Low code Platform – What an IKEA!

No, its not a spelling mistake, it indeed is the IKEA basic idea that today’s low code platform companies are democratizing. IKEA knew it all along, the best way to sell is to let the customers build it themselves. The satisfaction and happiness of DIY product is unparalleled. The sense of accomplishment drives customer satisfaction and repeated sales. They buy to enjoy, be it a retired professor assembling an IKEA bookshelf, a toddler building a Lego block castle, or an aspiring interior designer beautifying her mom’s house.

Yes, there is indeed a platform rush, a mad race.

Platform Mindset

The low code platform companies create the Lego blocks, the flat-packs and empower the customers to assemble and build a solution of their choice, fast and at a fraction of the cost. However, most of these aspirants seem to be in a hurry, in a mad rush to quickly establish themselves as a true platform company to hike up their valuations. In reality, very few have the right mindset and execution capability to achieve success. There is a reason why there is just one IKEA in the world.?

Success mantra lies in how well companies can cultivate the platform mindset internally.

Its not how well a company is able to build a low code software platform, but the success mantra lies in how well they are able to cultivate the platform mindset amongst their product developers and designers. IKEA has planted deep rooted flat-packs mindset amongst their designers and that has been the anchor in IKEA’s journey to the top spot.

Mad rush

Yes, there is indeed a platform rush, a race, hundreds of low code vendors are trying to sprint and win this mysterious race. Most of them do not even fully understand the track on which they are running. It is one thing to build a castle out of logo blocks and an entirely different game to build a 57-story mini sky city in the middle of nowhere in China.?

Building a platform requires lot of research, understanding of the business domain, knowledge of customers mindset and a lot of patience. Very few platform companies have the maturity and strength to build a low code platform on which a true enterprise grade software solution can be built. Some companies like ServiceNow, SalesForce and Appian do seem promising and are successful, however their platform too are limited and is catering to less mission critical and a low complexity solution space.

Fast growing market

There is at least $50 Billion market that is up for the grabs.?

Business experts are wanting to leverage such platforms and build solutions themselves. Businesses are waiting to hire application developers who can use these platforms to build solutions faster - in days and not in years. For platform vendors, there is definitely market for both, a low code platform for IT developers and No-Code/Low-Code platform for business guys. The best way to go about is to clearly identify if the target customer is an IT developer or a citizen developer and follow it up with focused execution plan to build the right platform.?

The RIGHT Product Positioning

There are happy customers for IKEA, but Home Depot too have a huge customer base. Their customers have one thing in common and that is the desire to make their homes look beautiful and function flawlessly. Both Home Depot and IKEA have positioned themselves beautifully and have huge loyal customer base.

The product is as good as the customers see it.

While the Home Depot customers are a bit technical and know how to put up a ceiling fan or install a window, the IKEA customer are more hobbyists. They expect to be shown the concept and idea with pictures, illustrations and a detailed step by step DIY guide. Even though Home Depot is highly successful in US but they badly failed in China whereas IKEA took the China market by a storm. The product is as good as the customers see it. China is a developing economy and people there are more interested in becoming like the developed western world. IKEA was a great solution for them, it not only teaches them how to assemble furniture and decorate their home, but it also gives them an experience and sneak peek into the Western culture.?

Similarly in the software platform arena, a business user or a citizen developer would love to buy an IKEA like DIY Low/No code Software platform, while a technical developer would rather want a Low code platform to build a feature rich software solution.?

The platform players are acknowledging the challenges in properly positioning their offerings.

The dilemma lies in finding that sweet spot in the No Code - Low Code - Custom code spectrum. While Service now and Sales force are well established low code players in simpler, CRM type solution space, enterprise grade high complexity solution space is still up for the grabs. A pure play technology company will struggle to make a cut as it requires deep business/domain knowledge. Enterprise software vendors like SAP, Oracle etc. are too big,?settled, stiff and stuck too deep into non-platform-based legacy solutions and find difficult to change the course now.?

This presents a unique opportunity to smaller niche players, to invest in platform technology.

Small niche players should leverage their domain knowledge, be nimble, and make a pointed entry into the platform solution game. Once they get traction, it would be easier to transition and repurpose the existing point solution into a bouquet of platform suite offerings. They can carefully expand the solution footprint by leveraging the 10x low code productivity and announce their arrival into the platform world with confidence and poise.

Hire industry experts, they may be a tad bit expensive, but they are the ones who will build business solutions.

Disruption and SUCCESS mantra

The recipe seems reasonable, however, there are few things to be cautious about

1. It’s critical that the designers, product developers and the whole team imbibes the platform mindset
2. Its an absolute must to hire industry experts, they may be a tad bit expensive, but they are the ones who will build business solutions
3. Have patience, let the fruit ripe, do not sell your company too fast, there are sharks waiting to eat the prey. Avoid the trap that a small outfit can change the inner grains of these giants acquirers. They will end up suffocating the acquired company to death. Afterall, how often does the tail wag the dog?

If you ALWAYS DO what you ALWAYS DID, you will ALWAYS GET what you ALWAYS GOT - Einstein

Disruption is on the callings, its everywhere, this is the right time to take on the Giants like SAP, Oracle, IBM, and Microsoft by storm. Bring on the change, for there is nothing permanent except the change.