A Solid Agile Business Model
From SonicGarden in Tokyo
We embrace change
We propose a new business model of custom software development suitable for Agile Software Development to embrace change.
The business model of the traditional software
development with fixed-scope estimation has the following three
- Incentives to add more people: Although an agile team should be small, elected and unified for efficiency, a traditional developer team tends to be oversized because it adopts estimation based on man-month and has an incentive to waste more man-months.
- Building useless functions: To estimate a software with
fixed-scope at once requires a prediction for whole function before developing it. However, the prediction
tends to be wide of the mark. Thus, it causes a bunch of useless functions.
- Cost increase: The maintenance cost can get
exponentially higher after the first release because of
overhead in estimations of each change.
Our business model
Our new business model has the following features:
- Monthly subscription for the custom software
development and operation service. Rather than the
fixed-price and scope contract.
- Weekly agreement of what to provide including
developing features and operation. We never promise scope, work time and a due date for our customer. We
never estimate resource using man-month in the long term.
We develop and deploy the MVP within two weeks for the customer to see the working software. The first MVP is followed by weekly sprints. Sprints are run with a meeting and development cycle until a launch to end users, usually around 3 months. We keep development and operation after the launch. Services are usually operating on a cloud by ourselves.
A Solid Agile Business Model
Software Development Process
Initial Free Discussion
Firstly, Pronobia long term relationship starts with our customers by sharing the vision and goals described in the business plan.
Secondly, our focus is on providing added-value. At the end of this period, as we have gathered enough details to design the application, we will release it to end-users.
This takes place generally about three months later
Free Trial Development
At the beginning of the project we start by developing software artifacts. The goal of the first two weeks of this period is to have the app on a production environment with bare minimum application features.
After that, we add features on a weekly development cycle. If the customer is satisfied with the artifacts developed we move to the next period.
Development With Contract
Software development starts with a signed contract. Our customers and software engineers have weekly meetings. Most importantly, the design focuses only on the items agreed upon. Consequently, artifacts are tested on a weekly basis.
In conclusion, the launch of the app takes about 3 months after the trial period. In our business model, we do not promise to complete the software on a specific date.
Development & Operation
Two weeks after the free trial we begin operating the test environment in the cloud and after three months we launch the app in a production environment.
Most importantly, we provide a common testing environment for all customers and dedicated production environment for every customer.
To sum up, we develop and operate continuously in parallel.