Why Agile software development is used by so many companies?

A study by Boston Consulting Group (BCG) released in December 2015 revealed what many have suspected all along: experimentation with the use of Agile software development principles is key for the success of established businesses and startups alike. Innovation, no…

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Vlad Solodovnyk
28 Dec, 2015

Why Agile software development is used by so many companies?

A study by Boston Consulting Group (BCG) released in December 2015 revealed what many have suspected all along: experimentation with the use of Agile software development principles is key for the success of established businesses and startups alike.

Innovation, no matter how overused the word sounds, still remains an important part of the corporate vocabulary:

Agile software development stats

Agile software development statistics

But what exactly does “innovation” actually mean, and what advantages does it offer to business?

In a world of increasingly faster business cycles no currently successful product or service can be guaranteed long-term success: in the end, companies that are adept at reinventing their market niches survive and have a chance at winning.

Why Leaders Focus on Speed

In BCG’s 2015 survey, product or service development cycle times were listed as the biggest obstacle for innovation:

More Agile development stats

Stats about Agile usage around the world

However, increasing the development capacity for faster innovation alone is not enough: companies that churn out new products and services know they will not succeed after each and every iteration.

Therefore obtaining the first-mover advantage also requires a more streamlined product/service development processes with 1.

  • the minimum number of iterations;
  • the minimum financial and operating expenditures;
  • largest available market to quickly build a client base;
  • a better communication between product design and product release teams.

Tools for Decreasing the Time to Market

The vast majority of the executives seeking to increase their firms’ capacity for delivering innovation are planning to invest in speeding up their ability to adapt new technologies:

Agile development popularity diagram

Diagram about the popularity of Agile approach in software development

In effect, we should be getting used to every company in every industry behave more like an IT company.

Agile Software Development Beyond IT

Modeled on the latest developments in software delivery, the most successful companies are striving to remove obstacles and proactively seek Agile software development approach.

The financial benefits of such an approach are often directly measurable and vastly exceed the up-front costs of introducing speed-to-market approaches to the organization. To deliver the intended results, both strategy (doing the right work) and execution (doing the work right) must go hand in hand:

Benefits of using agile software development

What benefits does Agile development brings business?

The benefits of becoming Agile in terms of execution outside of the traditional IT-focused definition are to be found in the following areas:

  1. Planning, Scheduling and Approval
    avoiding late or overly optimistic planning, early detection and remediation of poor task sequencing in scheduling, and avoidance of an overly bureaucratic approval processes
  2. Standardization and Automation
    minimizing variation in process and maximizing efficiency of standardized operations
  3. Role Clarity and Scalability
    ensuring coordination and consolidation of key functions for critical mass and the reuse of assets and information
  4. In-house Expertise
    building and maintaining subject matter and technology expertise and properly deploying it
  5. Sourcing and Geographic Distribution
    pursuing the proper use of outsourcing and offshoring with the right level of oversight
  6. Metrics, Monitoring, and Feedback
    maintaining transparency on costs and other metrics, and actively monitoring to drive responsive feedback loops

While the advantages of being an organization primed for adopting innovation is not limited to technology companies, those who already use the framework are also ready for the adoption of the best practices within IT.

The Innovation Effect on Business

Fast innovators have long demonstrated that shortening innovation and product development cycles and reducing time to market can be a powerful source of competitive advantage. With the growing focus on speed even among companies that are already fast, a new realization is dawning: the demand for speed and adoption of best practice IT methodologies is already increasing in every proactive business environment.

How Outsoft Enables Agile Business Transformation

As a software development service provider Outsoft helps businesses shorten product development cycles by offering a number of Global Sourcing solutions. Contact Outsoft now for a customized offer to help you transform your business into an innovation powerhouse.

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About the Author

Vlad is a writer with over 10 years of experience in the IT industry. He thinks of technology as a tool and likes to write about the ways people choose to use different tools, often with unexpected consequences.

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