SOFTWARE DEVELOPMENT OVERVIEW
Kaizania has a unique approach to custom software development – an approach that unquestionably delivers the best possible business value to our customers at the lowest possible cost. Together we will deliver the right product at the right price at the right time. How do we go about it?
Time & Materials vs. Fixed cost
The two extremes in commercial custom software development approaches are Time & Materials and Fixed price contracts. Neither of these two models meets the needs of customers. The two approaches can best be compared as follows:
| Fixed Cost | Time and Materials |
| Large upfront requirements effort | Who cares about requirements? |
| Big problem if scope changes | No problem if scope changes |
| Little flexibility allowed | Too much flexibility |
| Big scope documentation trail | Lots of timesheet documentation |
| Customer cost capped | Customer pays for hours |
| Cost includes developer risk component | Developer margin guaranteed |
| Delivery rate pressure on developer | Delivery rate pressure on customer |
| Change control – disputes – mediation | Timesheet and delivery rate disputes |
| Expensive | Expensive |
| Risk to get the wrong solution | Risk to spend too much |
Fixed cost contracts suffer from the following fundamental flaws:
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:: It is impossible to write down perfect requirements
:: It is impossible to determine exactly how long it will take to develop a set of requirements
:: It is geared to deter any learning ⁄ adaptation as more is understood about what to build and how to build it
In short, you get exactly what you originally said at exactly the price you agreed to pay, just a pity it’s not quite what you need.
Time & Material contracts suffer from the following fundamental flaws:
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:: Leads to a laissez-faire approach to requirements, quality and costs by both the customer and the developer
:: Developer not easily accountable for rate of delivery
In short, you get more than you ever really wanted at a higher cost than you ever expected – and it is late, late, so very late….
Kaizania’s Fixed⁄Agile approach – a better way
Kaizania’s experience in Agile development techniques enables us to offer a better way of doing commercial custom software development. Put simply, Kaizania builds solutions for customers by executing a series of small fixed cost contracts. Each of these small fixed contracts is called an ‘Iteration’. How does this work?
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:: Customer and Kaizania roles and contacts are agreed
:: Broad brush requirements are determined
:: Development team composition, cost and Kaizania margin agreed
:: Total project cost estimation
:: Agreement reached, development starts
:: Just in time requirements are prepared
:: Work order committed to
:: Work performed
:: Acceptance testing and invoicing
:: Customer and Kaizania learn more on what to build and how to build it
:: Refine total project cost⁄duration estimate
:: Repeat
:: Product completed
Benefits to the Customer
Kaizania’s approach brings many benefits to the customer:
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:: All parties are motivated to build the best possible product in the shortest possible time.
:: No need for time consuming documentation and detailed specifications up-front
:: Easy adjustment to new requirements
:: Process visibility
:: Focus on Value
:: Close interaction between customer and team
:: Knowledge sharing
:: Reduced turnaround times
:: Minimized business risks
:: Openness⁄Transparency
:: Partnership
Contact us to obtain our full custom development engagement model
Let us start creating business value together
Please allow us the opportunity to prove
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:: our ability to deliver at quality, on time and below budget
:: the superior business value delivered through Kaizania’s engagement model
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Tel: +27 12 809 4462
Fax: 086 274 0814
Email: info@kaizania.co.za
Website: www.kaizania.co.za
Address: EMWIL House
Ground Floor East Entrance
Tijger Vallei Office Park
15 Pony Street
Silver Lakes Pretoria
0040. South Africa
Kaizania Agile completed another course from its Agile training arsenal. 2 fun filled days with 15 keen Agilists were spent at KleinKaap in Centurion. Read more about Kaizania Agile on the Read more about Kaizania Agile on the thinkingagile blog...