This Startup Built Internal Tools to Fuel Major Growth
firstround.com
firstround.com
1.In the first version of the tool don't have the tool make a decision, just have it generate information, not make decisions. So if it is telling you which sales lead to pursue, first have it generate metrics on why you should pursue a lead
2. Once you have a tool that makes decisions always have a way to let a human override the tool's decision
3. Start with a process then add a tool. It's almost always either to work out bugs with people then software
Startups that go down this route should be on the lookout for this potential for divisiveness and culture fragmentation.
As for the outside devs, I agree that is a challenge and one of the things that ultimately led to us hiring internally to help support and continue to grow those internal products.
The one thing I do like is that building tools gives more employees experience in building product.
I think he'd reply on the point above, that it's far better to build the system and have it be less than perfect than to rely on a brittle process.
"A bad system will beat a good person every time." - Deming
So, it will probably not be a waste of time. Has your experience proven this out in general?
I'd say in general it has proven out, though there have certainly been some cases where we tried to build products prior to fully defining the challenge/process and they were basically DOA. Again, here internal tools are just like external products: Without a tightly defined challenge/opportunity it's really hard to deliver a useful product.
I'd hesitate to go this route if the product is aimed mostly at an audience used to structured communications such as engineers (github issues, IRC channels, and even wikis are far more structured than the usual e-mail chain like in a mailing list). This is part of why companies with usable CRM like Salesforce have done so well in providing value to their customers.
So, I'd totally do this if I was going to start something that's aimed mostly at enterprise users or with potential to have a need for lots of cross-functional communication like a start-up operating in a highly regulated space.