Written by
Aurelija Vycaite
AI & Technology
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.
01 Understanding growth phases
Based on research and our experience helping consumer brands scale beyond €200M, companies typically move through distinct growth phases:
Growth Phase | Phase 1 | Phase 2 | Phase 3 | Phase 4 | Phase 5 |
|---|---|---|---|---|---|
Annual revenue | €0 - €1M | €1M - €10M | €10M - €100M | €100M - €1B | €1B+ |
Company Distribution | 96% of companies | 4% of companies | 0.4% of companies | Elite group | Global leaders |
Technology Stack | Typically 3-5 disconnected systems | First real tech stack | Integrated stack | API-first, microservices | Fully modular, AI-driven |
Tech Spend (% of Revenue) | ~10% | ~7% | ~4% | ~3% | ~2% |
Strategic Focus | Speed to market, basic operations | Building foundational processes | Scalability and automation | Strategic value creation | Innovation and differentiation |
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 saying they are unique in every aspect of their operation. Ask yourself: do you really need a unique fulfillment process? Or inventory replenishment process? Usually, the answer is no.
Don’t reinvent the wheel, but adopt a best practice. Be unique where it matters, in your brand, product, and content - not your backend operations.
Making Technology Decisions by Growth Phase
Let's look at specific recommendations for each phase.
Company growth phase | Key technology guidelines |
|---|---|
Phase 1: Early Stage | • Start with proven, off-the-shelf solutions |
Phase 2: Consolidation | • Begin integrating systems for better data flow |
Phase 3: Growth | • Implement proper data infrastructure |
Phase 4+: Scale | • Move to API-first architecture where needed |
03 The Three Types of Technology Value
Each software system can be categorized as:
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
Example of Uber selling taxi rides.
Conclusion:
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, type of business and future ambitions. Focus on simplification where possible, and only add complexity where it truly serves your business strategy.
→ Learn more
How to design a tech stack? And why does it matter?
How to select the best software for your company?
How we can help
Conway & Co is an on-demand CTO for modern consumer & retail brands with ambition.
Gain a deep understanding of the technical state of your company that aligns your business strategy and digital capabilities.
