etailology

Those of us buying web services often demand a fixed price from those of us supplying them. And in many cases, that price is determined well in advance of the project requirements and specifications. (Clients often think this forces the “risk” of the project onto their vendors backs, but ultimately it means that the vendor needs to sacrifice something in order to meet the budget. It’s no bargain.)

While it’s impossible to know a project’s “total cost and duration” until the project is complete, stakeholders often try to ballpark these figures upfront — even before engaging with a potential supplier. These upfront estimates are typically off by ±400% according to IEEE. Instead, a phased approach could be employed to both limit the risk (to both parties) and ensure that realistic project estimates are gathered before any contracts are signed.

With the successful completion of each phase of the project, the overall uncertainty of the project (and its associated risks/costs) is reduced; as such, a development strategy which focuses on a phased approach is often the best at managing risks and costs.

In the attached diagram, I have used the metaphor of “building a house” to describe the state of deliverables at each stage of the development process. It’s instructive for both developers and retailers alike. In addition, it includes some of the common steps we use at Auragen to develop projects from scratch.