Setting Up FRONTEND Over BACKEND

In this continuation of his series on business asset management, the author delves into prioirtising frontend assets over backend operations. His main take on the subject is that customers first engage with a brand at the frontend, making it the foundation for business success

- ANAND TAMBOLI

There is a constant debate about what is easy in business and what is not.

For most people, the backend seems easier than the frontend, which is true. The backend is easy, while the frontend is challenging. This is because the backend is inherently limited, with limits to its reach. In the backend we know what needs to be done and what works. It involves several easy steps to prove, where most outcomes and scenarios are finite and predictable.

Moreover, people involved in backend activities are usually limited. So, all the assets created in and for backend often make your balance sheet healthy. This is good for the bank but it can be less attractive to investors due to the lack of full resale value and high returns.

Comparatively, the front end is more challenging, mainly because it is vast. While we may know what needs to be done, we wouldn't necessarily know if all of that would work. It is difficult to prove. Additionally, there could be infinite outcomes and scenarios. The people involved are enormous and unlimited. Essentially it is often your entire customer base. It is everything that is outside of the company. So, all the assets created in and for the frontend often increase goodwill and brand value in the market. This is very good for investors, but may not be so attractive for banks.

Now the key question you may be asking is "What is the backend and what is the frontend?"

To put it simply, anything that happens in the back office, or behind the scenes, can be termed as the backend. That includes your R&D operations, production, QC, logistics, HR, and many other such things. Basically, everything that is happening within the company.

On the other hand, the frontend is what customers can often see or experience. It could be marketing, sales, and also in many cases your customer service.