The Startup Founder Double Whammy: Low Software Development Success Rates and Startup Gotchas

Expensive Technical Resources, Changing Burn Rates and Technical Debt We wrote before how after twenty five years the success rate for software development teams across all industries has increased from 16% to only 29% being on time and within budget. The startup founder who enters this arena should be aware of  this because they already know that there will be startup “gotchas”, also known as challenges, that are unique to startups and early stage companies and unlikely to be an issue with traditional enterprise teams. These challenges are many. Whether they are bootstrapped or venture-funded, they have extremely limited money for software development, which can be expensive. The product is Read more

A look at 25 Years of Software Projects. What can we learn?

History of Success and Failure 25 years ago just 16.2% of all MIS projects were completed on time and within budget according to something appropriately called the CHAOS report by the Standish Group. 52.7% were late and over budget, and 31.1% were outright cancelled. The top two reasons then were lack of user input/involvement and incomplete requirements. What has changed over 25 years? Standish recently reported an improvement from 16.2% to 29% success rate. Certain projects were as high as 62%. I’ll get to that later. Despite this improvement, that’s awfully low! Success and failure rates in other industries? Let’s look at the Home Redecorating/Remodeling industry with kitchen and bathroom Read more

Who to Hire to Do Web Development?

1. Staff Pros: easy to collaborate with, having staff on-site all day long. Cons: value (talent for the cost). Strong engineering talent is very hard to find—you’d have to pay a lot more than you would pay S&F for the same level of talent (if you could even find it). Most likely you’ll find someone junior who will cost about the same as Speed and Function. 2. Contractor(s) Pros: same as above if on-site. If off-site, contracts can be cheaper because individuals typically spend less time than a team. Cons: same as the cons if on-site. Off-site, you’ll run into management issues, availability, responsiveness, etc. You don’t get access to specialized Read more

Why Agile

Flat feels work well for traditional industries, such as construction. I.e. if you are doing a kitchen remodeling, you can easily calculate the number of cabinets, shelves, etc. The time it takes to install doesn’t fluctuate that much. Software engineering is more like scientific research. The scope is never fully understood and there’s a constant state of uncertainty. That’s why engineers don’t like fixed bids – they don’t want to pay for consequences of that uncertainty by their time and lost opportunities. Business guys don’t want to pay for that uncertainty either by pushing engineers into fixed bids. That’s where Agile comes in. Read more