Startup: Hi! I am a person with relatively low experience of running a business. However, I have a broad vision for the future.
Enterprise: Hello! I have witnessed all the seasons of the market–rise, fall, and stagnation. I continue to ride the wave of my business and wish to take it further.
Small and Mid-level Business: Hey! I am neither startup nor an enterprise. However, I have a vision like a startup and some experience like that of an enterprise.
So, which one of these are you?
Regardless of your position, you are here on this guide because you seek progress; progress in the form of business acceleration. In today’s world, progress is in proportion to your technical capability. If you want to progress, you need to fuel it up with the latest technology.
To put this into perception, the key responsibility of a businessman is to walk the software trends. For this, you can either look for a reliable software development partner or hire a dedicated team. But the fundamental remains, you need to understand and add business value to a software project through custom software development.
I see the question–How to add value to software products?–running in your mind.
Well, to answer this, we will first have to understand that software development is an integral part of any and every business out there in the world. The existence of modern business evolves around software for revenue generation and business processing.
As a result, it is crucial that you rely upon and invest in a qualified software developer to enhance the value of a software asset.
Why and when do product owners need value addition?
- Some companies offer software development services.
- Numerous companies provide ready-to-launch software products.
- Others simply offer you with everything in between.
Let’s consider a simple example. There is a road to be built in a deserted place. Now, the construction of the road in such a place is easy. However, when the road is already built but has potholes, it might seem like a temporary patch, but it would require almost re-doing the entire road construction process.
In this case, the development of road is a straightforward procedure. On the contrary, re-construction of the patch would require a lot more than planning and technical expertise, as levelling would be a tough task.
Now consider the road development as software development from scratch. Re-construction as value addition to the software and levelling as building compatibility to the existing functionalities. To put this perspective, you need to be more careful about what services you ask for and seek, as you are putting your existing business model at stake.
Software development can add value to your business. However, for the product development process to happen, it is important that you hire a certified software development professional. There is a unique business impact through product engineering that you can have.
In such a case, companies having technical expertise for product development offer numerous services. Below is a gist of value-added services that you can avail:
Updation of the technology stack
Technology trends are evolving and all businesses are revolving around software development. In such a case, today’s USP becomes tomorrow’s MVP. What’s in today turns out to be outdated even before you realize. Your users are in the constant quest for the ‘new’. So, your business has to be aligned with the latest.
The question arises–How to know that your software needs an update?
- When the industry that you are operating in is crowded with new players and they offer new functionalities.
- When you have a large user base and the user sentiments read dissatisfaction with your software.
- When your current technology stack prevents your forward momentum.
Addition of new features
There was a time when scrolling through the feed for endless hours was a luxury. Today, the user behavioural pattern has evolved, as they seek personalized content in their feed.
Hence, software and mobile applications have to evolve accordingly. You need to provide your users with new features to keep them guessing and excited about your business.
So, let’s find out when you should add new features:
- When your competitors have some unique functionalities and you find your user base churning out from your application.
- When you see users uninterested and unexcited towards your application.
- When you want to expand your business in a new geography.
Product engineering
The buzz word for the era is automation. Innovation is the stepping stone and is no longer a goal to realize. The less number of labours, more efficient is the process. The modern-day businesses are betting on automation to achieve optimized processes and significantly lower overhead costs.
As a result, if you are an enterprise wishing to make a forward leap or a small-to-medium business wishing to match the pace of advancement, you should look at product engineering.
Below are some of the other instances when need to consider product engineering:
- When you need to achieve more in less time.
- When you want to take your business to the next step and you wish to put your resources to the best use.
- When you want to leverage the latest technology for your business growth.
Multiplication of revenue streams
Usually, the core functionality of a business is singular in nature. As a result, there is a single revenue stream. However, as you advance in your business venture, you are bound to widen the scope and multiply your revenue streams to get a maximum influx of revenue.
This is a pretty straightforward aspect to comprehend. However, let’s understand when you might need a value-added service for successful product development.
- When you want to add new features for the addition of a revenue stream.
- When you wish to add another stakeholder in the application.
- When you have to take your business growth to the next level.
Optimizing Server/Support
It may happen that you want to shift your database or server that you are using currently. In such a case, you can seek support from an IT company.
In addition, there might be times when you wish to migrate your server data to the cloud or simply wish to opt for support for your existing project.
Below are some of the scenarios, wherein you can avail outsourcing software development services
- When your maintenance/support contract from the development has expired.
- When you want to migrate your manual service to cloud storage.
- When you wish to understand the next step and need technical consultation.
How can the value addition be for the software development services?
Evolution of a business happens on the back of the evolution of the product. Hence, the stepping stone for the advancement of a business are its needs and value. This evolution is high-end and can be managed by a highly qualified software development company.
Now the evolution is proportional. For instance, the meaning of evolution for an individual person would be to evolve into a startup. On the other hand, the meaning of evolution for a startup would be to evolve into a medium-sized business. Let’s understand different stages of evolution and the value addition.
Ideation Stage
You can go to any lengths with your dreams. However, when it comes to going there in reality, it is not a pretty sight. It is complex and might not be feasible in most cases. Hence, the ideation stage is essential for your business.
On the other hand, there are software development companies with different capabilities. Some companies hold expertise in developing clone products, while some companies boast expertise in product development as value-added activity. The product owner’s core responsibilities is to communicate the idea.
We, at Peerbits, analyze this idea and develop sustainable products for the unique business models.
Startup
You have a fantastic idea and you wish to propel your business. You have a 360-degrees vision of your product. All you require in here is the real product that you can launch in the market and begin your entrepreneurial journey.
In order to bring your product to real life, all you need to do is develop a mobile application that can help you venture into the market. So, it is crucial for you to build a software development team or outsource your software development project to increase the value of a software asset.
At Peerbits, we offer feasible engagement models for product owners to maximize the value of their products
Experienced Startup
Congratulations on releasing your product with the most viable features!
Now that you have your eye on the business growth and your legs on the accelerator, push the right buttons by partnering with a qualified software development company. A reliable professional team can help you undertake ongoing product development through their technical expertise and vast knowledge.
In such a case, you only have to show the way ahead, while your software development partners can map it out for you.
Enterprise
Great job on survival and win in the market! However, to stay consistent and be able to consolidate your market position, you need to level up. As you go on with the advancement of your product, the first step that you need to take is to map your organizational structure.
The complexity is two ways–You need to first work on simplifying your business for the different number of stakeholders and revenue models that you are involving or have involved.
The other side of the complexity is in regards to the expectations of the users. As your product advances and caters to a large number of people, users tend to develop several expectations from your product.
In such a scenario, it is crucial that you seek consultation and development assistance from a reputed software development firm.
Which is the best engagement model for difference product owners?
Once you move past the stage wherein you hire software development talent, the next question would be–Which engagement model should you choose when considering a software vendor?
You might come across numerous client engagement models–Agile Control, Time and Material, and Dedicated Model.
Read More: Which engagement model should you choose for your next project?
Agile control
Agile control is the method, wherein the overall budget for the project is estimated well in advance before commencing the project and is regardless of the expense and time.
In this situation, you are liable to receive all details about the project from the project manager. There are different milestones that you and the software development company sets. The project has well-defined specifications, clear deadlines, and simple workflow.
Time and Material
Time and Material is the type of the engagement model, wherein the time and the material required from the software development company is fixed. The IT companies bill clients based on the hours they spent on the project.
In such a case, the focus is on the scope of the project. You can enjoy complete flexibility to change the requirements at any point in time.
Dedicated Team
Dedicated Team is one of the most popular engagement models for clients looking at developing products of their choice. It is one of the flexible options to access offshore expertise and have complete control over resources.
You can choose a dedicated team engagement model to have a real-time check on the progress of your product. Hire dedicated team to add more workforce and you can help fulfill long-term IT projects.
Let’s take a look at the right client engagement model for software development.
Ideation Stage
You can correspond to different engagement models for the ideation stage. However, it is crucial that you select the one that serves the best purpose for custom software development.
Your key responsibility as a product owner would be to ensure that you have feasible requirements regarding the development of a mobile application.
During this stage, you would want to begin your venture by engaging in a model that not only is safe for the future of your product but also for the budget that you are sparing. In such a situation, your prime focus should be on the budget and your idea.
Among the other engagement models, you can choose a fixed price engagement model. In such a situation, below are some of the benefits that agile control engagement model can offer:
- High focus on quality
- Fixed price for your products
- Zoomed-in focus on business value
- Transparent processes
- Predictable delivery
Startup
When you are a startup, you would want to take your idea ahead, it is crucial that you develop a beast of a product. In such a case, you need the right approach. Since you might be lower on the investment cycle, you may want to consider a viable engagement model for your business.
There are two feasible engagement models for you–agile control and fixed time and material. While agile control can work the best, fixed time and material can help you get the best outcome for the hours that the developers are putting in for your product. You should opt for this model when the scope is unclear and you have dynamic requirements.
Below are the other benefits that you can enjoy when you choose fixed time and material:
- High flexibility
- Better timing
- Focus on the requirement rather than timing
- Ease of project management
- Better predictability of the project
Experienced Startup
When you are an enterprise, the only direction for you is forward. Since you already have a great product that is making quite a buzz in the market, your focus is on adding value to it and enhancing it.
In such a case, you need to have complete control over your product. Dedicated engagement models serve the best purpose in this case. You can easily get the best idea about the services that an experienced IT company offers with its wide range of services and years in the industry. The project manager of the company can help you make the communication easily.
All-in-all, you are in for a long-term commitment for the value addition of your product without any constraints regarding the time and the material.
Below are some of the benefits that dedicated engagement model boasts:
- Access to the best of the talent
- Reduced overhead cost due to ready set up and Infrastructure
- Increased performance level
- Complete control over the project lifecycle and scope for modifications
- Better turnaround time and high productivity.
Enterprise
Once you reach the level of an enterprise, you are already an established name in your industry. Now, all you need to do is take it ahead and pave your way towards expansion. In your venture, you would need to level up using the technical expertise of a reliable software development company.
So, the question arises–Which is the most suitable engagement model to add value to a product?
Again, in such a scenario, hiring dedicated developers can do good to your business. This is because your product has been long launched. So, many of the modules may not even be relevant for use in real life. As a result, you would require developers having knowledge of the latest technology and programming language.
You can definitely hire freelancers. However, they come with a low cost yet a high risk of project abandonment. Now that you have enough budget, you can also opt for an in-house team. Again, the cost of acquisition is high and the time required for training is high.
Below are some of the other benefits of hiring a dedicated development team for enterprises:
- Highly trained professionals who can start working on your project from day one.
- Absolute control over the time and efficiency of the project.
- Collaborative approach since you get the best out of your in-house as well as dedicated development team.
- High quality output can be obtained since you are hiring a team of programmers from an experienced IT company.
Best tips to identify the right engagement model for your business
Choosing an engagement model for value addition in your project is a mammoth of a task. You need to have the right approach to it. The common dilemma can be–to outsource or not to outsource?
In other scenarios, you might find the agile control method attractive. However, let’s not come to the conclusion right away.
Here is a guide for choosing the right engagement model for your business. All you need to do is answer these questions and you will be able to identify the right model on your own:
What is the type of your project?
Simple MVP: Agile control
Complex and dynamic: Fixed time and material, Dedicated development team
What is your budget?
Low: Agile control
Medium: Agile control, Fixed time and material, Dedicated development team
High: Fixed time and material, Dedicated development team
What is the Level of Scope Flexibility you Need?
Low: Agile control
Medium: Fixed time and material
High: Fixed time and material, Dedicated development team
What is the Level of Urgency?
Low: Agile control
Medium: Dedicated development team
High: Fixed time and material, Dedicated development team
How Much Control do you Expect?
Low: Agile control
Medium: Fixed time and material
High: Dedicated development team
After answering these questions, you will be able to find out the most suitable engagement model for your business. It can save you from sparing extravagantly and offer better times to market.
What is peerbits’ approach to offering you the best team of dedicated developers?
An engagement model is integral for the value addition as it can make or break a product. If you choose a wrong engagement model, you are in for some undesirable outcomes, friction between you and your users, loss of money, dissatisfaction, and mid-development crisis.
As a result, it is crucial that you work on your requirement and find out the most feasible option for your project. At Peerbits, we have a robust approach to help our clients find the resources that their business needs.
We follow an easy three-step process:
Arrangement
At Peerbits, we first analyze the requirements of the project, defining scope of the project, mapping expertise, and selecting team members for the task.
Setting-up Team
In this step, we take care of various aspects such as defining various processes for an effective product lifecycle, establishing tools and creating a conducive environment for an infrastructure setup, and initiating a project.
Operations
This is the last step, which is inclusive of adjustments in team size, monitoring progress, optimizing performance, and accumulation as well as sharing of knowledge for a better outcome.
The Final Words
There are multiple ways to add value to your product and extending your team is the best approach that you can take. It not only involves the best talents but also takes away your hassles of going through the recruitment process.
Value addition is one of the responsible tasks for your business. As a result, you should not take it lightly. You need to be constantly aware about the latest trends in the technological world. Hence, having a software development partner is crucial.
