Making Technology Decisions in E-commerce: A Growth Stage Guide

Nov 14, 2024

Making Technology Decisions in E-commerce: A Growth Stage Guide

Aurelija Vycaite

Jons Janssens

Strategy

The success of your e-commerce business increasingly depends on technology.

But here's the crucial insight many miss: technology should never be a goal in itself.

Instead, it serves as the infrastructure for your mission-critical operations and growth ambitions.

Let's break down how to make smart technology decisions as you scale.

Disclaimer: While these growth stages provide a useful framework, they're just a rule of thumb based on patterns we've observed. Every business is unique, and your optimal technology decisions will depend on various factors beyond revenue size alone. The key is understanding your specific business context before making any technology decisions.

The success of your e-commerce business increasingly depends on technology.

But here's the crucial insight many miss: technology should never be a goal in itself.

Instead, it serves as the infrastructure for your mission-critical operations and growth ambitions.

Let's break down how to make smart technology decisions as you scale.

01 Understanding Growth Phases

Based on research and our experience helping consumer brands scale beyond €200M, companies typically move through distinct growth phases:

Based on research and our experience helping consumer brands scale beyond €200M, companies typically move through distinct growth phases:

Based on research and our experience helping consumer brands scale beyond €200M, companies typically move through distinct growth phases:

Based on research and our experience helping consumer brands scale beyond €200M, companies typically move through distinct growth phases:

02 Key principle: simplify before you scale

Here's our golden rule at Conway & Co: first buy and extend, before you custom build.

Many companies make the mistake of seeking uniqueness in every aspect of their operation. Ask yourself: do you really need a unique fulfillment process? Usually, the answer is no. Your uniqueness should come from your brand, product, and content - not your backend operations.

Making Technology Decisions by Growth Phase

Let's look at specific recommendations for each phase. Remember, every business is unique, and your optimal technology decisions will depend on various factors beyond revenue size alone.

Phase 1: Early Stage

Start with proven, off-the-shelf solutions
Focus on commerce platform, basic analytics, and essential marketing tools
Bend your processes to fit standard systems
Avoid custom development
Prioritize speed to market over perfect functionality

Phase 2: Consolidation

Begin integrating systems for better data flow
Add specialized tools for growing needs (OMS, CDP)
Start measuring tech stack performance
Consider headless commerce if complexity requires
Focus on removing friction from processes

Phase 3: Growth

Implement proper data infrastructure
Consider custom development for strategic areas
Focus on scalability and automation
Build team capabilities around tech stack
Invest in business intelligence

Phase 4+: Scale

Move to API-first architecture where needed
Build custom solutions for strategic advantage
Focus on modularity and flexibility
Invest in advanced analytics and AI
Maintain balance between custom and off-the-shelf

Here's our golden rule at Conway & Co: first buy and extend, before you custom build.

Making Technology Decisions by Growth Phase

Let's look at specific recommendations for each phase. Remember, every business is unique, and your optimal technology decisions will depend on various factors beyond revenue size alone.

Phase 1: Early Stage

Start with proven, off-the-shelf solutions
Focus on commerce platform, basic analytics, and essential marketing tools
Bend your processes to fit standard systems
Avoid custom development
Prioritize speed to market over perfect functionality

Phase 2: Consolidation

Begin integrating systems for better data flow
Add specialized tools for growing needs (OMS, CDP)
Start measuring tech stack performance
Consider headless commerce if complexity requires
Focus on removing friction from processes

Phase 3: Growth

Implement proper data infrastructure
Consider custom development for strategic areas
Focus on scalability and automation
Build team capabilities around tech stack
Invest in business intelligence

Phase 4+: Scale

Move to API-first architecture where needed
Build custom solutions for strategic advantage
Focus on modularity and flexibility
Invest in advanced analytics and AI
Maintain balance between custom and off-the-shelf

03 The Three Types of Technology Value

When making technology decisions, categorize each system:

Strategic Value (Build, never buy)

Core to your competitive advantage
Directly impacts customer experience
Example: Uber's ride-matching algorithm

Core Value (Buy, but extend)

Important but not differentiating
Customize to fit your needs
Example: Payment processing systems

Utility Value (Buy, minimal extending)

Necessary but not strategic
Standardized functionality
Example: HR systems, email

When making technology decisions, categorize each system:

Strategic Value (Build, never buy)

Core to your competitive advantage
Directly impacts customer experience
Example: Uber's ride-matching algorithm

Core Value (Buy, but extend)

Important but not differentiating
Customize to fit your needs
Example: Payment processing systems

Utility Value (Buy, minimal extending)

Necessary but not strategic
Standardized functionality
Example: HR systems, email

Final Thoughts

Remember Conway's Law: your organization's structure will be reflected in your technology architecture. This means technology decisions aren't just technical choices - they're strategic business decisions that should be made in the boardroom, not the basement.

The goal isn't to have the most advanced tech stack, but rather the most appropriate one for your current stage and future ambitions. Focus on simplification where possible, and only add complexity where it truly serves your business strategy.

Making Informed Decisions

While these growth stages provide helpful context, they're just a rule of thumb. Every business has unique needs shaped by multiple factors beyond revenue size.

For a detailed framework on making technology decisions, see our guide on "The 6 Essential Parameters for Choosing Your Technology Stack."

Ready to evaluate your technology stack? Consider a Conway Tech Stack Audit to get expert assessment of your current state and a clear roadmap aligned with your business ambitions.

While these growth stages provide helpful context, they're just a rule of thumb. Every business has unique needs shaped by multiple factors beyond revenue size.

For a detailed framework on making technology decisions, see our guide on "The 6 Essential Parameters for Choosing Your Technology Stack."

Ready to evaluate your technology stack? Consider a Conway Tech Stack Audit to get expert assessment of your current state and a clear roadmap aligned with your business ambitions.