightly dependent on every other. The smallest adjustments in one particular location will have unforeseen downstream outcomes. 

Vision vs reality

There has by now been $18 billion spent on mergers and acquisitions in the PropTech room in 2021 by itself.

Evidently there is religion that with plenty of market place share, the “devil in the details” trouble goes absent.

The actuality is usually exactly opposite.

That’s because the choices that created the tight and complex connections within a software system have been frequently manufactured many years ago. And the individuals who designed people selections might not continue to be close to, or just as normally, do not arrive over in the acquisition.

If that takes place, the know-how tends to ossify. 

That is because there are business wants that take priority. Customers are at present relying on the remedy and no one particular desires to disrupt them by breaking things to make a much more integrated and seamless encounter.

It is like purchasing two significant rise towers on the same block and declaring: “Okay, now make them a single building.” Oh, and the primary architects and enhancement teams just can’t be consulted. Also, tenants are heading to assume to have entry to their spaces the whole time.

It would be a lot easier to knock them down and create from scratch. Software program ends up staying the same. At times, entry to the supply code is no additional assist than observing how the front finish will work and re-engineering it on the backend.

For the reason that of this, what is normally truly going on after an acquisition is a consolidation of distinctive products and solutions less than one particular corporate umbrella, rather than a seamless software working experience.

The different

There is absolutely nothing inherently improper with acquisitions. But it is crucial to not presume that an acquisition will always direct to an integration of the underlying systems.

An substitute approach is a “homegrown” platform, a single that was designed entirely in-dwelling.

The downside is that it commonly requires extended to establish out a comprehensive platform supplying. On paper, it’s a great deal more rapidly to purchase than it is to construct.

But like the tortoise and the hare, velocity is not the only aspect in winning.

The trick is figuring out what to appear for when assessing technological know-how. In this article are some concerns to consider asking:

  1. Are the diverse “modules” all in a person login and URL/area? Is the login the exact same for the cell and world wide web app experiences?

  2. Is there an API? Is it utilised internally?

  3. Explain to me about the evolution of the solution

The answer to the very first two should be an quick “yes.” The previous dilemma should assistance illuminate how strong the backend architecture is. For case in point, if the evolution is introducing new functions inside the very same standard framework, that doesn’t explain to a great deal.

Nevertheless, if it’s apparent that the platform is working with the exact facts in numerous spots and/or use circumstances, that’s a great signal that it was developed to be “extendible,” which means constructed to provide future desires devoid of always understanding what those people desires are.

At the stop of the day, it’s not likely that any homegrown platform, or system developed via acquisitions’, will be ready to do absolutely anything. A greater tactic is to phase operations into themes, these kinds of as “front of house” (every little thing tenant struggling with) and “back of house” (anything linked to actual physical assets) and make sure there is a bridge in between platforms that go over substantial segments of the business.

Timetable a demo with Enertiv to discover how the system has formulated into the most thorough “back of house” functions system in PropTech.