Zendesk, a pioneer in customer service solutions, simply states that these systems become indispensable as organizations develop: 

“Given enough time and growth, most organizations will need an ERP and a CRM.“

But what do these 3 letter acronyms actually mean? How do they ensure the success of your business?

There’s little disagreement regarding CRM and ERP use in the business world. Approximately three-quarters of all businesses employ an ERP system to interact with customers in real-time, while two-thirds adopt a CRM within their early years.

These numbers mean that both technologies are widely adopted and also signal recognition of the strategic value inherent in such systems.

Each addresses different aspects of operations; yet when used together, they create powerful leverage for any company’s progression in terms of efficiency, scalability, and competitive edge.

What is a CRM?

CRM, short for Customer Relationship Management, refers to the systems designed to keep track of a company’s engagements with current and future customers. CRM systems act as a central hub where all customer-related information is stored, making it easier for businesses to nurture their relationships with clients.

With CRM software in place, repetitive tasks are automated, which allows employees to focus on providing higher-quality service. This enhances the efficiency of processes from marketing campaigns right through to sales activities and after-sales support.

By keeping detailed records of customer interactions, CRMs provide valuable insights that help tailor communication and services precisely matched to client needs. The ultimate aim is to foster stronger connections with customers by being relevant and responsive – attributes known for driving loyalty and repeat business.

Effectively employed CRM tools enable organizations not just to manage contacts but also to make strategic decisions based on solid data analysis. Such informed decision-making can lead directly towards more successful outcomes both internally within operations management as well as externally regarding market presence.

The Benefits of a CRM System

Implementing a CRM offers several key advantages for business:

• Elevated Customer Support: CRM tools act as an aggregate for customer information from both outside and inside the organization. Information is consolidated into one accessible platform, which allows for a more personalized service experience. 
• Boosted Sales Performance: Analytics information provided by the CRM means sales teams can identify promising leads and trends with far greater precision. When focusing on these prospects, they greatly increase the chances of turning inquiries into profitable outcomes.
• Improved Customer Retention: Access to trends analysis performed by the CRM provides valuable insights into consumer behavior. A business may utilize this knowledge to retain its client base, and also increase brand loyalty.

What is an ERP?

Enterprise Resource Planning, better known as ERP, is a comprehensive software platform that helps businesses manage and connect the many facets of their operations. 

Think of it like the central nervous system for a company’s data and processes. It brings together finance, supply chain management, operations, reporting functions, manufacturing capabilities, and human resource tasks under one roof.

The key aim of having an ERP system is to break down silos between departments. By allowing free-flowing communication within an organization, and with its business partners, ERP ensures everyone has access to up-to-date information they need when they need it.

This kind of coordination can significantly boost decision-making abilities as you have all your actionable data in one accessible spot. 

Additionally, by streamlining workflows and automating certain administrative tasks through this centralized approach, companies often find marked improvements in efficiency and productivity.

ERP also plays an important role in helping organizations keep pace with compliance requirements set by various regulatory bodies. Tasks are made simpler when all relevant info is easily reachable within a unified system.

The Benefits of an ERP System

ERP systems unify multiple aspects of a business into a single interface, which simplifies many day-to-day operations:

• Cost Efficiency: Streamlining processes and reducing the costs of administration and operations with an ERP leads to significant savings.
• Improved Productivity: Naturally, when all tools used by the business are integrated into one single system, efficiency and productivity are greatly enhanced. 
• Better Decision Making: An ERP system provides operational data in real-time, meaning strategic planning and decision-making can be made based on accurate and consolidated information.

CRM vs ERP: The Key Differences

The major difference between CRM and ERP systems lies within their core function in the business:

• CRM focuses primarily on the “front-end” or “front-office”. It manages the interactions with customers and sales prospects across various communication channels.
• ERP, in contrast, focuses on integrating “back-end”, or internal information across the entire business.

This CRM vs ERP table illustrates the difference between ERP and CRM more clearly, and compares the typical use cases for each system:

ERP vs CRM: Exploring the Similarities 

At their core, ERP and CRM systems serve as pivotal instruments for organizational achievement due to a shared foundation in several key areas:

Centralized Data 

CRM and ERP stand out for their ability to bring data under one roof. This centralization provides data for decision-makers who need current and uniform information across all business units.

Efficiency in Operations

Streamlining internal processes with ERP and CRM systems creates an environment where time-consuming tasks are automated, teams work cohesively, and the overall machinery of your company operates without unnecessary friction.

Insightful Reporting 

In terms of analytics with ERP vs CRM, both types of systems provide powerful reporting utilities that peel back layers on operational dynamics and customer engagements. These insights are fuel for developing forward-thinking strategies that align with both market trends and resource allocation.

Productivity Enhancement 

At their essence, ERP and CRM tools increase customer engagement, but ERP platforms orchestrate resource management. Both paths lead toward elevating organizational productivity, not incrementally but significantly.

Integrating CRM and ERP

Combining your CRM and ERP systems has the potential to revolutionize your business operations by bringing together customer interaction and internal processes. 

To ensure a successful integration, it is essential to follow steps that will align activities, data, and processes throughout your company with the two separate systems.

1. Prepare for CRM and ERP Integration  

Begin by establishing a plan that clearly outlines your objectives. Set the boundaries for integration and determine beforehand the specific data to be exchanged between the two platforms. Develop an analysis detailing the effects of the transition, on existing procedures.

2. Keep Data in Sync  

All data between the two platforms needs to be synchronized. Use specifically designed tools and middleware that can automate and check this ongoing process and reduce data duplication during the ERP and CRM integration process. 

3. Align Workflows  

Creating an integration between CRM and ERP systems requires outlining procedures that cover areas in both platforms. For example, order fulfillment and customer service. 

The aim is to establish operations that eliminate the need for input, in transferring data or finishing assignments.

4. Testing and Validation 

Before the launch, make sure to examine the integrated systems. Confirm that data moves smoothly between CRM and ERP systems and that all processes are working correctly. Testing in real-life scenarios is crucial at this point in order to identify any integration issues before the integration goes to production.

5. User Training and Support  

Once the two systems are successfully integrated, synced, and functional with the business, it’s time to train your existing users and staff in the operation of the new platform.

Continuous support is crucial at this stage to help staff adapt to the integrated ERP and CRM systems.

6. Review and Iterate 

After the integration goes live, a post-implementation monitoring of the system is required. This includes soliciting user feedback on a regular and ongoing basis. 

This feedback should be used to make adjustments and tweak the environment, which will improve the integration over time. These regular adjustments will reduce in frequency over time.

ERP vs CRM: What Should You Choose?

When deciding between a CRM or ERP system, it’s important to consider your business needs. If you’re interested in building customer connections, enhancing service quality, and driving up sales numbers, a CRM is the way to go. 

It’s tailored to cater to your customers, improving interactions supporting marketing campaigns, and streamlining services—all of which can lead to increased sales.

On the other hand, if your company is looking for an all-in-one solution that integrates functional areas such as HR, logistics, or finance, then an ERP system might be more suitable. 

ERP excels at bringing together data and processes in one place. They are crucial for businesses aiming to improve efficiency while reducing expenses. 

Regardless of choice, a CRM or ERP system handles management tasks more efficiently. These systems simplify intricate operations across your organization and enhance collaboration among different departments.

Choosing a Trusted Custom CRM Development Partner

Should you wish to experience enhanced employee efficiency, improved customer satisfaction, and consistent increases in sales performance, consider integrating a CRM platform into your business strategy.

Intellectsoft stands as a comprehensive software development company enriched by years of crafting CRM solutions tailored for businesses across the spectrum. 

Whether you’re migrating to a brand new platform, or requiring a CRM built from the ground up, our experts at Intellectsoft are equipped with the knowledge, expertise, and experience to support you through the entire process.

Summing Up

When deciding between a CRM or ERP system, it’s important to consider your company’s requirements and long-term objectives. 

Whether you aim to enhance customer interactions or optimize workflows, grasping the differences between CRM and ERP is crucial for making a well-informed choice.

The post CRM vs ERP: Choosing the Right Solution for Your Business appeared first on Intellectsoft Blog.

Companies that use customer relationship management (CRM) systems have experienced a 47% increase in customer retention rate, a 21% improvement in productivity, 16% higher customer retention, and a 17% boost in lead conversions. So if you are a business owner looking to improve customer relationships and streamline internal processes, this article is for you. In this comprehensive guide, we will explore the various aspects of custom CRM implementation, from the process to its benefits.

While it takes 13 months to see an ROI from this tech investment, the $45 per dollar spent is well worth the wait.

Advantages of a Custom-Built CRM

Because every business is unique, custom solutions offer tailored features that can create the best experience for their specific customers. Unlike ready-made CRMs, which come with unnecessary features, choosing custom solutions allows you to build the exact functionalities your teams need, saving money in the process.

Big brands have already adopted custom-built CRMs in favor of pre-made ones.

For example, Apple and Uber use custom-built CRMs to drive sales and customer engagement.

Amazon’s own CRM captures customer data at the point of purchase, instantly customizing the user experience and providing a full view of the customer journey. This helps reduce returns and cart abandonment.

Similarly, Tesla started using its own CRM in 2019. Today, the company boasts the highest customer satisfaction rate in the car manufacturing industry according to Consumer Reports. Ninety-one percent of Tesla owners are more likely to rave about their vehicles than other brands, partly due to their in-house developed sales software.

Overcoming Challenges with Tech Partner

While custom-built CRMs can present challenges such as higher costs, longer development times, and maintenance complexities, these can be effectively managed with the right approach. To circumvent these challenges smoothly, partner with a software provider specializing in custom software, such as Intellectsoft. 

What is a CRM Implementation?

Beyond just setting up software, CRM implementation is a strategic move towards better understanding and managing your interactions with current and future customers. It’s a holistic process that entails meticulously configuring the software to align with your unique business needs, ensuring that every customer interaction is captured, analyzed, and leveraged to foster stronger relationships. Your CRM implementation plan shall begin with a deep dive into your business-specific requirements and goals.

Choosing your CRM development partner is next, and it’s a decision that should not be taken lightly. This is where expertise meets execution. Partnering with a company that not only understands the intricacies of CRM systems but also appreciates the unique challenges and opportunities within your industry can make a significant difference.

Before hiring a developer, make sure they are capable of tailoring the CRM to fit your unique business requirements. A one-size-fits-all approach simply does not apply to CRM systems. Your development partner must also bring the training aspect to the table. Onboarding your team to effectively utilize the CRM system according to their respective roles is a pivotal part of the implementation.

And the final step, which is not an endpoint but a commitment to continuous evolution. Regular monitoring and evaluation of the CRM system’s performance against your objectives allow for timely adjustments and optimizations.

Let’s explore the details of the implementation steps in the next section.

CRM Implementation Process: 6 Steps to Success

CRM implementation is a multifaceted undertaking that necessitates a roadmap marked with critical milestones to ensure a smooth transition and alignment with your business goals. This roadmap is not just a path but a strategic blueprint for transforming customer relationship management within your organization.

Below are the six essential steps to navigate this journey successfully:

Step 1: Identify CRM Goals

Delineate what you aim to achieve, whether it’s enhancing customer engagement, improving customer interactions, optimizing sales processes, or refining marketing strategies. Having crystal-clear goals sets a targeted direction for the implementation process.

This stage is crucial as it establishes the foundation for the entire process. Setting objectives early on guides the entire procedure so that every decision aligns with your business aspirations.

Step 2: Consider Required CRM Integrations

Assessing your current operational workflows and technology stack is imperative before introducing a new CRM system. Evaluating the current ecosystem shows potential problems and chances to streamline. It confirms the new CRM system can blend into it.

This is where you pinpoint the applications your CRM needs to synchronize with, such as email platforms, social media channels, and customer service tools. The goal is to establish seamless data flow and functionality across all operational areas. After all, a CRM is supposed to enhance efficiency and provide a unified view of customer interactions.

When you have created a cohesive ecosystem where data flows freely, you will be able to provide your team with the insights they need to make informed decisions.

Step 3: Choose Your CRM Development Partner

The right partner not only brings technical prowess but also possesses a deep understanding and extensive experience in the following:

Data Management

A good CRM software vendor delivers cutting-edge techniques like advanced data management, predictive analytics, and smart automation. They must be knowledgeable in tapping into the latest technology trends, such as Big Data, AI, Machine Learning, and Blockchain, to stay at the forefront.

Software Integration

Choose a company that can enhance your technological foundations through the development of robust microservices, dependable API structures, and seamless data integration techniques. You can propel your strategic objectives forward if they are capable of creating comprehensive enterprise applications or leveraging enterprise app integration solutions to streamline your operations and foster innovation.

Legacy Application Modernization

Outdated software not only poses significant security risks but also demands high maintenance costs. Engage leading experts to conduct comprehensive reviews of your systems and upgrade them with cutting-edge tools and technologies for enhanced performance and security.

Step 4: Customize for Tailored Solutions

Customizing a CRM system involves adjusting features, functionalities, and interfaces to align with your workflows, user needs, and overall business strategy. It requires a detailed checklist that enables you to create a configured design that delivers on its promise to enhance your business operations and customer relationships.

Instituting a governance framework will also provide guidelines on how the CRM system should be used and maintained. This typically includes standards and procedures for data management, user access, customization, and system updates that guarantee your CRM initiative’s long-term sustainability.

Step 5: Empower Teams with Training

The success of a CRM implementation heavily relies on user adoption. It’s not just about knowing which buttons to click but also understanding how to leverage the system to enhance customer interactions and drive business growth.

Providing comprehensive training sessions ensures your team is well-equipped to unleash the full potential of the system. This empowerment not only enhances efficiency but also fosters a culture of continuous improvement.

Step 6: Ongoing Assessment and Adaptation

No enterprise is static, so your CRM system shouldn’t be either. Establish an iterative process that ensures it remains agile, responsive, and aligned with your evolving business needs. For example, conduct weekly performance reviews of your CRM system to track its efficiency. Also, consider utilizing CRM analytics tools should be utilized to gauge user adoption and the system’s effectiveness in achieving business goals.

Always be open to incorporating new functionalities as the CRM vendor releases updates or your business needs shift. Regular employee feedback can also be invaluable in spotting areas of the CRM system that need tweaking for better performance.

Navigate these steps with precision and strategic foresight, and you will pave the way for a CRM implementation that not only meets but exceeds your expectations and drives your business toward enhanced customer-centricity and operational excellence.

Remember, effective CRM implementation is not just about technology but also about strategically aligning such technology with your business goals and customer needs.

Importance of CRM Implementation

In essence, CRM implementation is an investment in a strategic framework that transcends mere technological adoption by representing a strategic pivot toward a more engaged and insightful business model. It empowers your business to:

• be more responsive, agile, and customer-focused
• deepen the understanding of customer needs, preferences, and behaviors
• anticipate customer desires and tailor interactions to individual expectations
• build enduring relationships that drive loyalty and growth
• commit to operational excellence
• enable teams across sales, marketing, and customer service to work more coherently and efficiently

A well-implemented CRM system provides a unified platform that fosters collaboration and enhances the ability to act on data-driven insights. Consequently, you will achieve improved internal workflows, better customer experience, and a competitive edge in the marketplace.

Benefits of CRM Software Implementation

While implementing a CRM system is considered an operational upgrade, it’s actually a strategic investment that yields a high return over time in terms of catalyzing business growth and customer rapport improvement.

These are the changes your organization can expect post-implementation:

Precision in Sales Forecasting

CRM systems offer a granular view of sales trends and customer behaviors. This predictive prowess enables your business to craft strategies that are both responsive and anticipatory. As a result, you are staying a step ahead of market dynamics.

Enhancement of Customer Service

With a comprehensive CRM, customer interactions are no longer siloed but part of a continuum. Hence, support teams are able to deliver personalized and contextually relevant assistance. Doing so not only boosts customer satisfaction but also nurtures loyalty and retention.

Efficiency in Communication

Yet another advantage is breaking down barriers between departments, which streamlines internal communication and collaboration. Such a unified approach ensures that all team members are on the same page, marching cohesively towards common business goals.

Automation of Repetitive Tasks

Liberating your team from the mundane and routine everyday tasks allows them to focus on initiatives that drive business growth. This shift optimizes resource allocation while boosting employee morale as they engage in more meaningful and impactful work.

Highly Targeted Marketing Campaigns

Marketing efforts based on robust data analysis resonate with the intended audience, thus maximizing impact and return on investment.

As you can see, CRM software implementation touches every aspect of your business, from sales and customer service to internal workflows and marketing. This indispensable investment simultaneously propels operational excellence and promotes a customer-centric organization.

Wrapping Up

This guide has walked you through the essential steps in the planning, execution, and deployment of a CRM implementation strategy, underscoring the importance and benefits of adopting a CRM system tailored to your business needs.

Adding this software to your current tech stack guarantees to enhance customer relationships and elevate operational efficiencies. However, the system’s success greatly depends on the willingness of your team to adopt it. Statistics show that while 65% of businesses use CRM within the first five years of operations, less than 40% achieve full adoption. That’s why you should commission a vendor that is capable of training users from various departments of your company who perform different roles.

Partnering with a seasoned expert like Intellectsoft ensures not only a smooth transition but also an optimized integration of CRM into your business landscape. Our expertise in enterprise software development covers the full life cycle of application design, integration, and management.

We are experienced in deploying this technology through the construction, healthcare, dental, insurance, FinTech, logistics and automotive, travel and hospitality, and retail and e-commerce industries. Discover how our custom CRM software implementation helped a dental clinic scale new heights in this case study. For a deeper dive into how Intellectsoft can future-proof your business operations, visit our services page.

The post A Comprehensive CRM Implementation Guide in 2024 appeared first on Intellectsoft Blog.

Why Your Company Needs CRM Software?

The best way to retain customers and grow sales is by prioritizing your customer experience (CX). This means investing in customer relationship management (CRM) software. A CRM lets you broaden your sales pipeline, learn more about your customers, and deliver more value to them over the entire customer life cycle. From sales and marketing to customer service, CRM software is an essential tool that will benefit several departments in your organization. 

The global CRM market is also projected to experience a compound annual growth rate (CAGR) of 12% between 2023 and 2030, according to a report from Fortune Business Insights. With so many companies taking advantage of the benefits offered by CRM software, you don’t want to get left behind.

Investing in CRM software is money well spent. Your return on investment (ROI) after adopting a CRM software will more than justify the money you spent on the adoption. According to a Nucleus Research report, the average ROI after implementing CRM software is $8.71 for every dollar spent! That’s nearly nine times the amount of returns compared to the initial investment, which is a strong argument in favor of using CRM software for your company. 

If you haven’t yet found CRM software for your business, then this article is the perfect starting point. We will make a case for why you should get CRM software, cover the steps to build a custom CRM, and look at some of the challenges you might face when adopting new CRM software. 

Let’s dive right in.

Building Your Own CRM: Worth It?

Now that you’re convinced about the need for a CRM platform at your business, the next step is deciding what kind of CRM software you want to work with. While many businesses choose to build custom CRMs, it’s not absolutely necessary to do so. You can also shop for an off-the-shelf solution to help manage customer relationships. 

Building a custom CRM platform requires time, money, patience, skill, and knowledge. Unless you have plenty of these resources to spare, it’s not advisable to take on the challenge of building a custom CRM for your business. 

Instead, it would be much wiser to evaluate the prepackaged software solutions to see which most closely matches your business needs. It will save your company the expense of designing the software while still bringing you the most desirable benefits of using CRM platforms. 

However, if you have an extremely specific list of requirements, investing in a custom CRM software for the long term would be better.

Let’s look at the options available for companies looking to implement a CRM platform. There are three main types of CRM software available today, and we shall examine each in turn.

1. Ready-Made CRM Platform

The first option is a ready-made, off-the-shelf CRM platform. There are dozens of these on the market, including extremely popular and widely used ones like Salesforce, Zoho CRM, or Freshsales Suite. 

The reason why these CRM software are so popular is because they are extremely convenient to begin using. You simply choose a pricing plan that works for you and train your team members to use the software. In just two simple steps, you’re ready to launch your new CRM and start reaping the benefits.

These ready-made CRM platforms come with a fixed list of features and a fixed amount of storage space. So unless the features list covers every single one of your business requirements, it’s not a good idea to go for a ready-made CRM software. They lack flexibility in terms of features and functionality, and the limited storage space makes scaling up operations tricky. 

Another drawback of ready-made CRM software is that they can often be unjustifiably expensive if you have a large team, because they usually charge per user license. 

Those who have found an effective CRM solution with ready-made platforms are lucky, but the rest of us need to keep looking for a more appropriate solution.

2. Custom CRM System

If you want to have more flexibility in terms of features and a greater degree of control over the functioning of your CRM platform, then you can opt to create a CRM that is customized to your specific needs. This is the smart option if you have a large team and complex requirements to meet with your CRM.

When you build a CRM from scratch, you can be sure that it will seamlessly integrate with your other business tools to deliver maximum value from its position. Other benefits of opting for a custom CRM system include being able to enforce more robust security measures, and being allowed to add more users at no extra cost. 

If you have the appetite to create custom-built software, you can address every single need you have, without spending money on extraneous features you never use. For many companies, regardless of size, a custom CRM system is the best fit.

3. Customizable CRM Software

Some companies are trapped in between ready-made CRM solutions that don’t have enough versatility and custom-built CRM platforms that take a long time to develop, What these companies need is a happy middle ground in the CRM market, where the available software is as easy to set up as its ready-made alternatives, but offers a level of flexibility closer to custom-built softwares. They will find what they are looking for is customizable CRM software. 

Despite the similar sounding names, there is a clear difference between custom-built and customizable CRM software. While the former is built entirely from scratch, the latter allows users to add or remove modules and workflows to the pre-existing CRM platform’s structure according to their needs. With custom-built software, no two solutions are identical, but with customizable software, the base product remains the same and only certain additional features and cosmetic elements change. 

If your company is looking for a level of customization in its CRM platform, but doesn’t want to invest the time and money that goes into developing a new software, customizable CRM solutions are your best bet.

Seven Steps in Creating a CRM from Scratch

If you’ve scanned all the CRM software available in the market and not found one that matches your needs, there’s no need to fret. You can build a custom CRM software for your business, no matter the size of your company. Many small businesses have turned to CRM solutions to improve their performance, with a Grand View Research market report saying that 91% of all businesses with 10 or more employees have already invested in CRM software. 

If you approach the project with a well-planned strategy, then building a CRM doesn’t have to be a daunting task that drains your company’s resources. Instead of a burden, your custom CRM software can empower your employees to perform at a higher level. 

Here’s how to approach the task of creating a CRM that is tailor-made for your company, laid out step-by-step.

1. Pre-Operational Stage

The first stage of building your own CRM platform is the most important, even though it might seem like it’s the stage where the least work gets done. This is the point where you need to clearly state the purpose of your CRM platform. That means listing the goals you wish to achieve by using the CRM platform, the users who will benefit from its adoption, and the specific benefits it will grant your business.

For example, some pre operational goals you can set for your custom-built CRM platform include:

• Streamlining sales processes and boosting sales numbers
• Increasing customer retention rate by identifying reasons for customer churn
• More productive lead generation and more efficient lead management
• Improving CX and raising the overall customer satisfaction rating of your company

As you can see, CRM systems are very versatile tools that can be put to various uses. Depending on the use case for your CRM platform, you will then be able to decide what type of CRM software you wish to implement. There are three main categories of CRM software, each with its own dedicated purpose. Let’s look at each type of CRM platform, and how they can be used.

• Collaborative CRM System: Improves teamwork and communication within your company by promoting clear and transparent data exchanges. These types of CRM platforms have features like collective communication channels, file sharing capabilities, and activity streaming functions. 
• Analytical CRM System: As the name implies, these types of CRMs help with making plans and drawing insights based on customer and sales data. These types of CRM platforms must have analytical processing capabilities and data mining functions.
• Operational CRM system: This type of CRM platform is designed to make business processes run smoothly. They increase employees’ work efficiency by automating important but time-consuming marketing and customer service tasks, like lead generation or sending follow-up emails to customers.

Each type of CRM platform serves a different purpose. Still, it’s important to remember that it’s possible for a single platform to cover all these bases when you are building a CRM from scratch. You can mix-and-match different features and create a comprehensive CRM solution for your business.

2. Choosing a Development Partner

Once you have a clear vision of what you want your custom CRM software to look like, you can move on to the next step. This involves finding the right partners that will develop the software with you. At this stage, there are two options available to you. Either you go for in-house development, or you decide to rely on outsourcing the software development task to a qualified third-party.

In-house development can be tricky, especially if you don’t already have the right developers and software engineers on your payroll. While you get full control over the software development life cycle (SDLC), it comes at a high cost, which can also possibly include the cost of hiring new developers.

On the other hand, outsourced development grants you access to a pool of specialists who are well-qualified to help you design a company CRM platform. You can scale up the size of the team if you need to without having to worry about making new hires while outsourcing the CRM platform’s development. From their turnaround time to the quality of their work, third-party developers can add great value to your CRM solution’s SDLC.

If you’re convinced about hiring the services of an outsourced, third-party software developer for your custom CRM platform, then ensure you choose the right one. The development partner you decide to work with should have previous experience in building CRM software for your industry. Look at their past projects and go over reviews from earlier customers to get an idea of the quality of work they create.

3. Choosing Your CRM’s Features

Now that you have your development partner by your side, your custom-built CRM software will start to take real shape. This is the point where you meet with your software developer, and finalize the list of features to be included in the final product. The features list doesn’t have to be exhaustive. Make sure to review different combinations of features to see which ones will lead to a minimum viable product (MVP) that satisfies your company’s needs. 

Your final list of CRM software features depends on several factors: the nature of your industry, the size of your company, and the tools that are already in your technology stack. Because of these variables, no two custom-built CRM platforms are exactly the same. However, here is a short list of some commonly found features that are often included when building your own CRM software:

• Contact management
• Interaction tracker
• Email marketing
• Scheduled reminders
• Sales automation

This list is not a complete features list by any means. Every CRM platform has up to three different modules, each with its own suite of features. The three main modules of a CRM platform are the sales, marketing, and customer support modules. When building your own CRM solution, you can pick and choose which modules you would like to include in your software, and to what extent.

4. Calculating Costs

Once you’ve created a shortlist of features and modules you want in your CRM platform, calculating the total cost of the project becomes much simpler. With clear deliverables and a framework to operate within, your software development partner will be able to provide a transparent quote with no hidden costs. 

Depending on how far you are willing to stretch your budget, you may even be able to include a few additional features at this stage. Alternatively, you might find the costs are rising too high, and will have to decide which features to forgo while developing the CRM software.

5. Designing UI/UX

There’s no point in spending money on creating a comprehensive, bespoke CRM solution for your company if your employees are unable to use it. Choosing a list of features especially because they will help employees fulfill their roles is only the start. You also need to house those features in a user-friendly CRM software. 

Your CRM software’s user interface and user experience (UI/UX) are a critical component of its ultimate success. A poorly designed UI/UX will drive users away, preventing them from accessing the many benefits of your CRM software. While functionality is a top priority when building a CRM from scratch, aesthetic appeal and ease-of-use should never be overlooked either.

6. Testing and Quality Assurance

Now that your CRM software’s features and design have been finalized, the only thing left to do is make sure the software is working as intended. Before you launch your CRM solution, you need to conduct strict testing to identify bugs and glitches in the code. Software testers play an important role in any development team, and the ones working on your CRM platform will be the ones who ensure every feature is functioning the way it should.

7. Launch and Support

After completing every step mentioned above, you’re finally ready to launch your new CRM. This is a landmark moment for your company, and to ensure your launch goes well, you must work with your development partner and create a clear strategy for migrating data from existing systems into the new CRM. 

Remember, your CRM platform is software, and software tends to become outdated within a few months. That’s why, like every other software product owner, you will now have to provide ongoing support to your CRM platform’s users. This includes regular security updates to protect data stored on the CRM platform, new features that users have been asking for, or simply routine updates to improve the quality of UX on the platform. As long as your CRM platform is in use, you will have to keep supporting the users with regular software patches.

By following the seven steps listed above, you will see that creating your own CRM system isn’t as complicated as it seemed when you first considered the notion.

Challenges in Developing a CRM Platform

It’s extremely clear that adopting a CRM platform can do wonders for your business in many key areas like sales figures and customer satisfaction. These are good enough reasons to create your own CRM. While the end result will be beneficial for your organization, it’s quite likely that you will encounter some challenges along the way.

Here are four major obstacles to achieving runaway success with your new CRM software.

1. Difficult to Implement

CRM software is a relatively new entrant in the field of business tools. As such, there is a prevalent resistance toward its adoption among professionals, particularly salespeople. A HubSpot survey found that 50% of all sales managers say a CRM is too difficult to implement in their organization.

2. Partial Adoption

Carrying on from the previous point, incomplete adoption of CRM platforms across the company can also lead to poor results. All the stakeholders need to be using the CRM for it to deliver maximum value. If a portion of the employees do not use the CRM platform, the other half who do will find it extremely difficult to communicate and share important information.

3. Manual Data Entry

The number one issue with CRM platforms is that manual data entry is extremely painstaking and has a high chance of errors. However, today’s generation of smart, artificial intelligence- (AI-) enhanced CRM softwares are able to automate those tasks, bypassing the loudest complaint against CRM platforms.

4. Calculating the Success of a CRM

Because a custom-built CRM platform is built at great expense, it’s only natural that you want to be able to measure its performance. This can be complicated, since certain aspects of a CRM’s performance are subjective. Also, your ability to measure the CRM platform’s success is tied to how clearly you stated your goals at the beginning of the SDLC. Only when you have a clearly marked frame of reference will you be able to judge the performance of your CRM system. 

Another important prerequisite to calculating the success of your CRM platform is defining user personas and mapping their journeys during the pre-operational stage. This allows you to compare the actual user experience to your theoretical user journey and identify areas where your CRM platform’s performance can be improved.

By working closely with your development partner and encouraging wholehearted participation from every other stakeholder, you can overcome most of the common challenges in developing a CRM platform.

How Much Does it Cost to Build a CRM System?

A custom CRM system is an investment in your company’s future. It’s a solution that can scale with your company as it grows, enabling you to deliver a high level of customer service and employee productivity through your operations. 

With the high ROI rates seen with CRM platforms, you can be sure you will get your money’s worth from your custom-built CRM system. This raises an important question— how much will it cost you to build your own CRM platform?

At the risk of sounding vague, there is no definitive answer for that question. 

The total cost of building your own CRM software can range from anything between $50,000 to $500,000. There are a number of factors at play that influence the cost of your CRM software. These include:

• Number of core, standard, and extra features in your CRM platform
• Number of roles who will access the CRM platform
• Size of your development team
• Expertise level of your development team
• Additional expenses beyond development, like project management and quality assurance

When working with third-party developers, you will get a more accurate quote after arriving at an MVP for your CRM software.

Wrapping Up

If you’re ready to enjoy greater employee productivity, higher customer satisfaction, and steady sales growth, then it’s time to invest in a CRM platform for your business. Intellectsoft is an end-to-end software development company with years of experience designing CRM solutions for companies of all sizes. Whether you are simply migrating to a new platform or developing a CRM system from scratch, the experts at Intellectsoft will be able to guide you every step of the way.

The post How to Build a CRM: A Step-by-Step Guide appeared first on Intellectsoft Blog.

Enterprise software plays a big part in finding success in a digital world. If your business is looking for software solutions to make operations smoother, you will need to keep abreast of emerging technologies in software development—and assemble a great development team.

Why Your Business Needs a Software Development Team?

Software developers and engineers have an inside joke: “Building software is like building cathedrals; first you build it, then you pray!” However, getting together a software development team with the right technical know-how can remove the uncertainties of the process. This makes it crucial to work with seasoned professionals with experience in products that are in line with the latest software development trends.

Software development is what transforms ideas into tangible digital products. It’s a process that includes ideation, creation, design, and launch of software, along with providing ongoing technical support for the software’s users. Naturally, such technical responsibilities need to be fulfilled by IT experts, which is why businesses need to assemble a qualified team that is up to date with software industry trends.

Across the world, software development trends indicate that companies spend more than $1 trillion on enterprise software every year. These software solutions help companies become more efficient by reducing costs and streamlining business processes.

Whether it’s a customer-facing product or a tool for internal use, you should contact experts to help design software solutions. According to TechReport, 84.7% of software companies specialize in enterprise application development, so you will have plenty of options when looking to recruit your software development team.

What are the Major Factors That Influence the Software Development Team Structure?

Every software development project is unique. That’s why you should tailor the structure of your software development team according to each project’s stated goals and objectives and the trending technologies in software development. When assembling your software development team, there are four main factors you should consider.

Let’s take a closer look at each one of these.

Project Type and its Complexity

It’s counterproductive to assemble a software development team before the nature of the project is made clear. 

Before finding team members, ask yourself what kind of software product you want. If you are experimenting with a new idea and only want software as a proof-of-concept, a smaller team of five or fewer members will be more than enough. However, if your product is much more complex, like a market-ready e-commerce app with third-party integrations, you will need a much larger team.

As the scope of a software development team increases, so does the required team size. Software developers come in many stripes, from generalists to specialists, with hybrid developers in between. A niche software product with very specific functions will require specialists on the team, whereas a more generic product can be created by generalist and hybrid developers.

Development Budget

Good software costs money. It’s a simple fact, and the sooner you accept it, the easier it will be for you to get the most out of your software development budget. With the funds available, you can either hire full-time developers directly or contract the services of third-party software developers. It’s up to you to decide which is more cost-effective for your company. 

Once a software development project has an allocated budget, you need to find ways to maximize its usefulness. Consider focusing on high-priority features first or limiting the size of your team. When you try to pack in too many features or hire a large team without planning out each member’s roles, your expenses will go up. 

It is, therefore, advisable to ensure that the project’s budget, scope, and team composition are all aligned perfectly before starting the software development process.

Time to Develop a Project

Rome wasn’t built in a day, and neither is good software. Rushing a software development project is a surefire way to end up with a buggy product that doesn’t perform how it should. Looming deadlines are a reality that every software development team deals with on a regular basis, but effective time management makes the process of delivering the product much less stressful.

You should carefully consider the timeline of your project when assembling a team. If you have a small software development team, you should account for the project taking longer. Larger development teams might be able to complete a project in less time, but such teams will also need to be managed closely to ensure cohesion. 

Sometimes, if you have a very tight deadline for an urgent project, you will have to bring senior specialists on board to help achieve quick results.

Size of the Project

In software development, project size refers to the number of features and functionalities that need to be added to the product. The more feature-rich a software product is, the bigger the project becomes. This means you must hire more team members to complete it successfully. 

Every additional feature added to a software product could require a specialist developer on the team to ensure it works properly. If your team is made up entirely of generalist developers, it might be smarter to limit the size of the project. 

There are two ways to account for project size during software development. In the first approach, you list out the features you want to see in the finished product and then hire a team to bring those ideas to life. On the other hand, you can assemble a team first and then work out what features will be included according to the team’s composition, specializations, and capabilities.

All of the factors mentioned above are essential when putting together a software development team. You should begin hiring software developers for a project only after its scope, size, budget, and timeline have been finalized.

Modern Software Development Team Structure

Once you have a clear understanding of all the factors that will influence your software development team’s composition, you’re almost ready to begin. 

But first, you need to decide on what approach you will follow for software development. The two most common approaches are the traditional method, which is sometimes also called the waterfall method, and the second is agile development.

The approach you choose will add clarity to exactly what roles your team will need to fill. From the coders who prepare the foundational structure of the software to the testers who comb the finished product for bugs—there are many roles in a modern software development team that need to be filled with competent professionals.

Product Owner

In software development teams, product owners are a vital link between engineers, developers, and clients. They work closely with the client to understand their business needs and define the project’s overall scope. The other important responsibility product owners have is to monitor the development team’s progress. 

The product owner’s job is to schedule tasks for developers, ensure timelines are being met, and also ensure that the promised deliverables are all being met. As the key point of contact for clients and stakeholders, product owners need to be well-informed about the customer’s product, market, and business needs. 

Business Analyst

The business analyst’s role appears to be superficially similar to that of the product owner because they both need to work with the client and development team. However, the key difference between the two is that business analysts focus much more on the technical aspect of software development, while product owners have to focus on customer satisfaction.

A software development business analyst’s main job is to work with the client to understand their business needs and then identify areas where software development can make a positive difference for them. They also need to be aware of software technology trends to create a list of requirements to take to developers, which eventually become the list of features and functions in the finished software product.

Project Manager

Software development is a team-based activity, and every team needs a captain to energize their efforts. Whether you’re using a traditional or agile approach, that captaincy role can be filled by a project manager. Project managers are the driving force behind the software development team and oversee the entire development process.

The project manager is responsible for assigning tasks to team members based on their strengths, enabling communication between them and other key stakeholders. It’s also their job to ensure that a project proceeds as planned, according to budget, and on schedule with all the promised deliverables.

Software Architect

Designing software is complicated, with many moving parts and unforeseen complications. Every team needs a software architect to navigate the complexities of software development. This will usually be the most senior software engineer on the team, and they will oversee the rest of the development team’s work and make executive decisions regarding software design. 

The software architect is the person who selects which tools and platforms the team will use to complete the project. One of their key responsibilities while overseeing the software’s architecture and components is ensuring the product is secure, meets all of the client’s technical and functional requirements, and is relevant to the current trends in software development.

Software Developer

The main body of your team will be made up of software developers. These are the team members whose output helps create the software product from the ground up. Whether you are building an entirely new software solution or making changes to an existing one, you will need to hire experienced software developers to do the job.

Every team will have a mix of developers. There are front-end developers who work on the user-facing portions of a product. There are also back-end developers who work on the inner workings of an application by writing code and devising algorithms. Then, you have full-stack developers who can work in any capacity for software development. 

Whatever the type, a successful software developer needs to be technically proficient and well-versed in a variety of computer programming languages.

Software Testing Engineer

It’s essential that your software development team includes testers if you want to create a product that users value. Software testing engineers act as your quality assurance (QA) team during development. In traditional development approaches, the testing engineers conduct tests toward the end of the software development life cycle (SDLC). 

However, when following the agile approach, testing is conducted alongside other development approaches in short sprints.

As QA testers, these engineers have to ensure the software performs according to the client’s requirements. They identify both functional and non-functional defects in the software, reporting on their findings to the developers and helping refine the product over multiple iterations.

UI/UX Designer

The UI/UX designer is a vital member of every software development team because they are responsible for curating the user experience. While front-end developers focus on the functional aspects of user-facing features, the UI/UX designer has control over how users will interact with those features.

A UI/UX designer creates every software’s visual interface. While developers have to ensure the product is functional, UI/UX designers are more interested in making the product appealing and engaging for end users. They need to have an eye for design, attention to detail, and be well-versed in using design tools.

DevOps Engineer

No software development team is complete without DevOps specialists. The DevOps engineer ensures collaboration between the developmental and operational arms of the team. They need to be well-versed in both the technical requirements of software development and the business needs of the client.

DevOps engineers are the ones responsible for the ongoing maintenance of a software product, even after the end of a development cycle. They are the ones who set up pipelines for continuous integration and continuous delivery after software has been finished. If a software product starts to display marked improvements with each successive iteration, that’s a sign that their DevOps engineer is doing a good job.

Software Development Teams vs. Development Approaches

Due to the multifaceted nature of software development, it’s worthwhile to consider different approaches to find which one works best for your needs. Projects that are smaller in scope can benefit from a sequential approach, but if there’s a chance of scope creep or the project has an extensive scope to begin with, then an agile methodology will work best.

There are several key differences between traditional (waterfall) methods and agile methods. 

Let’s take a closer look.

Now that you’re familiar with the key differences between waterfall and agile development, you can make a well-informed decision based on your approach before assembling a software development team.

How to Build a Successful Software Development Team?

Once you’ve assembled a team and chosen a development approach, all that remains is to give the team the best possible environment to accomplish their goals. Successfully leading a software development team involves careful planning, smart recruitment, and cross-functional collaboration. To create the conditions for success in software development, you should follow these best practices:

• Encourage transparent, effective, and productive communication between team members.
• Establish clear goals and expectations and make them clear to every stakeholder on the project.
• Empower team members to make decisions that support the team’s objectives.
• Hire the right mix of developers, including generalists and specialists, so that every member is comfortable with their workload and caught up with the latest trends in software development.
• Promote team cohesion, build trust between team members, and foster an attitude of shared success.

Summing Up

Software development teams perform a critical function, designing the digital tools used by consumers to connect with companies. Investing in enterprise software is a sound business decision, especially for a company that wants to enable a digital transformation in its operations. Putting together a software development team staffed by experts to fulfill each role helps create products that benefit both businesses and their customers.

It takes technical expertise to create a well-made, popular software application. If you wish to develop software for your business, you should work with a company known for excellent end-to-end software development like Intellectsoft. 

From web and mobile applications to customized software solutions, Intellectsoft has over 15 years of experience in helping companies achieve their goals with software solutions. Regardless of your industry, Intellectsoft can help you develop software technology that boosts your business’ performance and delights your customers.

The post Explaining the Software Development Team Structure appeared first on Intellectsoft Blog.

Nowadays, IT teams want to find the right balance between classical and agile software development methodologies. While any of them might sound like a perfect solution theoretically, the practice might show otherwise. Agile projects grow into relentless scope creep without any direction, while heavily documented processes end up being heavily bureaucratic and inefficient.

If you want to find out more about what software development methodologies are out there and how we use them at Intellectsoft, check out our webinar recording from BrightTalk. 

In this article, we explore how the Stage Gate Process is beneficial for IT teams. It emerged as a risk-reducing tactic for product development in other industries and now starts to gain traction in the digital realm.

What is the Stage Gate Process?

Stage Gate process is a project management technique that breaks down projects into distinct stages with decision points (“gates”) between them. Companies can use it in software development, but it’s not the most common approach. 

The Stage Gate methodology has its roots in the 1960s within the New Product Development (NPD) practices of major pharmaceutical and aerospace companies. These industries dealt with complex projects requiring significant resources, risk management, and regulatory hurdles. The Stage Gate process template provided a way to break down these projects into manageable phases with clear instructions for go/no-go decisions.

How is the Stage Gate Process Used in SDLC?

In software development, the Stage Gate Process is reminiscent of hybrid methodologies like the Spiral Model and Rational Unified Process that connect the best of both polar opposites: Waterfall and Agile. 

Stage Gate Process is rather a simplified alternative because the so-called “gates” in the sense of milestones are basically present in every other software development methodology out there. However, it does include ideation and business case creation, which are often left out in common SDLC workflows. In this regard, the Stage Gate Process offers a more holistic approach to product development where the actual production is a logical outcome of the business needs.

So, Which Projects is It Good For?

• Large, complex projects: For major software development initiatives, Stage Gate can provide structure and control.
• Highly regulated industries: Some industries have strict compliance requirements that benefit from the structured approach of Stage Gate.
• Risk-averse companies: For companies prioritizing risk mitigation, the decision points of Stage Gate can offer reassurance.

Alternatives to Stage Gate Process

• Agile methodologies: More iterative and adaptable, better suited for rapid changes and uncertain requirements.
• Lean development: Focuses on minimizing waste and delivering value quickly through feedback loops and continuous improvement.

Ultimately, the best approach depends on the specific project and the company’s needs. Keep in mind that unless you work in a heavily regulated industry, you don’t necessarily have to do everything by the Stage Gate book. Opt for optimizing if you like some parts of this approach and dislike others. Your team can hybridize the Stage Gate Process to have some understandable structure to follow while keeping the flexibility options, for example. It is better to follow what works best for you rather than adopting Scrum and then having robotic stand-ups where people are involved just formally.

5 Phases of the Stage Gate Process

Go! 🏇

You’re good to launch! The tech works, the market wants it, and the numbers add up. Time to hit the gas and execute the plan.

Kill It 🙈

Not every idea wins. Maybe tech hurdles are insurmountable, the market shifted, or costs outweigh benefits. Shutting down saves resources and lets you focus on better bets.

Hold On ✋

Hit a temporary stop sign. Maybe you’re waiting for key partners, the market needs time to evolve, or your team is busy elsewhere. Define clear conditions for restarting when things change.

Rework It 👷

The design needs tweaks, user feedback demands changes, or finances need fixing. Refine your plan, address issues, and re-enter the race with a stronger engine.

Go With Conditions 🚸

Proceed with caution! You get the green light, but specific milestones need hitting, uncertainties resolved, or external approvals secured. Prove you’re on track before going full speed.

Key 6 Gates of the Stage Gate Process

Just like any project milestones, Stage Gates represent some structures that you have to pass. In order to be approved for the passage, you need to study what has been done up until this point and meet some predetermined criteria.

Let’s review those six gates in more detail.

To understand Stage Gates in a less boring way, let’s imagine a software project as your favorite RPG. Think of the code delivery as a grand quest and Stage Gate as a series of key milestones. Each phase brings unique challenges and rewards, shaping your journey to success.

Gate 1: Ideation (The Tavern)

This is where your initial spark ignites! Brainstorm ideas, explore possibilities, and gather your team. Define your quest’s core problem to solve and its value (impact/reward).

Gate 2: Scoping (The Cartographer’s Tent)

Map your journey in detail. What features are essential (main quest)? What can wait (side quests)? Define the tech stack (your tools) and estimate the resources needed (gold and supplies).

Gate 3: Business Case (The New Quest)

Convince the stakeholders(NPCs). Research the market (terrain), identify your target audience (allies), and estimate potential rewards (profit). Show your project is worth the risk (stage gates).

Gate 4: Development (The Forge)

Time to build your software (hero)! Use your chosen tech stack (tools) to craft features and functionalities (armor and weapons). Your team works through sprints (quests) to progress.

Gate 5: Testing & Validation (The Arena)

Put your hero to the test! Users (battle opponents) provide feedback, revealing strengths and weaknesses. Iterate and refine (train and level up) before the final launch (battle).

Gate 6: Launch & Beyond (The Victory Celebration)

Release your hero into the wild! Support users (allies), gather feedback (loot) and address issues (monsters). Remember, the quest never truly ends – adapt and evolve (new quests) to conquer future challenges!

Stage Gate Process Example

Imagine you’re a PO working on a mobile app for one of Intellectsoft’s clients in the construction industry. Key business stakeholders want to upgrade the app to introduce a better UX and enhanced functionality. They give you the task of researching what features to add, what bugs to fix, and how to increase the overall experience. After the validation of the presented ideas, your team will develop all the updates. While the scope is yet to be discovered, one requirement is already crystal clear: you need to use the Stage Gate process for managing this project.

Phase 1: The Brainstorming

Your team gathers in the office kitchen, fueled by coffee from the machine, and discusses the next Stage Gate for the construction app. Ideas fly: “What if we could track materials in real-time, saving time and money?” You define the core problem – inefficient material tracking, and the added value – increased productivity and cost savings.

Phase 2: The Blueprint

The project backlog is enriched with new items. Features like GPS tags, inventory management, and progress reports take shape. You assess the tech stack (cloud platforms, APIs) and estimate resources (development time, budget).

Phase 3: The Investor Pitch

Time to convince the stakeholders. Your BA mates present market research with a beautiful presentation on industry trends and competitor analysis, showcasing how your feature solves real pain points and generates profit in the form of increased subscriptions and reduced project delays.

Phase 4: The Coding

The coding commences! Your development team builds the feature using chosen tools. Sprint after sprint, you see new features like GPS tracking and inventory management come alive.

Phase 5: The Beta Build

Real construction sites become your testing grounds. Beta testers are real sector employees like foremen and site workers. They provide feedback. As a result, bugs are squashed, and features are refined. For example, you decided to add alerts for low material stock. The fresh new features undergo user acceptance testing before launch.

Phase 6: The App Store Celebration

Your features go live! Users download the app upgrade, construction projects run smoother, and positive reviews flow in. But the journey continues. You gather feedback, continue fixing bugs, and plan future enhancements to keep your app at the top of the construction app charts.

So, will your real-time material tracking system revolutionize construction? With well-navigated Stage Gate project management, your app could be the next big thing!

What Are the Benefits of the Stage Gate Process?

Transparency

The defined stages and gate reviews promote clear communication and collaboration among stakeholders, ensuring everyone is aligned with project goals and decisions.

Flexibility

The ability to hold or recycle projects allows teams to adapt to changing market conditions or unexpected challenges, ensuring the project remains relevant and feasible.

Better Outcomes

Early identification and termination of unviable projects minimize wasted resources and financial losses associated with failed projects.

Wrapping Up

Overall, the higher project success rate that is associated with employing Stage Gate is most likely associated with a clear structure and quick elimination of inefficiencies. Streamlined decision-making helps to allocate resources with maximum efficiency while reducing risks and waste.

Intellectsoft offers a variety of project management techniques that are tailored uniquely to the business and technical needs of our customers. For instance, we designed a mobile solution for Ernst & Young that empowered investors with a customizable financial forecast interface.

The post Stage Gate Process: All You Need to Know appeared first on Intellectsoft Blog.

What is Cloud Computing

Cloud technologies allow users to access required facilities and services, such as computational or storage resources, using network connections, usually via the Internet. This greatly reduces the need for servers and other hardware located on the premises. Instead, if users or clients require such resources, they may connect to data centers that “rent” access to their hardware.

So, in layman’s terms, the “cloud” is a number of data centers that contain many servers. When information is stored “in the cloud,” it means that it is kept on special servers configured for this purpose. If a software application is deployed “in the cloud,” it runs using the computational resources of one or several servers.

Thanks to cloud services, software developers can create and use a remote distributed infrastructure. This infrastructure can be tailored and easily amended according to the current needs of the development team. Cloud service providers usually have flexible plans and pricing models. Most providers have data centers around the world to offer the best possible speed and accessibility regardless of users’ location.

When developers create a cloud-based application, they essentially split its structure into two parts. The server-side part is deployed on a cloud server in a data center. The client-side part can be installed on a user device in the form of a software program using an installation executable file or a software distribution service that is pre-built in an operating system, such as Google Play in Android, Windows Store in Windows, Apple Store in iOs, and so on. As an alternative, cloud-based apps can be accessed using web browsers without any additional software.

Depending on the ownership and access policies, clouds can be private, public, or hybrid. Private clouds are quite expensive and require extensive management and maintenance. Because of that, they lose some advantages of cloud computing, namely the high flexibility and cost efficiency of public clouds. However, they are essential when a company needs to build a closed digital environment with high levels of control and security. Most often, this is required to prevent leaks of confidential information, for example, in Healthcare, Fintech, research and development (R&D), and other areas.

Models and Practices of Cloud Deployment

The choice of a cloud deployment model depends on the requirements of the deployed software. Those involve the amount of needed resources, the specific infrastructure, such as an operating system, databases, application libraries, runtimes, servers, and so on. Most commonly, providers offer three choices:

Infrastructure as a Service (IaaS)

This is the largest option that gives more freedom and control to software developers. The infrastructure usually involves running a virtual machine with the help of hypervisor software. It comprises computing capabilities, data storage, networking means, load balancers, and other physical and virtual resources. As a popular alternative to hypervisors, a Linux system kernel with isolated containers can be used.

Basically, IaaS is a digital building lot where specialists can install required operating systems and application software. In the IaaS model, users have to maintain applications and operating systems themselves by installing patches and functional updates. The price in this model is calculated according to the amount of resources rented from data centers and the amount of resources that was consumed during the billing period.

Platform as a Service (PaaS)

This model usually comes with a pre-configured environment to install and run applications. A platform often includes an operating system selected by a customer, a specific environment configured for a particular programming language, a database with corresponding management tools, and a web server.

Since many aspects of the PaaS model are managed by its provider, clients have less control over their platforms in comparison to the IaaS model, for example. On the other hand, this means that software developers who work on platforms can focus on their tasks more effectively and do not have to worry about handling a complex infrastructure and its maintenance.

Software as a Service (SaaS)

This model allows users to access and use a particular software product installed on a cloud offered by a cloud service provider. Similar to other cloud service models, SaaS is subscription-based. This means it grants a temporary license to use web-hosted software. However, usually this model has a “freemium” feature, where users can use some basic functions free of charge, but advanced functions require payment. Access to such software is provided through a web browser.

SaaS includes a wide range of specialized computer programs that can be used by software development companies. Most often, they are various enterprise management systems that increase the productivity of different departments. For example, such software includes systems for enterprise resource planning, human resource management, content management, invoicing, and so on. Other types of SaaS are, for example, office software suites, messengers, software for computer-aided design, database management systems, project management tools, and others.

Applications distributed using a SaaS model have several characteristic features that must be taken into account. First, such applications have only one version or configuration, so there are no version conflicts among various workstations using the same app. Second, SaaS apps are hosted centrally, meaning that if a provider decides to implement an update, all users have to comply. There is no option for users to keep an old version of a cloud-based app, as it would be possible, for example, for desktop-installed software.

The growing demand and diversity of needs from clients resulted in new models of cloud computing. They have appeared relatively recently and have not yet gained the same popularity as the three “conventional” models listed above. The examples of such new types include Function as a service (FaaS) and Mobile backend as a service (MBaaS).

The Benefits of Cloud Computing in Software Development

These days, users are so accustomed to the benefits of cloud technologies that it is hard to imagine a modern world without them. It’s no wonder, considering the level of convenience they bring to everyday life. However, the full range of advantages offered by cloud services also covers many professional aspects.

1. Cost efficiency. The biggest advantage of cloud computing is its reduced cost in comparison to purchased hardware. Depending on the models, in some cases, there are even free tiers where basic services are provided for free, and the rest require monthly or annual subscriptions.
2. Location-independent development. Cloud services are available worldwide. Basically, if a place has Internet access, then clients can use cloud technologies from there. This means that the development team can be distributed around the world. For example, in the case of a large project, one group of specialists may work from an office in London, and other groups may be located in San Francisco, New York, Oslo, and other global IT hubs.
3. Extended user reach. When an application is deployed in a cloud, it becomes available globally. Usually, cloud service providers take required measures to reduce the latency so that users of cloud-based apps have low response times regardless of their location. Additionally, cloud applications require only a web browser, and hardware specifications of user devices are of less importance because most computations are performed in the cloud and not on the client side.
4. Increased scalability. One of the most convenient features of cloud technologies is their ability to scale up or down. It means that developers may add extra resources when they are needed or remove unused resources to save costs. Additionally, cloud services usually support both horizontal and vertical scaling. For example, to handle a peak load event, they can allocate more RAM and CPU cores or more servers with a load balancer. Scaling may be performed manually or automatically based on a preset configuration.
5. Less maintenance. Depending on the model, hardware and software maintenance can be the duty of a cloud service provider. Though the cost of maintenance is included in the subscription price, it is cheaper than performing it on the premises. This way, cloud service users do not have to hire technicians for this task, buy parts for server repairs or upgrades, and so on, unless they have a private cloud.
6. Improved security and disaster recovery. Cloud service providers invest in data protection measures because they have their business reputation on the line. Due to distributed data storage and backup means, the chance of data loss is usually lower than in the case of storing information on the premises.
7. Higher productivity. Clouds allow multiple people to work on the same project at the same time, which is invaluable for development teams. Besides, cloud technologies include many systems to optimize the management of tasks, projects, departments, and enterprises.

Challenges and Risks of Cloud Computing in Software Engineering

1. Security issues. Due to data centralization, storing information on a cloud is like putting all your eggs into one basket. A well-configured private cloud is an excellent storage solution, but if it is breached, the results can be disastrous. Public clouds are far less reliable, as proven, for example, by several breaches of WD’s My Cloud and Apple’s iCloud services. As the number of such breaches rises, more IT specialists express their concerns with cloud computing.
2. Reliance on service providers. To access cloud services, you need both an Internet provider and a cloud provider. If any of them is down or experiences difficulties, clients won’t be able to use their clouds. In such cases, the work processes of teams and entire companies may be compromised. This potential risk factor is among the main disadvantages of cloud computing.

Final Words

Thanks to its numerous advantages, cloud computing in software engineering has become a popular standard. That’s why, in Intellectsoft, we extensively utilize and implement cloud technologies. Our specialists understand the importance of cloud computing and have mastered the skills to implement them in custom software. Contact us and hire a reliable, professional team for cloud computing solutions.

The post Cloud Computing in Software Development appeared first on Intellectsoft Blog.

The agile model prioritizes the rapid delivery of functioning software products and process flexibility, which gets software into customers’ hands faster. It’s an iterative and incremental approach that ensures the end product is always up-to-date and in line with the client’s needs. And for this reason, the agile methodology is used by at least 71% of companies in the U.S. alone.

8 Benefits of Agile in Software Development

According to the Association for Project Management, agile project management is an iterative approach to delivering a project throughout its life cycle. Agile life cycles, also called iterative life cycles, break projects down into several incremental steps, or iterations, that help them progress toward completion. Software developers use this approach because it helps enhance speed and adaptability, unlike linear (one in which something changes or progresses directly from one stage to the next with a defined start and end point) processes that make it more challenging to make adjustments along the way.

The main reason for adopting an agile approach in software development is to deliver throughout the process, not just at the end. To better understand, think about this from the end customer’s point of view. If you have an application or software that can solve a problem, make their life better, bring joy, whatever, they want to get their hands on it as soon as possible. And this is one of the key benefits of agile methodology. It allows everyone to prioritize values and behaviors such as trust, flexibility, empowerment, and collaboration, all with the end goal of creating customer satisfaction.

But we’d be remiss if we didn’t provide some guidance on a couple of definitions. Though the terms agile and scrum are often used interchangeably in the software development and engineering fields, they’re not the same. The fundamental difference between agile and scrum lies in their application. Agile is a project management philosophy that provides a structured approach to getting the job done. Conversely, scrum is a specific type of agile methodology that streamlines project development.

This all said, there are many benefits of using agile in custom software development.

1. It’s faster
2. It’s nimble, allowing for frequent changes
3. It identifies problems early on in the process
4. Flexible prioritization
5. It lets you see the benefits of your resources and labor sooner
6. You can better measure your teams’ accountability and progress on the project
7. No need to create and adjust detailed project plans
8. Customers are happier because they get to see and experience the results faster, even if future iterations and releases are ahead

More Advantages of Agile Development

As you can see, the agile model in software engineering provides a great mechanism to get products in customer’s hands faster. And while we already shared eight benefits of using agile in software development, we want to share a few more. After all, the agile project management methodology has so many useful things to offer it would be challenging to cover them all only in one list.

There are numerous advantages of agile development, including:

Focus on the Customer

First and foremost, agile development lets developers focus on the customer, the end user. So, think of it as a way to make software better. The approach takes stories (a story is an informal explanation of a feature written from the perspective of the end customer) from customers to decide what features to add. The developers then test the application every few weeks (called best testing) to ensure it is working well. The entire approach focuses on the customer, making sure they are happy and will continue using the software.

Stay in Tune with What’s Important for the Client

Here, we differentiate between the customer (the consumer or end user who will use the software) and the client (the company or organization that the software will be sold by). So, an advantage of agile development is that the engineering team can focus on the features that the client needs to please the customer and drive revenue for the business.

An Eye on Quality

The agile methodology emphasizes constant improvement throughout the software development process. While this is achieved through effective collaboration, careful planning, and attention to detail, it’s also about ensuring that the team can make quick changes to meet the demands of the customer or client. To do this, regular testing and reviews take place every few weeks (or more often if needed) to identify bugs and other issues. This helps ensure that a higher-quality version of the product is put in front of the customer upfront but also means that more quality improvements can be made as needed.

Transparency and Visibility

Consider that there are over 5.7 million apps on the Google Play Store and Apple App Store combined. And while it is unknown how many software programs are out there, it’s clear that there is a lot of competition facing customers when choosing the right apps or software to meet their needs. So yet another advantage of agile development is that customers and the client can both be involved throughout the process. This transparency helps to win trust and loyalty because customers know what to expect and can offer feedback along the way.

Deliver Early and Deliver Often

Customers (and the client) will likely be frustrated if they have to download or install and update every other day, so a good rule of thumb is to make one to two small but beneficial improvements per month. So when using the agile model in software engineering, development teams can deliver software that meets end users’ needs in a timely and predictable manner without rocking the boat.

This predicable approach ensures that the customer’s feedback from the most recent change can be incorporated into the development process, resulting in software that is more refined and better suited to their needs. And customers like to see that their voices are being heard. Frequent updates show them just that.

Know What to Expect for Costs and a Project Schedule

Clients deserve to know what to expect when it comes to understanding the costs and timeline associated with their software development project. With agile methodology’s fixed-schedule time and duration, the project’s cost is better controlled, as it is limited to the amount of work the team can perform during each sprint. This makes the client’s budgeting process easier, and they can then make better-informed decisions about the priority of features and the need for additional iterations.

Nimbleness Counts

When it comes to software development, you need the ability to make changes. So yet another advantage to the use of the agile approach is that teams can continuously improve and reprioritize the overall product backlog, making changes to improve the effectiveness and efficiency of work. New or changed items of the backlog can be planned for the next iteration, and no one is overwhelmed.

Client Engagement

Your stakeholders are your clients, and they need the ability to work closely with the developers creating the software. With strong collaboration between the client and the whole project team, there are more opportunities for the team to fully understand the project vision and ensure that all stakeholders and team members remain motivated to achieve optimal project results.

Why Choose Intellectsoft for Custom Software Development Services

Intellectsoft offers a range of custom software development services to clients. We specialize in developing mobile applications, enterprise software solutions, blockchain, Internet of Things (IoT), and augmented reality (AR) applications. Additionally, we offer consulting, design, and testing services to help our clients build high-quality software solutions.

Our client list ranges from small startups to large enterprises in various industries, including healthcare, finance, and retail. Most importantly, our expertise lies in providing end-to-end software development solutions tailored to our client’s needs that meet the needs and desires of their customer. And this is because we know how important things like a faster feedback cycle, flexible prioritization, accurate measurement, and speed to market are when it comes to software development.

Last But Not Least

If you’re looking to hire a reliable software development team as a trusted partner to help bring your custom software development project to life, you’ve come to the right place. Intellectsoft’s team of experts has the experience and knowledge necessary to help you create high-quality, customized software solutions that meet your unique business needs. With our comprehensive range of services, we can assist you with every aspect of your project, from design and development to testing and deployment. Contact us today to learn more about how we can help you achieve your software development goals.

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