The Only Metric That Matters: A Unified Theory of Low/No Code, Middleware, and the Future of Enterprise Applications

The Only Metric That Matters: A Unified Theory of Low/No Code, Middleware, and the Future of Enterprise Applications

In the world of technology and software development, metrics are essential for measuring success and growth. But what if there was one metric that truly mattered? At Twitter, the team discovered that if users visited the platform at least seven times in a month, they were likely to continue using it in the following month. This metric of user engagement became the focus of their growth tracking efforts.

This concept of measuring user engagement and activity is not unique to Twitter. In fact, many companies across different industries prioritize understanding what their users are doing and why they are doing it. Take LinkedIn, for example. Instead of solely focusing on the number of users on their platform, they shift their attention towards how many people are using LinkedIn to search for and find others, as well as how many people are actively engaging with content on the platform.

By defining a metric that reflects user engagement and activity, companies can track their growth on a day-to-day, week-over-week, and month-over-month basis. This allows them to gain insights into what is working and what needs improvement. It also helps them understand their users better and tailor their products or services accordingly.

But user engagement is just one piece of the puzzle when it comes to the future of enterprise applications. A unified theory of low/no code, middleware, and the role of platforms is crucial in understanding how these applications will evolve.

To delve into this theory, let's start with Salesforce, a leading player in the enterprise software market. Salesforce consists of three main components: the user experience (UX), the middleware that connects the application to databases, and the data models that structure and define the core functionality of the platform.

Investors often seek out companies that have the potential to become platforms rather than just products or tools. A platform is an application that provides a set of interfaces on which other applications can be built. Salesforce recognized this and introduced Force.com, a platform-as-a-service offering that allows customers to build custom applications on top of the Salesforce data model.

This move by Salesforce created an ecosystem of developers, consultants, and third-party vendors who could customize and extend the functionality of the platform through the Salesforce AppExchange. The AppExchange is a marketplace of applications built by external developers, expanding the capabilities of Salesforce across various industries and areas of functionality.

Salesforce's success as a platform lies in its position as the system of record for businesses. The data related to how a company sells to and serves its customers holds immense value. Other systems within an organization need to integrate with Salesforce to leverage this valuable data effectively.

But the decoupling of systems of record and systems of engagement is becoming increasingly important. While data has gravity, prioritizing the storage and structuring of data over user experience can be risky. Salesforce understands this and embraces the idea of creating an ecosystem around its system of record moat.

By allowing for customization and innovation on top of the core platform, Salesforce ensures that customers have no reason to leave. However, there is a potential threat to this ecosystem in the form of low/no code vendors.

Low/no code development platforms empower non-professional engineers to create, deploy, and manage applications without relying on Salesforce or its partners. These platforms provide a semi-opinionated UX customization layer that sits on top of the underlying databases.

With low/no code, businesses can build applications and workflows that suit their specific use cases and users. This endless customization of enterprise applications challenges the traditional one-size-fits-all approach and allows for greater flexibility and adaptability.

Salesforce's position as a system of record and engagement remains important, but the focus is shifting towards customer interactions and the ability to capture real-time insights. Backwards-looking data stored in a relational database may not be as valuable as understanding what customers are doing now and what they might want to do in the future.

This shift in focus also opens up opportunities for other vendors, such as Twilio, to rethink customer interactions and provide a platform that embraces an infinite number of signals. The future lies in empowering businesses to innovate at the top of the stack, closer to the customer, rather than being tied to the bottom layers of data storage and structuring.

In conclusion, the only metric that truly matters is user engagement and activity. Understanding what users are doing and why they are doing it is crucial for measuring growth and success. However, this metric cannot exist in isolation. A unified theory of low/no code, middleware, and the role of platforms is necessary to navigate the future of enterprise applications.

Here are three actionable pieces of advice to consider:

1. Define a metric that reflects user engagement and activity for your product or service. Track this metric on a regular basis to gain insights into your growth and make informed decisions.

2. Embrace the concept of platforms and ecosystems. Allow for customization and innovation on top of your core product or service to create value and increase customer loyalty.

3. Prioritize customer interactions and real-time insights. Shift your focus towards understanding what customers are doing now and what they might want to do in the future. Empower businesses to innovate at the top of the stack, closer to the customer.

By incorporating these strategies, companies can stay ahead in the ever-evolving landscape of enterprise applications and drive meaningful growth.