<p>Growing a business isn’t just about working harder but making the right moves at the right time. Just like people, companies go through different stages of development. Skipping steps or rushing ahead can lead to chaos instead of success.</p>



<p>That’s where the <strong>Six Levers of Growth</strong> framework comes in. These levers help businesses scale smoothly by focusing on key areas like revenue models, marketing, business processes, team structure, and <a href="https://rocketech.it/blog/post/hyperautomation-as-a-strategic-business-requirement" target="_blank" rel="noreferrer noopener">automation</a>. When used correctly, they create a strong foundation for sustainable growth.</p>



<p>In this article, we’ll break down each lever and show you how to apply them to your business.</p>



<h2 class="wp-block-heading">Why Growth Needs a Systematic Approach</h2>



<p>The <strong>Adizes model</strong> explains that every company moves through <strong>10 stages</strong>, from ‘Courtship’ and ‘Infancy’ to ‘Prime’ and eventually ‘Bureaucracy’ or even ‘Death.’ These stages reflect how a business matures, adapts, and either thrives or declines.</p>



<p>Many companies try to skip steps, jumping straight to automation, scaling, or process optimization without a strong foundation. But just like a child can’t become an adult overnight, a company can’t leap from ‘Infancy’ to ‘Prime’ without going through critical growth phases.</p>



<p>The <strong>Six Levers of Growth</strong> ensure businesses transition through these stages in the right order, avoiding costly mistakes and setting themselves up for long-term success.</p>



<p>Now, let’s break down each lever and how it contributes to sustainable growth. </p>


<div class="wp-block-image is-style-default">
<figure class="aligncenter size-full is-resized"><img loading="lazy" decoding="async" width="838" height="616" src="https://wp.rocketech.it/wp-content/uploads/2021/09/image.png" alt="This image illustrates the life cycle of a business (the Adizes model), highlighting the transition from growth to aging. It includes stages such as 'Courtship,' 'Infancy,' 'Go-Go,' 'Adolescence,' 'Prime,' 'Stability,' 'Aristocracy,' 'Recrimination,' 'Bureaucracy,' and 'Death,' along with potential challenges at each stage. The visual is color-coded to differentiate growth stages (green) from aging stages (red), providing a clear overview of the business life cycle and its critical points." class="wp-image-979" style="width:692px;height:508px"><figcaption class="wp-element-caption"><strong>Adizes Model</strong></figcaption></figure></div>


<h2 class="wp-block-heading">Is Skipping Stages a Problem?</h2>



<p>Many companies rush into digital transformation to keep up with trends, but without proper preparation, this often leads to chaos instead of progress.</p>



<p>Take automation, for example. If a company’s data is already a mess before implementing a CRM system, that chaos won’t magically disappear after integration. Employees who weren’t entering data before won’t suddenly start just because a new system is in place.</p>



<p>Without analysis and preparation, a business can’t build a solid, functional model. Improvisation often does more harm than good. Growth needs <strong>consistency </strong>— it helps prevent costly mistakes and keeps the company on track.</p>



<p>Now, let’s break down each lever and how it contributes to sustainable growth.</p>



<h2 class="wp-block-heading">First Lever: Income Generation Model</h2>



<p>This lever helps you understand how to make money and maximize profit. According to <strong>Porter’s Five Competitive Forces model</strong>, five key factors affect a company’s profitability:</p>



<ul class="wp-block-list">
<li><strong>Industry competition</strong>: The level of rivalry among existing businesses.</li>



<li><strong>Clients</strong>: Customers’ power to influence pricing and demand.</li>



<li><strong>Substitutes</strong>: Alternative products or services that could replace yours.</li>



<li><strong>Suppliers</strong>: Their control over pricing and availability of materials.</li>



<li><strong>New entrants</strong>: Emerging businesses trying to capture market share.</li>
</ul>



<p>These forces constantly interact. <strong>Digitalization</strong> has made it easier for customers to compare options, increasing the importance of competitive pricing and unique value. Suppliers aim to dominate supply chains, while new players fight for niche markets. Even substitutes — products that aren’t direct competitors — can take a share of your market.</p>



<p>The balance of these forces shapes the <strong>profit-making zone </strong>— the part of the market where a company generates revenue. In the past, market share determined profitability, but today, success depends on <strong>innovation, new management models, and creative strategies</strong>.</p>



<p>Businesses that leverage these tools expand their presence in the profit-making zone and achieve long-term growth. To do this effectively, companies must <strong>analyze market opportunities and position themselves accordingly</strong>.</p>



<h3 class="wp-block-heading">10 Strategies to Protect Profits</h3>



<p>To safeguard revenue, businesses can use the following 10 key strategies:</p>



<ol class="wp-block-list">
<li><strong>Product Differentiation</strong>. While many companies strive to stand out, differentiation alone isn’t always profitable. Without clear demand, finding the right customers for a unique product can be difficult.</li>



<li><strong>Differentiation with Cost Parity</strong>. A more efficient approach — a company differentiates its product while keeping costs aligned with competitors.</li>



<li><strong>Differentiation with Cost Leadership</strong>. A strong strategy for profit protection. By optimizing production costs, businesses can identify and eliminate high-cost, low-value elements, improving margins.</li>



<li><strong>One-Year Technological Lead</strong>. Investing in R&amp;D can help develop innovative solutions that competitors won’t have access to for at least a year. This offers moderate profit protection.</li>



<li><strong>Two-Year Technological Lead</strong>. A more effective long-term strategy. With the right execution, businesses can secure user loyalty and sustain profitability.</li>



<li><strong>Brand and Copyright Protection</strong>. A recognizable brand gives a competitive edge, while copyrights and patents prevent competitors from copying innovations.</li>



<li><strong>Customer Relationship Ownership</strong>. Companies that collect user data and build loyalty programs can create stable, recurring revenue through targeted offers and personalized experiences.</li>



<li><strong>Dominant Market Position</strong>. Larger companies with a broad range of services hold stronger market positions, making them more resilient to competition.</li>



<li><strong>Value Chain Management</strong>. Vertical integration, where a company controls the entire production cycle, is a highly effective way to protect profits.</li>



<li><strong>Establishing an Industry Standard</strong>. Launching a niche product with no direct alternatives can be a winning strategy, but it requires proper investment and market research to succeed.</li>
</ol>



<p>These strategies <strong>work best when combined</strong>, allowing businesses to <strong>maximize profitability and strengthen their competitive edge</strong>.</p>



<h2 class="wp-block-heading">Second Lever: Marketing Strategy</h2>



<p>To reach the <strong>profit-making zone</strong>, a company needs a well-defined marketing strategy, including:</p>



<ul class="wp-block-list">
<li><strong>Pricing strategy</strong>: Setting prices based on market conditions, competition, and consumer expectations.</li>



<li><strong>Quality strategy</strong>: Ensuring product quality and optimizing production processes to meet international standards.</li>



<li><strong>Service strategy</strong>: Maintaining customer relationships beyond the initial sale.</li>



<li><strong>Positioning strategy</strong>: Identifying and targeting the ideal market niche while staying aligned with industry trends.</li>



<li><strong>Functionality strategy</strong>: Offering product features that directly address customer needs.</li>



<li><strong>Product strategy</strong>: Managing product categories and variations to optimize the assortment.</li>



<li><strong>Distribution strategy</strong>: Organizing sales channels and managing product availability.</li>



<li><strong>Partnership strategy</strong>: Selecting business partners with complementary products and solutions.</li>
</ul>



<p>By implementing these strategies, a company gains the necessary tools to move closer to <strong>sustainable profitability</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/2021/09/business-growth-1.png" alt='"Explore effective strategies for business growth with this visual, showcasing a hand-drawn bar graph and upward trend line, accompanied by a laptop, calculator, glasses, and sticky notes. Enhance your financial and strategic planning skills to drive positive business growth.' class="wp-image-10038"></figure>



<h2 class="wp-block-heading">Third Lever: Business Processes</h2>



<p>A company’s <strong>positioning</strong> must be reflected in its daily operations. Positioning isn’t just a branding decision — it should be <strong>visible at every customer touchpoint</strong>.</p>



<p>Each customer interaction aligns with a specific <strong>business process</strong>, making positioning an active, ongoing element in company operations. If a customer expects certain standards from a company, those expectations should be consistently met at each touchpoint.</p>



<p><strong>Online Touchpoints</strong></p>



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



<li>Website</li>



<li>Blog</li>



<li>Social media</li>



<li>Chatbots</li>



<li>Customer reviews</li>



<li>Mobile apps</li>



<li>Content strategy</li>



<li>Email campaigns</li>
</ul>



<p><strong>Offline Touchpoints</strong></p>



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



<li>Advertising</li>



<li>Physical office</li>



<li>Products</li>



<li>Technologies</li>
</ul>



<p>This <strong>connection between the customer journey and business processes</strong> means that every interaction plays a role in revenue generation. Since each step of the <strong>customer journey</strong> impacts profitability, the <strong>Customer Journey Map</strong> effectively becomes a <strong>visual representation of a company’s profit model</strong>. In turn, business processes serve as the internal framework that ensures this model functions effectively.</p>



<h2 class="wp-block-heading">Fourth and Fifth Levers: Organizational Structure and HR Policy</h2>



<p>The <strong>organizational structure</strong> reflects the company’s business model. According to the <strong>competency model</strong>, employees are assigned roles based on their expertise and are responsible for tasks aligned with customer needs and their ability to pay.</p>



<p>Tools like <strong>RASCI</strong> and <strong>FTE</strong> help define responsibilities, allocate tasks, and organize workflows with clear schedules. The key idea is that <strong>business processes</strong> should guide the allocation of resources and the assignment of roles, ensuring that functions are effectively distributed among employees.</p>



<h2 class="wp-block-heading">Sixth Lever: Automation</h2>



<p>One of the most important levers for success is the <strong>automation</strong> of company processes. It speeds up work, saves resources, and improves quality.</p>



<p>Every organization needs an executive function along with tools for <strong>process monitoring</strong>. These tools help analyze and optimize internal procedures. A <strong>digital twin</strong> of the company can be used to implement this by creating a virtual model of enterprise processes. Businesses can analyze every aspect of their operations and plan future development based on data-driven insights.</p>



<p><strong>Digital representations</strong> of all processes are critical for better monitoring because they connect the company’s IT infrastructure with its day-to-day operations.</p>



<p>The <strong>strategy</strong> and <strong>marketing models</strong> should be integrated with <strong>business analytics systems</strong>, which support decision-making based on data. Additionally, <strong>ERP systems</strong> are essential for managing finances, including assets, debts, and balance sheet indicators.</p>



<p>For production management, <strong>MES systems</strong> (Manufacturing Execution Systems) help coordinate production processes, track product quality, allocate resources, and manage maintenance. Automation in production is also enhanced by <strong>SCADA systems</strong>, <strong>dispatching systems</strong> (ADTCS), and <strong>automated control systems (ACS)</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/2021/09/business-growth.png" alt='"Discover key strategies for business growth with this engaging image featuring a laptop and hands interacting with rising financial graphs and arrows. This visual effectively highlights increasing market trends and successful business strategies, making it ideal for topics related to financial analysis and business development.' class="wp-image-10040"></figure>



<h2 class="wp-block-heading">Bottom Line</h2>



<p>Success is creating a system that works for your unique business. Each lever we’ve discussed is a critical piece in building a framework that helps your company move from chaos to clarity. By aligning your pricing, business processes, and automation with a clear vision, you can create real, measurable value for both your customers and your bottom line. Building a strategy will help you actively drive growth, minimize waste, and turn potential into profit.</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">Stuck in the growth phase? We can help.<br>Get a free discovery session.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a free call</button></div>


6 Levers of Growth: A Smarter Approach to Business Development

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

<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>Trust is the foundation of every successful business relationship. We have always taken pride in the reputation we’ve built — one of professionalism, expertise, and unwavering commitment to delivering the best possible solutions to our clients.</p>



<p>Recently, we’ve learned that certain individuals and agencies have been reaching out to our clients (both current and former) <strong>falsely claiming they were involved in the development of projects we have delivered</strong>. Let’s be clear: this is completely untrue. <strong>We do not outsource our work, nor do we rely on third-party developers</strong>. Every project we undertake is executed entirely in-house by our carefully selected, highly skilled team.</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/2025/03/false-claims.png" alt="Edited screenshot of a direct message containing false claims about contributions to a project involving a Custom AI-based tool for executive management. The message itself is misleading and prompted this press release to address and correct the misinformation." class="wp-image-10590"></figure>



<p>We have worked hard to establish a world-class recruitment and HR process, ensuring that only the best professionals become part of our company. Our hiring standards are rigorous, and we take great care in assembling teams that uphold our values and deliver the level of quality we stand for. When we promise our clients expertise, dedication, and reliability, we mean it. Because <strong>we know exactly who we are working with</strong>.</p>



<p><strong>It is deeply concerning to see attempts to mislead our clients and undermine the trust we’ve built</strong>. If you receive any such claims, please know that they are false. And if you ever have any doubts, we encourage you to reach out to us directly. Your trust means everything to us, and we are committed to protecting it.</p>



<p>To our clients and our team — we appreciate you. Your support and dedication are what make our work meaningful, and we will continue to uphold the high standards that have defined our company from the very beginning.</p>


Protecting Integrity: A Message to Our Clients and Partners

<p>One of the key features of today’s digital environment is multi-channel support. <strong>Ensuring an effective online presence that brings potential customers is becoming a vital challenge for organizations</strong>. While a fully functioning website is already a strategic precondition, some companies still research the benefits of mobile applications for business processes.</p>



<p>Yet, most growth analysts agree that having a mobile app for your business adds another powerful tool for reaching target audiences to your strategy. Imagine the number of smartphone subscriptions is projected to reach almost <a href="https://www.statista.com/statistics/330695/number-of-smartphone-users-worldwide/" target="_blank" rel="noreferrer noopener nofollow">$7.9 billion by 2028</a>, while users spend almost <a href="https://www.emarketer.com/content/the-majority-of-americans-mobile-time-spent-takes-place-in-apps" target="_blank" rel="noreferrer noopener nofollow">90% of mobile time</a> on apps. It opens unlimited opportunities to stay in touch with your customers and expand your business reach.</p>



<p>In our guide, our analysts explain <strong>why a mobile app is beneficial for business and how to use all advantages of this strategic decision</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/2023/03/mob-app-for-business.png" alt="Mobile phone with app icons. Futuristic image illustrating benefits of business mobile apps." class="wp-image-5302"></figure>



<h2 class="wp-block-heading"><strong>When Should You Have a Mobile App for Your Business?</strong></h2>



<p>After <a rel="noreferrer noopener" href="https://rocketech.it/blog/post/when-should-you-make-a-mobile-app-and-when-should-not" data-type="URL" data-id="https://rocketech.it/blog/post/when-should-you-make-a-mobile-app-and-when-should-not" target="_blank">weighing the pros and cons of web and mobile development</a>, we have identified several benefits that make a mobile app the ideal solution for a business, especially if you’re considering creating an enterprise solution.</p>



<h3 class="wp-block-heading"><strong>Mobile Traffic on Your Website</strong></h3>



<p>In other words, <strong>your customers visit your website from their mobile devices</strong>.</p>



<p>It’s quite easy to track traffic through Google Analytics or similar tools. Look at the ratio of users accessing the site via desktops to mobile devices. In general, a customer already using a mobile phone to communicate with you or your competitors is a clear signal for action.</p>



<h3 class="wp-block-heading"><strong>Your Competitors Use Mobile Applications</strong></h3>



<p>There is hardly any niche with no competition. Look at the reviews, ratings, and number of downloads of your competitors’ apps. Analyzing the functionality and content can bring you new ideas and valuable insights. First, you need to understand how to stand out among the companies you compete with and whether you can do it with an app.</p>



<h3 class="wp-block-heading"><strong>Time for a Loyalty Program</strong></h3>



<p>Overall digitization affects not only business environments but your customers. More people prefer to switch to <a href="https://www.cbinsights.com/research/report/future-of-the-wallet/" target="_blank" rel="noreferrer noopener nofollow">digital wallets</a> to free themselves from carrying dozens of cards. And it includes physical loyalty cards.</p>



<h2 class="wp-block-heading"><strong>5 Reasons to Create a Mobile App for Your Business</strong></h2>



<p>Think about what an app can do that an existing website can’t. If <strong>better communication channels</strong>, <strong>process automation</strong>, and <strong>customer support</strong> align with your immediate plans, you should consider looking for a reliable partner providing <a rel="noreferrer noopener" href="https://rocketech.it/services" target="_blank">mobile app development services</a>. At any rate, an enterprise solution can become a game-changer. And here’s why.</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 where to start? Get a free consultation for your mobile app project.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>



<h3 class="wp-block-heading"><strong>#1 Customer Loyalty</strong></h3>



<p>A high level of customer loyalty is the basis for business viability and growth in the long term. <strong>Loyal customers</strong> generate more than just direct revenue — they become unofficial brand ambassadors and promote the product or service online and offline for free. In other words, <strong>they attract new customers</strong>.</p>



<p>If a business cannot keep a customer’s attention, it ends up in a vicious circle of increasing the cost of looking for new consumers. In such a case, all resources will be spent on staying afloat. Studies <a href="https://www.invespcro.com/blog/customer-acquisition-retention/" target="_blank" rel="noreferrer noopener nofollow">show</a> that <strong>the advertising and marketing cost to attract a new customer is five times higher than the cost of retaining an existing one</strong>.</p>



<figure class="wp-block-table"><table class="has-dark-color has-gray-100-background-color has-text-color has-background"><tbody><tr><td>An instant <strong>reward system</strong> for devoted customers is an effective way to build brand loyalty. For example, members of the <a href="https://www.sephora.com/beauty/loyalty-program" target="_blank" rel="noreferrer noopener nofollow"><strong>Sephora Beauty Insider</strong></a><strong> loyalty program</strong> receive points for every purchase on the mobile app and redeem them to buy products.<strong> </strong>The point system and discounts encourage customers to remain loyal to the rather expensive beauty brand.</td></tr></tbody></table><figcaption class="wp-element-caption">Mobile app success story experience</figcaption></figure>



<p>Getting a mobile app for business is an efficient and relatively easy way to communicate with customers. Interactive features increase user engagement while you can focus on offering unique services or terms of interaction.</p>



<figure class="wp-block-table"><table class="has-gray-100-background-color has-background"><tbody><tr><td><strong>Wenno</strong>, a manufacturer of toy animal figures, launched an <a href="https://www.wennoanimal.com/website/#/Index" target="_blank" rel="noreferrer noopener nofollow">AR-powered app</a> helping to increase customer loyalty and sales. Every packaging box has a QR code that leads to the app’s free download. The app provides information about each animal in the collection: where it lives, whether it’s endangered, what it eats, and what sounds it makes.</td></tr></tbody></table><figcaption class="wp-element-caption">Mobile app success story experience</figcaption></figure>



<p>However, just launching a mediocre digital product wouldn’t be sufficient. The quality of customer service greatly influences brand loyalty. According to the <strong>State of the Connected Customer Report</strong><em> </em>by <strong>Salesforce</strong>, <a href="https://www.salesforce.com/content/dam/web/it_it/www/pdf/connected-customer-report-2020.pdf" target="_blank" rel="noreferrer noopener nofollow">80% of consumers</a> say <strong>matching their experience to their expectations is as essential as the company product or service</strong>. Long loading times, software glitches, and poor user interface are likely to harm the company’s reputation. </p>



<h3 class="wp-block-heading"><strong>#2 Increase in Sales</strong></h3>



<p>Generating a profit is the primary goal of any business. If you already have established ways to sell your product or service, creating a mobile app for your business can become a new channel to increase revenue. Moreover, it can be a fairly significant increase depending on how large your audience is.</p>



<ul class="wp-block-list">
<li>By <a href="https://neilpatel.com/blog/push-notifications-to-boost-engagement/" target="_blank" rel="noreferrer noopener nofollow">using <strong>push notifications</strong></a>, you can inform your customer about promotions, discounts, and bonuses and, as a result, <strong>motivate them to buy more</strong>.</li>



<li>A mobile application shortens the metaphorical and literal distance between you and your customer. Besides engaging your audience directly with messages, you can use <a href="https://www.marketingprofs.com/articles/2019/41757/how-to-use-geolocation-marketing-to-stand-out" target="_blank" rel="noreferrer noopener nofollow"><strong>geolocation</strong> technologies</a> to notify your clients about special offers from nearby shops or company venues.</li>



<li><strong>Mobile payments</strong> are another way to make your customers feel comfortable while spending money. People no longer want to waste time shopping if they can do it in the comfort of their homes.</li>
</ul>



<figure class="wp-block-table"><table class="has-gray-100-background-color has-background"><tbody><tr><td>After <a href="https://www.retailgazette.co.uk/blog/2020/06/zara-owner-inditex-sales-tumble-358m/" target="_blank" rel="noreferrer noopener nofollow">losing €409 million</a> during the first quarter of 2020 due to the global COVID-19 pandemic, <strong>Zara</strong> increased its sales by an unprecedented 95% later that year. The company made a user-friendly, streamlined online experience a vital part of its anti-crisis <a href="https://www.columbusglobal.com/en-gb/blog/things-you-can-learn-from-inditexs-online-sales-increase" target="_blank" rel="noreferrer noopener nofollow">strategy</a>.</td></tr></tbody></table><figcaption class="wp-element-caption">Mobile app success story experience</figcaption></figure>



<h3 class="wp-block-heading"><strong>#3 Business Process Optimization</strong></h3>



<p>While most company owners think of a mobile app as a business opportunity in terms of direct interaction with customers, such <strong>solutions can also benefit the organization from the inside</strong>. In fact, <a href="https://www.forbes.com/sites/forbesbusinesscouncil/2022/04/01/the-duality-of-it-startups-why-is-it-two-businesses-in-one/?sh=5fa95b3a1526" target="_blank" rel="noreferrer noopener nofollow">establishing internal processes</a> is as important as finding the product-market fit or attracting investments.</p>



<p>An enterprise mobile app may benefit your business in many ways — from employee interaction to complex <a rel="noreferrer noopener" href="https://rocketech.it/blog/post/top-erp-trends-and-the-future-of-enterprise-resource-planning" target="_blank">ERP systems</a> that help <strong>effectively organize and automate a multitude of business tasks</strong> like data sharing and analysis.</p>



<p>Until recently, retail shops would spend days generating a product requisition involving salespeople, managers, logisticians, accountants, and warehouse supervisors. It also meant wasting time on calls, emails, and paperwork. Today, one mobile app for logistics companies can automate this routine, connecting accounting, stock management, reporting, and internal communication. The entire process takes a few minutes.</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/2023/03/mob-app-for-business-analytics.png" alt="Human hands holding tablet with analytics data. Futuristic image for business mobile apps." class="wp-image-5304"></figure>



<h3 class="wp-block-heading"><strong>#4 A Source of Valuable Analytics</strong></h3>



<p>When speaking about data analysis, one should add it to the list of undeniable mobile app benefits for any business. <strong>Which products do your customers buy the most?</strong> <strong>How much time do they spend on your app?</strong> <strong>Which content is popular? Which features do they use most frequently?</strong></p>



<p>You can streamline the data analysis process and get real-time reports on all those questions. It, in turn, helps executives make more informed decisions and have a clear picture of what needs enhancement.</p>



<p>By tracking how people interact with your app, you can understand how to improve it and make it more user-friendly. <strong>Understanding your customers is the key to success in any business niche</strong>. You can get audience geolocation data, demographics, preferences, and much more information valuable for business expansion.</p>



<h3 class="wp-block-heading"><strong>#5 Business Scaling</strong></h3>



<p>By <strong>combining a website with an app</strong>, you get a simple yet effective model. Once the company website attracts traffic through search engines, it redirects a potential customer to the mobile app for more personalized and targeted services and offers. When a customer closes a tab with the company website, they stop interacting with the business. <strong>When the website forwards the visitor to the app, the customer experience just begins</strong>.</p>



<h4 class="wp-block-heading"><strong><em>Simple Tips</em></strong></h4>



<ul class="wp-block-list">
<li>Create a pop-up offering a bonus for installing the app.</li>



<li>Place a reminder at the end of each post.</li>



<li>Set up a redirect page to install the mobile app from Google Play and App Store.</li>
</ul>



<p>In a more general sense, using a mobile app to grow business works as part of a broader strategy of establishing <strong>the brand’s omnichannel presence</strong>. It includes a <strong>website</strong>, a <strong>mobile app</strong>, <strong>social media profiles</strong>, <strong>chatbots</strong>, and a <strong>physical shop</strong> or <strong>office</strong>.</p>



<p>Again, people no longer want to spend a lot of energy on shopping and expect the products and services to be available on any convenient platform. And a company application provides those options and a fair amount of flexibility on top.</p>



<h2 class="wp-block-heading"><strong>Does Everyone Need an App?</strong></h2>



<p>While the benefits of mobile apps for small businesses are unquestionable, the final decision always depends on many factors defining the overall strategy, from geography to target audience. There are, however, some areas where launching a digital product becomes a requirement. Here are some examples of businesses that need mobile apps.</p>



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="896" height="672" src="https://wp.rocketech.it/wp-content/uploads/2023/03/mobile-app-industries.png" alt="Infographic showing top 6 industries benefiting from mobile apps for businesses" class="wp-image-5308" style="width:680px;height:510px"><figcaption class="wp-element-caption">Does your business need a mobile app?</figcaption></figure>



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



<p>Generally speaking, most businesses in <strong>the service industry</strong> engaging many potential and already-existing customers would benefit from adding a mobile application to their sales pipeline.</p>



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



<p>Does your business need a mobile app? There’s probably no single definite answer. Successful examples clearly show how mobile apps help businesses grow, recover from the crisis, and increase customer retention. However, custom software development should always rely on the requirements and objectives of each particular project and client.</p>



<p>Whether a mobile app for a small business or enterprise-level software, we are always proud to <a rel="noreferrer noopener" href="https://rocketech.it/cases" target="_blank">collaborate</a> with our partners.</p>



<p><strong>A stand-alone custom solution may not solve all your business problems. However, as a part of a comprehensive omnichannel strategy, it becomes a powerful tool for increasing profits.</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">Expert mobile app development at your fingertips. We will start your project right away.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


5 Reasons Why Your Business Needs a Mobile App

<p>The education field has been known for its cumbersome nature over the past decades. But now, it implements all current solutions at a rapid pace. Therefore, the education technology industry evolved, and there are no signs of slowing down. During the last ten years, Edtech was turning into a huge multi-billion market for large and small businesses all over the globe, so the current market value is $127 billion (according to <a href="https://www.grandviewresearch.com/industry-analysis/education-technology-market" target="_blank" rel="noreferrer noopener nofollow">Grand View Research</a>). </p>



<p>As George Couros said, technology can revolutionise the world if it winds up in the right hands. We offer to learn more about the Edtech landscape and the most promising niches in 2022. </p>



<h2 class="wp-block-heading">What Drives the Edtech Industry</h2>



<p>The field of educational technology introduces many cutting-edge technologies every year, which attracts the attention of investors and enterprises. This rapid growth has also been possible due to three critical phenomena. </p>



<h3 class="wp-block-heading">COVID-19</h3>



<p>The global pandemic and the massive transition of people online have led to a total increase in demand for eLearning. </p>



<p>And the importance of the pandemic in this regard cannot be overstated. Over 1.5 billion learners worldwide were forced to learn online, and the <em>entire educational system began to use products of </em><em>Edtech companies</em> in the shortest possible time. Despite the easing of restrictions, the coronavirus impact is still strongly felt.</p>



<p>But will education technology continue to boom after the whole world returns to normality? The <a href="https://www.grandviewresearch.com/industry-analysis/education-technology-market" target="_blank" rel="noreferrer noopener nofollow">Grand View Research report</a> shows that the rising trend will remain stable with an 18.1% growth rate every year, and the market value is expected to reach $285.2 billion by 2027. </p>



<h3 class="wp-block-heading">Global Edtech Challenges</h3>



<p>The education field has traditional roots, so it is full of obstacles. But there are also some opportunities that the Edtech industry provides. </p>



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



<li>Low costs of education</li>



<li>High-quality remote learning</li>



<li>Learning opportunities for enterprises</li>
</ul>



<p>And the best Edtech companies in the world can make the most of these opportunities and drive changes in the entire industry.</p>



<h3 class="wp-block-heading">The Overall Digitisation</h3>



<p>The transition to digital solutions increases the learning effectiveness and reduces the volume of routine tasks performed manually. Plus, process automation will benefit both corporate training programs and online schools.</p>



<p>For example, some educational systems <em>provide the content to a large audience</em> (EdX, Udemy, Coursera, Skillshare, Masterclass, etc.), <em>organise group interactions</em> (Zoom, Google Meet, Microsoft Teams, and many others), <em>provide analytics</em> (BrightBytes, Civitas Learning) and so forth. </p>



<p><em>There are not all drivers of such a skyrocketing industry that affects the whole world. Learn more about the latest education trends </em><a href="https://rocketech.it/blog/post/the-top-five-edtech-trends-in-2022-2" target="_blank" rel="noreferrer noopener"><em>here</em></a><em>. </em></p>



<h2 class="wp-block-heading">Top 4 Promising Niches</h2>



<p>The first step when creating an Edtech product is selecting the market niche. Of course, you should follow the current trends to attract investors and potential customers. Let’s find out the four most promising fields to fill in 2022. </p>



<h3 class="wp-block-heading">Prekindergarten (Pre-K)</h3>



<p>More countries implement compulsory early childhood education, but the coronavirus pandemic nearly ruined those plans. However, the authorities quickly found a way out of the situation. They decided to dive deeper into the aspects of educational technology.</p>



<p>And now, kids can learn letters, vocabulary, numbers, and life skills via cutting-edge and engaging apps for handheld devices. Many of these impactful tools provide<em> AI </em>and <em>VR functions</em> that help to fulfil Pre-K children’s needs. </p>



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



<p>There are <em>short learning programs</em> (mostly IT) about six months long and <em>aim to prepare experts for new professions</em>. For example, many large enterprises organise bootcamps to find new talents and improve staff qualifications. Further, students don’t need to pay for the participation until getting hired in the desired position. </p>



<p>This Edtech niche is currently in very high demand. According to the data provided by the <a href="https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm#tab-6" target="_blank" rel="noreferrer noopener nofollow">US Bureau of Labour</a>, the employment of software and QA specialists will grow by 22% until 2030. Another survey from <a href="https://thriveglobal.com/stories/are-coding-bootcamps-the-next-big-thing-in-edtech/" target="_blank" rel="noreferrer noopener nofollow">Switchup</a> states that 68% of bootcamp graduates find jobs in the required position within six months. </p>



<h3 class="wp-block-heading">Advanced Teacher Training</h3>



<p>Many training programmes are very difficult to implement in a digital environment. It is all because of the lack of teachers, especially those with a PhD degree. In the US alone, <a href="https://nces.ed.gov/programs/digest/d20/tables/dt20_209.10.asp" target="_blank" rel="noreferrer noopener nofollow">only 1,2%</a> of professionals over the age of 25 have a doctorate to take the position of the department head or dean. Moreover, an enormous amount of teachers decide to change a profession or even retire, so <em>Edtech platforms are becoming popular among people all over the world to train prospective teachers</em>. </p>



<p>Therefore, authorities worldwide try to implement educational technology for teaching and learning. More colleges and universities offer online Doctor of Education (EdD) courses about 32-months long, allowing to save up to 3 years of training. As a result, the entire industry gets in-demand teachers and specialised instructors.</p>



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



<p>This niche has been paving the way for learning programs for a wide audience, from Pre-K to enterprise employees. <em>Students can solve real-life problems and improve their competencies via fascinating 3D games and simulations</em>. It is very different from the traditional approach, where students are not so much involved in the learning process.</p>



<p>Users can interact with game characters to <em>get valuable information</em> and earn points for the completed tasks. Students can also do them again if they make many mistakes; gamification provides a huge margin for error. </p>



<h3 class="wp-block-heading">Learning Management Systems</h3>



<p><em>LMS gathers instruments that allow you to deliver educational materials and track and report student-related data.</em> Moreover, it ensures quality communication between teachers and students during an e-course.  </p>



<p>Learning management systems provides flexible learning conditions for K-12 and post-secondary students, but there are some unique solutions. <a href="https://rocketech.it/case/babystep" target="_blank" rel="noreferrer noopener">Babystep</a> is an LMS for those who aim to implement the cutting-edge approach to parenting. This platform connects parents with experts to provide informative consultations worldwide. Babystep combines social network features and innovative Edtech websites, making it a great solution for new parents.  </p>



<h2 class="wp-block-heading">What Edtech Will Face in the Future</h2>



<p><a href="https://globaloutlook.holoniq.com/" target="_blank" rel="noreferrer noopener nofollow">Holon IQ</a> surveyed educational leaders to hear what they think about the future of learning technologies. They expressed different opinions. About <em>50% of executives are confident</em> in the rapid development of this area or staying the same, while the <em>remaining 50% are not</em>. But, looking at the current situation, some findings are essential for newcomers.</p>



<h3 class="wp-block-heading">High Dependence on Infrastructure</h3>



<p>About 1.3 billion school-age children (according to <a href="https://www.unicef.org/press-releases/two-thirds-worlds-school-age-children-have-no-internet-access-home-new-unicef-itu" target="_blank" rel="noreferrer noopener nofollow">UNICEF</a>) have no internet access at home, affecting the quality of online education. This fact raises doubts about the speedy introduction and further use of emerging Edtech instruments in educational institutions around the world. </p>



<p>Therefore, the <em>new technology adoption depends on Edtech startups</em> and requires a comprehensive review of the current system by all stakeholders. </p>



<h3 class="wp-block-heading">Expanding the Market by Increasing Digital Literacy</h3>



<p>As of now, millions of people learned to use video conferencing apps, learning management systems and cloud services when the lockdown occurred. </p>



<p>Hence, a group of potential customers of Edtech products formed, and this factor will increase the market volume in the following years. It will also affect other spheres that require the use of educational technology. </p>



<h3 class="wp-block-heading">Fast Adaptation</h3>



<p>Modern realities prove that success is achieved by those who can adapt to new conditions as fast as possible. And hundreds of enterprises decided to automate their workflow and transform the business logic with the best Edtech solutions. </p>



<p>Sometimes businesses face pressure and budget cuts while trying to adapt to the new reality. But the proper strategy will make them winners over competitors. </p>



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



<p>Many students and teachers have already experienced the benefits of top digital products. Therefore, sooner or later, learning will become fully automated. First, we talk about schools and universities that do not have access to advanced educational technologies in many countries. In any case, startups are ready to conquer the education field.</p>



<h2 class="wp-block-heading">Wrap Up</h2>



<p>Edtech in 2022 goes global, so it evolves rapidly and attracts a lot of attention from venture capitalists. Therefore, it is vital to know about the latest trends and new niches to develop a successful and in-demand product. As for now, Pre-K, bootcamps, LMS, and other fields are hugely popular, and more solutions emerge to fulfil customer needs and requirements. </p>



<p>But it is almost impossible to cover the entire market with your modern educational technology. And it is even harder to predict in what direction the Edtech field will develop and what will interest students in the coming years.</p>



<p>​​However, it can be challenging for some enterprises to navigate new conditions, so they need to be fully prepared for the new reality with a ready-made strategy. At Rocketech, we know how to deliver first-class products that can interest the audience. We assign a dedicated team to your project so it will be completely focused on your project. And if you are ready to enter the market with a reliable digital solution, <a href="https://rocketech.it/contacts" target="_blank" rel="noreferrer noopener">contact us</a><em>.</em></p>


Global Edtech Landscape: What Niches Are the Most Promising

<p>Today, as a scrum master at ROCKETECH I want to share my opinion about the key points of successful communication and our tips on how to organize it in a development team.</p>



<figure class="wp-block-image size-full is-style-default"><img loading="lazy" decoding="async" width="2500" height="1669" src="https://wp.rocketech.it/wp-content/uploads/2021/05/DSC_8094.jpg" alt="Scrum Master at ROCKETECH sharing tips on organizing successful communication in development teams." class="wp-image-248" title="Scrum Master Insights: Key Points for Successful Team Communication" srcset="https://wp.rocketech.it/wp-content/uploads/2021/05/DSC_8094.jpg 2500w, https://wp.rocketech.it/wp-content/uploads/2021/05/DSC_8094-158x106.jpg 158w" sizes="auto, (max-width: 2500px) 100vw, 2500px" /></figure>



<h2 class="wp-block-heading">Team processes, as the core factor</h2>



<p>We use the classical SCRUM-process, where everyone is connected and interacts with each other.</p>



<ul class="wp-block-list">
<li>before start the development process we work closely with our client, who is the Product Owner at the same time;</li>



<li>the team and Scrum Master estimate the tasks in the project;</li>



<li>then they plan the duration of iterations and the conditions for the tasks’ readiness;</li>



<li>the Sprint starts (its duration is 1-2 weeks, depending on the project-specific conditions);</li>



<li>during this collaboration we focus on product goal understanding;</li>



<li>during the Sprint, the team develops a part of the product (an Increment);</li>



<li>when we have at least a few features we are ready to start the sprint and refine the remaining scope based on feedback from users and stakeholders</li>
</ul>



<p>Meanwhile, during the Sprint our team has daily calls with every member for synchronization. During the sprint, the team in collaboration with the client works on breaking down “big peace of future work” into smaller parts, which can be developed within 1 sprint and can bring value to the end-user. If the necessary team can involve real users and stakeholders in this process.</p>



<h4 class="wp-block-heading">Each task has the following stages:</h4>



<ul class="wp-block-list">
<li>the discussion and choice of the implementation method;</li>



<li>development;</li>



<li>testing;</li>



<li>result presentation to the client.</li>
</ul>



<p>There are the entire team, the client, and the stakeholders from the client’s side on the review of the Sprint results.</p>



<p>After the product demonstration, there is a Sprint retrospective. Our team discusses the development process and team interaction for creating an improvement plan.</p>



<h2 class="wp-block-heading">Meetings matter</h2>



<p>Meetings are the part of team routine, but they always need to have a structure. Let’s see, how we organize them in Rocketech.</p>



<ul class="has-medium-font-size wp-block-list">
<li>Planning</li>
</ul>



<p>The Planning meeting is organized once per Sprint to determine the focus (Sprint Goal) and a set of tasks for the Sprint (Sprint Backlog).</p>



<ul class="has-medium-font-size wp-block-list">
<li>Daily</li>
</ul>



<p>It is important to start the day with a daily synchronization meeting to track how we move towards our sprint goals, which blockers do we have and how can we change our plan for the next 24 hours in order to achieve the Sprint Goal.</p>



<ul class="has-medium-font-size wp-block-list">
<li>PBR (Product Backlog Refinement or Grooming)</li>
</ul>



<p>PBR is held on average 1-2 times a week or more often to clarify requirements and discuss ways to implement tasks.</p>



<ul class="has-medium-font-size wp-block-list">
<li>Sprint Review</li>
</ul>



<p>At the end of each Sprint we inspect developed Increment on the sprint Review meeting. At this meeting, we collect feedback from stakeholders and users in order to adjust our backlog and make our product more useful.</p>



<ul class="has-medium-font-size wp-block-list">
<li>Retro</li>
</ul>



<p>It is essential to have a Retro meeting once per Sprint to inspect internal processes and develop an improvement plan.</p>



<h2 class="wp-block-heading">The main principles of building successful communication in a team</h2>



<p>In my opinion, it is transparency, honesty, the ability to give and receive feedback, the team’s responsibility for the result of their work, mutual help, individual professionalism and respect for each other, the principle of partnership.</p>



<p>With this structure of team processes, we create the best version of the products for users.</p>


Scrum Master Natalia about Project Team Communication

<p>At the outset, when the team is still small, all interaction is based on personal contacts. But as the team grows, these contacts are interrupted. Over time, the question arises, ‘How to maintain synchrony in architecture, technology, standards, and process tasks?’ The answer is to implement the <strong>Community of Practice</strong> approach.</p>



<figure class="wp-block-table"><table class="has-primary-color has-gray-50-background-color has-text-color has-background"><tbody><tr><td>💡 <strong>Communities of Practice (CoPs) are professional groups regularly collaborating to exchange information, develop competencies, increase productivity, and strengthen general knowledge in their domains.</strong></td></tr></tbody></table></figure>



<p><strong>Specialized CoP teams act as processes and standards synchronization centers, accumulate knowledge, and develop competencies within Rocketech.</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/2023/04/48.png" alt="The Community of Practice team members are holding puzzle pieces as a symbol of teamwork and efficiency." class="wp-image-5431"></figure>



<p>We prepared our guide on developing a <strong>Community of Practice in a remote team</strong> and the main mistakes in implementing this project. Our approach can help business owners avoid these mistakes and discover unique opportunities for their employees to influence company development.</p>



<h2 class="wp-block-heading"><strong><strong>Creating a Community of Practice: Basic Mistakes</strong></strong></h2>



<p>Like many teams, we started creating the Community of Practice on a <strong>volunteer basis</strong>. Recognizing the need for specialists to share their experiences, we suggested that <strong>team leads undertake the project themselves</strong>. However, this turned out a common mistake, as assigning responsibility for community management and development to just one leader is not ideal.</p>



<p>Moreover, it is not enough to merely offer your employees a chance to share experiences. It is crucial to <strong>endorse this concept and establish an environment fostering its growth</strong>. At the start of the project, you need the resources for launching and organizing systematic community work, implementing community-generated ideas, and ensuring meetings’ regularity and format.</p>



<p><strong>This is how our Scrum masters’ time became such a valuable resource. They were involved in the project and took over the management and support functions.</strong></p>



<h3 class="wp-block-heading"><strong>The Scrum Team Contributions</strong></h3>



<p>To improve efficiency and productivity, our Scrum team worked on various initiatives. Here are some of the results:</p>



<ul class="wp-block-list">
<li>The Community of Practice concept;</li>



<li>Development of the structure and number of communities within Rocketech;</li>



<li>Methodology for work planning within the community;</li>



<li>A list of the company’s priority tasks (at the launch period), which each community could take on.</li>
</ul>



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



<p>The start of the project showed that the decision to increase the resources and invite the Scrum team to manage the project was the right one. It made it possible to ensure systematic and regular community work. Sometimes, you should invest extra time and effort to get a functional product.</p>



<h2 class="wp-block-heading">Communities of Practice 3.0: Rocketech’s Blueprint for Building Stronger Teams</h2>



<p>Communities of Practice are based on the initiative of people willing and able to share and transfer knowledge. We keep this principle despite our communities shifting from self-management to Scrum-team management.<strong> The mission of the CoP project is to create a space that encourages people to develop professionally and help others to do so.</strong></p>



<p>As for now, we have launched four specific communities:</p>



<ol class="wp-block-list">
<li>Scrum;</li>



<li>Backend;</li>



<li>Business Analytics;</li>



<li>Quality Assurance.</li>
</ol>



<p>Our short-term plans include launching the OS community.<br><strong>All communities follow the global goal — to ensure the highest quality level when executing projects.</strong> “Quality” in the project context means:</p>



<ul class="wp-block-list">
<li>The development and implementation of standards and ensuring compliance with them for each competency.</li>



<li>Devising the competence working principles.</li>



<li>Organizing your work by creating libraries and directories, setting up a repository, and adding specific problem cases to the database to standardize your workflow and accumulate practical experience for future projects.</li>



<li>Introduction of mentoring and support practices.</li>



<li>Developing the culture of learning and mentoring within the company (including workshops, case studies, and joint work on complex tasks as part of the Communities of Practice).</li>
</ul>



<figure class="wp-block-table"><table class="has-gray-100-background-color has-background"><tbody><tr><td>The whole community idea is based on two main functions:<br>📌 <strong>The project function </strong>is knowledge systematization and workflow standardization.<br>📌 <strong>The current function</strong> is to become a shared knowledge center where team members can receive mentorship from experienced developers and managers, seek advice, and share their own experiences.</td></tr></tbody></table></figure>



<div class="wp-block-blog-quote wp-block-quote"><div class="wp-block-quote__text"><p>“The emotional component of Communities of Practice is the opportunity for developers to feel that they are not alone in the challenges and difficulties of their project. The community will ensure the chosen solution is correct and help people avoid feeling lonely and isolated. It is crucial for remote work and projects without large teams and many specialists of the same profile.”</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/2022/07/natasha-chistyakova.jpg")'></div></div><div class="wp-block-quote__author__content"><div class="wp-block-quote__author__name"><strong>Natalia Chistyakova</strong></div><div class="wp-block-quote__author__info">Lead Scrum Master</div></div></div></div>



<h2 class="wp-block-heading">The Positive Impact of Communities of Practice on Working Conditions</h2>



<p>The initiative added several regular meetings to the project participants’ calendars and made their lives more colorful. The reason is simple: they personally create a new reality and influence changes in the company.</p>



<p>All the community work implies a <strong>specific algorithm</strong>. First, each group sets goals for the month. They present these goals to the CoP team lead (as mentioned above, this person is not a community member but a Scrum team representative).</p>



<p>The criterion for choosing a goal is the impact on improving the quality of our work. It refers to the quality of code, processes, and team interaction — <strong>the overall quality at every project development stage</strong>.</p>



<p>According to the task volume, the participants agree on the working meetings’ frequency and format. During these meetings, the teams discuss interim results and form the backlog for the next one.</p>



<p>Working meetings take place once a week. Moreover, the community gathers at a set time to present the monthly results.</p>



<p>Let’s take our CoP tasks for July 2022 as an example.</p>



<ul class="wp-block-list">
<li><strong>The CoP Scrum Master</strong>: Developing a shared understanding of customer-oriented service for the whole team.</li>



<li><strong>The CoP Business Analytics</strong>: Standardizing the processes to improve interaction with the customer and increase service quality.</li>



<li><strong>The CoP Back</strong>end: Updating the standards for the initial development project stages.</li>



<li><strong>The CoP Quality Assurance</strong>: Updating the standards for working with bug maintaining documentation to improve testing quality.</li>
</ul>



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



<p>Based on the goals, we determined the tasks for each specific area and could quickly see the first results. For example, CoP Scrum Master implemented a new approach to working with customer expectations.</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/2023/04/49.png" alt="The Community of Practice team members are putting their hands together as a symbol of efficient teamwork." class="wp-image-5433"></figure>



<div class="wp-block-blog-quote wp-block-quote"><div class="wp-block-quote__text"><p>“It is vital to organize effective interaction between the customer and the team at the initial stage. We plan to conduct continuous reviews between the product owner and the team to move in sync. We are proud of this block as it will positively impact the entire project.”</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/2022/07/ajzhan-bermanova.png")'></div></div><div class="wp-block-quote__author__content"><div class="wp-block-quote__author__name"><strong>Aizhan Bermanova</strong></div><div class="wp-block-quote__author__info">CoP Scrum Master</div></div></div></div>



<p></p>



<p>The CoP Business Analytics also quickly proved effective. The team created Development Standards for projects and interviews with candidates for a BA position in the company. The next improvement point is the <a href="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" data-type="URL" data-id="https://rocketech.it/blog/post/discovery-phase-why-is-it-crucial-for-your-project-success" target="_blank" rel="noreferrer noopener">Discovery process</a>.</p>



<div class="wp-block-blog-quote wp-block-quote"><div class="wp-block-quote__text"><p></p><p>“The Community of Practice is the Dedicated Team’s key component. The more well-developed internal competence we have (for example, BA or QA), the more competitive we are and the better service we offer to customers. Thus, the successful CoP launch and the development of quality improvement approaches in all areas are crucial for us.”</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/2022/07/sasha-roket2.png")'></div></div><div class="wp-block-quote__author__content"><div class="wp-block-quote__author__name"><strong>Alexander Rocket</strong></div><div class="wp-block-quote__author__info">Co-Founder of Rocketech</div></div></div></div>



<figure class="wp-block-table"><table class="has-gray-100-background-color has-background"><tbody><tr><td><strong>Main Community Principles</strong><br>✔ The CoP is voluntary — we don’t require participation. However, it is mandatory to follow the standards and processes developed by the community and attend the meetings at the end of the month to learn more about the implemented changes.<br>✔ The company pays for all tasks and project meetings.<br>✔ There is no command or task distribution. The communities themselves decide what needs to be done to improve the processes within their competence.</td></tr></tbody></table></figure>



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



<p>Specialized communities act as a classic hub where <strong>participants exchange experience, mentor newcomers, and discuss solutions and questions on current and new projects</strong>. It is where you can always find support and ask a friend for help</p>



<p>Our decision to create internal communities of practice has revolutionized the way we work, resulting in improved efficiency and quality across the board. By promoting a culture of collaboration and shared learning, we have seen a significant increase in the engagement, motivation, and satisfaction of our employees. We are proud to say that this innovative approach has enabled us to deliver outstanding results for our clients, and we will continue to embrace this philosophy to achieve even greater success in the future.</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">Any questions about our approaches to process management? We are happy to answer them.</div><button class="wp-block-action__button has-light-background-color has-primary-color" data-type="callback">Book a call</button></div>


How to Create a Community of Practice for Your Team

<h2 class="wp-block-heading">How is knowledge created in our world?</h2>



<p><strong>We all studied</strong> <strong>at school and there, at the level of any natural science lesson, it is created through one process</strong>:</p>



<ol class="wp-block-list">
<li>A hypothesis is put forward</li>



<li>Experiment in progress</li>



<li>Feedback is collected and the result of the experiment is analyzed</li>



<li>The hypothesis is either killed, or requires correction and repeated cycle, or is confirmed.</li>
</ol>



<p><strong>When we make a product, we create knowledge about:</strong></p>



<ol class="wp-block-list">
<li>What should be the product about?</li>



<li>What segment of the audience should our product be aimed at?</li>



<li>How to distribute it?</li>



<li>So that the client buys, and the company makes a profit</li>
</ol>



<h2 class="wp-block-heading">We’re constantly losing focus on hypothesis testing and knowledge creation.</h2>



<p>One of the most important product skills is being able to focus yourself and your team on what needs to be done.</p>



<p>It is very easy to dig into analytics, design, interviews with clients, designing a huge feature, running from meeting to meeting, and juggling with demanding stakeholders. But when you look back at a quarter/year ago, you see that one and a half features have been released, none of them brings money, and even worse, burns them by complicating the code base and supporting endless minors and normals.</p>



<p><em>To sum up</em>: if you do not focus on consistency and the amount of knowledge generated per unit of time [quarter, month, week], routine and millions of distractions will consume attention. We set one of the Key Results for the maximum Objectives — N tested hypotheses per quarter.</p>



<h2 class="wp-block-heading">Customer expectations are growing very quickly:</h2>



<ol class="wp-block-list">
<li><strong>The overall level of products with which customers interact is growing</strong></li>
</ol>



<ul class="wp-block-list">
<li>10 years ago [in Russia] everyone carried wallets and paid with cash, 5 years ago, wallets became thinner and everyone paid with cards, now many people stop wearing wallets, since in most places you can pay with Apple Pay / Google Pay</li>



<li>when Apple and Google release new versions of operating systems and when phone manufacturers update their product lines, huge numbers of people get access to slightly better apps, more natural interfaces</li>



<li>a huge number of services are cut for giving the client a slightly more enjoyable experience — for fewer actions, a little cheaper, a little more fun, a little more status. As a result, in the states of Amazon I taught myself to the pattern “clicked — tomorrow at the doorstep, and sometimes even tonight”, while in Russia grocery stores see a threat in delivery services, since the acceleration of delivery, dark kitchens [Kitchen in the District, Varlamov Is] allow you to get tasty and hot food in 15 minutes at an adequate price. </li>



<li>A rapidly growing 15 min delivery from the app of grocery is taking over now around the world for just the last few years. </li>
</ul>



<ol start="2" class="wp-block-list">
<li><strong>While you sleep, the competitor sways</strong></li>
</ol>



<ul class="wp-block-list">
<li>Moreover, competition often comes from where you do not expect, since complex systems often lead to unexpected (at least, observing from the side) consequences of the second and third orders [<a href="https://fs.blog/2016/04/second-order-thinking/" target="_blank" rel="noreferrer noopener">1</a>]:
<ul class="wp-block-list">
<li>media publishers who owned TV stations, radio stations and franchises are losing margins as advertisers now buy ads from Facebook and Google [YouTube] and media publishers are just one of the providers of content on Facebook and Google platforms.</li>



<li>In the next 10-20 years, automakers may lose the status of “we manufacture cars and sell them to end customers” and turn into much less marginal OEM suppliers of hardware for Waymo, Tesla, Uber, as the scenario “open an application and call a car for $ 7” to smithereens smashes expensive, hemorrhoid and nervous car ownership</li>
</ul>
</li>
</ul>



<p><em><strong>To sum up</strong></em>: this leads to the fact that one of the focuses of the product and the entire team should be the amount of knowledge created per unit of time =&gt; the number of hypotheses to be tested. Relaxing and testing one hypothesis per quarter will not work — companies in which teams test 20 hypotheses per quarter will inevitably bypass you.</p>



<h2 class="wp-block-heading">From the knowledge that each member of the company creates, aggregate knowledge is created about what the company, processes, product should be</h2>



<p>You can work with this knowledge in two ways:</p>



<ol class="wp-block-list">
<li>Implement in the form of a new feature, marketing campaign, layout, letter, operational process.</li>



<li>To broadcast knowledge within the company so that more people in the company receive this knowledge, if it is relevant to them, and managers see cross-cutting large patterns and, based on this, adjust the vision and goals of the company.</li>
</ol>



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



<ol class="wp-block-list">
<li>In order not to lose focus, we set one of the main Key Results for the maximum Objectives for each product — N hypotheses tested per quarter. // later, for different stages of the product and competencies of product / managers, I will write on the verification of which hypotheses it makes sense to focus on</li>



<li>We embed the process of transferring created knowledge up to CPO / CEO into the processes of synchronization with leaders / stakeholders. This is how we set all process in <a href="https://rocketech.it/contacts" target="_blank" rel="noreferrer noopener">ROCKETECH </a></li>
</ol>


The Guide for Perfect Customer Development: Creating Knowledge Through Hypothesis Testing

<p>There’s a joke that goes, “Before the idea is validated, your product team is just collectively hallucinating.” The customer-centric business methodologies have proved that even excellent ideas fail if people don’t need them.</p>



<p>If you’ve already found your niche, discovered the money-generating idea through <a rel="noreferrer noopener" href="https://rocketech.it/blog/post/the-guide-for-perfect-customer-development-problem-interview-checklist" target="_blank">problem interviews</a>, and created the first version of your future product, it’s time to confirm if it really works by conducting solution interviews. Here’s what they are and why your project needs them.</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/solution-interview.png" alt="Solution Interviews: Validating Your Product Idea" class="wp-image-4680" title="Why Solution Interviews are Essential for Validating Your Product Idea"></figure>



<h2 class="wp-block-heading"><strong>A Few More Words About Customer Development</strong></h2>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><a href="https://guides.co/g/how-to-build-a-startup/3010" target="_blank" rel="noreferrer noopener nofollow"><em>Customer development</em></a><em> is a business methodology based on a principle that a business can and should be built around solving a potential customer’s problem or creating a value proposition that will somehow improve a potential customer’s life. </em></p>
</blockquote>



<p>Simply put, the entrepreneur first has to identify the customer’s problem or need and then solve or satisfy it, but not the other way around. As Steve Blank, the creator of customer development, <a href="https://steveblank.com/2010/04/08/no-plan-survives-first-contact-with-customers-%E2%80%93-business-plans-versus-business-models/" target="_blank" rel="noreferrer noopener nofollow">said</a>, “No plan survives first contact with customers.”</p>



<p>One of the most effective customer development tools is creating a <strong>minimum viable product</strong> (MVP) — the first functional version of a product with a minimal feature set yet sufficient to test the idea and market hypotheses. The underlying principle is to define the target audience through their pain points and <strong>collect the first feedback from real customers</strong>. This feedback becomes the basis for further development.</p>



<h3 class="wp-block-heading"><strong>It’s All About the Customer</strong></h3>



<p>As the name suggests, this business (and product) development methodology <strong>revolves around the customer</strong> <strong>and their problem</strong> rather than an idea or unique functionality. Most often, customer development is contrasted with a product-oriented development strategy. The latter relies on the motto, “Let’s make a great service or application, and a buyer will appear.” And often, entrepreneurs get carried away by adding new complex features and ignore customers and their needs. That’s why businesses fail.</p>



<h2 class="wp-block-heading"><strong>What Is a Solution Interview?</strong></h2>



<p>A customer development interview is an essential part of the methodology. It helps startups validate product hypotheses and ideas, learn what challenges consumers face, and create a solution that satisfies customer needs.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><em>The product discovery starts with </em><a href="https://rocketech.it/blog/post/the-guide-for-perfect-customer-development-problem-interview-checklist" target="_blank" rel="noreferrer noopener"><strong><em>problem interviews</em></strong></a><em>. They are used to identify a potential customer and non-obvious difficulties they face. Solving these problems provides a foundation for the first feature set. The problem interview’s goal is to understand how the customer thinks.</em></p>
</blockquote>



<p>Solution interviews happen when a startup already has <a href="https://rocketech.it/blog/post/prototype-poc-or-mvp-what-will-work-for-your-product" target="_blank" rel="noreferrer noopener">a prototype or an MVP</a>. They allow the businesses to test if the resolution they found works for customers and how it can be improved. Problem and solution interviews are crucial phases of the process addressing different angles of customer development.</p>



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



<p>Ideally, an MVP should help entrepreneurs create a working service that will primarily meet customer needs. However, the very idea behind the MVP may be wrong. In the early stages and until the product has fully entered the market, it can be easily missed. But once you start scaling your business, all mistakes of the initial concept will come out and lead to resources and money losses.</p>



<p><strong>The main objective of solution interviews is to get feedback from customers</strong>. They are carried out when you already have something to show the customer — a prototype, an MVP, or a product. It means you already have a way to fix the customer’s problem that you identified during the problem interviews.</p>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><em>Simply put, you focus the interviewees on the problem, describe and let them try the solution, understand weaknesses and get feedback. Now you can ask more direct questions that didn’t fit the problem interviews.</em></p>
</blockquote>



<p>The results of a problem interview are not always easy to interpret as they rarely give a definite “yes or no” answer. <a href="https://www.robfitz.com/home" target="_blank" rel="noreferrer noopener nofollow">Rob Fitzpatrick</a> writes about this in his book <a href="https://manuelohan.com/wp-content/uploads/2017/05/The-Mom-Test-en.pdf" target="_blank" rel="noreferrer noopener nofollow">The Mom Test</a>. Meetings (or other types of research) should not be “just fine” (when you receive generic compliments). Neither should they leave a feeling that they went “so-so” (most likely because of understatement or wrong questions). Problem interviews reveal people’s experiences that you probably didn’t even think about and lead to additional reflection and discussion with the team.</p>



<p><strong>If a problem interview hasn’t destroyed the idea but left a feeling of uncertainty and brought new thoughts about improvements, you should go for a more decisive study to prove the idea’s viability</strong>.</p>



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



<p>In customer development, a typical solution interview usually has a script with three main stages.</p>



<ol class="wp-block-list">
<li><strong>Problem</strong>. Reflect on the problem that was revealed in previous interviews.</li>



<li><strong>Proposal</strong>. Describe the solution, tell interviewees about it, present it or show it in any way. Find out its strengths and weaknesses but do not pitch.</li>



<li><strong>Agreement or sale</strong>. During the meeting, you can agree to sell your product or have further cooperation.</li>
</ol>



<h2 class="wp-block-heading"><strong>Solution Interview Questions</strong></h2>



<p>As mentioned above, a solution interview is a great way to ask your potential customers more direct questions to eliminate previous uncertainty.</p>



<h3 class="wp-block-heading"><strong>Meeting Customer Expectations</strong></h3>



<ul class="wp-block-list">
<li>How could this product solve your problem?</li>



<li>How useful can this solution be for you?</li>



<li>In what situations would you personally use this product?</li>



<li>What advantages and disadvantages do you see in this solution?</li>



<li>What are the weaknesses of the solution? What is missing?</li>



<li>How would you tell your friend about this product?</li>
</ul>



<h3 class="wp-block-heading"><strong>Price, Value, and Willingness-to-Buy Check</strong></h3>



<ul class="wp-block-list">
<li>How much money do you lose because this problem is not solved?</li>



<li>Does the offered price match the benefit of purchasing the product?</li>



<li>What price will match the benefit you will receive from the solution?</li>



<li>Does your company have a budget for this?</li>
</ul>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><em>Although payment is the best indicator of willingness to buy, the purchase is not yet your goal. You need people to invest money in you and your idea</em><strong><em>. Time is often more important than money</em></strong><em>. And if the product can prove its value, the money investment is already a purely technical issue.</em></p>
</blockquote>



<p>If you ask a person if they’ll buy it when the MVP turns into a complete product, most people will lie saying “yes” just to avoid upsetting you or being in an awkward situation. You need to <strong>find ways to make people commit</strong>.</p>



<ul class="wp-block-list">
<li>The best option is to sell right now: <em>Are you ready to buy now?</em></li>



<li>If people are not ready to buy, ask what’s missing: <em>What features do we need to add to get you to buy our product?</em></li>



<li>You can arrange further meetings when the product is ready: <em>What is missing for you to buy the product immediately?</em></li>



<li>Ask for pre-payments, make a pre-order with a receipt and schedule another meeting (financial obligations).</li>



<li>Schedule another meeting (temporary commitment).</li>



<li>Ask to share information about your product on social media (reputational commitment).</li>



<li>Ask to send three private messages telling friends, colleagues, or family about the product.</li>
</ul>



<p><strong>Pro-tip. </strong>Avoid any questions about the future — such questions embellish reality. However, you still can ask your target customers about the product’s basic functionality:</p>



<ul class="wp-block-list">
<li>What minimum would be enough for you to buy it?</li>



<li>What should not be in the product? What will negatively affect your decision?</li>
</ul>



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
<p><strong><em>Do not try to sell (insist, convince, or advertise) your product and be neutral. The goal is not to generate revenue (yet) but to confirm that people are ready to buy it (share information with their friends or do any other action) and verify if what you offer actually solves their problem.</em></strong></p>
</blockquote>



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



<p>Hypotheses of what should be in the product before launch are mostly wrong. Even the most genius idea in your head may turn out worthless. And polishing non-working ideas equals wasting money. Moreover, you don’t need a sophisticated app with a flashy design — <strong>you need to ensure it covers the customer’s needs and solves their problems</strong>. In many cases, it can be a simple MVP with three screens to start selling it.</p>



<p>Problem and solution interviews are a brilliant way to find the product-market fit. While the former helps you identify the market need, the latter gives you the chance to finally confirm the product’s viability. There will be no “well, maybe yes” or “probably no” options. Everything is clear. <strong>Either someone needs your product, or you need to pivot and look for other hypotheses</strong>.</p>



<p>At Rocketech, we focus on long-term partnerships with startups from product discovery through all development stages. Besides the technical aspects, we also provide business consultancy and are always happy to share our expertise. Do you want to know more about customer development interviews? <a rel="noreferrer noopener" href="https://rocketech.it/contacts" target="_blank">Contact us</a> for more details.</p>


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