By Dmytro Malenko, SoftServe, Inc.

30,000 Foot View

More often than not software is about products, be it boxed software systems sold to businesses and individual users, platforms and integrated suites delivered to enterprises or internal tools used by various business units. And while most of the users and business stakeholders usually deal with software products, development teams mostly work on software projects. The difference between the two, although may seem subtle, is important and contributes to the understanding of effective product management practices, as well as increases chances of success of software development projects.

Generally speaking, product is what gets delivered to the customers to address their needs, whereas project is how deliverables are created. With different target audiences scopes of products and projects are also different. Business Analysis Body of Knowledge (BABOK) [1] defines product as “a solution or component of a solution that is the result of project,” which has a scope of “features and functions that characterize product, service or result.” These definitions clearly focus on an external value of the software and its ability to resolve problems and leverage opportunities for businesses and individual users.

On the other hand, projects are units of evolution for products and focus on internal aspects of making things happen. Scope of project, hence, is “the work that must be performed to deliver a product, service, or result with specified features and functions.” This means that projects, by nature, are “closer to the metal” and have shorter-term practical goals as their top priorities.

What’s the Difference?

There are many dimensions and situations, where products and projects receive different treatment in software development. Here, we will only consider some of the most notable ideas.

Product lifecycle is much longer than that of an individual project. When the project of development of version 1.0 of a product is successfully completed, it is only the beginning for the product and it is unwise to wait until that moment to start asking ourselves “what are we going to do next?” Product development roadmap is what helps develop and sustain a steady release cycle, which, depending on the product specifics can be between a couple of months and a couple of years. However, the rise of Agile methods and new software delivery models such as SaaS allows companies to get product improvements to the users at finer grained weekly or even daily increments.

Product management activities have an external focus while projects focus on internal success criteria. The success of a software product is determined by the market. Product management activities therefore naturally revolve around identification, assessment and, when possible, shaping of external factors, which determine company’s business success. These include understanding the needs and demands of the target market, designing solutions, which would appeal to a wide audience of potential customers, and many others. Projects, however, target to deliver the goals determined and set internally: budgets, release dates and required functionality.

Project teams also spend time on things other than product features. Of course, project scopes are built around product features. However, there is always extra work that must be performed to deliver a product. One cannot drive a car forever and has to stop sometimes for refueling and maintenance. Likewise, project teams need to setup development and testing environments, develop and execute tests, spend time discussing and reviewing designs. These and other activities are software engineering best practices contributing to the quality of the product and must not be dismissed.

Why Is the Difference Important?

Product development calls for long-term focus and a strategic take on analysis and planning, which allows for a mutually rewarding and consistent customer experience. Product roadmaps not only include a series of software development projects, but also tie them to marketing, research and development, as well as other activities. Projects revolve around tactical goals and operational decisions and depend on a clear vision for the product’s future, development roadmap and goals of each step in the roadmap.

Establishment and effective utilization of product management practices has a proven positive impact on software development projects success that directly translates into better utilization of market opportunities and enhanced business results. For instance, let’s take a look at the study by Christof Ebert [2], which comprised 178 projects from the telecommunications industry with sizes varying from several man-weeks to several hundred man-years. This study, over the period of three years, revealed that with a focus on product management increasing, both schedule performance and the quality level substantially improved. The analysis of underperformed projects found that one of the challenging factors was the lack of a consistent story behind the product in development. Building product releases on a basis of “collected” requirements can cause trouble because they fluctuate ever so often. “Any product must address a need and must have a strong business vision,” concludes the study.

Summing up, it is a combination of business insight, product vision and project execution excellence that determines software success.

References

  1. The Guide to the Business Analysis Body of Knowledge® (BABOK® Guide) Version 2.0
  2. Christof Ebert. "The Impacts of Software Product Management" in: The Journal of Systems and Software. ISSN: 01641212, Volume 80, Issue 6, pp. 850-861, June 2007

About the Author

Dmytro Malenko is the Business Analyst at SoftServe, Inc., a leading global provider of proving high-quality software development, testing, and consulting services. Through the years, SoftServe has partnered with hundreds of companies globally on a wide range of products and technologies, successfully completing 2,500+ projects for 150+ companies. Founded in 1993, SoftServe is headquartered in Fort Myers, Florida, with an award-winning development organization based in Ukraine and the Philippines.