Maximizing ROI in Platform Engineering: Unlocking the Power of Platforms
By focusing on developer experience and value creation in platform engineering, companies can achieve substantial ROI. For instance, in an engineering team of 200, even small changes can lead to significant returns.
Cost of Inefficiencies per Year ↓ € 1,260,000
Total Potential Revenue from Reinvestment ↑ € 700,000
Total Cost of Defects per Year ↓ € 12,925
Introduction
As more organizations establish platform engineering teams and build platforms, it’s crucial to define the expected value these platforms should deliver. To maximize the return on your investments and fully leverage the platforms’ potential, understanding the platform as a product is essential.
Many disappointments arise when organizations fail to treat their platforms as products and to prioritise the developer or data scientists experience. Platforms intended for developers often lack the initial research into thier needs. This leads to poor user experiences and low adoption rates and projects to fail.
A common pitfall is mandating platform usage without genuinely addressing the needs of its users. Forcing developers or data scientists to use a platform they find cumbersome or irrelevant not only creates frustration but also kills productivity and dimishes all potential returns on the investment. Instead, the platform should be seen as a product that must earn its users’ trust and preference. This involves presenting a compelling value proposition, outlining a clear roadmap, and dedicating resources to help users create value for the organization.
Like any successful product, a platform requires ongoing attention. It must evolve and adapt in response to users feedback and the changing business landscape. By treating the platform as a product that developers or data scientists choose to use—rather than one they’re compelled to use—you foster genuine engagement, enhance user satisfaction, and ultimately maximize the platform’s value for the organization.
Adopting a product-centric approach will bring a significant positive return on investment. When users are empowered with platforms that truly meet their needs, productivity rises, innovation accelerates, and operational inefficiencies diminish. This not only streamlines processes and reduces waste but also lowers costs associated with training and support.
The opportunities
Embracing a product mindset in platform development presents numerous opportunities for organisations. By focusing on the needs of developers and data scientists, platforms can be designed to deliver exceptional value. When platforms function as well-developed products (here and here ) they provide fundamental building blocks that allow higher-level teams to spend less time on lower-level concerns, such as infrastructure management. This shift enables teams to concentrate on delivering what truly matters to customers and the business.
By abstracting away the underlying complexities, platforms enhance productivity and foster innovation. Developers and data scientists can dedicate more time to creating features, refining user experiences, and developing solutions that directly contribute to business goals. An intuitive and user-centric platform encourages greater adoption and satisfaction among those who utilise it daily.
Viewing platforms as products also necessitates continuous improvement and responsiveness to user feedback. This ongoing evolution ensures that platforms remain relevant and effective, adapting to changing technological landscapes and organisational needs. As a result, organisations achieve greater operational efficiency, reduce waste, and lower costs associated with training and support.
Ultimately, treating platforms with a product-oriented approach not only maximises the return on investment but also cultivates a collaborative culture where professionals feel valued and empowered. Aligning platform capabilities with user needs drives enhanced performance, accelerates delivery cycles, and contributes significantly to the overall success of the organisation.
The pitfalls
While platform engineering offers significant advantages, there are also common pitfalls that can impede success.
One major challenge is failing to treat platforms as products and not staffing teams with the right skill sets. A product needs a product manager; it’s not something that can simply be done on the side. Expecting platform engineers to handle product management without proper training will lead to platforms that miss the mark in meeting user needs and business objectives. For the product manager and the team, its mission is important. It’s essential to be explicit about the core mission of the platform team and their goals. Platform engineers should focus on making it easier for its users to consume platform resources and to create business value. The usage of certain technology such as Kubernetes is not the goal, it might be part of a platform but can’t be the goal. If you are for example a retail company, your goal is selling goods and not having the latest tech in use. The tech can only be supportive of the company’s mission and needs to be fit for purpose. Ensuring that platform product owners can articulate the platform’s value in terms of business outcomes requires clarity around the mission and goals. Platforms are not merely tools for short-term cost savings; they are accelerators that should demonstrate a clear long-term return on investment. Without a compelling articulation of value, securing ongoing support and resources becomes difficult. Measuring platform success is something very few companies do, but it is important to do so. Without clear metrics, it’s impossible to confirm that value is being created and delivered. Success metrics should align with the platform’s goals and might include adoption rates (such as the number of customers and consumption patterns), service quality indicators (like issues raised and resolution times), customer satisfaction scores, performance metrics (including uptime and response times), and delivery efficiency measures (such as velocity and roadmap delivery).
Building platforms in isolation without users or incorporating feedback is another significant risk. Developing a platform without involving potential users or testing it in real-world scenarios can result in a product that doesn’t meet the actual needs of its intended audience. This lack of early users and testing often leads to minimal adoption and wasted resources and will never show the expected results. To mitigate this, it’s crucial to involve developers and data scientists early in the process, onboard applications early to gather input and allow for iterative testing. This collaborative approach ensures the platform evolves in line with user requirements and creates trust within teams.
Another common pitfall is underinvesting in the internal marketing of platforms. Without effective promotion and communication, even the most well-designed platforms may struggle to gain traction.
Lastly, failing to budget adequately for running and maintaining the platform is a common misstep. A successful platform’s first release is just the beginning. Anticipating the need for new features, as adoption increases and cloud platforms evolve, is crucial. Scaling demands may require sophisticated engineering efforts that, if unaddressed, can hinder the platform’s effectiveness. Active and thoughtful maintenance is essential to keep the platform functioning as a value multiplier, ensuring it continues to meet the evolving needs of its users.
Conclusion
Building and implementing a successful platform requires a comprehensive approach that treats the platform as a valuable product that will help the company to create vlaue faster. This involves:
- Prioritizing user needs: Understanding and addressing the needs of developers and data scientists is crucial for platform success.
- Focusing on business outcomes: Aligning platform capabilities with business goals ensures that the platform delivers tangible value and contributes to the organization’s success.
- Continuous improvement: Regularly gathering feedback and iterating on the platform’s design and functionality is essential to maintain its relevance and effectiveness.
- Internal marketing: Promoting the platform’s benefits and providing adequate support encourages adoption and maximizes its potential.
- Adequate investment: Investing in the platform’s development, maintenance, and ongoing support is crucial for its long-term success.
By avoiding common pitfalls such as neglecting user needs, underestimating the importance of product management, and failing to invest in ongoing maintenance, organizations can maximize the return on their platform investments. A well-designed and well-managed platform can empower developers and data scientists, accelerate innovation, and drive significant business value.
To read more about the ROI of platforms with an example ROI calculation, download our whitepaper.
Ready to take the next step in your platform journey? Our team of experts is here to help you navigate the complexities of building and evolving platforms. We’ll work with you to set up a platform engineering team tailored to your organization’s needs, ensuring your platforms achieve the maturity required for long-term success. Contact us today to unlock the full potential of your cloud-native platforms.
