Open Mountain launches hinventory.com

February 20, 2010

We are pleased to announce the launch of our first product hinventory.comhinventory.com allows you to create an inventory of the items in your home online.  The process is as easy as taking photos of the rooms in your house and tagging items in the photos.  Read more about the product at our hinventory.com blog.

When we started Open Mountain a few years back, we recognized there were two lines of business interesting to us.  The first was the startup services business.  Founders, entrepreneurs, and companies uncover new ideas all the time.  They need cost-effective teams managed by experienced leaders to get those ideas to market.  We really like the energy of the startup and the challenge of bringing something new to fruition.

The other line of business was product development.  We’re product people.  We worked at product companies like Adobe, Ariba and Intuit before Open Mountain.  We understand the ins and outs of developing a product and working as part of a team to make that product successful.

The decision for which business to pursue first came down to practicality.  Services businesses generate revenue sooner than product companies.  Longer term, products have a better revenue growth potential, but they require capital or sweat equity to launch.  We looked at the landscape and decided that we prefer to bootstrap our company without taking money and that meant services first and products second.  If you are confronted with this same scenario, I highly suggest you read Guy Kawaski’s Art of the Start.

Fast forward to today, our services business was far more successful than we imagined.  Take a look at our client list and at just some of the companies that launched new products or technologies with us.  Working with startups and creative founders is rewarding.  Nearly all the companies we worked with are still alive and kicking today.

Now it’s time for the product side of the business.  We’re actually launching two products today.  hinventory.com is a Web site for creating a secure home inventory online.  You can read all about it on our hinventory blog.  Please check out the product and become a user.  Use the feedback form to tell us what you think.

The technology behind hinventory.com, called tagiphoto (pronounced tag.ee.photo), is a technology product that enables companies to add photo management and tagging to their integrated Web and mobile offering.  We’re doing a limited launch right now looking for early beta customers if you are interested.

This is a very exciting time for us and we hope you’ll help make our new product successful.  We’re as committed as ever to our services business and continue to sign up new clients each month.  At the end of the day, we’re all about bring new ideas to market whether they are your ideas or ours.

Enjoy!


Is 2 Months Reasonable to Launch? Or even Doable?

January 19, 2009

We see a very interesting pattern for launch dates in requests for proposals (RFP) that we receive. Nearly everyone who starts development from April to August wants to launch in October. The trends makes sense when you consider seasonality. The difference between April and August is obviously significant. Yet, companies seem to want the same amount of functionality regardless if development starts in April or August:

“Why can’t this be done 2 months? How hard can this be? Can’t you just use some open source products and customize them? We don’t need to start from scratch here. My expert says…”

Customers bring up many salient points during these discussions. Can the team work longer hours or can they work smarter? If a set of features requires 6 months to reasonably develop, can it also be done in 2 months with about the same size team? In this previous post, we point out that coding is physics and that we can’t simply reduce the schedule to meet a deadline.

Have you seen those home improvement shows where the contractor blows the schedule and the budget because of some unforeseen factor or change in the plan by the home owner? The home owner looks at a set of materials, imagines in his head the work to put them together, but never quite understands that it is never that simple. With software development, it’s the same principle. People look at a set of features and think in their heads, sure, this is doable in 2 months. They rarely consider that the implementation may not be as simple as they think, or that they might see the product and decide what they wanted is not what they thought.

Let’s look at a simple feature example of implementing sign-up and login. You can’t do much in a product if a user can’t create an account. An experienced developer using PHP or Java could do these features in a few hours by creating an HTML form and writing some SQL to add or look up a record. If features are that easy, why do we even need 2 months?

A good team thinks about the best way to implement a feature above and beyond the mechanics needed to create a form or put a record in a database. The developer must define a user object that has properties like email and password and functions like saveUser and validatePassword. The team must define objects smartly, otherwise you may have longer term problems maintaining your code base.

The page must be properly formated to match the mock-ups and overall aesthetic of the site. Color and font attributes are centralized in CSS files. If these are the first two features of the site, then the login and sign-up pages created will be the ones that define the styles for the rest of the site. Usually, the team needs a graphic or two from the designer as well.

The developer must also understand the client’s login and sign-up business rules. Do users login with email, login name or both? Must users validate their email before accessing the site? Should the developer check to make sure the email address is valid on input? We had 3 customers launch or hit beta in fall 2008 and each one had subtle differences in their business logic for sign-up and login.

You can now see how something as simple as sign-up and login might take a day to implement and another to test and validate.

With a new code base, the team must define the infrastructure of the code. Developers consider scalability, security, exception handling and a host of other services to make your product secure, robust and scalable. The best teams use existing technologies or frameworks to solve the infrastructure problems, but they still need to customize the code to meet specific needs. We no longer have to cut down trees or mill wood when adding on to your house, but we still need to cut the wood to size.

The good news about objects and infrastructure is that they both solidify over time and the effort to implement new features reduces. Economies of scale start to kick in once you have your solid foundation. You can hook into existing pipes when adding a bathroom on the second floor so to speak.

When you consider how much design work, object definition, and infrastructure is needed to create a scalable product, you just may find that 2 months is only enough time to get a small collection of features working. I told one client recently that after 2 months, the product will look like an unfinished house. Showing the product to their customers would be like walking on to a job site and imagining where the living room will be. After 3 months, you’ll see walls and after 4 months you’re painting them.

We suggest avoiding the 2 month launch for the simple fact that the best product comes from gathering feedback and re-thinking core problems, which is hard to do when the people providing feedback have to imagine where the walls of your hypothetical house will be. A development cycle of 6 months provides enough time to implement a robust feature set for launch, and to make improvements based on real feedback. This seems like a good idea to us. You’ll see this theme along with our predictions for trends in 2009.

My final point is this. If you launch with something that took you only 2 months to build, how defensible can that be if you happen to uncover the next new market like blogging, social networking, software-as-a-service or some new island in the Pacific? In 6 months, you can have something better, with more ingenuity and functionality, that has validation from your target market, and is not something a competitor could replicate in time to rain on your parade.

So back to the original question. Is 2 months doable? Maybe it is. Maybe, if we all stay focused and implement a minimal feature set, and if we don’t seek any feedback on what we created, it’s doable. But is it a good idea?


Investing Strategies Work for Software Development

August 11, 2008

I had an epiphany the other day. I develop software similar to the way I invest. I decided to examine the similarities to see how my investment strategies work for software development.

Step 1: Selecting an investment

My gut reaction determines if I am interested in an idea. In the newsletters I get from The Motley Fool, I might skip on a recommendation for Best Buy (BBY) but take a good look at Game Stop (GME). Both are retail companies in the technology space. Both are good investments. One stock seemed like a better investment than the other. You should learn to trust your gut because your gut intuition comes from years of experience.

Step 2: Analysis

I do research next to validate my instincts. I am a conservative investor, I’ll admit it (thought not at all in politics!). I like investments where revenues are going up, where cash on the books is higher then debt, and where the price is reasonable given earnings. I am NOT looking to buy at the bottom. Instead, I want to hop on an investment that is comfortably heading in a sound direction. Most importantly, I do research on my investments to see how they measure up to these ideals.

In software, growing revenues is synonymous with a growing market. I am OK with not defining the market itself. For example, Google was not the first search engine company or free email provider yet it is the market leader now.

No debt means good practices in development. Deferred bugs, bad architecture and spaghetti code are all examples of debt that builds up in your product. You will need to pay that debt or sooner or later your product will start to fail and you lose customers.

Reasonable price, to me, is about working in a saturated market. For example, very few companies would consider launching a new desktop word processor or spreadsheet at this time given the dominance of Microsoft. If the market is too mature, the payoff is too far down the road and too hard to get.

Now let me ask you. Would you want to work on a product in a growing market building a well constructed application where the market leadership is still wide open? I would!

Step 3: Buzz

Software buzz increases the chance people will hear about your product and that is key to customer acquisition. I am looking for an investment. My money goes in and 5 years later is worth more than when I started (hopefully 10% compounded annually) . This happens when the value of what I have invested in increases. The more people want something, the more valuable it becomes.

In the end, I discovered that my strategy for success in my investments and my profession are very similar, and for good reason! I guess I shouldn’t have been surprised. Sound principals in investing work for software development and many other aspects of our lives.