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After the goldrush
- 1. After the goldrush Towards a healthy Drupal business ecosystem
- 4. In the next 45 mins… • The ghosts of Drupal agencies past • The ghosts of Drupal agencies present • The ghosts of Drupal agencies future • An alternative future: Healthy Drupal agencies
- 8. Hobbyists to elephants The Ghosts Of Drupal Agencies Past
- 9. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4.6 4.7 5.0 6.0 7.0 8.0 The Drupal Agencies Journey
- 10. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4.6 4.7 5.0 6.0 7.0 8.0 Hobby Freelance Devshop Web Agency ? The Drupal Agencies Journey
- 11. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4.6 4.7 5.0 6.0 7.0 8.0 Small Orgs IT Marketing Digital Evolution of Clients
- 12. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4.6 4.7 5.0 6.0 7.0 8.0 Small Orgs IT Marketing Digital Evolution of Client Demands Cheap! Cheap and secure Look great, be easy to use! Serve user needs, deliver value
- 13. Small Orgs IT Marketing Digital Cheap! Look great, be easy to use! Serve user needs, deliver value Freelance Devshop Web Agency ? Drupal is open source Drupal is open source, and we know a designer Drupal is open source, and we have a designer Drupal is open source CLIENTS DRUPAL AGENCIES Cheap and secure
- 15. CLIENTS DRUPAL AGENCIES UX Agency / Marketing Agency / Specialist
- 16. Client hires Drupal agency Agency delivers, but… Client frustrated with… Client builds internal team Client switches to proprietary platform “Drupal is not an enterprise platform” “Drupal agencies aren’t professional” Client hires less “Drupally” Agency “Drupal agencies aren’t professional”
- 17. “Drupal agencies are friendly but often amateur and a bit arrogant.” “There’s too much talk of Drupal and modules, and not enough about what users or stakeholders need.” “Great at the tech, terrible at account and project management.”
- 18. Client switches to proprietary platform “Drupal is not an enterprise platform”
- 19. “Drupal is a CMS, good for blogs and simple sites. We needed an enterprise digital platform, with a good ecosystem of agencies.” “We don’t really care about the technology, we care about results. We want agencies that bring us ideas and advice.”
- 20. Client hires less “Drupally” Agency “Drupal agencies aren’t professional”
- 21. “The Drupal community has quite a steep on-ramp.” “The Drupal community is mainly geeks, whereas [other platform] feels more diverse and full of people who just want to get things done.”
- 22. “Drupal’s offer to agencies: do you want to pay for sponsorship so you can be on a list to be spammed by hosting and offshoring companies, and… er, that’s it.” “Drupal seems to think you can either be ‘of the community’ or run a successful business, but not both (until it’s time to pay for pizza).”
- 25. Hurray, new client! So busy, so stressed! Whew, done at last! Shit! Get selling!! Oh F**k Hurray, new client! So busy, so stressed! Whew, done at last! Shit! Get selling!! Oh F**k
- 26. Drupal Agencies Past • Growing disconnect between client needs and agency offer • Proprietary software and agencies regaining ground • Drupal agencies losing ground to outside agencies and internal teams • Outside agencies not being tempted into Drupal community • Drupal still stuck in the ‘CMS’ category • Drupal gaining reputation as ‘not enterprise-ready’ because of agency ecosystem • Broadly, Drupal agencies haven’t evolved and professionalised
- 27. Devshops to Agencies The Ghosts Of Drupal Agencies Present
- 28. STRENGTHS • Drupal experts • Open source • Friendly WEAKNESSES • Marketing & Sales • Account management • Project management • People management • Finance management • Leadership • Strategy • User experience • Design OPPORTUNITIES • Best version of Drupal ever, particularly for enterprise • Drupal now a fully-fledged platform for digital services • To grow agencies into fully fledged agencies rather than just Drupal shops • To move further up the value chain • Build positively on the peak we’ve reached THREATS • Global IT consultancies entered market • Experienced, external agencies entering market • Being relegated to build-only as backdoor work • Buyers less interested in tech than in outcomes • Resurgence of proprietary, with slick agencies • Clients want multi-disciplinary teams • Other tech stacks ascending
- 30. Until now it’s been easy to run a Drupal agency
- 31. Many founders don’t really want to have to run a business
- 32. Many founders don’t spend much time or effort wearing leadership or management hats
- 33. Many founders see the business as a cash machine rather than an investment
- 34. Many founders don’t invest in professional development
- 35. Many agencies aren’t very well-managed
- 36. Drupal Agencies Present • It’s been easy to make money during the Drupal goldrush • The money hasn’t been reinvested in building sustainable businesses • Most founders don’t really want to be business owners, leaders or managers • Drupal agencies are, broadly, poorly prepared for competition • Some will sell, many will be acqui-hired, some will fail • An unhealthy agency ecosystem will be damaging to the Drupal community
- 37. Betamax? The Ghosts Of Drupal Agencies Future
- 39. Drupal Agencies Future? • Ah yeah, it was amazing technology • Just didn’t have the sales and marketing to support it • Wasn’t easy for other businesses to get involved (community has steep on ramp) • Kept breaking (poor quality control and project management at agencies) • Clunky (poor UX and design at agencies)
- 40. Healthy Drupal Agencies An Alternative Future
- 41. Values
- 42. Drupal Values • Prioritise impact • Better together • Strive for excellence • Treat each other with dignity and respect • Enjoy what you do
- 43. Drupal Principles • Impact gives purpose • Build software that everyone can use • Foster a learning environment • Decisions should be collaborative • Everyone has something to contribute • Choose to lead • Embrace change • Every person is welcome, every behaviour is not • Be constructively honest, and relentlessly optimistic • Seek first to understand, then to be understood • Be sure to have fun
- 44. BoF: The Drupal Business Manifesto Weds 16:00 in 3.10 Hydrogenium
- 45. Motivations
- 46. A genuine agency
- 52. Real Income Re-investment Team Biz costs Profit Turnover Project costs 50-65% 10-25% 5-15% 15-25% ~€100,000 / head / year avg don’t care % of Real Income
- 53. Real Income Team 50-65%~€100,000 / head / year avg Business 33% Staff 33% Food 33%
- 54. Real Income Team 50-65%~€100,000 / head / year avg Day-rate is approx 3x the daily cost of the staff member Daily cost is annual salary + benefits / number of likely billable days per year
- 55. Real Income Re-investment Team Biz costs Profit Turnover Project costs 50-65% 10-25% 5-15% 15-25% ~€100,000 / head / year avg don’t care % of Real Income
- 57. Cash reserves Cash in bank Overdue Invoiced Next 30 days bookingsWiP 1 2 3 4 5 6 7 8 9 Investments Months at average monthly burn rate
- 58. Hurray, new client! So busy, so stressed! Whew, done at last! Shit! Get selling!! Oh F**k Hurray, new client! So busy, so stressed! Whew, done at last! Shit! Get selling!! Oh F**k
- 59. Hurray, new client! Hurray new recruits Hurray, new client! Hurray new recruits
- 60. Focus
- 61. Move up the value chain
- 62. Drupal Values • Prioritise impact • Better together • Strive for excellence • Treat each other with dignity and respect • Enjoy what you do