Software company vs. digital product studio. What’s the difference?

May 11, 2021

Choosing between a software company and a digital product studio can be confusing. Both the software company and digital product studio develop digital products and software.

Is there even much of a difference between the two? The answer is yes, and the answer is in the details.

software company

A software company is looking to quickly and accurately fulfill their client’s order. In contrast, a digital product studio is looking to ask questions and dig deep into the creative process of creating a digital product that customers will love.


What is a digital product? 

Digital products are products that utilize software to create value for their users and customers. People can use digital products for retail, augmented production, and many tangible goods or services.

The Google search engine is a type of digital product. A user will use their search engine to find a solution to a problem or answer a question.

Digital products exist to provide benefits to their users. A great example of this is Facebook. Facebook brings their users closer together by connecting them with their friends and family.

Today, many digital products are the smart devices we use every day and the applications (apps) on those devices. Your smartphone, smartwatch, tablet, and computer are all digital products. Along with the apps you use on them.

Many people might use a digital product like the dating app, Bumble, to meet someone. Then use another digital product like the app for Uber to get to and from their date safely. Software companies and digital studios created these digital products.

Today there are multiple ways to use digital products. There are also numerous developers of these digital products. Many will use a software company or digital product studio. However, what should your company choose for your business?

If your company is looking to develop a digital product, this video might help you zero in on the right digital product to start with for your business!


What is a Software Company

Hiring a good software company will resemble placing an order, filling out a questionnaire, and then getting that order fulfilled by the software company. They will create a digital product for you without providing a lot of feedback on creative direction, how it fits into a market, and more.

The software is looking to fulfill your order with a digital product that is safe and functional. Your company will need to provide all of the details about what your idea is for the product.

Software companies will be an excellent option for some businesses to develop their digital products and software. For many companies, it will be the most economical way to create their digital products.

What could be missing from a software company is the creation and development director for a successful product. A software company will not ask if the digital product is an excellent fit for the market. They will not ask what the value of the product is to its users. They will also not ask what features are necessary for the first version of the product.

It is up to the company to decide if this is the type of digital product they are looking to develop. Software companies have a specific way to create products. These products will be reliable. However, it is up to you to determine if your product idea is right for the market.

software company


What is a Digital Product Studio

Think of your favorite show on Netflix. A simple idea was likely the show’s first step. For example, the cast of Schitt’s Creek had everything and then lost everything. This idea is simple when you hear it, but the simplest of ideas can turn into a remarkable final product with the right creative team.

Digital product studios are looking to be the creative team to take your digital product from a simple questionnaire built product to something more customized. Their team is looking to ask the tough questions to improve the products they are designing for their clients.

As remarked by Bothrs, an excellent digital product studio will be looking to create a product that separates itself from the competition and speed up the development process. A digital product studio is not there to fulfill an order. Their studio is there to develop a digital product that will stand out in a crowd.


Who will fit your needs?

Let us take a look into the simple differences between digital product studios and software companies. Neither is a better choice than the other until you know what your company needs out of a digital product developer.


Digital Product Studio
A digital product studio is for a company that has digital products that are essential to their business. If digital products are essential enough, the company should invest in having the best products they can. Digital product studios will develop the best teamwork and quality.


Software Company

It can be an excellent choice for an organization where software and digital products are not the focal points. Software companies will be the lowest cost option.



Digital Product Studio

Strategy workshops will be held with the team to develop knowledge, verify where it fits in the market roadmap, and to legitimize the idea. Then the coding is done with real-time results.

Software Company

One or two developers will listen to your instructions and not question you. Speed is essential to software companies.



Digital Product Studio

A significant expense of a digital product studio is the team of experts who help develop and design the product. You will be hiring a group of senior developers, a project manager, a product owner, a product designer, and more. These experts will extrapolate all the information to help design the best product for the market.

Software Company

Instead of a significant team, you will be hiring a developer who does what you are them to do. There will be little to no suggestions or big picture ideas made by the developer. Many times less experienced junior developers are assigned to these tasks.


Choose What is Right for Your Business

Nobody understands your business more than you. You will need to decide if a software company or digital product studio is the right fit for your organization.

A software company exists to follow your direction and create the digital product you ask for through their questionnaire. Your company is in charge of being the creative director of this digital product project. Software companies are there to efficiently develop and deliver what you ask for—nothing less, nothing more. Consider hiring a development team in Ukraine if you want to turn your ideas into a viable startup using cutting-edge technologies within a reasonable budget.

Hiring a digital product studio will give you a creative team at your fingertips. A digital product studio’s goal is to listen to your idea, ask questions, make suggestions, and develop a digital product that is truly something the consumer is looking to use or buy.

Digital product studios are for businesses that plan to have digital products as a focal point of their success. Software companies are better suited for companies who are not looking to have digital products as a contributing part of their business.

Both can deliver great digital products. In the end, it is about what you want your digital product to be.


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