Digital Product Studio VS Software Development Company

Moon Yiu
8 min read2 days ago

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I’ve once hired an IT outsourcing (software development) company to develop my mobile app product, complete fail and wasted all my capital.

Why?

Not necessarily the quality of work, but the methodology that they adopted.

One might ask, what’s a digital product studio then? In short, it’s a partner that takes care of everything you might need for your product, from concept, visualization, design, development, management to marketing.

Before my own venture DigitSense, I’ve tried building multiple Saas products, none of them were successful, and here are a few reasons why.

Using the wrong stack

I relied solely on one developer to code the product. Software developers often go for the stack they’re most familiar with, but not necessarily the right one.

Using the wrong stack is pretty much lethal when you consider scaling. I learned this the hard way.

It wasn’t long before my product hit a wall — it couldn’t handle new features without reworking everything from the ground up.

No real ownership of the product

The dev team I worked with followed my instructions to the letter, but that’s where it stopped.

They were building what I asked for, not what the product needed. There was no sense of ownership from them — no one on the team was thinking beyond their task list.

It felt like I was the only one worrying about the product’s future. In hindsight, they were just “completing a project,” while I needed someone who actually cared about making the product succeed.

Without that shared sense of ownership, the product just didn’t have the soul it needed to connect with users.

Disconnected teams

On top of that, design and development were like two different worlds. The design team would hand off mockups, and the developers would build them without any real collaboration.

Sometimes the features didn’t translate well, and by the time we noticed, it was too late or too expensive to fix.

I later realized how important cross-functional collaboration was, something a product studio naturally fosters because they bring all the necessary disciplines under one roof and make sure everyone is on the same page.

Missed the mark with users

Honestly, I spent months working on features that I thought were cool but missed the mark with users. And the software company didn’t have the expertise to tell me otherwise — they weren’t involved in user research or market trends.

We built features without any real data backing them up, and I ended up with a product that wasn’t solving the right problem.

No room for iteration

When you’re working with a traditional software development company, the process is often very linear. We built, we launched, and then we were done. Except that’s not how building products works in the real world.

After launch, we started to get feedback, but there was no room for iteration. The company considered their job done, and we were left with a product that wasn’t evolving.

Post-launch, I was on my own

Once the product was live, the software company pretty much disappeared. Maintenance? Scaling? Post-launch improvements? None of that was in the scope, and I didn’t have the technical skills to handle it myself.

The product slowly deteriorated because it wasn’t being nurtured. I needed partner to continue guiding the product post-launch, making sure it grew with the market and stayed relevant.

Tunnel vision on features

Lastly, we spent so much time building individual features, ticking them off a list, without considering how they worked together or if they were even necessary.

The company was just executing, not questioning whether those features made sense for the business or the users.

I needed someone who would help me focus on the bigger picture, not just the immediate task.

Looking back, I didn’t just need code. I needed a partner who was invested in the product’s success as much as I was. That’s what a digital product studio brings to the table. They think beyond the code — they think about the long-term impact, the market fit, the users. If I had known that earlier, maybe my products wouldn’t have failed.

That’s also the reason why I founded DigitSense. I am tired of building products that fail. So how is it different really? If we are to build startup products, those that are transformative, innovative and disruptive, it invovles way, WAY more than just an RFP or a scope of work listing out all the necessary features.

You never know how the market would react, how your users like your product, or how you’ll need to pivot according to the market response.

You need a partner, a co-founder, not a vendor.

So, what exactly does a digital product studio do differently? How do they work? Let me break it down.

They’re In It for the Long Haul

When you engage with a product studio, it’s not just about delivering a project and parting ways. You’re partnering with a team that’s in it for the long haul.

They don’t just think about today or tomorrow — they think about where your product needs to be six months, a year, or even five years from now. Their goal isn’t just to get your product out the door but to ensure it thrives in the market long after launch.

Think of it as having a co-founder rather than just a vendor.

Holistic, End-to-End Involvement

A digital product studio is involved in every single phase of product development. It’s not just about writing code or designing an interface.

They start with ideation — helping you shape and refine your product idea. Then they move into strategy, design, development, and marketing. Every stage is interconnected, with input from multiple disciplines at every turn.

You’ll be working with a team of designers, developers, product managers, and marketers who collaborate constantly to make sure all the pieces fit together seamlessly.

User-Centric from Day One

One of the biggest mistakes I made in the past was building a product in a vacuum.

I thought I knew what users wanted, but I never actually asked them! A product studio starts with the user.

They’ll conduct user research, interviews, and usability testing from the beginning to understand the actual pain points and needs of your target market.

This approach ensures that your product isn’t just something you think people will use, but something they actually need and want.

Agile and Iterative Process

Forget the rigid waterfall approach where you plan everything upfront and hope it works out. A digital product studio thrives on agility. They’ll take your product through multiple iterations, constantly refining based on real-time data and user feedback.

This means they’re quick to pivot if something’s not working, making sure your product evolves with the market rather than getting stuck in a pre-defined set of requirements.

It’s an ongoing, fluid process where each version of your product is better than the last.

Ultimately a startup is supposed to differentiate, and when you’re building something new, nobody on earth would know 100% what’s right to be built. It takes trial and error.

Cross-Functional Collaboration

You’re not just working with coders or designers — you’re working with a cross-functional team that communicates constantly. That’s also the reason why digital product studios often have marketers and product managers involved in the early discussions.

It’s never about the product, it’s about the value that the product brings to your customers. Hence you need commercial team involvement from Day 1.

In a typical software company, the designer hands off to the developer, who builds the product in isolation. In a digital product studio, design, development and marketing happen in tandem.

They Think Like Business Partners, Not Just Developers

One thing that always stood out to me after working with a product studio is how they don’t just think like developers — they think like business partners.

They don’t just care about writing clean code, they care about whether your product is going to succeed in the market.

Every decision they make — from feature prioritization to design choices — is driven by your business goals.

They’ll question your assumptions and push back when necessary to ensure that the product you’re building isn’t just functional, but actually solving a real problem in the market.

Data-Driven Decisions

Product studios don’t just rely on gut feeling or assumptions. They collect data at every stage of the process and make decisions based on that data.

Whether it’s user analytics, A/B testing, or market research, they’re constantly gathering insights to inform the next steps. This ensures that every iteration of your product is based on real-world feedback, not just a best guess.

Scalable Solutions, Right from the Start

Unlike my previous experience where scaling was an afterthought, a digital product studio builds with scalability in mind from the very beginning.

They’re not just thinking about the MVP — they’re thinking about how your product can handle 10x or even 100x the users in the future.

This means using the right tech stack, designing flexible architectures, and planning for growth so that you don’t hit a wall when your product takes off.

Post-Launch Support and Growth

Here’s where a product studio really shines. They don’t just hand you the keys to your product and walk away. After launch, they stick around, offering ongoing support and maintenance to keep things running smoothly.

They’ll continue working with you to scale the product, add new features, and grow your user base.

They treat your product as an evolving entity, continuously optimizing and refining it based on feedback and market trends.

It’s a partnership that extends far beyond the initial launch date.

Marketing, Not Just Development

A huge part of why many products fail is because the marketing aspect is neglected. You can build the best product in the world, but if no one knows about it, it won’t matter.

A digital product studio doesn’t stop at development — they help you with your go-to-market strategy, too.

From crafting your messaging to optimizing your launch, they’ll guide you through the process of getting your product into the hands of your target users.

They’ll work with you to create a roadmap for growth that aligns with your business goals.

Without marketing expertise, you can be building a rocket that doesn’t sell.

That’s the magic of a digital product studio. It’s not just about building a product — it’s about building a successful venture, one that’s rooted in real user needs, strategically developed, and constantly evolving to stay ahead of the competition.

Every startup or digital product are innovative, transformative and disruptive. It’s not the same as developing an ERP system for your corporate internal use, where you always have a fixed set of users and business logic.

Tech startups are all about beating the market. If you work with someone who doesn’t care about what the market looks like, you’re not working with the right partner.

Build a business, not an app.

If you’re facing challenges with your product, and could do with some advice. Hit me up in my DM for a quick chat, or book me here https://calendly.com/moonyiu1/productaudit

My name is Moon, I’m the Founder & CEO of DigitSense, a digital product studio that design, develop, and market digital products like a tech startup on its own, where we blend cutting-edge tech with user-centric magic to transform your vision into reality.

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Moon Yiu

Turbocharge your software product from concept to unicorn 🦄 | Tech entrepreneur | Founder of DigitSense | I craft products with user obsession 🪄