1. Functionality (i.e. what the site does) – The range of options are:
   • No Functionality – These are simple, brochure websites
   • Custom Functionality – The sites are built from scratch
   • Pre-Developed Functionality – These sites use proven/existing software, either:
     • Packages/Bundles – These are "off-the-shelf" software solutions
     • Modular – These enable users to choose from an ala carte menu of features

   
    

2. Design (i.e. how the site looks) – This consists of:
   • Layout – Options range from "cookie-cutter" templates to fully custom designs
   • Graphics – Options range from amateur to professional
   • Navigation – Options range from simple to very complex

   
    

3. Content (i.e. what the site says) – This involves:
   • Creation – Developed "in-house" or contracted
   • Preparation – Proper formatting
   • Management – Updates performed by either the developer or the website owner

The Players
 

• Developers – These are full service development companies. They typically have a heavy emphasis on the Functionality element of a website, with a Design staff to provide the layout, graphics, and navigation.
• Designers – These are firms (or individuals) that focus more on the Design side, typically outsourcing the Functionality element when it is needed.
• – These options have come into prominence over the last few years and typically use a simple online interface to build the Design, with limited Functionality.
• Pipeline – In this model, Functionality is provided by software modules which support any type of creative Design and enable simple Content management.
  
   

DEVELOPERS

The traditional web developer takes two principal forms: Either a high-end programming firm that specializes in back-end coding, and employs a creative staff to handle the front-end website design; OR, a high-quality design firm that establishes a team of programmers to provide the site functionality.

Pros

• Provide great-looking, highly functional sites
• Can completely customize a site to a client's specific needs
• Custom software development is available
• Bring all three elements (Function, Design, and Content) to the client in a "one-stop shopping" approach
• Site owner may own the unique development software (i.e. Intellectual Property rights)

Cons

• Sites are built from scratch each and every time, which can be expensive
• The development process is time-consuming, often taking months to complete
• There are usually several rounds of testing and de-bugging that continue to create delays and drive up costs, sometimes even after the site has launched
• Creative design is also very expensive, particularly when dealing with those firms whose bread-and-butter (and reputation) hinges on producing solid creative work
• There is often little content control on the part of the client, meaning any changes or updates to the site must go through the development firm to complete, again leading to delays, downtime, and additional expense
• Pricing is non-standardized and non-published, and typically based on estimates; cost over-runs can occur frequently Site owner may have to assume costs to maintain & upgrade development software (if they retain IP rights)
• Difficulty in identifying problems between the developers and the hosting service
• Product knowledge is centralized with a few employees

DESIGNERS

These are typically small creative agencies, or even freelance individuals, who bring their graphic design sense to the table, but must outsource the functional part of the website to a developer. Some web designers may know bits-and-pieces of back-end programming, but the designer who can do it well is a rare beast.

Pros

• Can provide smaller-scale websites at more reasonable, competitive prices
• Likely to have quicker response to a client's needs, particularly with content management

Cons

• Scale of creative quality may vary wildly from designer-to-designer
• Integration between the site's design and function may be problematic, depending on designer's skill-set
• Difficult to expand or upgrade the functionality
• Custom functionality is not typically available or practical
• As with Web Developers, pricing is non-standardized, non-published, and based on estimates; again, cost over-runs frequently occur
• Difficulty in identifying problems between the designers and the hosting service
• Product knowledge is centralized with a few employees

TEMPLATES  

This model, in which users sign up for the service and create their website using an online process, has come into its own in the last few years. There are two basic types of Template sites:

• Brochure Sites – These sites display content only, and contain no functionality.
• Online Stores – These sites typically include a simple product catalog and eCommerce system

Pros

• Very affordable and reliable
• Perfectly modeled for small or at-home businesses that sell a limited product line to a limited consumer base
• Content management is typically very simple and controlled by the website owner
• Pricing is fixed and published so a company can figure out exactly what the site will cost
• Quick to deploy, often with just a few hours of content preparation and "build-time"
• Site owner does not own the software (no maintenance costs)

Cons

• Limited amount of creative and functional control
• Site design is limited to a select number of pre-programmed layouts
• Not very scaleable or adaptable to business growth, difficult to upgrade the functionality
• No custom development is available
• Limited technical assistance
• Site owner does not have IP rights over the software

PIPELINE  

This is a newly-emerging method of bringing websites to the marketplace which brings the high-end functionality of the traditional Developer model together with the convenience and cost-effectiveness of the Template model. The "Pipeline" model works by eliminating many of the problems and obstacles inherent in creating a website from the ground up.

The most common functional elements of any website, such as eCommerce, Product Catalogs, Contact Us Pages, Content Pages, Calendars, Email Newsletters, etc., are turned into individual software components. These components are completely tested and field-proven, because they are used over and over, across multiple sites. An underlying architecture is then built which enables any of these modular components to "snap together" like building blocks.

Pros

• Software is fully-tested, minimizing bugs or errors (and unforeseen costs).
• Sites are quick to launch, with the functional website "shell" created within minutes through an automated process – no need to hard code the entire site.
• The functionality and design elements are treated separately, enabling the use of any creative design.
• Content is managed by the website owner, and any changes or updates can be made to the live site in real time, without suffering any delays, downtime, or lost opportunities, and without having to pay someone else to do it.
• Pricing is fixed and published so a company can determine exactly what the site will cost up-front, with no hidden costs down the road.
• Custom development is available.
• Easy to upgrade or expand the website
• Site owner does not own the software (no maintenance costs)

Cons

• Not cost-effective for simple static brochure sites with no functionality and little or no content management
• Very high-end functionality sites (such as one to manage a huge logistics network or to support an international retailer like Amazon) require a great deal of custom programming which might not be accommodated by standardized software modules.
• Site owner does not have IP rights over the software

COMPARISON TABLE

The following table summarizes the competitive advantages and disadvantages of each of the players in the web development industry: