Ultimate Guideline Of Appropriate System Development Flow

In a direct system, development flow covers a wide range of types and scopes, from smartphone apps, web apps, and core systems to business systems. In particular, it is no exaggeration to say that the development of systems with excellent functionality and operability is essential to winning the competition with rival groups.

The cost and time frame for development vary depending on the development tech stack and methods. Hence, there exist a few developers and managers who are confused about where to kick off the project.

We will explain in this article the following crucial points:

• What is System Development?
• Development Models
• Development Methods
• System Development Costs
• Points to be noted when outsourcing system development
• How to choose a subcontractor

I. What is System Development?

System development involves creating tools and systems that help both the company and its customers enhance operational efficiency and improve services. These tools are primarily built using information technology (IT).

In business, the most crucial system is called the ERP business system. ERP stands for Enterprise Resource Planning is an enterprise management software system that focuses on aggregating, managing, and sharing information for the modules and layers of the enterprise. ERP helps businesses optimize resource management, increase efficiency, and reduce downtime.

If your company has IT engineers with a certain level of skill and experience, there are cases where you can develop your own system. Recently, there has been an increasing number of instances where simple in-house applications are developed using no-code or low-code services, even without highly specialized IT engineers.

Nevertheless, it is common to outsource system development to an offshore IT partner to obtain a well-designed and qualified system. This is driven by the rapid pace of technological advancements, where applications and software across industries are evolving at a dizzying speed. Therefore, it is absolutely impossible to develop ideal in-house systems and competitive applications without the expertise of system engineers (SE) and programmers (PG) who possess specialized knowledge, skills, and extensive development experience.

In actual development scenarios, many cases involve outsourcing to domestic IT companies. However, it is undeniable that development costs are skyrocketing due to the increasing shortage of IT personnel in Western countries. Consequently, “offshore development,” which entails outsourcing to exceptional and cost-effective IT companies in Southeast Asia, is rapidly gaining popularity.

II. System Development Model

There exist two models of system development, including waterfall and agile. Each model serves a distinct purpose and has its own development timeline, cost, process, and maintenance services.

Therefore, when outsourcing to an IT company, it is crucial to determine which model should be employed for development. Let’s delve into the characteristics, suitable development approach, and the flow of development requests for each model.

Read more: What is the difference between system development and application development? Understanding their distinctive features, costs involved, and guidelines for selecting a suitable development company.

1. What is Waterfall Model?

The “waterfall model” is where the development content is determined in concrete and detailed terms and delivered in the form of deliverables. The name comes from the nuance that the prescribed development work is carried out with water flowing from upstream to downstream.

Developers are committed to delivering clear deliverables on time, so incompleteness and delays in delivery are unacceptable. In that sense, a “fixed price contract” is the basis, and when development starts, it is common for the client to entrust most of it to the contractor.

The waterfall model is suitable for the following types of system development:

• Large-scale development projects: These are projects with a significant budget and a large number of stakeholders, where specifications cannot be easily changed midway.
• Projects with a low possibility of specification changes: This includes core systems for financial institutions, government and municipal entities, and distribution companies.
• Projects that require a high degree of perfection: These are cases where zero defects or issues are allowed after release, such as government agencies, local governments, and infrastructure companies.

Conversely, the waterfall model is not suitable for development projects where frequent specification changes are expected or the project goals are unclear. Since the waterfall model follows a rigid sequential process, making changes to specifications or adding new features midway not only requires additional effort and time for rework but also results in increased costs. Therefore, it is advisable to avoid the waterfall model when detailed user requests or market trends necessitate frequent changes or additions to system functionalities.

The Flow of Waterfall Model

The flow of waterfall development is as follows:

Element Definition

↓

Basic Design (External Design)

↓

Detailed Design (Interior Design)

↓

Development/implementation (programming)

↓

Tests (unit and combined)

↓

Testing (systems and operations)

↓

Release

↓

Operation/Maintenance

The waterfall model essentially discourages rework and emphasizes the need to avoid corrections after completion. However, since the development process is mostly handled by the developers, the client can only assess the actual product when it is nearly finished.

During the release stage, it becomes crucial to prevent misunderstandings such as “This is not what I expected!” System development often involves intricate and abstract elements. When opting for the waterfall model, the presence of ambiguities increases the likelihood of encountering issues later on. Therefore, it is crucial to clearly define the specifications, functions, and even the minutest details like the placement of buttons. It is essential to carefully align the perspectives of the client and the developer to minimize any discrepancies.

2. What is Agile?

The purpose of the “agile approach” is not merely to deliver final products, but rather to break down development into functional units. It involves iterating and refining through trial and error, going back and reworking as needed. Rather than simultaneously developing multiple functions, priority is given to the most important ones. Agile projects are often carried out by small teams of ten people or fewer. The defining characteristic of agile is its flexibility to adapt specifications based on stakeholder and user needs. Its name, “agile,” reflects the speed and nimbleness it embodies.

Unlike the waterfall model, the agile approach does not place sole responsibility on delivering completed deliverables. Instead, it often involves a “quasi-delegation contract” that focuses on specific business objectives. There is a growing trend to minimize the time from planning to release, leading to an overwhelming preference for the agile approach over the waterfall approach. While perfection and quality remain important, the agile approach is well-suited for situations where quick development initiation is necessary to keep pace with competitors.

Even in the context of offshore development mentioned earlier, agile development, known as the “laboratory type”, is gaining prominence. In this approach, a dedicated team is formed for each project, working closely with the client company throughout the development process.

The agile development methodology is suitable for the following types of system development:

• Small-scale development projects: This includes web-based and open-based development that focuses on specific functionalities rather than general-purpose development. These projects involve a smaller team and lower costs.
• Projects requiring quick and flexible responses: This applies to scenarios such as mobile applications and web applications, where modifications based on user feedback are necessary or projects without a clear end goal.
• Projects with uncertain overall requirements and expected changes in specifications along the way.

The Flow of Agile Model

Create a release plan

↓

Determine development priorities

↓

Running and repeating iterations

In the case of the agile model, unlike the waterfall model, it does not take time to define requirements from scratch. After determining and sharing the rough specifications and direction in the release plan, the IT outsourcing team will clarify which function to start developing. For each function, the development process will undergo the following stages: “Requirement Definition” → “Design” → “Development” → “Test” → “Release”. This cycle can be repeated as needed. Especially, in terms of agile, even if all functions are not available, the development team will release them as soon as these functions are completed as much as possible. If problems arise, the development team will fix them immediately.

To foster iterative innovation, it is crucial to establish an environment that facilitates ongoing communication between the client and the developer, allowing them to share the latest information at any given time. This enables the development process to proceed while flexibly adjusting the direction as needed. When this collaboration is successful, unlike the waterfall model, there won’t be any last-minute surprises or panic when nearing completion, with the realization that things are not as they were expected to be.

III. System Development Method

There are two main methods of system development: “scratch development” and “package development”.

Scratch development means developing a system from scratch.

Package development, on the other hand, is a method of using a system that has already been developed and adapted to suit your company’s needs.

Which should I choose: “scratch development” or “package development”?

The choice between “scratch development” and “package development” is case-by-case. Below are the advantages and disadvantages of each.

Scratch development is appropriate in the following scenarios:

• When aiming to create innovative and groundbreaking new businesses and systems.
• When the need arises to incorporate specialized functionalities that are not readily available in off-the-shelf products.
• When specific security and compliance requirements must be met, a tailor-made solution.

Package development is suitable for the following situations:

• When there exist pre-existing software packages that can effectively address the problem at hand.
• When the primary goal is to minimize development costs.
• When there is a need to expedite the development timeline.
• When the focus is on standardizing operations rather than pursuing unique or original solutions.

These paraphrased statements aim to capture the essence of the original text while enhancing clarity and readability.

IV. System Development Cost

For system development costs, it is common to use an hourly rate that calculates remuneration based on the number of engineers and product managers that are generally required and the period of time.

The hourly rate is specifically determined by “number of people x number of hours”. Multiplying this by the hourly rate of each engineer will be the minimum request cost.

For example, if you use two system engineers and one programmer with an hourly rate is $25 (monthly rate = $18.250) and develop in 3 months, the monthly unit price will be as follows.

3 people x 3 months x $18.250 = $164.250

Depending on the developer, other expenses such as transportation expenses may be added.

Apart from that, the unit price of each Vietnamese system engineer.

The market value for programmers varies depending on the programming language they specialize in. For instance, Java and C#, which have a larger pool of engineers, typically command market rates ranging from $3000 to $4300. On the other hand, Python and Swift, which are relatively newer languages in high demand, can see rates as high as $4300 to $7300.

Product managers, on average, have a unit price range of approximately $4300 to $7300.

In recent years, there has been a significant demand for smartphone app development, often resulting in higher costs compared to web development.

When it comes to system development, offshore outsourcing is recommended. Relipa, a company known for keeping up with the latest technology trends, has garnered satisfaction from numerous Japanese companies due to our ability to provide high-quality development at a lower cost.

We will respond to a wide range of development projects such as web systems, open systems, AI, and blockchain development. Please feel free to contact us for any orders.

V. Points to be Noted When Outsourcing System Development

Next, let’s explain the points to be aware of when outsourcing system development. System development is not a simple matter of just finding a developer and proceeding on its own. If you are not prepared, the IT outsourcing company can take advantage of your lack of development experience and charge a high development fee, or cheat with poor quality and sloppy work. In order to avoid such a situation, please be sure to understand the precautions and prepare well.

Create an RFP (Request for Proposal)

First, create an RFP (Request for Proposal).

In the RFP,

• Purpose of development
• Background
• Current issues
• Specific image after introducing the new system
• Functions you want to include
• Development budget
• Number of system users
• Internal organization chart
• Detailed information on personal computers, servers, current systems, software, etc.
• Education of employees when introducing the new system
• Other requests and concerns

Write the above information clearly and concisely. As a matter of course, it is assumed that developers have no prior information about their existing systems, the main problems to be solved, and other problems that are rooted in the company and need to be improved (quality and shortage of human resources, etc.). Therefore, abstract words and face-to-face conversations alone will not be enough to convey your intentions, and it will be difficult to share important issues and goals. Therefore, by putting the above information in writing, the discussion will be deepened, and it will be possible to proceed with development with a closer standing and recognition.

As developers, it is essential for us not to simply accept everything the client says. If the development purpose is misaligned, the proposed budget is insufficient, or there is a lack of resources to effectively manage the system after development, it becomes necessary to reassess the development approach and goals. Superficial explanations and requests often fail to uncover these underlying issues, which can lead to irreparable problems down the line.

To prevent such situations, it is crucial to create a comprehensive and high-quality Request for Proposal (RFP) that accurately communicates detailed information. Depending on the content of the RFP, developers will trust you and provide the necessary attention and respect.

Secure the Budget

System development costs can vary significantly depending on various factors. However, it is important to prioritize practical considerations rather than solely focusing on idealistic concepts such as specific system requirements or desired functionalities. While evaluating the development scope, it is crucial to maintain a realistic perspective and assess the actual needs, taking into account the available resources and budgetary constraints. By grounding our approach in reality, we can effectively determine the necessary budget and allocate resources accordingly.

Effective Communication

In case you are new to system development or have little development experience, it is not beyond the realm of possibility that you want to give the IT offshore company most of the responsibilities. In the initial stage, you and the IT outsourcing company may be on the same page about requirements definition and release planning, but as you and your partner move forward, you may stray in the wrong direction.

This is because there are many cases where the person who has direct meetings or interviews with the client is different from the person who is actually in charge of design and development (program). As a result, the engineers proceed with development based on their own experiences and ideas and may end up ignoring the requests and benefits of the client. Therefore, do not forget to keep in touch with the person in charge frequently and check the progress frequently, ask questions and solve them on the spot if you have even the slightest doubt, and be sure to be present at the test. prize.

Get Multiple Quotes

It is generally not advisable to limit your options to just one company during the estimation stage of a project unless you have a highly trustworthy recommendation from a reliable acquaintance or company. In most cases, it is recommended to obtain quotes from at least three different companies. Cheaper prices do not always equate to better quality. However, having multiple quotes can provide leverage during negotiations with your preferred company, allowing you to reference the quotes from other companies and potentially request a price reduction. This can prove advantageous in securing a favorable deal.

This practice is particularly helpful for those new to system development, as it allows for a broader understanding of the industry landscape by examining quotes from companies with different approaches and perspectives.

Read more: Top 10 recommended system development outsourcing companies in Vietnam

VI. How to Choose a System Development Partner

Lastly, we will highlight three key considerations when selecting an outsourcing destination for system development:

• Assess their track record: It is crucial to thoroughly examine the outsourcing partner’s past achievements. Simply hearing claims like “We can do this” or “We have developed that” is not sufficient. It is important to verify which systems they have actually developed and assess the outcomes. If possible, experiencing the user interface (UI) of their applications or web systems can provide valuable insights. Furthermore, if the outsourcing partner has experience in developing similar products or operates within the same industry genre, it can expedite communication and leverage their previous expertise for more advanced development.
• Focus on enthusiasm and compatibility of the contact person: Development is carried out by real individuals, not machines. Therefore, establishing a strong rapport with the contact person is paramount. Effective communication minimizes misunderstandings and ensures smooth progress throughout the development process. It is crucial to ascertain their enthusiasm for making the project a success and their client-centric attitude, rather than prioritizing their convenience. Paying attention to whether they can explain technical concepts in a comprehensible manner, without excessive use of jargon, is highly recommended.
• Evaluate maintenance and post-delivery support: The real journey begins after the development phase is completed. It is almost inevitable that bugs and glitches may arise that were not detected during testing. Anticipating perfection from the outset is unrealistic. Therefore, it is essential to inquire about their maintenance and aftercare system, including associated costs. Understand their approach to handling irregular situations, the extent of support provided, and any warranty coverage.

Summary

Successful system development can lead to the resolution of long-standing issues, enhanced operational efficiency, improved client satisfaction, and increased sales. To achieve these benefits, it is crucial to carefully consider the key points highlighted in the development process and the factors to consider when selecting a contractor, as outlined in the article.

Over the span of seven years, Relipa has accumulated a diverse portfolio of accomplishments in system development and web application specialization for Japanese companies. Thanks to the trust placed in us by our valued clients, we have grown and established a strong reputation. From design to implementation, we are committed to delivering high-quality solutions and rapid development to address our customers’ challenges. If you are considering system development, please do not hesitate to contact us. We eagerly look forward to serving you.