Project-based vs Product-based Software Development

Updated: Jun 4

Software Development is moving away from project management methodologies to product led development frameworks.


According to a recent Gartner study, 55% of organizations say they are moving from traditional project delivery to product-centric 1. Why are companies choosing to make this shift? By moving to a product-centric delivery model, companies are realizing quicker business outcomes, improved customer experiences, reduced organizational friction, and increased trust between impacted stakeholders.


In short: companies are delivering products that their customers love, all while being more efficient, more collaborative, and realizing short and long-term value along the way. The good news is that most companies already have the people and tools in place, and with a few adjustments to their operating models, can steer the ship toward a product-centric delivery model. To help identify where your company is on the spectrum between project- and product-, we will walk through the common challenges and pain points of a traditional project-focused delivery model, describe the benefits and ROI that can be achieved from shifting to a product-centric delivery model, and provide a foundational framework for how to begin this organizational shift.


Project-based Software Development

Think of a service-oriented approach and how certain processes come up and amalgamate together to deliver an efficient and user-focused service. Project-based software development follow a service-oriented approach. At one time, the project team develops, maintains and delivers software projects. These types of companies are more client-focused and have to undertake each and every bit of clients’ requirements as per their expectations, yet maintaining and overcoming the technical challenges that are due.


Product-based Software Development

A domain-oriented approach is the one where an entity/business focuses on a specific market section and caters to the needs and requirements of users residing within that particular boundary.


A product-based software develop follows a domain-oriented approach and the primary focus of the team is to is to intervene within the market segments in the best possible manner. The requirements here are not directly enforced by the client but they are emerged and documented as per the changing ecosystem of that particular domain.




Final Thoughts

Now you can see that project and product development serve different purposes. Project management aims to fulfill specific requirements and complete a given project within the agreed time and budget. Product management focuses on continuous project development and improvement.


Aumadi offers both services to its clients depending on the requirements. If you like to know more, please feel to reach out.

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