How it works: IT consulting

How it works: IT consulting

In our blog, we have repeatedly talked about the difficulties and challenges that new technology business projects face at different stages of development. You are probably already familiar with the reasons of technological startups failures, so, we will not torment you, let's just get right into it.

Today we present to you an important process that largely determines the future success of the tech startup - His Majesty IT Consulting. You can see how critical its role is in our previous article, and now let's analyze piece by piece the very phenomenon of technological consulting and its components.

According to Statista, the share of technical consulting in the global market is increasing every year. For the period from 2011 to 2020 it increased by 23%. This dynamic indicates that the tech consulting market, with a high degree of probability, will continue to grow. Another factor is that one of the main consumers of IT consulting are technology startups, which are about 30 thousand in the world today, according to the data of AngelList startup platform.

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As reported by the Hello Tomorrow and BCG analysis survey, conducted among 400 startups in 2016, the most important resource for creating successful deep-tech startups is financing (80% of respondents). However, market access (61%), technical expertise (39%) and business knowledge (26%) are crucial as well. For at least the last two points, it will be extremely useful to consult with experts in the technical field.

▶ Learn more about the benefits of IT consulting for tech startups in the article "How IT Consulting Can Help Your Tech Startup"

Clearly, this is cool. So how does it work?

Let's take a closer look at how this “machine" works. Tech startup consulting helps founders of a business project achieve their goals and make them ready for solving real problems of implementation and functioning of the system.

IT consulting is carried out at the very early stages of a startup, most often at the Pre-Seed and Seed stages, and its impact on the further development of a business project is enormous. IT consulting allows the development company to study your business as accurately as possible and develop software that will really bring satisfying results.

IT consulting includes:

  • strategic consulting (or strategic planning)
  • tactical consulting, which, in turn, consists of:
    • architectural planning
    • operational assessment
    • implementation planning

Strategic consulting as it is.

Strategic planning

PURPOSE: To help the startup team assess IT needs and formulate plans for the implementation of the system, as well as adapt future software to the business model and goals of your company.

MORE ABOUT THE PROCESS: To put it briefly, the strategy is all about “What?”. In other words it helps you answer the question: “WHAT are we trying to achieve?”. During tech startup consulting, the software development company will study your project and business strategy. The consultants will also help determine the right goals for your startup and develop a strategy to achieve them. In the process they will find out if the company has the necessary capabilities and resources.

You will get the recommendations on issues related to the overall IT strategy, for example, determine what should be placed locally and what is in the cloud. In addition, IT experts will help you choose the type of technology and functionality needed in the context of your business.

ADVANTAGES: Strategic planning helps a startup to create a business strategy that meets your IT goals. It also creates a roadmap for technology investments. Thanks to this roadmap, your company implements strategies to support and develop both its team and processes. In addition, during tech startup consultations IT budgeting is carried out.

As a result, it will be possible to create an effective budget for your IT environment, which meets the technological needs and financial capabilities of the company.

How successful startups are built

Tactical consulting as it is.

Everything is pretty clear with the strategy, if it answers the question “What?”, then tactics says “How?”. Tactical consulting allows founders of startup to answer the question: “HOW are we going to achieve the goal?”. At this stage of startup consulting, the developer company analyzes in more detail timelines for achieving goals, a set of necessary tools and resources, and also determines the specific actions to be taken.

In other words, tactical consulting is planning, during which step by step a detailed plan for developing your product is created. The IT company transfers to the startup all its experience and expertise, answers customer questions in planning and makes the project truly effective.

So let's take a closer look at the three components of tactical consulting:

  • architectural planning
  • operational assessment
  • implementation planning.

I. Architectural planning.

PURPOSE: To create a logical architecture for both the system and the infrastructure, which will satisfy the requirements of a business project.

MORE ABOUT THE PROCESS: In this phase of tech startup consulting:

  • the so-called logical foundation of future product development is being built,
  • the construction of components of the development process is being analyzed,
  • general points and technologies are discussed.

At this point, IT consultants make a decision in favor of certain technology and programming languages that are best suited for application development. It turns out that during architectural planning you define and design a technological solution that matches the strategy of your business. Then, during startup consulting, you choose the right platforms, tools, and the best methodologies for working with your IT project.

ADVANTAGES: Architectural planning helps create an IT architecture as part of an overall technology strategy. A business needs analysis enables IT professionals to ensure that your IT environment meets your organizational requirements. At this stage, you choose the right technology for the specific demands of the business project, create a logical design of the system, and a supporting infrastructure to meet the customers needs. One of the components of this process is IT budgeting, which allows you to create an effective budget that meets your technological requirements.

II. Operational assessment.

PURPOSE: To evaluate the performance and potential of the client’s IT environment.

MORE ABOUT THE PROCESS: If at the previous stage the development company defines technologies in general, then during the operational assessment it makes decisions about the details. It is here that tech startup consultants set specific tasks aimed at creating an architecture, select the best frameworks for the development process, and also determine the performers and write estimates for each assignment.

ADVANTAGES: The operational assessment in tech startup consulting provides planning and evaluation of your business project, workflow, resources, systems, equipment, information, as well as the data necessary for the development of short-term and long-term improvement plans.

III. Implementation planning.

PURPOSE: To plan the deployment and testing of implemented business startup solutions.

MORE ABOUT THE PROCESS: Based on the architecture the software company plans a consistent implementation of IT development. At this stage of tech startup consulting you plan the creation and launching of MVP (minimum viable product). The consultants will help you calculate everything in a way that you do not spend too much time developing a prototype. Plus it will save you a lot of money. Recall that the purpose of creating the first MVP - check functionality, demand and performance of startup idea. Having received real reviews and constructive criticism of the product prototype from users, the IT company will refine your product before entering the market.

ADVANTAGES: At this phase of startup IT consulting you:

  • create a projection of the expected result for the software solution,
  • make a map for system integration,
  • plan to transfer data,
  • implement platform-based solutions,
  • plan to create a prototype of the product and its testing,
  • get product support and maintenance from an IT company.

We would like to add some important points. Please note that the implementation of a new business project must be planned taking into account the growth of the system. It is also very important for the founder of a tech startup to develop a strategy to ensure ongoing support from the IT company. Such support is intended to improve, update and complement the functionality, which, in its turn, increase the productivity, usability and scalability of software solutions.

▶ Learn more about analytic tools for startups, as well as features of creating MVP in the article “10½ True Tips for Startup Success in 2019”

In conclusion.

Of course, IT consulting is not a magic wand nor even Aladdin's lamp. It is better! It is impossible to lose it, and its importance can't be overestimated. After all, using the service of tech startup consulting as part of a custom software solution, you prevent possible risks in the development of your business project, and eradicate small problems that strive to become dangerous. Moreover, you carefully plan product development, think over processes, take into account all the subtleties, and in the end, significantly save your money and time. And time is money. Oh yes, we already heard it somewhere.

After all, the strategic and tactical planning of your technical startup will not only save you from an unnecessary headache, but also make your business effective, competitive and strong. High-quality IT consulting is the very secret of a successful startup! ;)

Let's talk about your project!

 Halyna Korolevska, Content Manager

Halyna Korolevska

Content Manager

Halyna is a content manager and business analyst in MassMedia Group software development company.
She is an expert in business automation and creative writing.