adVANTAGE
Agile, Value-based Process Model with Full Budget Control for Software Development Projects
When companies decide to set up a new software project, they often only have a rough idea of the precise form their new solution should take, and there is as yet no detailed specification. Nevertheless, development work should be performed within a budget framework which has been roughly defined, so one of the first things companies want is to be quoted a fixed price. It is, however, difficult to reliably calculate a project’s costs without a clear, finalised set of requirements.
In addition, this procedure is extremely inefficient when developing information IT systems, because it is not possible to assess what risks might arise during the project or what requirements might be altered when creating a full set of specifications at the start of project. Priorities change during development, certain specified requirements can no longer be implemented on schedule or they can turn out to be unusable as the project progresses, while others are simply forgotten or are added over time. Unnecessary development work or missing functions give rise to a series of change requests which cause the project to take longer than necessary. When software developed in a fixed-cost project goes live, customers often end up with a solution that is seriously at odds with the originally planned schedule, quality or budget.
Keeping tabs on project objectives and costs
adesso has created adVANTAGE, an agile, value-based process model that combines flexibility in requirement management with unbeatable value for money and warranty services. adVANTAGE is a transparent solution that enables companies to achieve the maximum degree of budgeting accuracy so they can reliably calculate their costs for software projects without a full specification. adVANTAGE gives customers what they really need: streamlined, tailored software and a development process that provides a clear overview of the rate of progress, costs and software performativity.
Our adVANTAGE model is based on two key factors:
- Effective software development with agile elements and clear progress
- Service-based billing which has a high degree of flexibility and which is always in line with value
Based on an iterative process, this model turns the intuitive process in software projects into something that can be applied explicitly, and therefore systematically: the service provider and the customer work together on creating a prioritised list of requirements at the beginning of the project.
The customer prioritises the requirements. Key question: which requirements are crucial to business and have to be implemented first so that the application can be started? Which requirements can be addressed at a later time?
Approximate specifications are set for the overall system and the ensuing requirements, which are processed in user stories, and these specifications are assigned different priority levels based on their value. Based on this evaluation the budget for the respective sprint will be defined. A single user story will only then be specified when it should be realized in the upcoming sprint.
Depending on the sprint, customers decide if they want to start using the application or move to the next phase. Existing user stories from the previous sprint can be assigned a new priority level or be deleted, and new requirements can be added. These interim results give customers an optimum overview of the project’s status.
Cooperative software development
Unlike fixed-price projects, a project that uses the adVANTAGE model always has a key point of reference that each sprint focuses on anew. This eliminates the risk surcharge, a common feature in other models. Billing is based on quality: it takes place at the end of each sprint, and the customer pays for the quality of the services and software they receive. In case adesso was not able to realize all user stories defined for the current sprint and its target budget, all additional works are billed on declining day rates. This pricing model ensures that development work is as efficient as possible and that costs are reined in, despite the lack of a detailed specification – a situation which can otherwise be a dangerous cost trap.
Example for value-based pricing of sprints in the adVANTAGE model
Software development based on the adVANTAGE model is focused on close cooperation between all stakeholders. The heart of the interaction process is the so-called interaction room, a physical room especially arranged for the defined project, which fosters continuous exchange and technical understanding about the project’s stages and which draws the attention on the project’s progress. adesso uses value-based pattern prototypes and object models, builds up integration scenarios and sets up migration landscapes in order to picture the project stages. This guarantees the development of a well-tailored and efficiently working software solution.
adVANTAGE’s benefits are obvious:
- An initial version of the application is available quickly
- Quality, time and costs are secured early on in the process
- Highly flexible during the entire development process
- Significantly more influence over the results as they form
- adesso assumes full responsibility for production while simultaneously delivering flexibility for requirements
Why not contact us? We’d be more than happy to tell you more about what the adVANTAGE model can do for you. Agile, value-based and pragmatic, it definitely lives up to its name.
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Agile, Value-based Process Model with Full Budget Control for Software Development Projects
adVANTAGE
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