<p>In an ever-evolving software development landscape, innovation and excellence have become essential pillars of success. At Rocketech, we understand the significance of cutting-edge technology in enhancing your business processes, <a href="https://rocketech.it/software-development">services</a>, and products. Today, we are thrilled to share news of our latest achievement that reaffirms our commitment to delivering exceptional software solutions.</p>



<p>We are proud to announce that <strong>The Manifest</strong>, a reputable <a href="https://themanifest.com/ua/software-development/companies/kiev?utm_source=directory&amp;utm_medium=blog&amp;utm_campaign=TM+Awards" target="_blank" rel="noopener">agency shortlist</a> and business blog website, has recently honored Rocketech by recognizing us as one of <strong>the most-reviewed software developers in Kyiv</strong>. This recognition holds immense value for us and underscores our dedication to delivering top-tier development services to our clients.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="740" height="1080" src="https://wp.rocketech.it/wp-content/uploads/2023/08/top_the_manifest_software_developers_kyiv_2023_award.png" alt='The badge saying "Most Reviewed Software Developers in Kyiv by Manifest".' class="wp-image-6156"></figure>



<p>Our journey to this remarkable recognition is marked by a relentless pursuit of excellence. At Rocketech, we offer not just software development services but a dedicated Chief Technology Officer (CTO) and a powerhouse of resources. It allows you to focus solely on your core business while we handle the entire software development lifecycle, encompassing project discovery, design, programming, testing, and deployment. Whether you are a fresh startup or an established enterprise, we have your technical needs comprehensively covered.</p>



<p><strong><em>We extend our heartfelt gratitude to our clients who have stood by us throughout this journey. This award is a testament to your trust and partnership with us. Without your unwavering support, this achievement would not have been possible.</em></strong></p>



<p>This recognition serves as a catalyst for us to continue pushing boundaries and setting new standards in software development. We remain committed to empowering businesses with innovative solutions that drive growth and success. <strong>Your success is our success</strong>.</p>



<p>Our vision extends beyond the present recognition of being one of Kyiv’s most-reviewed software developers. Our future is intricately tied to our mission—<strong>empowering startups to not only get started but to thrive in competitive markets</strong>.</p>



<p>Our role as <strong>experienced tech partners</strong> goes beyond merely delivering software solutions. We act as a catalyst for emerging startups, helping them grow and scale efficiently in fiercely competitive landscapes. Our commitment to transparent pricing, rapid project kick-offs, and on-the-fly result forecasting is tailored to meet the unique needs of startups, enabling them to make data-driven decisions and adapt to evolving market conditions swiftly.</p>



<p>Trustworthy, long-term tech partnerships are the lifeblood of startups. We understand the challenges of navigating uncharted waters, and we’re here to provide continuous support, mentorship, and expert guidance. These partnerships are not just about initial success; they’re about ensuring sustainable growth and longevity in the ever-changing tech ecosystem.</p>



<p>Our recent recognition by The Manifest affirms our dedication to excellence, and it’s a testament to our ability to support startups in achieving their goals. We believe that our success is intrinsically linked to the success of the startups we empower.</p>



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Rocketech Receives the Manifest’s Recognition as One of Kyiv's Most Reviewed Software Developers

<p>SaaS stands for <strong>software as a service</strong> and refers to cloud-based software users can access through a website or a web app. Slack, Google Docs, Dropbox, and Shopify are just a few successful examples of SaaS platform development done right.</p>



<p>Is SaaS development still a solely big players’ prerogative? Can startups or local <a href="https://rocketech.it/blog/post/how-to-create-a-marketplace-platform-in-2022" target="_blank" rel="noreferrer noopener">marketplaces</a> enter this market? We summed up the most important points and explained how to build SaaS applications and solutions in this guide.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="624" height="301" src="https://wp.rocketech.it/wp-content/uploads/2022/11/saas-intro.png" alt="This image shows a young entrepreneur typing on a laptop computer. A young entrepreneur using a laptop computer to develop a SaaS product. " class="wp-image-4292"></figure>



<h2 class="wp-block-heading">SaaS Development Overview: What is a SaaS Solution?</h2>



<p>SaaS, or <strong>software as a service</strong>, refers to the use of the cloud to deliver licensed software that users can then pay for on a subscription basis. In other words, these are cloud solutions accessible through a web interface or a mobile app.</p>



<p>To work with such software, <strong>users</strong> <strong>don’t need to download and install anything on their computers</strong> or connect to an isolated corporate network. All you need to do is open it in an Internet browser. SaaS products can be anything from simpler office tools to complex enterprise-level software.</p>



<figure class="wp-block-table"><table class="has-light-color has-primary-background-color has-text-color has-background"><tbody><tr><td class="has-text-align-center" data-align="center">SaaS is a business model for subscription software distribution. Users pay a set amount each week, month, or year and receive the service. </td></tr></tbody></table><figcaption class="wp-element-caption">What is SaaS?</figcaption></figure>



<h3 class="wp-block-heading">SaaS Product Types</h3>



<p>One of the reasons why the SaaS concept became so widespread is its <strong>versatility</strong>. Software-as-a-service products are now a big part of business ecosystems in nearly any field. Most often, they are grouped by <strong>industry</strong> or <strong>purpose</strong>. Here are the largest and most well-known types with examples.</p>



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2022/11/saas-product-types.png" alt="An infographic explaining SaaS product types." class="wp-image-4286"><figcaption class="wp-element-caption">SaaS product types</figcaption></figure>



<h3 class="wp-block-heading">Six Benefits of SaaS Solutions</h3>



<p>SaaS cloud platforms steadily replace conventional software installed in on-premises infrastructure. We summed up <strong>six main reasons</strong> why businesses choose to develop SaaS applications.</p>



<h4 class="wp-block-heading"><em>#1</em> Easy to Set Up</h4>



<p>SaaS applications are <strong>web-based</strong>. It means users don’t have to configure them in a complicated way. Companies also don’t need to purchase infrastructure resources to run these cloud-based services.</p>



<h4 class="wp-block-heading"><em>#2</em> Scalability</h4>



<p>As the business expands, companies can easily scale the SaaS solutions. This allows them to <strong>handle growing workloads and accommodate more users</strong>. In the case of traditional software requiring on-premises infrastructure, scalability often becomes a challenge.</p>



<h4 class="wp-block-heading"><em>#3</em> Convenient Payment</h4>



<p>The fee is <strong>included in the monthly (weekly or yearly, alternatively) operating costs</strong> and is easier for most companies to pay than an expensive software license. The subscription increases as the platform scales, naturally. However, the customer business doesn’t have to invest in additional infrastructure capacity.</p>



<h4 class="wp-block-heading"><em>#4</em> Instant Updates</h4>



<p>Users benefit from SaaS <strong>software updates as soon as they are deployed</strong>. For comparison, when using conventional software, organizations have to purchase and install new versions to keep it up-to-date and access enhanced and additional features.</p>



<h4 class="wp-block-heading"><em>#5</em> Accessibility </h4>



<p>Companies can use any SaaS application literally<strong> anytime and anywhere</strong>, as long as the Internet is available. It makes it easier to organize remote work, keep better control, and establish communication with stakeholders regardless of their physical location or time zones.</p>



<h4 class="wp-block-heading"><em>#6</em> Trial Versions and Basic Plans</h4>



<p>Most SaaS products allow users <strong>to try them before making a decision</strong>. Instead of investing in an application that may not meet expectations blindly, users can test the features and see if they meet their needs.</p>



<h2 class="wp-block-heading"><strong>How to Build a SaaS Platform in Five Steps</strong></h2>



<p>Some adventurous startupers try to find the best saas development platform and do it themselves, for example, with no code instruments. While it is a possible scenario, such products are rather temporary solutions — they lack flexibility and are not easy to scale. Let’s have a look at what happens if you go the way of custom development. Here’s <strong>our five-step guide on how to create the software as a service</strong>.</p>



<h3 class="wp-block-heading">Step 1: Discovery</h3>



<p>Whether you opt for a SaaS development platform or hire <a href="https://rocketech.it/blog/post/scaling-startup-success-the-benefits-of-hiring-a-dedicated-development-team" target="_blank" rel="noreferrer noopener">dedicated developers</a>, successful projects start with a thought-through roadmap and good planning. To that end, startups use methods of product discovery or a project <a href="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" target="_blank" rel="noreferrer noopener">discovery phase</a>. It revolves around <strong>three</strong> <strong>main aspects</strong>.</p>



<h4 class="wp-block-heading">Your Business Idea</h4>



<p>The first step towards creating your own SaaS solution is to understand exactly what you want to do, which problem, and how you want to solve it with cloud technology. In the case of SaaS application development, it’s usually making things easier to work with or moving software or your service to the cloud.</p>



<p>Successful business ideas aim to solve the problems of a specific target audience. In SaaS product development, cloud migration primarily simplifies a process (a website launch, project management, or document creation). After that, SaaS services develop ecosystems and develop additional functionality.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://wp.rocketech.it/wp-content/uploads/2023/08/saas-business-concepts.png" alt="An infographic explaining SaaS business concepts" class="wp-image-6093"></figure>



<h4 class="wp-block-heading">Market Research and Analytics</h4>



<p>A comprehensive market study is essential to understand what your target customers need. Examine your competitors: design, features, marketing and advertising, pricing, and more. It will help you grasp how other startups implemented a similar idea, what worked well, and what can be improved to get a competitive advantage.</p>



<p>Conduct in-depth <a href="https://rocketech.it/blog/post/the-guide-for-perfect-customer-development-problem-interview-checklist" target="_blank" rel="noreferrer noopener">problem interviews</a> with your potential users. It’s the quickest, relatively inexpensive, and most secure way to find the product-market fit. Combining the data from your customer research and analytics allows you to define the basic functionality.</p>



<h4 class="wp-block-heading">Requirements and Documentation</h4>



<p>A competent approach to documentation is the backbone of every successful project. Simply put, you need to create it so that managers always understand the business requirements of every release, developers plan every iteration and choose the right SaaS development tools, and QA engineers test the right parts of the software.</p>



<p>It is also the stage when the requirements management process starts. It involves identifying, documenting, analyzing, and prioritizing project goals. In the case of a third-party service provider (a SaaS developer, for instance), it also registers obligations and liabilities.</p>



<h3 class="wp-block-heading">Step 2: Prototyping and Interface Design</h3>



<p>The next step in developing SaaS solutions is creating a <a href="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" target="_blank" rel="noreferrer noopener">prototype</a>. It should catch and <strong>convey the future product’s business logic schematically displayed</strong>. Although most likely you will make many changes at later development stages, a prototype can help define and readjust first features and, in some cases, already attract first investments.</p>



<h3 class="wp-block-heading">Step 3: Software Development and Building an MVP</h3>



<p>It’s the most significant part of any software development project. It’s complex and often broken down into <strong>shorter iterations</strong>. Each iteration should create an increment — value for the end user. The iterative process usually starts with creating a <a href="https://rocketech.it/blog/post/when-to-launch-an-mvp-7-scenarios-where-its-crucial" target="_blank" rel="noreferrer noopener">minimum viable product</a> (MVP).</p>



<p>The MVP has limited functionality (sometimes, just one feature), which is yet ready for a market release. This way, you can collect valuable feedback from the first users and plan and develop further features accordingly.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Don’t know how to plan your software development project? We can help.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback" data-tags="funnel">Ask us</button></div>



<h3 class="wp-block-heading">Step 4: QA and Testing</h3>



<p>QA stands for <strong>quality assurance</strong>. QA engineers don’t just test software for bugs but maintain <a href="https://rocketech.it/blog/post/how-to-set-up-qa-process-on-short-term-projects-that-rocks" target="_blank" rel="noreferrer noopener">product standards</a> in the long run. Their main task is to prevent software defects and, as a result, ensure the high quality of the development process and its outcome.</p>



<p>Many startups with limited resources try to save up on the QA stage and required specialists. In reality, poorly organized QA processes lead to much bigger financial losses — from hiring specialists to fix badly written code to losing customers due to a poorly functioning product.</p>



<h3 class="wp-block-heading">Step 5: Scaling and Maintenance</h3>



<p>Development is never over with the full-product release. Successful ideas evolve, and profitable businesses expand. There are many strategies for scaling digital products. But it’s important to remember that (like with any other software type) for SaaS, programming doesn’t stop when you make it available in the market.</p>



<p>For example, <strong>Salesforce </strong><a href="https://www.salesforce.com/news/stories/the-history-of-salesforce/" target="_blank" rel="noreferrer noopener nofollow">developed</a> machine learning, AI-based products to upsell them to existing customers, grew into new areas like social media marketing and advertising, and became a global SaaS application development platform.</p>



<h2 class="wp-block-heading">Building a SaaS Product: Monetization Models</h2>



<p>Similarly to other software types, there are several ways to monetize a SaaS project. The choice of a pricing model depends on several factors, including <strong>target audience</strong>, <strong>industry</strong>, <strong>number of features</strong>, and <strong>complexity</strong>. Naturally, founders need to think this part through very carefully to return the investment in the cost of developing a SaaS platform and start generating profits.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/08/saas-monetization-models.png" alt="An infographic describing main SaaS monatization models" class="wp-image-6095"></figure>



<h2 class="wp-block-heading">Final Thoughts on SaaS App Development</h2>



<p>Although the idea of creating your own cloud-based product may seem unrealistic, more startups nowadays launch successful services in niche markets. However, there’s a catch. If your budget doesn’t include hiring an in-house tech team, you’ll need trustworthy SaaS platform developers to support your business throughout the entire journey.</p>



<p>At Rocketech, we have <a href="https://rocketech.it/cases" target="_blank" rel="noreferrer noopener">hands-on experience</a> with the SaaS development process from ideation to product launch and scaling. We offer our clients not only full-cycle software development services but also provide them with business advice and market expertise.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Do you have a SaaS product idea?<br>Let’s discuss its business potential.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


Developing SaaS Applications for Startups: How to Build a Successful Solution

<p>When you want to build a tech product, there are two ways. You can hire your own IT team and do it yourself or come to a professional vendor. Many people are scared to cooperate with agencies, and we understand why. I will try to explain how misunderstandings happen, what’s behind them, and how we solve them at <a rel="noreferrer noopener" href="https://rocketech.it/?utm_source=google&amp;utm_medium=blog&amp;utm_campaign=blog" target="_blank">Rocketech</a>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2022/12/sign-a-contract-1.png" alt="Understanding how Rocketech addresses common misunderstandings in tech product development." class="wp-image-4818" title="Rocketech’s Approach to Resolving Misunderstandings with Tech Product Development Agencies"></figure>



<h2 class="wp-block-heading">Agencies Have Major Focus Issues</h2>



<p>Many agencies focus on sales performance and try to manage everything — marketing, design, development, HR services, and much more. We started several years ago and quickly understood that agencies must focus on <strong>services</strong>. The smaller the focus is, the easier it is to scale your business. From the customer’s perspective, it is better to choose a specific agency that works in your domain zone.</p>



<h2 class="wp-block-heading">Third-Party Teams</h2>



<p>A very common working model for agencies is outsourcing to some third-party companies. We understood it wouldn’t work if we wanted to establish long-term partnerships. With this approach, founders simply overpay for an agency’s “brand” and often encounter a conflict of interest on the development side. This way, the “brand” often lacks quality control.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><strong>At Rocketech, we collaborate only with our own developers who follow our standards. And this is the value we offer to our customers.</strong></p>
</blockquote>



<p>My advice to founders looking for a custom software development agency: look at the candidate-company LinkedIn page and the employee list. Check out their other social network profiles. It will help you understand who is communicating with you and who is going to be involved full-time only in your project.</p>



<h2 class="wp-block-heading">The Value You Get Every Hour</h2>



<p>We participate in different tenders around the globe and understand what is included in every hour of development. In the end, quality depends on the person delivering the service. </p>



<p>For example, we provide maximum value even for limited budgets. It means all our employees have a minimum of 5-6 years of experience (8+ years for business analysts and DevOps specialists). Besides, we don’t charge for recruitment and employee bonuses — it’s already included in hourly rates.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><strong>Every company has a unique process and working standards. Sometimes it takes time to understand what makes the price. </strong></p>
</blockquote>



<h2 class="wp-block-heading">Methodology of Delivery</h2>



<p>Most software development agencies follow either the <strong>Fixed Price</strong> or <strong>Time and Material</strong> (T&amp;M or outstaffing) collaboration model. They have specific discrepancies. Besides, the concept may vary from vendor to vendor. Here are the classic differences between the two approaches summed up.</p>



<figure class="wp-block-table"><table><tbody><tr><td></td><td><strong>Time &amp; Material</strong></td><td><strong>Fixed Price</strong></td></tr><tr><td><strong>Compensation</strong></td><td>Hourly</td><td>By phase (a specific part of the project)</td></tr><tr><td><strong>Code transfer</strong></td><td>Full access during development</td><td>Upon the payment</td></tr><tr><td><strong>Team management</strong></td><td>Typically performed by the customer; the agency can provide some management, but control over the project depends on the customer</td><td>The agency’s responsibility; one single manager is assigned to communicate between the customer and the service provider</td></tr><tr><td><strong>Task</strong> <strong>management</strong></td><td>Done by the customer all the time</td><td>Fixed in the technical requirements document bound to the contract and inflexible during development; only extra annexes are possible</td></tr><tr><td><strong>Working process</strong></td><td>To be designed by the customer or already designed for the team to just follow it</td><td>No need to dive into it; the whole process happens internally; the customer only works with the project manager</td></tr><tr><td><strong>Budget</strong></td><td>Flexible and changes all the time; the product owner takes responsibility for it</td><td>Fixed at the beginning and can be changed only after the work is done</td></tr><tr><td><strong>Risks</strong></td><td>The customer is in charge of risks and risk management</td><td>Belong to the agency; it results in overcharging for every feature</td></tr><tr><td><strong>Changes</strong></td><td>Upon request and typically costs a few hours</td><td>After agreeing on everything and registering it in the annexes; typically expensive</td></tr><tr><td><strong>Technical requirements document</strong></td><td>Not vital and can be changed at any time</td><td>Created by the project’s product owner</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Clear Requirements</h2>



<p>Regardless of which kind of project you delegate to a custom software development service provider, always try to be as clear as possible about what needs to be done and what you expect as a result.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><strong>The more detailed your tasks are, the easier and quicker the team will implement them.</strong></p>
</blockquote>



<p>We have different approaches to idea evaluation and testing based on our experience and business expertise we happily share with our customers. Naturally, building a marketable digital product is a challenging task, and founders come to agencies to get the best out of this cooperation. However, successful business owners are also product owners. Understanding and translating what needs to be done allows them to create products that skyrocket.</p>



<p><a href="https://rocketech.it/contacts">Contact us</a> for more details about our processes and collaboration models.</p>



<p><strong>Let’s make great digital products together!</strong></p>


Signing a Contract with an Agency: Pitfalls and Industry Insights

<p>Every business goes through a growing process. The entire life cycle of a company is similar to that of a human. According to the Adizes model, it has 10 stages: Courtship, Infancy, Go-Go, Adolescence, Prime, Stable, Aristocracy, Early Bureaucracy, Bureaucracy, and Death. Unfortunately, organizations often ignore this chain and skip some of the stages, going straight to the most interesting one. </p>


<div class="wp-block-image is-style-default">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" src="https://wp.rocketech.it/wp-content/uploads/2021/09/image.png" alt="" class="wp-image-979" width="692" height="508"><figcaption class="wp-element-caption"><strong>Adizes Model</strong></figcaption></figure></div>


<h2 class="wp-block-heading">Is skipping stages a problem?</h2>



<p>The desire to stay in line with trends has driven many companies through digital transformation. Many of them have tried to implement process automation without preparation. As a result, they were in complete chaos instead of a working business model. If there was a mess in the company’s data before the integration of the CRM system, then after the implementation, nothing changed. Employees were too lazy to fill out the system, both before and after the CRM installation. Without analysis and preparation, a working model cannot be built. Improvisation often harms the enterprise rather than improves it. Consistency is essential here because it helps to avoid mistakes or minimizes them.</p>



<h2 class="wp-block-heading">How to use levers to grow your business successfully</h2>



<p>Business success depends on many factors, such as the sequence of the transition between the stages. To understand how to work with a business properly, it is worth paying attention to the “Six Levers” model, aimed at providing consistent and smooth business development. It helps you properly organize your business operations.</p>



<h3 class="wp-block-heading">1. First lever. Income Generation Model</h3>



<p>This lever will help you learn how to make money and what you need to do to maximize profit. If you look at Porter’s Five Competitive Forces model, we will see the main factors affecting the profitability of an enterprise:</p>



<ul class="wp-block-list">
<li>Competition in the industry</li>



<li>Clients</li>



<li>Substitutes</li>



<li>Suppliers</li>



<li>New entrants</li>
</ul>



<p>They all interact with each other. Digitalization helps customers gain access to information about offers on the market, which leads to an increase in the importance of price or non-price advantages. Suppliers strive to drive competitors out of the movement of goods, build their platforms, and control the supply channels. New players seek to capture a certain niche, and substitutes claim market share, although they may not be present in it.</p>



<p>The balance of forces in the market forms the profit-making zone, a part of the market that helps the company generate revenue. Since market earnings have been determined by market share until recently, now it is vital for businesses to distinguish innovations, new management models, and non-standard solutions. These tools increase intersection with the profit-making zone and lead a company to prosperity. To receive this result, it is better to analyze the extraction zone and move with it. </p>



<h3 class="wp-block-heading">10 strategies to protect profits</h3>



<p>10 main mechanisms for keeping profits are:</p>



<ol class="wp-block-list">
<li>Product differentiation: in terms of efficiency, this model is inferior to other methods of retaining income. Although many marketers and business people strive to be different from competitors, it is unprofitable without good reason because finding a consumer of a specific product is not easy.</li>



<li>Differentiation with cost parity: efficiency is slightly higher due to the structuring of costs by analogy with other market participants.</li>



<li>Differentiation with cost leadership: a good model for protecting income. There are times when entrepreneurs produce their product and optimize its cost structure. If the analysis reveals a fragment with a high cost and low utility, it is withdrawn.</li>



<li>A one-year lead in technology: an investment in R&amp;D will help create an innovative technological solution that competitors will have no earlier than in a year. This strategy model has medium profit protection effectiveness.</li>



<li>A two-year lead in technology: a good investment with a head start. With the right approach, companies can increase users’ loyalty to a particular technology and profit in the long term.</li>



<li>Brand and copyright: a recognizable brand gives advantages, and the copyright protects against entire inheritance because patents prevent innovations from being cloned by competitors.</li>



<li>Customer Relationship Ownership: Companies collect large amounts of user data and build a loyalty program model based on it. Communication with the client allows you to bring current offers to the market and receive a stable income.</li>



<li>Dominant position strategy: the larger the company and the wider the range of services provided, the higher its place in the market. </li>



<li>Value chain management: vertical integration of the holding, when the entire production cycle takes place in one company. Highly effective revenue protection strategy model.</li>



<li> Establishing an industry standard: releasing a niche product with no analogs. This model is trendy nowadays, although it may fail without proper investment and analysis.</li>
</ol>



<p>Strategies can and should be combined because it helps to maximize profits.</p>



<h3 class="wp-block-heading">Second lever. Marketing policy</h3>



<p>To go to the profit-making zone, you need:</p>



<ul class="wp-block-list">
<li>Pricing policy. Working with pricing at the market level, focusing on competitors and consumers.</li>



<li>Quality policy. Quality control and streamlined production processes focused on international standards.</li>



<li>Service policy. Interaction with customers after the completion of the transaction.</li>



<li>Positioning policy. A reference point for the desired market niche with an analysis of current trends.</li>



<li>Functionality policy. The proposal of product properties that solve the consumer’s problems.</li>



<li>Assortment policy. Product table with categories and management.</li>



<li>Distribution policy. Organization of sales channels and product volumes.</li>



<li>Partnership policy. Selection of potential business partners with optimal products and solutions.</li>
</ul>



<p>If the firm implements the second lever, it gets the tools to move to the profit zone.</p>



<h3 class="wp-block-heading">Third lever. Business processes</h3>



<p>Positioning should be visible in the daily operations of the company. The most important feature of positioning is the ability to be displayed at each point of contact. A customer journey can be thought of as simply a collection of points of contact.</p>



<p>These points of contact are symmetrical to the organization’s business processes. If we assume that the client makes some requirements to the company’s positioning that can be described in the context of the EST model, then at each point of contact, the client will make demands on it in the logic of the EST model.</p>



<p>Points of contact are divided into online and offline.</p>



<p>Online:</p>



<ul class="wp-block-list">
<li>advertising;</li>



<li>site;</li>



<li>blog;</li>



<li>social media;</li>



<li>chatbot;</li>



<li>reviews;</li>



<li>application;</li>



<li>content model;</li>



<li>mailing.</li>
</ul>



<p>Offline:</p>



<ul class="wp-block-list">
<li>business processes;</li>



<li>advertising;</li>



<li>office;</li>



<li>products;</li>



<li>technologies.</li>
</ul>



<p>It creates a connection between the customer journey and business processes. And since each stage of the customer journey is tied to the income component, it can be said that the Customer Journey Map model is a graphically fixed profit formula, and business processes are a Customer Journey Map, based on the internal logic of the company’s work.</p>



<h3 class="wp-block-heading">Fourth and fifth levers. Organizational structure and HR policy </h3>



<p>The organizational structure is a reflection of the business model. The competency model says that employees are responsible for their roles and carry out operations related to the specific requirements of customers and their ability to pay. In the formation of the competence of employees, RASCI and FTE tools will be helpful, which allow you to assign tasks and areas of responsibility to employees and organize a workflow with a clear schedule. The idea is that business processes should define resource costs and job roles with the competent distribution of functions among employees.</p>



<h3 class="wp-block-heading">Sixth lever. Automation</h3>



<p>One of the most important levers on this list is the company’s automation process. It is needed to speed up work, save resources, and improve quality.</p>



<p>Any organization should have an executive part and tools for process monitoring. It helps to analyze internal procedures and optimize them effectively. A “digital twin” of the company may be used to implement it. After the virtualization of enterprise processes, it will be possible to analyze every aspect of the activity and plan further development based on the consequences.</p>



<p>Digital displays of all processes are necessary for better monitoring because only they make it possible to connect the enterprise’s IT architecture and operations.</p>



<p>The strategy level and marketing model should be integrated with business analytics systems, a tool that helps management make decisions based on data processing. Also, it is necessary to implement ERP systems for monitoring assets, debts, and other balance sheet indicators to control finances. Production management is integrated with MES systems: programs for coordinating production processes, tracking product quality parameters, allocating resources, and maintenance control. Production automation is combined with process monitoring systems such as SCADA, dispatching systems ADTCS, and automated control systems (ACS).</p>



<p><strong>Remember that only the transition from each stage to the next enables the company to implement reforms without the risk of failures in individual system elements and with maximum efficiency. The six-leverage principle is the key to the successful implementation of a new operating model and the ability to monitor and analyze the state of the business continuously. And we at Rocketech.IT will help you with this!</strong></p>


6 Levers Of Growth For Successful Development Of Your Company

<div class="wp-block-image is-style-default">
<figure class="alignleft size-full is-resized"><img loading="lazy" decoding="async" width="612" height="408" src="https://wp.rocketech.it/wp-content/uploads/2021/08/istockphoto-1220744928-612x612-1.jpg" alt='"Native vs. Cross-platform mobile app development, comparing the two common approaches for startu' class="wp-image-822" style="width:408px;height:272px" title='"Choosing Between Native and Cross-Platform: Key Mobile App Development Methods for Start' srcset="https://wp.rocketech.it/wp-content/uploads/2021/08/istockphoto-1220744928-612x612-1.jpg 612w, https://wp.rocketech.it/wp-content/uploads/2021/08/istockphoto-1220744928-612x612-1-158x106.jpg 158w" sizes="(max-width: 612px) 100vw, 612px" /></figure></div>


<p>In this article, I’m going to talk about the main methods of developing mobile applications in 2021. Unfortunately, I will mention only the most common options in the startup market. The main reasons are the cost of development and the speed of building a team. Young companies need the most effective, inexpensive, and time-tested solutions.</p>



<p>There are two basic approaches to mobile app development:</p>



<ul class="wp-block-list">
<li>Native</li>



<li>Cross-platform.</li>
</ul>



<h2 class="wp-block-heading">Native </h2>



<p>The native approach to the development of mobile applications implies that the company/startup implements applications for each platform separately and in different programming languages. </p>



<h3 class="wp-block-heading">iOS</h3>



<p>All native iOS apps are implemented on Swift or Objective-C. All new applications are developed exclusively in Swift. Objective-C is used only to support legacy code and libraries, which are very expensive to refactor in Swift. iOS developers of the “new school” are often familiar with Objective-C just superficially. In order to work with the old code base, to work with Obj-C classes there’re bridges to Swift.</p>



<p>In short, the situation with native iOS development is more than clear, you need Swift. This Isn’t surprising, Swift was originally developed by Apple, specifically iOS and macOS development.</p>



<h3 class="wp-block-heading">Android</h3>



<p>The Android apps are mainly developed with Kotlin or Java. Kotlin is backward-compatible with Java. To all that is written in the same language, you can address from another one. It works both ways. Developers are in no hurry to finally switch to Kotlin, but increasingly prefer to develop applications from scratch with it. But, unlike iOS programmers, who don’t actually need Obj-C, Android developers are absolutely required to have experience with Java.</p>



<p>Kotlin was created by Russian students of ITMO University specifically for Android development needs. The language is easier to learn and easier to access in the Android SDK. That’s why its community is growing so rapidly.</p>



<p><strong>Benefits of native development</strong>:</p>



<ul class="wp-block-list">
<li>The application is integrated into the system’s UI/UX. The user of each platform has their own behavior patterns and habits. The native approach allows you to make the application as familiar and convenient as possible.</li>



<li>Performance. The development uses tools for a specific platform to the maximum, thereby ensuring the performance of the application. Native code works perfectly with hardware, and even complex applications, with the right approach, will work the same way as pre-installed ones. We can guarantee maximum responsiveness of the interface and a good user experience.</li>



<li>Quality. As a rule, there are much fewer bugs and crashes in native applications. Of course, developers are responsible too, but developing for one platform usually is much easier.</li>



<li>There are no restrictions. All pre-installed applications and a large number of OS elements are developed with the same tools that the platform holder provides to you. The native code has access without any problems to the camera, microphone, GPS, accelerometer, notifications, and so on. </li>



<li>Native applications are more flexible and scalable. You can safely expand the functionality and don’t be afraid that the application will be slow and work with failures. Native development tools actually have no limit to the possibilities.</li>
</ul>



<h2 class="wp-block-heading">Cross-Platform</h2>



<p>The cross-platform approach uses specialized tools that help you develop an application for several platforms at once. </p>



<h3 class="wp-block-heading"><sub>PWA</sub> </h3>



<p>PWA (<em>Progressive Web Application</em>) is a cross-platform web application. This application can be opened on any device, but it uses the browser engine to work.</p>



<p>Google is actively promoting PWA and is quite successful in integrating this technology into Android. Android can already execute all JavaScript code and work with the capabilities of devices almost without restrictions. If Google continues to lobby for PWA at the same pace, then it will definitely take some part of the mobile apps market.</p>



<p><strong>BUT! </strong>I strongly advise against developing mobile applications using PWA at the moment. There’re some reasons below:</p>



<ul class="wp-block-list">
<li>Unlike Android, Apple restricts this technology a lot. Without native code and plugins, you won’t be able to release them in the Appstore. Despite Apple has given support for PWA in Safari, they are still hostile. Your app has to pretend to be a native.</li>



<li>The performance is worse. Mobile operating systems handle machine code much better than JavaScript.</li>



<li>All browser restrictions apply to PWA as well. Especially in iOS.</li>
</ul>



<p>In short, PWA is a new interesting philosophy that may push native apps out of stores in the future, but so far there are more questions than answers. Companies like Google can invest huge resources in the development and support of applications, but for everyone else, it is quite risky and unpredictable.</p>



<h3 class="wp-block-heading">Hybrid Apps</h3>



<p>Hybrid apps are more of a cross-platform approach to native app development. Hybrid applications are developed using the same technology for several platforms at once but are assembled into separate native applications. Such development is usually built on libraries that somehow have native code on the inside.</p>



<p><strong>Pros</strong>: </p>



<ul class="wp-block-list">
<li>A common code base for most of the functionality. For some functionality, such as accessing the server API, platform developers write almost the same code. In a hybrid approach, this functionality can be made into a separate code that is common to all platforms. Working with such code takes twice fewer man-hours as in the case of native development. </li>



<li>Resources optimization. As a rule, simple projects are built a little faster and only by one developer. This is probably the main advantage of this approach to application development. </li>
</ul>



<p><strong>Cons</strong>:</p>



<ul class="wp-block-list">
<li><strong>UI/UX Design</strong>. All platforms have their own guidelines regarding the design of applications for them. These guidelines are made so that the application doesn’t break out of the style and does not annoy the user. In cross-platform you have to design for all platforms once or develop a design for each OS separately. But it takes a lot of resources and cross-platform loses its meaning.</li>



<li><strong>User experience</strong>. Performance, interface responsiveness, and operation speed in cross-platform apps are much worse than in native ones.</li>



<li><strong>Functionality</strong>. Almost every cross-platform solution has some restrictions. Some technologies don’t work well with cameras, geolocation, offline operation, and device memory. There’s a big risk of features that are very difficult to implement. It means you’ll have to develop natively.</li>



<li><strong>Quality</strong>. The cross-platform approach is a compromise between resource savings and the quality of the final product.</li>
</ul>



<p>In a nutshell, the main problem if you’re developing a quite complex product, you’ll have to support and extend actually 3 codebases, instead of 2, as with native. All the restrictions on functionality and performance can be solved, but it’s not easy and two more developers will be needed. There’s a risk of reaching a dead end. Getting out of it may become more expensive than developing the application for two platforms separately from the beginning.</p>



<h3 class="wp-block-heading">Hybrid Technologies</h3>



<p>The most popular hybrid solutions at the moment are <strong>React Native</strong> and <strong>Flutter</strong>.</p>



<p><strong>React Native</strong> was developed by <em>Facebook </em>and is actively used in its apps. <strong>Flutter </strong>was invented by a team inside <em>Google</em>.</p>



<ul class="wp-block-list">
<li>React Native is older; development takes longer but imposes fewer risks.</li>



<li>Flutter is more progressive; it’s possible to build an MVP faster, but due to the fact that the technology is new, the risks are still high.</li>
</ul>



<p>In the foreseeable future, Flutter could capture a large part of the mobile app development market due to the fast-growing community and the huge support from Google. </p>



<p>Both technologies have the risk of very expensive and complex support and development. As the functionality grows, it becomes more and more difficult for the application to keep its quality and performance high. So, for example, Airbnb abandoned React Native. However, they did it not in favor of Flutter but of the native code. But for a long time, they worked with React Native and made a huge contribution to the RN community.</p>



<h2 class="wp-block-heading">Conclusion</h2>



<p>At the moment, cross-platform applications are far inferior to native ones in terms of performance, user experience, interface responsiveness, and UI/UX. On the other hand, technologies such as Flutter and React Native, and even PWA, can decently save your resources on simple projects. Founders just have to decide on priorities either quality or saving resources for marketing as an option.</p>



<p>We always recommend looking out for the requirements and the situation in your market. At the discovery stage, based on your requirements and plans, our team will be able to select the appropriate tech stack and talk about the risks associated with each of them. The decision is always yours.</p>


Mobile Development Trends and Approaches

<p><strong>Jim York,</strong> the often-cited guru of Scrum, an agile methodology for managing and completing complex projects, once <a href="http://www.agileleanhouse.com/lib/lib/People/PeterHundermark/InfoQ-Do-Better-Scrum-Minibook.pdf" target="_blank" rel="noreferrer noopener nofollow">said</a>, “<strong>Scrum is simple. Doing Scrum is hard</strong>.” Indeed, <a href="https://scrumguides.org/scrum-guide.html" target="_blank" rel="noreferrer noopener nofollow">The Scrum Guide</a> is easy to grasp. However, many businesses don’t follow the framework strictly. Although implementing the framework might appear a reasonable action to adjust workflows, it frequently leads to serious and negative outcomes.</p>



<p><strong>ScrumBut is one of the most widespread and controversial examples</strong>. It resulted from many misconceptions about Scrum and the impact of its adoption. Stemming from a misinterpretation or selective adoption of Scrum principles, ScrumBut represents a diluted version that undermines the intended benefits. We explained the phenomenon, its meaning, and <strong>why you should avoid it</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2022/12/scrumbut.png" alt="" class="wp-image-4696"></figure>



<h2 class="wp-block-heading"><strong>ScrumBut Definition</strong></h2>



<p>According to <strong><a href="https://www.scrum.org/resources/what-scrumbut" data-type="URL" data-id="https://www.scrum.org/resources/what-scrumbut" target="_blank" rel="noreferrer noopener nofollow">Scrum.org</a></strong>, “ScrumButs mean that Scrum has exposed a dysfunction that is contributing to the problem, but is too hard to fix. A ScrumBut retains the problem while modifying Scrum to make it invisible so that the dysfunction is no longer a thorn in the side of the team”.</p>



<p>To simplify this, a ScrumBut has a specific <strong>syntax</strong>:</p>



<p><strong>(ScrumBut)(Reason)(Workaround)</strong>.</p>



<p>Here are some <strong>real-life ScrumBut examples</strong>.</p>



<ul class="wp-block-list">
<li>(We use Scrum, but) (having a Daily Scrum is too expensive,) (so we only have it once a week.)</li>



<li>(We use Scrum, but) (Retrospectives are a waste of time,) (so we skip them.)</li>



<li>(We use Scrum, but) (we can’t create the functionality within a month) (so our Sprints last six weeks.)</li>



<li>(We use Scrum, but) (sometimes our managers give us special tasks,) (so we don’t always have time to match our Definition of Done.)</li>
</ul>



<p>In a broader sense, <strong>ScrumBut</strong> <strong>is</strong> <strong>a methodology one can call</strong> <strong>a restricted Scrum</strong>. It’s the framework’s deviation that implies that the team only uses parts of it while leaving aside other elements (the ones you think you don’t need). However, to see what you need and what you don’t, you must understand the principles of classic Scrum. And that’s where troubles begin.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://wp.rocketech.it/wp-content/uploads/2023/07/scrumbut.png" alt="A schematic drawing visualizing ScrumBut." class="wp-image-5944"></figure>



<h3 class="wp-block-heading"><strong>What Triggers ScrumButs?</strong></h3>



<p>While ScrumButs are reasons themselves, they also have the rationale behind them.</p>



<h4 class="wp-block-heading"><strong>#1 Misinterpretation of The Scrum Guide</strong></h4>



<p>Remember, Scrum is compact and easy to understand but difficult to master. Although the elements are described straightforwardly, many companies misread the guide or (often) skip its parts, which leads to framework dysfunctions.</p>



<h4 class="wp-block-heading"><strong>#2</strong> <strong>Inappropriate Context for Scrum</strong></h4>



<p>It’s a framework designed to develop, deliver and support complex products. Sometimes it’s simply not suitable for solving your problems. You may not need all Scrum Ceremonies to redesign a few pages of your corporate website.</p>



<h4 class="wp-block-heading"><strong>#3 Conscious Simplification of the Rules</strong></h4>



<p>Some executives ignore parts of the Scrum process or consider them secondary. Meanwhile, all Scrum roles, events, and artifacts are closely linked and aimed at achieving the common goal — to provide customers with a product of maximum value.</p>



<ul class="wp-block-list"></ul>



<h2 class="wp-block-heading"><strong>What Hinders Scrum Adoption?</strong></h2>



<p>About a decade ago, the Internet was somewhat positive towards ScrumBut practices. Nonetheless, <strong>Ken Schwaber</strong>, one of the leaders of the agile software development movement first <a href="https://www.barnesandnoble.com/w/scrumbuts-ken-schwaber/1131877888" target="_blank" rel="noreferrer noopener nofollow">used</a> the term “ScrumBut” to describe <strong>a misinterpretation or a deliberate modification of the rules of Scrum to escape from the painful truth about the process it helps discover</strong>.</p>



<p>Certainly, some deviations are common in the early stages of the agile methodology adoption. They are part of the process evolution. For example, if you use Scrum but don’t practice TDD (test-driven development), pair programming, or collective code ownership, maybe you’re just at the beginning of the agile journey. It takes time.</p>



<p>However, <strong>“we use Scrum, but” in mature teams should raise questions about the actual causes that drive this modification</strong>. And often, there are a few valid reasons. Rather, it’s a misunderstanding of the agile process values or a lack of the courage and consistency to follow them.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="500" src="https://wp.rocketech.it/wp-content/uploads/2023/07/scrumbut-quote.png" alt="Quote &quot;Early deviations in agile methodology adoption are common and part of the process evolution. For instance, if you use Scrum without practicing TDD, pair programming, or collective code ownership, it may indicate that you're at the beginning of the agile journey, which takes time.&quot; - A text block against a blue background and a schematic drawing of development team in a meeting discussing a project." class="wp-image-5948"></figure>



<h3 class="wp-block-heading"><strong>25 Common Mistakes Disrupting the Scrum Process</strong></h3>



<p>Depending on the project’s context, some points may have varying impacts. But every element of this list leads to a distortion of agile and Scrum values and principles.</p>



<ol class="wp-block-list">
<li>The team is not authorized to change the development process.</li>



<li>There is no list of problems and a systematic working process to resolve them.</li>



<li>There is no investment (time, money) to work on problems.</li>



<li>The Sprint length increases on the go or changes frequently.</li>



<li>Developers have inconsistent development rhythms with pauses between Sprints.</li>



<li>There are no Working Agreements.</li>



<li>The team doesn’t use vision and business value techniques (Product discovery, Value Proposition, User Personas, User Story Mapping, etc.).</li>



<li>Product vision, release, and Sprint goals are not communicated to all team members.</li>



<li>The team doesn’t adjust iteration targets based on market feedback after launch.</li>



<li>Product Backlog does not reflect on the element value.</li>



<li>The Definition of Done is not defined or communicated to the team members.</li>



<li>Testing is not included in development Sprints and is not automated.</li>



<li>The Product Owner manages Scrum Master.</li>



<li>The Product Owner doesn’t know the product’s target audience.</li>



<li>The Product Owner doesn’t provide the team with constructive feedback.</li>



<li>There are different Scrum Masters in every Sprint.</li>



<li>One team member functions as both Product Owner and Scrum Master.</li>



<li>The development team is divided into sub-teams.</li>



<li>The team members are involved in multiple projects simultaneously.</li>



<li>A Daily Scrum takes much longer than 15 minutes.</li>



<li>The team works on the backlog arbitrarily and doesn’t consider the Product Owner’s priorities.</li>



<li>There are no metrics or assessment methods.</li>



<li>The Sprint Retrospective turns into finger-pointing.</li>



<li>There’s a lack of task planning before the Sprint.</li>



<li>There are additional roles like release managers or development managers responsible for parts of the project’s success.</li>
</ol>



<p><strong>And this list can be endless</strong>. The researchers from Tampere University and the University of Helsinki conducted an <a href="https://www.researchgate.net/publication/287374379_Exploring_ScrumBut_-_An_Empirical_Study_of_Scrum_Anti-Patterns" target="_blank" rel="noreferrer noopener nofollow">empirical study</a> on the cases of Scrum deviations in real-life conditions. The paper concludes that while some of them are “seemingly attractive”, they “may nevertheless have unpleasant consequences”.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="423" src="https://wp.rocketech.it/wp-content/uploads/2023/07/relationships-of-scrum-anti-patterns-and-scrum-concepts-presented-as-a-graph_w640.jpg" alt="Relationships of Scrum anti-patterns and Scrum concepts presented as a graph. " class="wp-image-5946"></figure>



<p><a href="https://www.researchgate.net/publication/287374379_Exploring_ScrumBut_-_An_Empirical_Study_of_Scrum_Anti-Patterns/figures?lo=1" data-type="URL" data-id="https://www.researchgate.net/publication/287374379_Exploring_ScrumBut_-_An_Empirical_Study_of_Scrum_Anti-Patterns/figures?lo=1" target="_blank" rel="noreferrer noopener nofollow">Source</a></p>



<h2 class="wp-block-heading"><strong>Why ScrumBut Is Ineffective</strong></h2>



<p>ScrumBut is essentially using only a fraction of the Scrum principles. However, <strong>you can only leverage all advantages of Scrum software development methodology if you follow the framework strictly</strong>. Many founders think skipping one or two Daily Sprints won’t affect the overall process. In reality, even the slightest deviation makes it “non-Scrum”. The official Scrum guide says: “While implementing only parts of Scrum is possible, the result is not Scrum. Scrum exists only in its entirety”.</p>



<p>Many founders try to invent their own approaches and methods while adopting the classic textbook Scrum can help them reach the desired results faster and more effectively. Scrum is more than just managing a development team. <strong>It’s about the functional business and resource planning that helps you create products that customers need</strong>. And no strategy can guarantee the outcome if not followed entirely.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p></p>
<cite><strong>You can only leverage all advantages of Scrum software development methodology if you follow the framework strictly</strong>.</cite></blockquote>



<p>At Rocketech, we believe that Scrum is the best fit for startups. It helps founders analyze team efficiency and adjust flexible release planning, which is essential in highly competitive markets with ever-changing demands. After 150+ successful projects, we see Scrum as a mindset and apply its best practices accordingly. And we are happy to share our expertise.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Need more details about our processes?<br>Talk to us.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


What Is ScrumBut, and Why Should You Avoid It?

<p>Many startup founders dream of achieving unicorn status or, at the very least, making a big splash with their product in the market. No matter what you offer to the world, it’s crucial to understand how your target audience will react, preferably before full-scale sales begin. It’s where a <a href="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" data-type="URL" data-id="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" target="_blank" rel="noreferrer noopener">minimum viable product</a> comes to the rescue. <strong>Startup MVP development is a complex game with multiple variables</strong> that can help businesses set sail on the right course from the beginning.</p>



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2023/08/benefits-of-mvp-dev-for-startups-1-1.png" alt="Two professionals in an office environment in front of a computer screen discuss the project of MVP development for a startup" class="wp-image-6121" style="width:680px;height:482px"></figure>



<h2 class="wp-block-heading"><strong>What Is an MVP?</strong></h2>



<p>Back in 2005, YouTube started as a <a href="https://www.theguardian.com/technology/2016/mar/16/youtube-past-video-dating-website" data-type="URL" data-id="https://www.theguardian.com/technology/2016/mar/16/youtube-past-video-dating-website" target="_blank" rel="noreferrer noopener nofollow">video dating site</a>. Instagram, on the other hand, was originally named <a href="https://www.theatlantic.com/technology/archive/2014/07/instagram-used-to-be-called-brbn/373815/" data-type="URL" data-id="https://www.theatlantic.com/technology/archive/2014/07/instagram-used-to-be-called-brbn/373815/" target="_blank" rel="noreferrer noopener nofollow">Burbn</a> (yes, after an alcoholic drink) and served as a planner where people could tag locations, share photos, and earn points. But both ideas didn’t catch on as expected. So, the companies analyzed their numbers, listened to users’ feedback, and made a pivot.</p>



<p>The term MVP, which stands for Minimum Viable Product, is not about lines of code or a website; <strong>it’s about testing hypotheses and quickly getting a startup to a functional state</strong>. The concept was <a href="http://www.startuplessonslearned.com/2009/03/minimum-viable-product.html" data-type="URL" data-id="http://www.startuplessonslearned.com/2009/03/minimum-viable-product.html" target="_blank" rel="noreferrer noopener nofollow">popularized</a> by Eric Ries through his Lean Startup methodology. <strong>It is essentially the earliest version of a product that’s available for testing</strong>.</p>



<figure class="wp-block-table"><table class="has-gray-50-background-color has-background has-fixed-layout"><tbody><tr><td>“About 91.3% of the businesses have already launched a product with an MVP approach.”<br>Explore the findings of the <a href="https://www.goodfirms.co/resources/mvp-advantage-business-success?utm_source=survey_team&amp;utm_medium=email&amp;utm_campaign=mvp_advantage_business_success_published" target="_blank" rel="noreferrer noopener">recent research</a> conducted by GoodFirms we were pleased to participate as an esteemed Research Partner.</td></tr></tbody></table></figure>



<p>The core principle of the Minimum Viable Product can be summed up as “Dream big, start small.” It’s based on a step-by-step development approach where each iteration is tested with real consumers. This process allows companies to gather feedback, identify risks, fix mistakes, and even gauge if there’s demand for their offering — all at the early stages.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p></p>
<cite><br>An MVP is like a trial run that helps a startup refine its product and strategy before going all in.</cite></blockquote>



<figure class="wp-block-table"><table class="has-primary-color has-gray-100-background-color has-text-color has-background"><tbody><tr><td>Here are <strong>three key principles of a quality MVP</strong>:</td></tr></tbody></table></figure>



<ol class="wp-block-list">
<li><strong>Value to </strong><strong>s</strong><strong>tart:</strong> The product should offer enough value that consumers are eager to start using it.</li>



<li><strong>Future </strong><strong>p</strong><strong>otential:</strong> It should contain the core aspects of the product a company plans to develop in the future, making users anticipate the final launch.</li>



<li><strong>Feedback </strong><strong>l</strong><strong>oop:</strong> The MVP gathers feedback on product quality, helping the company address any shortcomings and enhance the final version.</li>
</ol>



<p>Each development stage brings the product to a higher level. Then, it gets directly to customers who test it and provide input for potential improvements. This way, <strong>MVPs help test hypotheses and avoid bad decisions before they harm the entire business</strong>.</p>



<h3 class="wp-block-heading"><strong>It Always Starts With an Idea</strong></h3>



<p>The search for great ideas isn’t a straight line. It’s more like loops that sometimes circle back on themselves and occasionally take you to the next step. There are six steps in this process:</p>



<ol class="wp-block-list">
<li><strong>Problem-finding:</strong> Identifying the problem.</li>



<li><strong>Solution hunt:</strong> Looking for solutions to the problems found.</li>



<li><strong>Prototyping:</strong> Building a prototype.</li>



<li><strong>Testing:</strong> Testing the prototype.</li>



<li><strong>Feedback:</strong> Gathering feedback.</li>



<li><strong>Adjustments:</strong> Making necessary adjustments.</li>
</ol>



<p>Each step could be a loop. You need to revisit these steps over and over, sometimes going back a few steps if your hypothesis doesn’t work out. And if the original idea proves unfeasible during testing or feedback, that’s when the product needs to <strong>pivot</strong>.</p>



<h2 class="wp-block-heading"><strong>The Benefits of </strong><strong>MVP Development for Startups</strong></h2>



<p>Building and <a href="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" data-type="URL" data-id="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" target="_blank" rel="noreferrer noopener">launching a strong MVP</a> is a strategic move that, if done right, benefits startups on multiple levels, from cutting costs and saving resourcing to optimizing the business model and attracting potential investors’ attention. Here’s about the main <strong>advantages of MPV development for startups</strong> in more detail.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/08/benefits-of-mvp-dev-for-startups.png" alt="An infographic listing five main benefits of MVP development for startups" class="wp-image-6117"></figure>



<h3 class="wp-block-heading"><strong>Resource Efficiency</strong></h3>



<p>Through early real-world customer testing of the MVP, the company can identify errors during the initial phases. This enables improved financial planning and adaptations to the business model, leading to time savings. Every successive iteration surpasses the prior one in effectiveness. Consequently, customers receive a high-caliber product tailored to their requirements.</p>



<h3 class="wp-block-heading"><strong>Fast Time to Market</strong></h3>



<p>Speed really matters in the world of startups. From this perspective, <a href="https://rocketech.it/blog/post/from-idea-to-launch-the-startups-guide-to-reducing-time-to-market" data-type="URL" data-id="https://rocketech.it/blog/post/from-idea-to-launch-the-startups-guide-to-reducing-time-to-market" target="_blank" rel="noreferrer noopener">time to market</a> is not simply about being fast but about gaining competitive advantage. The formula is fairly straightforward — the faster you are in the market, the sooner you generate revenue. The MVP approach facilitates the iterative process of learning and improving the offering based on real-world feedback. Put simply, reducing time to market enables startups to capitalize on market opportunities and increase their chances of success.</p>



<figure class="wp-block-table is-style-regular"><table class="has-light-color has-primary-background-color has-text-color has-background"><tbody><tr><td>The Minimum Viable Product enables startups to confront reality swiftly and allocate their budget more effectively before and during the project launch.</td></tr></tbody></table></figure>



<h3 class="wp-block-heading"><strong>Early Customer Acquisition</strong></h3>



<p>The examination of each iteration with actual customers aids startups in discovering potential purchasers even prior to the official sales debut. As people test the fundamental MVP features, they can assess the future product’s potential.</p>



<h3 class="wp-block-heading"><strong>Matching Supply and Demand</strong></h3>



<p>According to <a href="https://www.cbinsights.com/research/report/startup-failure-reasons-top/" data-type="URL" data-id="https://www.cbinsights.com/research/report/startup-failure-reasons-top/" target="_blank" rel="noreferrer noopener nofollow">CB Insights</a>, 35% of startups face failure because of no market need. This signifies that the solution the product intended to provide didn’t meet customer pain properly. Grasping and heeding the customer’s wishes and desires is vital. The MVP helps the business align the product with market requirements.</p>



<h3 class="wp-block-heading"><strong>Elevating Investment Prospects</strong></h3>



<p>Investors are more likely to think about giving money if they can see a real version as opposed to unrealistic concepts on paper. Being able to use a model of the product and understand its main features makes the project more attractive for getting funded. Generally, investors feel more sure about companies that can show they can do things well and deliver the product on time. </p>



<h2 class="wp-block-heading"><strong>Why Speed Matters</strong></h2>



<p>Imagine a startup, let’s call it MedSolution, that has a grand vision to revolutionize patient-doctor communication. The three founders invest their private savings to build a cutting-edge platform with extensive features like AI-driven symptom analysis, in-depth medical record management, and virtual medical tests. Striving for perfection, <strong>the founders spend over a year creating their product and perfecting each intricate detail</strong>.</p>



<p><strong>Meanwhile, the market’s needs shift</strong>. Users now favor simplified telemedicine platforms that offer quick video consultations and easy appointment scheduling. By the time MedSolution launched, they found themselves with a feature-rich product that was out of touch with what users wanted — timely and accessible healthcare.</p>



<p>The delay cost them not only their chance to capture a loyal user base but also the trust of investors who sought adaptable and agile ventures.</p>



<p>In turn, a parallel startup, let’s call it VitaCare, monitors the shifting landscape and takes an alternative approach. They <strong>quickly launch a stripped-down MVP</strong> — a straightforward video consultation platform connecting patients with doctors instantly.</p>



<p>By focusing on speed and user feedback, VitaCare <strong>addresses the immediate market needs</strong>. With each release, they iteratively add features based on user input, gradually expanding their offering. They grow and develop with a limited budget till they build the product that can attract investors’ attention and expand dramatically.</p>



<p><em>In this hypothetical story, MedSolution’s meticulous development approach led to a well-crafted product that didn’t match what users actually wanted. On the other hand, VitaCare quickly made a simple product that people needed and improved it based on their feedback. The alternative way took VitaCare to user engagement, investor confidence, and sustainable growth.</em></p>



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<h2 class="wp-block-heading"><strong>Main MVP Types</strong></h2>



<p><strong>The MVP’s main goal is to test the upcoming product with a real audience</strong>. It means that the quality and accuracy of the test results can notably influence how quickly and effectively the development process goes. That’s why there are two main types of minimum viable products — <strong>high-fidelity</strong> and <strong>low-fidelity</strong>. These can be combined or used concurrently.</p>



<h3 class="wp-block-heading"><strong>Low-Fidelity MVPs</strong></h3>



<p>These MVPs have lower reliability and imply simplified data collection methods. They don’t require extensive programming or significant financial investment but provide less precise outcomes. Their main objectives are:</p>



<ul class="wp-block-list">
<li>To assess the practical value of the product.</li>



<li>To identify the most effective and sought-after solutions to the problem.</li>



<li>To aid in defining and understanding customer needs.</li>



<li>To conduct a niche analysis and determine if the game is worth the candle.</li>
</ul>



<p><strong>Here are some low-fidelity MVP types</strong>:</p>



<ol class="wp-block-list">
<li><strong>Blogs:</strong> Creating simple blog posts to gauge interest and gather feedback on a product idea or concept.</li>



<li><strong>Forums and communities:</strong> Engaging in discussions within forums or online communities to validate demand and gather insights.</li>



<li><strong>Surveys and questionnaires:</strong> Conducting surveys to gather user opinions and preferences related to the product idea.</li>



<li><strong>Landing page:</strong> Designing a basic landing page highlighting the product concept and capturing user interest.</li>



<li><strong>Explainer video MVP:</strong> Developing explanatory videos to showcase the product idea and its potential benefits.</li>



<li><strong>Advertising campaign:</strong> Running targeted ads or promotions to assess user response and measure interest.</li>



<li><strong>Crowdfunding campaign:</strong> Launching a campaign on crowdfunding platforms to validate demand and attract backers.</li>



<li><strong>Idea review services:</strong> Utilizing platforms that review and assess new ideas, validating interest and potential for development.</li>
</ol>



<h3 class="wp-block-heading"><strong>High-Fidelity MVPs</strong></h3>



<p>These MVPs require more preparation, resources, and analytical work. They are used for:</p>



<ul class="wp-block-list">
<li>Formulating and enhancing marketing approach.</li>



<li>Experimenting with value offerings, modes of communication, and calls to action.</li>



<li>Investigating feasible expansion tactics.</li>



<li>Gaining initial patrons and footholds in the market.</li>



<li>Evaluating data regarding the appetite for the newly crafted product.</li>
</ul>



<p><strong>Here are some high-fidelity MVP types</strong>:</p>



<ol class="wp-block-list">
<li><strong>Feature MVP</strong> focuses on building and releasing a product with a single core feature. It’s often used to test the viability and demand for a specific feature before investing in full product development.</li>



<li><strong>Single-Use MVP</strong> is designed to solve a particular problem for a specific audience. It targets a niche need and aims to demonstrate the product’s value in a highly focused manner.</li>



<li>“<strong>Concierge” MVPs </strong>is an approach when the product is manually operated by the development team, simulating its functionality for users. This helps validate the concept and gather user feedback before building a fully automated version.</li>



<li>“<strong>Wizard of Oz” MVPs</strong> are similar to the “concierge” MVPs. They involve manually providing certain features the user believes are automated. Behind the scenes, the functionality might be manual or simulated. This is useful for testing user reactions and gauging demand.</li>



<li>“<strong>Piecemeal” MVPs </strong>involve building a minimal version by integrating third-party tools, services, or platforms. This helps test the integration and user experience while minimizing development effort.</li>



<li><strong>A non-functional prototype MVP </strong>(or a mockup) is developed to visually represent the product’s user interface and interactions. This can be useful for early-stage testing and feedback on the design.</li>



<li><strong>Pre-order MVPs</strong> involve offering the product for pre-order, where customers can place orders for a product that’s not yet fully developed. This provides insights into demand and allows for early revenue generation.</li>



<li>In<strong> smoke test MVPs</strong>, ads or promotions for the product are run to gauge interest. When users click on these ads, they might be led to a page indicating that the product is “coming soon” or “under development.” This helps validate demand before investing further.</li>



<li>“<strong>Concierge” onboarding MVPs</strong> involve manually guiding users through the onboarding process and helping them achieve their goals using the product. It provides insights into user behavior and pain points.</li>
</ol>



<p>The choice of an MVP type depends on the product’s nature, goals, target audience, and available resources. The key is to create the simplest version of the product that can effectively validate assumptions, gather feedback, and demonstrate value to potential users.</p>



<h2 class="wp-block-heading">Building the Foundation: Final Thoughts on MVP Development for Startups</h2>



<p>Building an MVP is about <strong>the process</strong>, in contrast to, for example, drawing a visual prototype. It’s about the process of <strong>hypothesis testing</strong>, <strong>collecting feedback</strong>, <strong>improvements</strong>, and <strong>entering new niches</strong>. Mastering this process helps prevent wasting money and energy on creating useless and needless products — which, in turn, means better market environment and conditions.</p>



<p>This process, however, can be overwhelming and confusing. That’s where it makes sense to look for trustworthy <strong>MPV development services for startups</strong>. Finding an experienced tech partner focusing on guiding new ventures through the complexities of the process may become the first step in the journey to becoming a unicorn</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Do you have a business idea that needs validation but don’t know where to start? We are here to help.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Ask us</button></div>



<p></p>



<p></p>



<p></p>



<p></p>


The Strategic Advantage of MVP Development for Startups

<p>Ever tried moving a boulder uphill? Yeah, not fun. That’s what working with oversized user stories in <a href="https://rocketech.it/software-development" target="_blank" rel="noreferrer noopener">custom software development</a> feels like — slow, heavy, and full of frustration. Good (we mean, smart) developers know the trick: <strong>split those stories down into smaller, manageable pieces</strong>. Suddenly, you’re moving faster, hitting milestones, and dodging the chaos that comes with giant, clunky tasks, while speed, quality, and agility remain your friends.</p>



<p>Let’s break down why this method works and how it can save your next project from rolling off the rails.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2024/09/user-story-splitting-blog.png" alt="Team member actively participating in user story decomposition, organizing colorful sticky notes on a whiteboard for agile project management." class="wp-image-7896" title="User Story Splitting"></figure>



<h2 class="wp-block-heading">Why Do We Need to Split User Stories?</h2>



<p>Imagine trying to eat a whole pizza in one bite. Impossible, right? The same goes for user stories in creating software development. When we break them down into smaller, manageable pieces, we can:</p>



<p><strong>1. Make better estimations</strong>. It’s much easier to <a href="https://rocketech.it/blog/post/agile-project-estimation-challenges" target="_blank" rel="noreferrer noopener">calculate</a> how much time the team will need to perform a small task rather than a large, ambiguous feature.</p>



<p><strong>2. Deliver faster</strong>. Smaller stories mean quicker completion. We can roll out features incrementally, giving you and your users value sooner.</p>



<p><strong>3. Improve quality</strong>. With smaller chunks, our team can focus better, test thoroughly, and catch issues early.</p>



<p><strong>4. Enhance flexibility</strong>. Smaller stories allow us to adapt to changes easily. If priorities shift, we can pivot without derailing the entire project. </p>



<p><strong>5. Boost morale</strong>. Completing smaller tasks gives the team a sense of accomplishment and keeps motivation high.</p>



<h2 class="wp-block-heading">How Do We Split User Stories?</h2>



<p>Splitting user stories is like building with LEGO blocks. Each piece is small and manageable, but together, they create something amazing. This approach helps us deliver high-quality software with unmatched speed.</p>



<p>We aim for vertical slices. <strong>This means each piece is a complete, usable feature from the user interface down to the database</strong>. Think of it like slicing a cake vertically so each slice has frosting, filling, and cake — a full experience in every bite.</p>



<h3 class="wp-block-heading">What are the Benefits of User Story Decomposition?</h3>



<p><strong>1.</strong> <strong>Clearer Estimations</strong></p>



<p>Smaller stories are easier to estimate. It helps us plan better and meet deadlines.</p>



<p><strong>2. Faster Feedback</strong></p>



<p>We can get your feedback sooner. It helps us always be on the right track.</p>



<p><strong>3. Reduced Risk</strong></p>



<p>Smaller stories mean smaller risks. If something goes wrong, it’s easier to fix.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="896" height="672" src="https://wp.rocketech.it/wp-content/uploads/2024/09/user-story-splitting-benefits.png" alt="Infographic illustrating the benefits of user story splitting, featuring puzzle pieces with text on clear estimations, faster feedback, and reduced risks." class="wp-image-7907" title="User Story Splitting Guide"></figure>



<h2 class="wp-block-heading">INVEST in Good User Stories</h2>



<p>Bill Wake, a pioneer of Extreme Programming, <a href="https://www.agilealliance.org/glossary/invest/" target="_blank" rel="noreferrer noopener nofollow">introduced</a> <strong>the INVEST model</strong> to help teams craft better user stories. INVEST stands for six key attributes that make a user story clear, actionable, and effective. Here’s what each characteristic means.</p>



<p>📌 <strong>I</strong><strong> </strong>for <strong>Independent</strong></p>



<p>Stories should be self-contained so you can prioritize them without dependencies.</p>



<p>📌 <strong>N </strong>for <strong>Negotiable</strong></p>



<p>Stories should be flexible for collaboration and refinement.</p>



<p>📌 <strong>V </strong>for <strong>Valuable</strong></p>



<p>Each story must deliver visible value to the user.</p>



<p>📌 <strong>E </strong>for <strong>Estimable</strong></p>



<p>Stories should be clear enough to estimate their size and effort.</p>



<p>📌 <strong>S </strong>for <strong>Small</strong></p>



<p>Stories should be small enough to fit several into a sprint.</p>



<p>📌 <strong>T </strong>for <strong>Testable</strong></p>



<p>There should be clear criteria to verify the story is complete.</p>



<p>Many beginner agile teams try to split user stories by architectural layers: one story for creating a user interface, another for the database, and so on. While this approach may satisfy the “Small” criterion, it often fails to meet the “Independent” and “Valuable” criteria.</p>



<div class="wp-block-blog-quote wp-block-quote"><div class="wp-block-quote__text"><p><em>“User story splitting isn’t just a technical exercise; it’s an art form that requires a deep understanding of both the user and the code.”</em></p></div><div class="wp-block-quote__author"><div class="wp-block-quote__author__aside"><div class="wp-block-quote__author__image" style='background-image:url("https://wp.rocketech.it/wp-content/uploads/2024/09/rocket-couch-serious-sm.jpg")'></div></div><div class="wp-block-quote__author__content"><div class="wp-block-quote__author__name">Alexander Rocket</div><div class="wp-block-quote__author__info">Co-founder, Rocketech</div></div></div></div>



<h3 class="wp-block-heading">How Small Should It Be?</h3>



<p>Aim for 6–10 stories per iteration. The size depends on your team’s velocity. Before sprint planning, figure out the estimate that signals a story needs splitting. For most teams, that’s 8 or 13 points. In some projects, we split stories even at 5 points, depending on the project structure.</p>



<h3 class="wp-block-heading">Which Pattern Should You Use?</h3>



<p>You might find multiple ways to split a story. Here’s how to choose.</p>



<p>1️⃣ <strong>Prioritize or Discard</strong></p>



<p>The 80/20 rule says most value comes from a small part of the functionality. Choose the split that reveals low-value stories you can drop.</p>



<p>2️⃣ <strong>Even Sizes</strong></p>



<p>A split that turns an 8-point story into four 2-point stories is better than a split into 5 and 3 points. It gives the Product Owner more flexibility to prioritize.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Have a product idea but don’t know where to start?<br>We do. Get the first estimate for free.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>



<h2 class="wp-block-heading">User Story Splitting Patterns</h2>



<p>In years of working with agile methodologies, we’ve identified nine patterns for breaking down user stories into good, small units.</p>



<h3 class="wp-block-heading">Workflow Steps</h3>



<p>Take a CMS user story: “<em>As a content manager, I can publish content on the company page.</em>” Seems straightforward, right?</p>



<p>But digging deeper, you find it involves editor and legal approvals, plus a test environment check. You can’t cram all that into one iteration.</p>



<p class="has-dark-color has-text-color has-link-color wp-elements-61abaf6e500e6cca58b9153f6f595d72"><strong>Solution:</strong> Start with a basic end-to-end scenario, then add the intermediate steps. Here’s how you can split it:</p>



<ul class="wp-block-list">
<li><em>“I can publish content directly on the company page.” </em></li>



<li><em>“I can publish content with legal review.” </em></li>



<li><em>“I can publish content with editor review.” </em></li>



<li><em>“I can preview content on the test environment.” </em></li>



<li><em>“I can publish content from the test environment to the main server.” </em></li>
</ul>



<h3 class="wp-block-heading">Simple/Complex</h3>



<p>During planning, stories can balloon with questions like</p>



<p>“<em>What about X?</em>”</p>



<p>or</p>



<p>“<em>Did you consider Y?</em>”</p>



<p>To keep things manageable, ask, “<em>How can we make this as simple as possible?</em>” Write this simple version as a separate story. Define its completion criteria to keep it simple, then split variations and complexities into separate stories.</p>



<p>For example: “<em>As a user, I can search for flights between two destinations</em>.”</p>



<p><strong>Split it into:</strong></p>



<ul class="wp-block-list">
<li><em>“… specifying the maximum number of layovers.” </em></li>



<li><em>“… including nearby airports.” </em></li>



<li><em>“… using flexible date ranges.” </em></li>



<li>and so on.</li>
</ul>



<h3 class="wp-block-heading">Business Rule Variations</h3>



<p>Consider a story: <em>“As a user, I can search for flights with flexible dates.”</em> </p>



<p>“<em>Flexible dates</em>” hides multiple business rules, each worth its own story:</p>



<ul class="wp-block-list">
<li><em>“N days between X and Y”</em></li>



<li><em>“± N days from X and Y”</em></li>



<li><em>“Weekends in June”</em></li>
</ul>



<h3 class="wp-block-heading">Operations</h3>



<p>The word “<em>manage</em>” in a user story indicates multiple operations. This suggests an obvious way to split the story.</p>



<p>For example: “<em>As a user, I can manage my account.</em>”</p>



<p><strong>Split it into</strong>:</p>



<ul class="wp-block-list">
<li><em>“… I can log in using my account.”</em></li>



<li><em>“… I can edit my account settings.”</em></li>



<li><em>“… I can delete my account.”</em></li>
</ul>



<h2 class="wp-block-heading">Major Effort</h2>



<p>Take a credit card processing scenario: “<em>As a user, I can pay for my ticket with MasterCard, VISA, American Express, or Diners Club.</em>”</p>



<p>You can split this into four stories, one for each card type. But the heavy lifting (payment processing) is done in the first story, making the rest easy.</p>



<p><strong>Solution</strong>: Defer the decision on which card to implement first:</p>



<ul class="wp-block-list">
<li><em>“I can pay with one of the cards (MC, VISA, AMEX, DC).”</em></li>



<li><em>“I can pay with all four cards (MC, VISA, AMEX, DC)” (once one card payment is implemented).</em></li>
</ul>



<p>This way, dependencies are clearer, and you can adjust priorities as needed.</p>



<h3 class="wp-block-heading">Data Variations</h3>



<p>Story complexity often comes from data variations. For example, a system that maps areas served by transport providers could get overwhelmed by geographic data.</p>



<p>Consider: “<em>As a user, I can search for carriers by departure and destination</em>.”</p>



<p>Without a sophisticated Geographic Information System (GIS), modeling geography is complex. So, simplify: “<em>As a user, I can search for carriers by departure and destination country.</em>” As you gather more data, you might find carriers serve specific cities or regions.</p>



<p>Then, <strong>split into</strong>:</p>



<ul class="wp-block-list">
<li><em>“As a user, I can search for carriers by countries, cities, or regions of departure and destination.”</em></li>



<li><em>“Carriers can serve different geographic areas as departure and destination points.”</em></li>
</ul>



<p>Classic localization stories also fit here:</p>



<ul class="wp-block-list">
<li><em>“… in English.”</em></li>



<li><em>“… in Slovenian.”</em></li>



<li><em>“… in Korean.”</em></li>



<li>and so on.</li>
</ul>



<h3 class="wp-block-heading">Input Methods</h3>



<p>Complexity often comes from the user interface, not the functionality. Start by creating the simplest interface, then focus on making it more attractive and user-friendly. These steps depend on each other, but the split still works effectively.</p>



<p>For example: “As a user, I can search for flights between departure and destination points.”</p>



<p><strong>Split it into</strong>:</p>



<ul class="wp-block-list">
<li><em>“… using simple date input.”</em></li>



<li><em>“… using a visualized calendar.”</em></li>
</ul>



<h3 class="wp-block-heading">Postpone Performance</h3>



<p>Sometimes, making functionality fast takes a lot of effort, while the core development isn’t that complex. You can gain more by developing a slow version that still provides value to users. Split the story into “<em>make it work</em>” and “<em>make it fast.</em>”</p>



<p>For example: “<em>As a user, I can search for flights between departure and destination points</em>.”</p>



<p><strong>Split it into</strong>:</p>



<ul class="wp-block-list">
<li><em>“… (slowly — just make the search work, show a ‘processing’ animation)”</em></li>



<li><em>“… (in less than 5 seconds).”</em></li>
</ul>



<h3 class="wp-block-heading">Separate the Spike</h3>



<p>A user story might be big not just because it’s complex but because the implementation format is unclear. In such cases, splitting it won’t help. Instead, do a time-boxed spike to clear up any development uncertainties. After that, you’ll be ready to move forward or decide how to split the story.</p>



<p>For example: “<em>As a user, I can pay for my order with a credit card</em>.”</p>



<p><strong>Split it into</strong>:</p>



<ul class="wp-block-list">
<li><em>“Research credit card processing.”</em></li>



<li><em>“Implement credit card processing.”</em></li>
</ul>



<p>For a “research” story, the completion criterion should be the specific question you’re trying to answer. Do just enough research to answer that question and then stop — it’s easy to lose focus during research.</p>



<figure class="wp-block-table"><table class="has-gray-100-background-color has-background"><tbody><tr><td>❕ The spike separation approach is mentioned last because it should be a last resort. Usually, you know enough to start developing something. Do that first, and you’ll learn more as you go. Try using any of the previous eight patterns before resorting to a spike.</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Final Thoughts</h2>



<p>At Rocketech, we dissect user stories with precision, turning complex requirements into focused, actionable components. Our method isn’t just about meeting deadlines — it’s about creating a format that enhances <strong>estimation accuracy and development speed while following the highest industry standards</strong>.</p>



<p>For example, by splitting stories into vertical slices, we deliver fully functional features faster, whether it’s refining a payment gateway or optimizing a multi-step workflow. When your business needs rapid results without sacrificing quality, we make sure your product <a href="https://rocketech.it/blog/post/from-idea-to-launch-the-startups-guide-to-reducing-time-to-market" target="_blank" rel="noreferrer noopener">hits the market</a> ahead of schedule.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Have a product idea that needs fast market validation?<br>We can help! Talk to our experts to get a free project estimation.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


Breaking Big: The Art of User Story Splitting

<p>Until very recently, the <a href="https://rocketech.it/blog/post/how-to-build-a-successful-saas-platform-from-scratch" target="_blank" rel="noreferrer noopener">Software-as-a-Service model</a> was something large corporations offered their clients. It meant years of development, thousands of people writing the code 24/7, and fabulous amounts of money. Well, things have dramatically changed.</p>



<p>Today, even small startups can deliver their product ideas to their customers through SaaS solutions and build the latter even with limited budgets. You just need to figure out <strong>how to outsource SaaS product development and what to consider when looking for a tech vendor</strong>. Here’s what you need to know.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2023/10/saas-outsourcing.png" alt="Decision-makers discuss a new SaaS development project." class="wp-image-6338"></figure>



<h2 class="wp-block-heading">A Few More Words on the Concept of Software as a Service</h2>



<p><strong>Software as a Service (SaaS) is a web application delivered to end users over the Internet</strong>. Rather than installing and managing software on their own devices, SaaS provides a subscription-based model that helps users conveniently access the complete application, along with its IT infrastructure.</p>



<h3 class="wp-block-heading">Why Do Businesses Transition to SaaS?</h3>



<p>There’s a multitude of reasons behind many SaaS development outsourcing options. The key drivers behind this strategic transition range from scalability and accelerated development to quick deployment and enhanced security.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="2000" src="https://wp.rocketech.it/wp-content/uploads/2023/10/why-businesses-transition-to-saas.png" alt="An infographic explaining 5 reasons why businesses transition to SaaS" class="wp-image-6358"></figure>



<h4 class="wp-block-heading">Scalability</h4>



<p>There’s no need to worry about servers crashing if the number of users suddenly increases. Transitioning to the SaaS model implies that companies can expand their infrastructure capabilities as needed without purchasing new hardware and other necessary components. Costs in such an approach will be much lower than upgrading one’s own equipment.</p>



<h4 class="wp-block-heading">Accelerated Development</h4>



<p>Local applications need to be developed and tested for various platform combinations like device hardware, operating systems, security settings, etc. In contrast, SaaS applications are created in a unified controlled environment. It significantly simplifies and speeds up development, debugging, and support.</p>



<h4 class="wp-block-heading">Quick Deployment</h4>



<p>Deploying local applications within a company can take months. With SaaS, it’s enough to set up the application once to meet the company’s requirements and then distribute logins and passwords to its employees. This leads to another advantage — a short sales cycle. With SaaS, there’s no need to spend weeks or months building customer relationships and planning deployment. The time saved can be used to improve the product and enhance customer service.</p>



<h4 class="wp-block-heading">Multi-User Architecture</h4>



<p>All application’s users share a centralized infrastructure and code. It allows for a quick update release and saves time on code enhancements.</p>



<h4 class="wp-block-heading">Database Security</h4>



<p>Standard security protocols provided by SaaS database providers include SSL and TLS encryption. They secure user messages and data. On top of that, the SaaS model allows for easy and fast integration of additional protocols to enhance security.</p>



<h2 class="wp-block-heading">SaaS Development: What You Need to Know Before Hiring a Tech Vendor</h2>



<p>The point of delegating a complex tech project to a third party is to find a professional team that would bring the necessary expertise to the table. While you don’t have to be really dev-savvy to outsource SaaS development, you’ll have better chances to choose the right vendor if you at least understand the development process basics. Here are the most essential aspects of a SaaS development project.</p>



<h3 class="wp-block-heading">SaaS Architecture</h3>



<p>SaaS applications’ architecture is designed to meet business needs like requirements for <strong>reliability</strong>,<strong> fault tolerance</strong>, and <strong>financial</strong> <strong>capabilities</strong>.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p></p>
<cite>Today, multi-tenancy architecture serves as the foundation for nearly every SaaS product operating in the cloud. It helps reduce costs, improve the efficiency of resource utilization, ensure scalability, and enable rapid deployment of updates.</cite></blockquote>



<p>In <strong>cloud computing</strong>, there is a concept called “<strong>multi-tenancy</strong>,” where multiple customers (tenants) of a cloud service provider use the same computing resources and operate within a shared environment. Even though tenants share the infrastructure and resources, they are isolated from each other.</p>



<p>In other words, each company is physically integrated but logically separated. You can think of it like real estate.</p>



<p>Imagine the cloud as a building. Living in a private house far from neighbors isn’t land efficient and requires property maintenance.</p>



<p>Multi-tenancy is like living in an apartment building. Everyone has the same security system, but each tenant has their own key to their apartment, ensuring their privacy. Tenants can make modifications or furnish their apartments according to their requirements and preferences, just as a company configures its portion of the cloud infrastructure.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Let’s discuss your project in detail.<br>Launch with Rocketech.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>



<h3 class="wp-block-heading">Key Components</h3>



<p>An application’s main features set one app type apart from another. However, there are key components every SaaS solution must have.</p>



<ul class="wp-block-list">
<li><strong>Customizable Infrastructure</strong></li>
</ul>



<p>One of the advantages of using SaaS architecture is the customizable infrastructure that can be <strong>expanded or scaled down based on business requirements</strong>. For example, customers can decide which components benefit their business and pay only when necessary. At the end of a paid period, customers can return to their previous infrastructure model.</p>



<p>SaaS users purchase their software in a billing system on a monthly or yearly basis. Their requirements may increase or decrease depending on their business needs and consumer demand, so having a customizable infrastructure is essential.</p>



<ul class="wp-block-list">
<li><strong>Subscription-Based Pricing Model</strong></li>
</ul>



<p>The SaaS application’s essence lies in its high availability. This service is extended through a <strong>flexible billing cycle</strong> that allows customers and business users to use what they want, as much as they want.</p>



<ul class="wp-block-list">
<li><strong>CRM System</strong></li>
</ul>



<p>A Customer Relationship Management (CRM) system is what sets a SaaS application apart from other applications. Since SaaS offers a shared platform for multiple tenants, it requires a <strong>unified repository for multiple customer accounts</strong> and their account information for management purposes.</p>



<ul class="wp-block-list">
<li><strong>Automated Provisioning</strong></li>
</ul>



<p>Automated provisioning in SaaS means delivering the application to customers automatically, <strong>without manual steps</strong>, for smoother operation. This automation streamlines the setup and delivery of the software, making it more efficient and user-friendly.</p>



<ul class="wp-block-list">
<li><strong>Support and Analytics</strong></li>
</ul>



<p>The support and analytics module of a SaaS application provides <strong>a set of tools for platform management and performance tracking</strong>. As a result, SaaS providers satisfy customer expectations, and business providers can improve customer service quality and meet market requirements.</p>



<h3 class="wp-block-heading">Cloud</h3>



<p>There are three ways to deploy a SaaS application.</p>



<ol class="wp-block-list" style="list-style-type:1">
<li><strong>Public Cloud</strong>: The service is hosted in <strong>a general-use</strong> <strong>infrastructure</strong>. For example, multiple companies can use the same server, and the device’s capacity is shared proportionally based on the business needs of each.</li>



<li><strong>Private Cloud</strong>: The software is hosted in <strong>an infrastructure exclusively used by one company</strong>. Typically, the equipment is within the company’s own network. Private clouds have limitations in scalability compared to public or hybrid clouds, which may require significant infrastructure investments when launching the application in the market.</li>



<li><strong>Hybrid Cloud</strong>: This is a <strong>combination of public and private clouds</strong>. For instance, a bank might store customer data in a private cloud and expand its computing power using a cloud provider.</li>
</ol>



<h3 class="wp-block-heading">Tech Stack</h3>



<p>The choice of a technology stack is a critical decision that can significantly impact the success, cost, and performance of your software development project. <strong>Choosing the wrong tools can lead to project failure</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2023/10/what-is-tech-stack.png" alt="A visual explaining what a technological stack is." class="wp-image-6330"></figure>



<p><strong>A wise choice of the technical stack is one of the key criteria for the successful launch of any product</strong>, especially when it comes to SaaS services. Opting for exotic development tools can make the software complex to update and support in the long run.</p>



<p>A prime example is the Ruby on Rails framework. When it first came out, clients worldwide urged providers to use this new and trendy platform for their projects, even migrating their existing applications to RoR. However, it soon became apparent that working with it wasn’t as straightforward as everyone thought.</p>



<p>Once more user-friendly frameworks started to emerge, the popularity of RoR significantly declined. Today, most Ruby projects are maintained at a high cost, as demand for support remains, while the number of developers in this stack has dwindled.</p>



<figure class="wp-block-table"><table class="has-primary-color has-gray-100-background-color has-text-color has-background"><tbody><tr><td>The most reliable way to avoid making a wrong choice is to start with a <strong><a href="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" data-type="link" data-id="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" target="_blank" rel="noreferrer noopener">discovery phase</a></strong>. If done correctly, the developers experienced in the same niche or product type create the project’s detailed roadmap that also includes technical requirements and the instruments necessary to meet them — the <strong>tech stack</strong>.</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">The Bonus: Code Blueprints to Cut the Time</h2>



<p>The more competitive your business environment is, the more critical <a href="https://rocketech.it/blog/post/from-idea-to-launch-the-startups-guide-to-reducing-time-to-market" target="_blank" rel="noreferrer noopener">the time it takes you to deliver your product to your end user</a> becomes. One of the most efficient ways to cut time to market is to use already existing instruments and their proven mixes to avoid reinventing the wheel while implementing standard, most-required functionality.</p>



<p><strong>Our Technical Lead, Olexandr, explains this process with specific examples</strong>.</p>



<p>“Consider this scenario. You have a mobile application. And the task is to integrate a payment system for both Apple and Android platforms. If, let’s say, you’re venturing into this for the first time, the <strong>traditional approach</strong> would be to delve into the intricacies of the Apple Store and Google Play specifications. You’d need to develop and test the integration for each platform separately, which can be quite time-consuming.</p>



<p>However, there is an <strong>alternative approach</strong>. You could opt for a ready-made service like <a href="https://www.revenuecat.com/" target="_blank" rel="noreferrer noopener nofollow">RevenueCat</a>, which offers a more streamlined solution. RevenueCat can seamlessly work with both Apple and Android platforms right out of the box, and it even supports various payment services as a bonus. This approach saves you a considerable amount of time and minimizes the testing effort. Additionally, it provides valuable statistics on all purchases and transactions.</p>



<div class="wp-block-blog-quote wp-block-quote"><div class="wp-block-quote__text"><p>So many instruments were written before us. We just need to learn how to use them efficiently in our favor.</p></div><div class="wp-block-quote__author"><div class="wp-block-quote__author__aside"><div class="wp-block-quote__author__image" style='background-image:url("https://wp.rocketech.it/wp-content/uploads/2023/10/sasha-kulik-2.jpg")'></div></div><div class="wp-block-quote__author__content"><div class="wp-block-quote__author__name">Olexandr Kulyk</div><div class="wp-block-quote__author__info">Solutions Architect, Technical Lead, Rocketech</div></div></div></div>



<p>Let’s explore another example. A client comes to you with the idea of creating a cryptocurrency exchange platform. The platform needs to handle the conversion of dollars into cryptocurrencies and vice versa. But this venture also requires some form of basic accounting software to manage transactions, account balances, tax calculations, and profit margins.</p>



<p>You have two options here. The first option is to build this accounting software from scratch, which would consume a significant amount of time and risk introducing errors, particularly in the financial calculations. Alternatively, you can integrate an existing service that simplifies the process. With such a service, you can execute commands like:</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="816" height="250" src="https://wp.rocketech.it/wp-content/uploads/2023/10/image.png" alt="An extract of programming code to explain an example" class="wp-image-6334"></figure>



<p>Here, you specify the currency, amount, source, destination, and percentage, and the service will handle all the calculations for you. Moreover, it typically provides a ready-made dashboard with built-in statistics.”</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3840" height="1320" src="https://wp.rocketech.it/wp-content/uploads/2023/10/image-1.png" alt="A screenshot to illustrate an example." class="wp-image-6336"></figure>



<p>In both of these examples, the key takeaway is the advantage of leveraging existing services to expedite the development process, reduce the potential for errors, and gain access to valuable data insights.</p>



<h2 class="wp-block-heading">Outsourcing SaaS Development: Why Rocketech?</h2>



<p>Once SaaS product development outsourcing becomes one of the near-future plans, you need to find a reliable tech vendor to execute the project. As a full-cycle custom software development services provider, Rocketech takes projects at any stage and walks the extra mile to ensure the client’s success.</p>



<p>We don’t just promise; we deliver results. Considering SaaS website design and development outsourced? We are here. Have only a business idea and need to test its feasibility? We’ll guide you all the way through the process.</p>



<p><strong>With our proven strategies of reducing time to market, we guarantee our clients early market entry and fast delivery of even the most daring ideas</strong>.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Curious how we deliver faster than the competitors keeping the highest quality?<br>We are happy to share.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


SaaS Development Outsourcing: What Vendors Don’t Tell You

<p>When a business needs a digital product, there are usually two ways to approach this: buying a ready solution or building one from scratch. The second option often scares business owners as <a href="https://rocketech.it/software-development" target="_blank" rel="noreferrer noopener">custom software development</a> is still associated with large bills and long, tiring projects. But is this the reality today? <strong>What is the total cost of ownership for software?</strong> </p>



<p>We summed up everything you need to know about how much it all costs in the long run — the <strong>TCO of software</strong>.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2024/07/tco-1.png" alt="Iceberg with visible underwater surface, illustrating the concept of TCO (Total Cost of Ownership)." class="wp-image-7391"></figure>



<h2 class="wp-block-heading"><strong>What is the Total Cost of Ownership (TCO)?</strong></h2>



<p>In business, the <strong>Total Cost of Ownership</strong> (<strong>TCO</strong>) for software means looking at all the expenses beyond the initial purchase price. It covers everything <strong>from installation and training to ongoing maintenance, upgrades, and support</strong>.</p>



<p>TCO helps companies make informed decisions by considering the full cost of owning and using software over its entire lifespan, not just the upfront cost.</p>



<p><strong>The total cost of ownership includes:</strong></p>



<ul class="wp-block-list">
<li>The initial purchase price of the item;</li>



<li>Ongoing license fees;</li>



<li>Maintenance and repair costs;</li>



<li>Indirect expenses like installation, training, and support.</li>
</ul>



<p>These costs can add up significantly over a product’s or system’s lifespan. The total cost of ownership (TCO) idea is usually attributed to the Gartner Group which applied it to the computer and software industries in the late 1980s. The term has since spread to other industries. Accurately calculating TCO is crucial, especially when choosing corporate IT systems, which are becoming more complex and include many components.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2024/07/tco-term.png" alt="TCO explained: Text overlay on blue background clarifies Total Cost of Ownership as a concept, considering all expenses beyond the initial purchase price. The text goes as follows: TCO stands for Total Cost of Ownership. It's like looking beyond the sticker price to see the full bill for keeping something over time, whether a single tool, a complex solution, professional services, or entire IT infrastructure. This includes things you might forget, like training, fixes, and upgrades." class="wp-image-7393"></figure>



<h3 class="wp-block-heading"><strong>Breaking Down the TCO in Detail: What Are the Cost Types?</strong></h3>



<p>If put simply, the TCO of software includes all costs associated with a product throughout its entire lifecycle — software, hardware, training, and support.</p>



<p>When buying new IT products, you can expect higher expenses in three key areas: <strong>acquisition, operational, </strong>and<strong> human resource costs</strong>. Here’s about it in more detail.</p>



<h4 class="wp-block-heading"><strong>1. Acquisition Costs</strong></h4>



<p>Acquisition costs cover the initial purchase price and setup expenses for software or apps. These costs can also cover:</p>



<ul class="wp-block-list">
<li>Software licenses or subscriptions</li>



<li>On-site equipment installation</li>



<li>Employee training</li>
</ul>



<p>Additional acquisition costs might include:</p>



<ul class="wp-block-list">
<li>IT infrastructure migration</li>



<li>Research and development</li>



<li>Legal services</li>



<li>Testing</li>



<li>Setup and installation</li>
</ul>



<h4 class="wp-block-heading"><strong>2. Operational Costs</strong></h4>



<p>Operational costs are the recurring expenses needed to keep the software running throughout its lifecycle. These include:</p>



<ul class="wp-block-list">
<li>Maintenance</li>



<li>Support services</li>



<li>Software updates</li>



<li>Security measures</li>



<li>Data backups</li>



<li>Bug fixes</li>



<li>License renewals</li>
</ul>



<h4 class="wp-block-heading"><strong>3. Human Resource Costs</strong></h4>



<p>Often overlooked, human resource costs are essential to consider. You need skilled personnel to manage and operate the software continuously. This results in additional expenses for:</p>



<ul class="wp-block-list">
<li>Training</li>



<li>Onboarding</li>



<li>Compensation</li>
</ul>



<p>Understanding the types of costs associated with TCO makes it clear that TCO is far more comprehensive than just an initial one-time payment for a SaaS product or any IT solution. <strong>When a business starts using a seemingly ready product, there are numerous additional expenses to consider beyond the initial purchase</strong>.</p>


<div class="wp-block-image">
<figure class="aligncenter size-full"><img loading="lazy" decoding="async" width="512" height="384" src="https://wp.rocketech.it/wp-content/uploads/2024/07/tco-parts.png" alt="Diagram illustrating the breakdown of Total Cost of Ownership (TCO). The component parts include: Purchasing, Maintenance, Training, Repairs, Security, Support, Upgrades, and Service." class="wp-image-7395"></figure></div>


<h2 class="wp-block-heading"><strong>How is the Total Cost of Ownership Calculated?</strong></h2>



<p>Calculating the total cost of ownership for enterprise software involves understanding and accounting for all costs associated with acquiring and operating an IT system throughout its lifecycle. <strong>The two most common methodologies for calculating TCO are the Microsoft and Interpose method and the Gartner Group method</strong>.</p>



<h3 class="wp-block-heading"><strong>Microsoft and Interpose Method</strong></h3>



<p>This method divides all costs into <strong>direct</strong> and <strong>indirect</strong>. </p>



<p><strong>Direct costs</strong> are clear expenses that decision-makers typically consider when budgeting:</p>



<ul class="wp-block-list">
<li>Software purchase or rental, implementation, configuration, and upgrades</li>



<li>System and network design and administration</li>



<li>Support staff salaries, employee training, outsourced support services</li>



<li>Application development and testing, technical documentation preparation</li>



<li>Establishing and maintaining communication channels</li>
</ul>



<p><strong>Indirect costs</strong> are often overlooked in budgeting but can account for over 50% of a company’s IT expenses according to Interpose:</p>



<ul class="wp-block-list">
<li>Informal user training and personal support for key clients</li>



<li>Costs from temporary work disruptions, such as equipment failures or planned maintenance</li>
</ul>



<h3 class="wp-block-heading"><strong>Gartner Group Method</strong></h3>



<p>This method divides costs into <strong>capital expenses</strong> (<strong>CAPEX</strong>) and <strong>operational expenses</strong> (<strong>OPEX</strong>).</p>



<figure class="wp-block-table aligncenter is-style-regular"><table class="has-fixed-layout"><thead><tr><th><strong>CAPEX</strong></th><th><strong>OPEX</strong></th></tr></thead><tbody><tr><td>Development and implementation project costs</td><td>System updates and upgrades</td></tr><tr><td>Consultant fees during project creation</td><td>Management costs</td></tr><tr><td>Purchase, installation, and configuration of hardware/software</td><td>Costs related to user activity</td></tr></tbody></table><figcaption class="wp-element-caption">The capital (CAPEX) and operational (OPEX) expenses breakdown</figcaption></figure>



<p>While capital expenses are one-time costs to set up an IT system, the business will have operational expenses throughout the software’s lifecycle to keep it running. </p>



<h3 class="wp-block-heading"><strong>Total Cost of Ownership Formula</strong></h3>



<p>There are different ways of calculating the TCO for software, but the general formula is:</p>



<p class="has-primary-color has-gray-50-background-color has-text-color has-background has-link-color wp-elements-436d201ee977c07ea948b6d48f231532"><strong>TCO = Purchase Cost + (Operational Expenses × Time)</strong></p>



<p>While this formula seems simple, multiple internal and external factors affect the final TCO. Here’s what business owners should always keep in mind:</p>



<ol class="wp-block-list">
<li>Identifying all operational cost factors can be complex.</li>



<li>Different software or services might have varied cost structures.</li>



<li>Economic conditions like growth, inflation, or recession can impact TCO.</li>
</ol>



<p>When making IT investments, it’s easy to focus on the initial price tag, but that’s just the tip of the iceberg. Total Cost of Ownership (TCO) reveals the true cost of your investments, from purchase to operation and maintenance.</p>



<p>To get an accurate picture, you need to team up with finance and consider all the expenses involved. With a clear understanding of TCO, you’ll be empowered to make informed decisions that drive your business forward.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Confused by software costs?<br>Our experts will calculate them for you.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>



<h2 class="wp-block-heading"><strong>White-Label and SaaS Vs Custom Software: Is Cost Comparison Possible?</strong></h2>



<p>Imagine a common situation most business owners or C-level execs face today: <strong>Your company is to decide between buying a white-label or SaaS product and investing in custom software development</strong>. Let’s explore a hypothetical scenario and a total cost of ownership example to illustrate the key considerations.</p>



<h3 class="wp-block-heading">💡 <strong>The Scenario</strong></h3>



<p><strong>Your company is in a steady-growth phase and naturally needs a CRM system to manage your sales team’s activities. You’ve received two proposals</strong>:</p>



<p>a) Use a white-label CRM solution for $500 + a percentage of revenue</p>



<p>b) Develop a custom CRM system at a significantly higher cost (10 times more)</p>



<p>Most owners would go straight to a ready product thinking it’ll help them save time and money. While it seems logical, here are <strong>four questions</strong> you should ask yourself before making this decision.</p>



<h4 class="wp-block-heading">📌 <strong>Question 1: What is your company’s long-term strategy?</strong></h4>



<p>Do you prioritize short-term profits (<strong>dividend strategy</strong>) or aim to grow your company for a potential sale (<strong>growth strategy</strong>)?</p>



<p>If you plan to sell your business, owning intellectual property (IP) and assets is crucial. Put simply, if you don’t have your proprietary code, you have nothing to sell.</p>



<p><strong>Conclusion</strong>: A ready solution is not a good option if you plan to sell your business eventually.</p>



<h4 class="wp-block-heading">📌 <strong>Question 2: How well does the white-label solution align with your plans?</strong></h4>



<p>From the developer’s perspective, offering a ready-made solution on a subscription basis is ideal, and additional paid customizations seem like a bonus. However, extensive customizations for a single client can interfere with the development of the core product, complicate support, and distract the team, leading to mutual dissatisfaction.</p>



<p>From the client’s perspective, the situation isn’t ideal either. They end up paying for the development of someone else’s product — the product they will never own.</p>



<p><strong>Conclusion</strong>: A ready-made solution is an excellent choice if it meets almost 100% of your needs. Otherwise, there is a risk of encountering problems within a few months and getting the TCO for SaaS products exceeding the budget.</p>



<h4 class="wp-block-heading">📌 <strong>Question 3: What is your product vision based on?</strong></h4>



<p>If the product relies on assumptions and hasn’t yet been tested on real users, investing in a fully developed, expensive solution will likely be a disaster. The primary goal here is to test hypotheses and gather user feedback quickly and inexpensively.</p>



<p>There are two approaches to choose from in this scenario:</p>



<ol class="wp-block-list">
<li>Finding a ready but flexible and customizable solution;</li>



<li>Quickly <a href="https://rocketech.it/blog/post/when-to-launch-an-mvp-7-scenarios-where-its-crucial" target="_blank" rel="noreferrer noopener">building and launching</a> a <strong>minimum viable product</strong> (<strong>MVP</strong>).</li>
</ol>



<p>The difference here is that when building an MVP, the entire product belongs to your business from the beginning. It means much easier customizations, any pivots dictated by external factors, and proprietary code as your IP asset.</p>



<h4 class="wp-block-heading">📌 <strong>Question 4: How easily can you exit the ready-made solution?</strong></h4>



<p>It’s vital to know that you can easily and painlessly say bye to your ready-made solution. It means a seamless transition out of the solution while being able to extract your data in a convenient format. Be cautious of vendors who may limit your access or data ownership.</p>



<p><strong>Conclusion</strong>: If your business deals with sensitive data, ready products might pose multiple threats connected to its safety.</p>



<h2 class="wp-block-heading"><strong>Expert Insight: User Needs and Product Customization</strong></h2>



<p>When calculating the TCO for IT systems, think not just about money but also about <strong>user experience </strong>and <strong>customization needs</strong>.</p>



<figure class="wp-block-table"><table class="has-gray-50-background-color has-background"><tbody><tr><td>Regardless of your target user base, don’t overlook <strong>distribution</strong>. Effective distribution ensures the system is accessible and usable by its intended audience, significantly impacting its overall cost and effectiveness.</td></tr></tbody></table></figure>



<p><strong>Customizing the product to meet specific client requirements is often more valuable than a ready-made solution</strong>. Many businesses buy off-the-shelf software but neglect <a href="https://rocketech.it/blog/post/why-fixed-price-model-is-not-the-best-option-for-custom-software-development" target="_blank" rel="noreferrer noopener">to tailor it to their needs</a>. And it always has consequences.</p>



<p>Take “ShopEase,” a mid-sized e-commerce company upgrading its inventory management system. They choose a popular off-the-shelf solution, thinking it will save time and money. However, the software doesn’t integrate well with their existing sales platform, leading to data discrepancies and frustrated employees.</p>



<p>💡 ShopEase decides to customize the software. They hire a developer to integrate it seamlessly with their sales platform and add features like real-time stock updates and automated reorder alerts.</p>



<p>This customization incurs additional costs, but the benefits are clear. Employees find the system easier to use, reducing training time and errors. Real-time updates improve inventory accuracy, preventing stockouts and overstock situations. Ultimately, these improvements lead to better customer satisfaction and increased sales.</p>



<h2 class="wp-block-heading"><strong>Final Thoughts</strong></h2>



<p>When the time comes for a business to invest in a software product, it’s natural to try to save up, and a ready product may seem like a cost-effective option. However, many startup founders and small business owners overlook SaaS customization costs, maintenance, and even employee training that make up the total ownership cost.</p>



<p>In contrast, <strong>custom software development is an investment</strong>. It offers a tailored solution that aligns with your specific business needs. While the upfront investment may be higher, you avoid paying for unnecessary features and benefit from seamless integrations handled by the same experts who developed your software. This approach also enables continuous feedback and improvement, reducing training costs.</p>



<p>As businesses evolve, SaaS solutions may no longer suffice. Custom software development provides a scalable solution that adapts to your growing needs. When evaluating software options, consider the software ownership’s long-term costs and benefits. </p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Consider building a custom product<br>but unsure about the final price?<br>Get the first estimate for free.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>



<p></p>



<p></p>


Total Cost of Ownership: The Hidden Expenses and How to Calculate Them

Internet of Behaviors: What Do Marketers Know About You?

<p><strong>What is no-code app development?</strong> Imagine a typical scenario. A young <a href="https://rocketech.it/blog/post/developing-a-startup-app-in-2023-how-to-win-the-competition-race">startup</a> has a potentially world-changing idea and the ambition to conquer the business world but a limited budget. It’s just the beginning and only a business hypothesis that hasn’t yet met the reality of user needs and customer pain points.</p>



<p>A few decades ago, this startup’s founders would have started with a comprehensive business plan for at least five years and a long list of technical requirements for a full-cycle custom software development project. <strong>Today, we have the magic of no-code app builders</strong>. The idea is anyone can easily build a mobile app within just a few days.</p>



<p>Is it, however, that simple in real life? And does it really mean the days of native development are over? We summed up some hard facts about different approaches to software development.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="874" height="620" src="https://wp.rocketech.it/wp-content/uploads/2024/01/no-code-low-code.png" alt="A no-code developer is rearranging icons corresponding to the app's features." class="wp-image-6739"></figure>



<h2 class="wp-block-heading">What Is No-Code Development?</h2>



<p>How does no-code work? Put simply,<em> </em><strong>no-code (zero-code) is the process of programming without writing code</strong>. In other words, it’s creating applications using a system of predefined objects and their relationships, similar to constructing something with a set of building blocks. In this approach, users can create objects based on templates, configure the system, design screen forms, and set up processing logic without manually writing code.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p></p>
<cite><strong>Imagine building a website using a drag-and-drop website builder. You assemble components like images, text boxes, and buttons without the hassle of writing intricate code.</strong></cite></blockquote>



<p>The key idea is that application blocks and their integrations are already developed and coded, and artificial intelligence can be used to generate the necessary code automatically. This approach aims to simplify the development process by allowing users to build applications through visual interfaces and predefined components, reducing the reliance on traditional coding skills.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2024/01/8.png" alt="A quote explaining what no-code development is" class="wp-image-6733"></figure>



<h3 class="wp-block-heading">No-Code Programming: Pros and Cons</h3>



<p>Like any other approach to software development, no-code has advantages and weaknesses. Here are the main points summed up.</p>



<h4 class="wp-block-heading">No-Code: The Advantages</h4>



<p>These are the main reasons why businesses opt for no-code development.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>It’s accessible.</strong></li>
</ul>



<p>No-code platforms are user-friendly. Even novice programmers can quickly create websites and applications.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>It’s fast.</strong></li>
</ul>



<p>On a no-code platform, most of the development is done through a drag-and-drop interface with pre-built modules. It accelerates the website building and testing processes.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>It’s cost-efficient.</strong></li>
</ul>



<p>Having it done more easily and faster, businesses can hire fewer professional developers, potentially reducing development costs.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>It increases productivity.</strong></li>
</ul>



<p>For the same reasons as in the previous point, there is more time available to focus on other tasks, leading to increased overall productivity.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>It’s adaptable.</strong></li>
</ul>



<p>Unlike traditional manual coding, where changing functionality can be challenging without deep knowledge of a programming language, no-code applications make even new logic implementation faster. Changes can be launched within a few hours.</p>



<h4 class="wp-block-heading">No-Code: The Disadvantages</h4>



<p>Despite all the advantages, there are some critical points many business owners often overlook.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>You n</strong><strong>eed to know exactly what your final product will be.</strong><strong></strong></li>
</ul>



<p>To do no-code development well, you need to really understand what you want the final product to be. Since no-code platforms have their limits, it’s crucial to verify if these limits might affect how you want your website or app to work.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>The templates are rigid.</strong><strong></strong></li>
</ul>



<p>No-code platforms don’t offer endless options for components. The rigidity of available templates can limit creative flexibility and make the design less unique.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>Lack of control causes security implications.</strong></li>
</ul>



<p>Unlike native development, a no-code mobile app builder doesn’t give you full control over the application. It can lead to security and reliability issues like the platform suddenly closing or changing owners. As a result, vital systems might become open to risks, including the possibility of harmful code getting in.</p>



<ul class="wp-block-list">
<li><strong></strong><strong>Migration becomes complex.</strong></li>
</ul>



<p>If you decide to switch from the first development platform, changing to a new one can be tricky. Even if you get access to the source code, it’s harder to manage and update the code because there aren’t clear instructions and documentation.</p>



<h2 class="wp-block-heading">What Is Low Code Development?</h2>



<p>The term “no-code” is often used together with the term “low-code,” but there is a significant distinction between them. No-code platforms allow users to build software without modifying the underlying code. Typically, they employ a visual interface that guides users step by step through the development process. In many cases, these tools utilize drag-and-drop functionality.</p>



<p>On the other hand, <strong>low-code platforms may require limited knowledge of scripting languages</strong> (like Python, JavaScript, or PHP). These solutions usually consist of a mix of visual interfaces and coding sections with some guidance, where users might need to write small commands and data processing scripts.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p></p>
<cite><strong>Picture using a platform that offers pre-built components while allowing you to inject custom code for added flexibility. It caters to both simplicity and customization, making it suitable for more complex projects.</strong></cite></blockquote>



<p>Low-code development platforms are typically designed for applications that are more complex or critical to the business and require manual control from a skilled developer (in comparison to no-code).</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2024/01/9.png" alt="A visual quote explaining what low-code development is." class="wp-image-6735"></figure>



<p>Both no-code and low-code approaches have limits, so a project may quickly reach the functionality ceiling. To get past this, the software might need to be completely rewritten. Typically, after hitting these limitations, projects shift to <strong>native development</strong>. So, low-code and no-code are excellent for hypothesis testing and prototyping. After that, if things look good, money can be set aside to do it properly.</p>



<h2 class="wp-block-heading">What is Native Development?</h2>



<p><strong>Native development means creating applications specifically for a particular mobile platform</strong>. If you want to <a href="https://rocketech.it/blog/post/5-reasons-why-your-business-needs-a-mobile-app">make an app</a> for both iOS and Android users, you need to write a separate version for each operating system.</p>



<p>One of the main <strong>advantages</strong> of native development is that it provides high performance for the app. It directly interacts (as much as possible) with all the device’s resources and can access most functions provided by the OS (like photo and video shooting, geolocation, and the use of sensors).</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Get a project estimate in a free intro call.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>



<p><strong>It’s a way to build better apps</strong>. However, there are <strong>drawbacks</strong>. Developing native apps for multiple platforms can be costly and time-consuming. They require constant support and updates. Many are related to adjusting the software to meet the latest requirements of operating systems. And you have to do it separately for each system.</p>



<p>Native development is suitable for those who are ready to take the task seriously, do it with high quality and commitment, and understand how to make the investment worthwhile.</p>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="900" height="300" src="https://wp.rocketech.it/wp-content/uploads/2024/01/10.png" alt="A visual quote explaining what native development is." class="wp-image-6737"></figure>



<h2 class="wp-block-heading">Common Myths About No-Code Development</h2>



<p>Recently, no-code development has become a buzzword heavily promoted by numerous online schools and marketers trying to sell it as a universal solution to all software development challenges. While this approach can be advantageous (when done right), there are <strong>five common misconceptions</strong> misleading many startupers.</p>



<h3 class="wp-block-heading">Myth #1: You don’t need any specific app development knowledge.</h3>



<p>No-code tools promise quick app development, but mastering UX/UI design and database handling is crucial. Most platforms overlook UX, lack quality in UI, and ignore database intricacies.</p>



<p>Moreover, specific knowledge, like iOS guidelines and Android design, is essential. Some platforms demand programming skills like JavaScript. No-code courses might lead to basic apps, but true proficiency requires mastering design and database concepts.</p>



<h3 class="wp-block-heading">Myth #2: Constructors make development 10 times cheaper.</h3>



<p>Claims of 10 to 20 times faster development with no-code constructors are exaggerated. While they speed up development, the actual acceleration is around threefold.</p>



<p>Cost-effectiveness may become about 5.5 times cheaper, but further acceleration risks compromising app quality. Creating clones of major apps post-course is unrealistic; complex products always need professional teams.</p>



<h3 class="wp-block-heading">Myth #3: No-code products are on par with code-developed native apps.</h3>



<p>No-code apps differ in functionality and quality based on underlying technology. PWAs (e.g., Bubble or Glide) lack native smoothness and gestures. Cross-platform frameworks (e.g., React Native or Flutter) have drawbacks like larger size and lower performance. Native code (e.g., AppMaster or IDE DePro) generally leads to more robust applications. Constructors, even the best, are geared toward MVPs and lag behind native apps.</p>



<h3 class="wp-block-heading">Myth #4: No-code products are easy to scale and expand.</h3>



<p>No-code claims of easy scalability and expansion are often overstated. Many constructors lack true scalability, slowing down as users exceed 1000. Some rely on third-party tools, incurring extra costs. Declarations of scalability by tools like Xano lack clear implementation details. Expandability is limited, and users may switch to code after the MVP stage if a constructor’s capabilities fall short.</p>



<h3 class="wp-block-heading">Myth #5: There are millions of no-code developers.</h3>



<p>Claims of millions of no-code developers and applications are inflated. The reality check comes from app store statistics. Google Play Store, for example, adds about 1 million applications (including games) each year, and even more apps get removed. It happens as the app store introduces new policies, safety rules, and increasingly automated app reviews that sometimes remove even legitimate programs. As a result, the Google Play Store currently hosts around 2.6 million applications, and the App Store has even fewer.</p>



<p>Significantly, the statistics for new app additions show no sudden spikes, suggesting that the proportion of applications developed with no-code platforms in the Google Play Store is very small.</p>



<h2 class="wp-block-heading">What Do You Really Need No-Code Development For?</h2>



<p>Let’s put everything in its place — different approaches to software development serve different purposes. If you have a business hypothesis that needs quick validation, a no-code solution or low-code development will help you do that at a relatively low cost. In this case, you quickly build a functional yet limited <a href="https://rocketech.it/blog/post/the-strategic-advantage-of-mvp-development-for-startups">minimum viable product</a> (MVP) and either test your idea or get a flashy prototype ready to attract your first investments. Or both.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p></p>
<cite><strong>No-code and low-code shine in testing hypotheses, rapid prototyping, and swiftly translating ideas into functional applications. Once validated, these projects may transition to more robust native implementations.</strong></cite></blockquote>



<p>However, if you are working on a large, user-focused product with high productivity, unique design, and comprehensive functionality (including fancy sensors and complex payment integrations), be ready to opt for native development.</p>



<div class="wp-block-blog-action wp-block-action has-light-color has-primary-background-color has-text-color has-background"><div class="wp-block-action__text">Looking for a trusted tech partner to help you build a product that will bring results?<br>Talk to our specialists.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


Native Vs No-Code Development for Business: What You Need to Know

<p>For a month, the Rocketech Team has been trying to adjust to the horrifying impact of the unprovoked Russian military invasion of Ukraine. We are grateful for the understanding and support from our clients, partners, and friends.</p>



<p>With a significant part of our Team remaining in Ukraine, our first and foremost priority has been their safety and well-being. At the same time, we keep working on all current projects following our standard operating procedure and remaining a reliable partner to all our clients who stand with us for peace.</p>



<h2 class="wp-block-heading"><strong>Emergency Operations Centre and Employee Support</strong></h2>



<p>From the outset of the crisis, Rocketech developed the emergency response plan to ensure communication and all possible support to our Team members and their families in Ukraine.</p>



<ul class="wp-block-list">
<li>We created an internal emergency operations center to help our Team members trapped close to the front line relocate to Western Ukraine, the Polish border, or Poland. It is a volunteer initiative of our colleagues located in safer areas of Ukraine or residing in other countries.</li>



<li>Our volunteers assist the Team members and their families in relocation, provide food and medical aid, and help colleagues and their relatives who remain in the hot spots.</li>



<li>We search for lost relatives, organize temporary homes for pets, and look for other ways to support our colleagues and their families close to the front line.</li>



<li>Through the internal fund, the company provides financial assistance to those who temporarily cannot work until they can get back to their regular work routines.</li>



<li>With the help of the Team members residing in other countries, we organized a network of people and organizations providing information and help in Poland, Hungary, Iceland, Austria, Georgia, Moldova, Armenia, and Turkey.</li>



<li>We organized psychological help with professional counseling free for our Team and 24/7 volunteer support to fight anxiety and emotional distress.</li>
</ul>



<h2 class="wp-block-heading"><strong>Business Operations</strong></h2>



<p>Rocketech is withdrawing from the Russian market to end direct or indirect support for the aggressor country’s economy. We have completely stopped cooperation with Russian banks and companies — we no longer transfer money and accept payments.</p>



<p>We have discontinued all marketing and advertising operations targeting the Russian market. Among other things, we have withdrawn from the top-rated companies of the Russian market on Clutch and closed the company’s visibility to users from Russia in search results on the platform.</p>



<h2 class="wp-block-heading"><strong>Team</strong></h2>



<p>Currently, about 40 of our colleagues remain in the territory of Ukraine. We contact each employee regularly to verify their location and safe conditions. From the 28th of February, we strategically reassigned the teams dedicated to all our projects to ensure that we fulfill all our contract obligations.</p>



<p>We had to adjust our recruiting strategy. Rocketech no longer considers applicants from Russia and Belarus as we do not support these countries’ economies. We, however, stand against any human discrimination and are willing to onboard new talents who make a decision to relocate to countries that do not support the war in Ukraine.</p>



<p>We value all our current employees, appreciate their professionalism and experience, and want to continue cooperation. In these complicated circumstances, we establish a dialogue with each employee from Russia and Belarus and discuss their personal and family situations to find solutions to keep them as our Team members.</p>



<h2 class="wp-block-heading"><strong>Concluding Statements</strong></h2>



<p>We are shocked and deeply affected by the human tragedy of some of the darkest days in European history and condemn the military actions launched by the Russian armed forces in Ukraine. We are witnessing unprecedented and tragic events that will forever reshape the world.</p>



<p>In this new reality, we find it crucial to be united by the common principles and the company’s core values. At Rocketech, we are proud of our international and multi-language Team based on mutual respect, support, and trust. Having said that, we decry any bullying of Russian citizens who do not support their government’s actions. We stand against any act of aggression and discrimination on the grounds of nationality.<br></p>


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