The DCC #2: Productization
The DCC is here to help you grow your data consulting business.
Let’s discuss productization for data consultancies. Productization promises stable income, an opportunity to scale without extensive hiring, and increased profits.
Sounds too good to be true? Maybe. We found it a scary subject for many consultants, and we’ve seen failures. But we’ve also seen success, particularly with data consultancies serving SMBs.
So, we’ve collected a few resources to help you read up and prepare for this journey!
Resources
What is a Productized Service and Why Should You Start One? - by Productize - is an excellent introduction to the general concept of productized services.
How to Narrow Down Your Niche and Why It Can Boost Growth - by SSP - is a guide to finding a good niche. However, niching down is particularly important for productized services because you’ll need to find a suitable audience - usually smaller is better.
Productizing data services: Removing fears with the LEAP framework - by Arch - is an excellent framework for getting started. We wrote it because we noticed how scary the subject can be for many consultancies.
Stop Hiring Senior Data Consultants: Leverage Expertise Instead - by Arch - is about leverage, a central concept for the economics of data consultancies. It is through the leverage that productization promises to increase profits. You can view productization as one way to improve your leverage.
Why the Modern Data Stack sucks for data consultancies looking to productize - by Arch - if you want to get a few insights on potential stumbling stones on the technical side, read this article about the modern data stack and what it takes to work around it in a multi-tenant environment needed for productized services.
Until next time,
from the Data Consulting Club
Nice! Ya that niche down advice is good. Still working on that.