Most companies think they’re building a software factory. They’re actually just shipping bugs faster.

by | Jun 26, 2026 | Technology

Industrialized factories changed how the world produced physical goods: more output, lower costs, faster than anything that came before. Now a similar shift is happening with software. LLMs have lowered the barrier to writing code, increased individual output, and pushed organizations to think about software development as a production system. The standard software development lifecycle and CI/CD practices that have held for decades won’t hold up under that pressure. That’s where the software factory comes in — and like physical factories, it needs more than speed to actually work.The idea of a “software factory” started to solidify over the past year. Luca Rossi’s “The Era of the Software Factory” made the case plainly: AI is not just changing how fast people write code — it’s changing the whole production system around software. The concept can mean different things: a collection of coding agents and skills files; faster CI/CD; better review systems; or more automation around software delivery. A better frame is to think of it less as a tool category and more as a set of principles. A software factory can’t just be a loose collection of prompts, agents, and plugins. It needs a platform that defines how work moves through the system and how code is generated, reviewed, tested, traced, deployed, and improved when something goes wrong.Otherwise all you’re doing is putting yet another one-off machine into an empty room and calling it a factory. Why is this happening now?There are a few forces all hitting at the same time.Companies have always wanted more software than engineers can produce. That’s why tools like Excel exist: They often fill in the gap for a lot of …

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