ArcStone: Vision, Values, Products & Services

Mon, Mar 2, 2009

Emerging MN Companies, Startups & Developers

    by Steve Borsch

arcstoneOver a year ago I became aware of a local Minneapolis firm, ArcStone, when they introduced Wonderfile, a very interesting offering that is sort of a nouveau document management system for today’s always-on and always-connected internet crowd, and I was reacquainted with them when they demonstrated their brand new Association Management Portal (AMP) at MinneDemo a few weeks ago (their demo here).

Completely out of the blue a few days after MinneDemo, I stumbled across something ArcStone had created for a client called the Interactive Roof Designer, a Flash piece for Trimline Building Products (more here) that allows color changes for roofing tiles. Since half my business focuses on trends for the home furnishings industry (The Trend Curve™), I was immediately interested in what they’d created since this is the sort of thing our customers would be interested in. Though there have been many similiar types of Flash-based “changing colors on the fly” web offerings like this, I must admit being pleasantly surprised by how good an implementation they’d done and that it was visually stunning and worked flawlessly.

I immediately thought, “Who are these guys and why haven’t I heard much more about them?” As a consequence, I called CEO David Carnes and went over to chat with him last week to find out more about what this Minnesota firm is creating and what’s at the heart of their innovation.  One of the things I always look for in any company is some sign or articulation of their vision and values. How do they see themselves? What do they care about and are they aligning their work around their core values…and do they even know what their values are? David talked about their values and just being there, seeing their offices and getting a sense of the environment, made it clear that yes, they’re living their values.

At the outset of our discussion, David and I talked about his vision about the company, its direction and the spaces they’re in (e.g., Wonderfile, AMP, eBrochure) and the important work they do creating web strategies and web “assets” for their clientele.

arcstone_designer

They’ve been at this internet/web game since 2000 and have a couple of dozen people in their company now — some of whom are aligned with specific properties like Wonderfile or AMP — and have approximately 400 clients. They’re in the former carriage house of the historic Semple Mansion on Franklin in Minneapolis which, as they describe it on their website, “…has housed a bank, an architectural firm, and now houses our unique blend of web developers, consultants, and guppies.” You’ll have to poke around their website to discover more about their fixation on guppies.

What I found particularly interesting is that ArcStone is doing what many startups and emerging companies are increasingly relying upon as their core infrastructure to deliver their applications: Amazon Web Services and specifically their S3 storage service.

One aspect of our conversation, and my contemplating our interview afterwards, was that many smaller firms and companies (not just in Minnesota but everywhere) have one fundamental problem that ArcStone exhibits: getting the word out. Why is it, for example, that I’d not known they’d embraced the leading open source ecommerce package I’m particularly hot on, MagentoCommerce? Or that they’d delivered that Interactive Roof Designer product? Or that Wonderfile is as robust and mature as it is?

No question marketing and sales is always a trade-off between resources and time; energy devoted to clients or to one’s own company; managed growth vs. an unmanageable spike if buzz makes a product like Wonderfile take off too fast and beyond the ability for ArcStone to scale. Still, it’s the one thing that troubles me whenever I am exposed to a company like ArcStone that has strong products, client base, team and core values driving it all and yet aware of how few people with checkbooks (i.e., prospective customers) have any clue about who they are and what they do.

I think, however, that you’re going to be hearing a lot more about ArcStone in the months and years to come as they continue to deliver on their vision and create momentum around their products and services.

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3 Responses to “ArcStone: Vision, Values, Products & Services”

  1. Zack Steven Says:

    Glad to see ArcStone getting some well-deserved recognition for not only articulating their values but for living them out. Businesses that are led with integrity and vision deserve success!

    Reply

  2. Anonymous Says:

    I am disappointed that companies like ArcStone still embrace overseas development of software. While Mr. Carnes isn’t necessarily upfront about it, his “vision” is one of software produced as cheaply as possible, with the minimum of actually development done in Minneapolis.

    Reply

  3. Steve Borsch Says:

    Speaking of being “upfront” Anonymous…

    This is always a tough one. VC’s I’ve worked with and know personally won’t fund companies unless *some* component of their work is done offshore. Especially work that is linear and serial in nature, processes that are well defined, are of fairly low value, and 1/10th the price of doing that work Stateside.

    As a staunch supporter of the creativity and ingenuity that is right here in Minnesota, I’ve also gone offshore for work that I *never* would’ve had done here since it was just too expensive (e.g., a Drupal implementation). Once the client had the web asset in place, the crosstalk and communication problems with offshore — and the minimal overlap in working hours when they could collaborate — caused the client to hire ongoing developers locally. So jobs were created that would never had been created if not for the initial implementation having been so cheap and essentially busywork for a savvy web developer (which you are, John, right?).

    So that’s the push-pull we’re all dealing with in, what Thomas Friedman points out, a flat world. If Daniel Pink’s premise (A Whole New Mind) is valid, then the next great leap in creativity and innovation will come from parallel and associative thinking, creating and implementing, which by necessity will most likely be onshore.

    The punchline? If you’re disappointed by Mr. Carnes (or any others) pushing work offshore, then you should be offering that service in your web development shop (by partnering?) and move yourself and staff up the value chain to embrace higher levels of innovation that will ensure you’ll be turned to before offshore is even considered.

    My $.02…


    Steve

    Reply

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