CC BY
2УДК 33
Kravets Mikhail
Independent researcher (Tel Aviv, Israel)
DEVELOPMENT AND LAUNCHING INNOVATIVE SOFTWARE PRODUCTS TO THE MARKET
Abstract: this paper addresses the critical issues in the development and market launch of innovative software products. The current state of research in this area is analyzed, identifying key success factors and primary challenges. A comprehensive methodology for managing the process of creating innovative software is proposed, encompassing a generalized development model, project management methods and tools, as well as implementation recommendations. It is demonstrated that the practical application of the developed methodology can significantly improve the efficiency and effectiveness of the processes involved in creating innovative software products.
Keywords: innovative software, software development, IT product management, development methodology, innovation implementation, digital transformation.
The current stage of global economic development is characterized by the rapid penetration of information technologies into all spheres of social activity. In this context, the development and successful launch of innovative software products on the market has become a key factor in ensuring the competitiveness and efficiency of IT companies [4].
The purpose of this study is to develop a comprehensive methodology for managing the process of creating innovative software products, aimed at increasing the efficiency and effectiveness of this activity by establishing unified principles, models, methods, and tools for organizing work at all stages of the IT project lifecycle.
To achieve this goal, the following tasks must be accomplished:
1. Analyze the current state of research in the field of innovative software development and identify key factors that determine the success of this process.
2. Formulate the conceptual foundations of a methodology for managing the creation of innovative software products, including basic principles, approaches, and requirements for its development.
3. Develop a generalized model of the innovative software development process, defining the main stages, participants, and workflows.
4. Propose a set of methods and tools for managing the main functional areas of an innovative software development project.
The theoretical and methodological basis of the research is grounded in fundamental and applied works by both domestic and foreign scholars in the fields of software development, innovative project management, systems analysis, and business process modeling.
Despite the high relevance and practical significance of this topic, the scientific literature still lacks a unified approach to understanding the essence and specificity of innovative software products, as well as the particularities of their development and promotion on the market. An analysis of existing publications highlights several key aspects that researchers focus on when studying this topic.
First, a significant number of studies are devoted to identifying and systematizing the characteristics of innovative software products that distinguish them from traditional software. For instance, M.S. Myasnikova notes that innovative software products represent a specific type of high-tech product and possess several distinctive properties, including originality, uniqueness, a high degrof novelty, the ability to meet previously unsatisfied user needs, or to create new ones [4]. According to the author, these features determine the complexity of the relationship between the developer and the consumer of innovative software, as well as the necessity for nonstandard approaches to their development and promotion.
E.E. Evstigneeva and Yu.V. Makhrova emphasize the high risks and significant financial investments associated with the development and launch of innovative products [2]. The authors highlight that despite the appeal and potential of innovations, their creation is always associated with a high degrof uncertainty and requires thorough elaboration of both the technological and marketing components of the project.
Another group of studies focuses on analyzing the role and place of innovative software products in the management system of modern enterprises. For example, M.V. Popova views innovative software products as an effective tool for optimizing and automating the company's business processes [5].
It is worth noting that despite international agencies' predictions of a nearly 40% decline in the Russian IT market, the turnover and number of new Russian IT companies in the first half of 2022 increased significantly compared to 2021, and the share of domestic solutions grew from 42.5% to nearly 57% [7].
The key drivers of market growth in 2022-2023 were the continuation of projects launched during the COVID-19 period, stringent KPIs for import substitution set by customer top management, and dramatic market changes requiring companies to substantially transform their business processes [7]. At the same time, experts identify the main barriers to market development as the shortage of highly qualified specialists, the immaturity of Russian solutions, the inability of many companies to finance an immediate transition to domestic products, and the lack of unified perception among participants in the Russian IT market [7].
Among the key trends in the Russian custom software development market are active import substitution, the need to modernize foreign applications, the use of artificial intelligence in business processes, the transition of companies to the cloud, the expansion of in-house development, the formation of internal IT departments, the growing demand for HR solutions and specialized digital transformation industry solutions, as well as the shift in demand towards more experienced specialists [7].
Significant attention in the scientific literature is also devoted to the technological aspects of innovative software development. Specifically, L.Z. Gallyamov and S.G. Kashina examine modern software tools and platforms used for resource scheduling and project planning in the development of innovative IT products [1]. The authors note that the efficiency of the development process is largely determined by the correct choice of tools and the degrof automation of key project management functions, such as building Gantt charts, tracking progress, resource management, and risk management.
In turn, O. Kakabaeva, S. Niyazmyradova, and N. Sakhetliev analyze the key trends in the evolution of software and applications at the current stage [3]. As noted by E.A. Saiko, the rapid development of mobile technologies and the widespread adoption of smartphones and tablets have led to fundamental changes in the consumption patterns of digital products and services [6].
The importance of forming comprehensive methodological approaches to managing the development process of innovative software products is becoming increasingly relevant. These approaches must ensure tight integration and coordination at all stages of the project lifecycle—from idea generation to product launch. Equally important is the need to improve the tools for market research and audience analysis, which enable the well-founded selection of characteristics and features for the software based on the expectations and preferences of potential users.
The development and market launch of innovative software products is a complex and multifaceted process that requires the implementation of a flexible and adaptive management methodology. The goal of such a methodology is to ensure the efficiency and effectiveness of development under the high uncertainty typical of innovative projects. The key conceptual foundations of this methodology include essential principles, approaches, and requirements necessary for the successful creation and deployment of software products.
The central principle of this methodology is flexibility and adaptability. Innovative projects frequently encounter changes in requirements, technology, or market conditions. The methodology should enable the team to quickly adapt to these new conditions and make adjustments during development. Flexible methodologies, such as Agile, provide mechanisms for iterative development, allowing for rapid feedback and immediate response to evolving conditions.
Equally important is the focus on the customer. Innovative products are created to meet new or previously unmet needs of the target audience. Therefore, it is crucial to actively gather and analyze user feedback at all stages of the development lifecycle. This ensures that the product's functionality can be adjusted according to real market demands and consumer expectations.
Another key principle is incremental development. The development process should be structured in stages, beginning with a Minimum Viable Product (MVP). This approach enables the team to bring a basic version of the product to market quickly, with further refinements based on real-world data. Gradual additions of new features help reduce risks and accelerate the product's market launch.
The methodology must also account for the high degrof uncertainty in innovative projects, making risk management a critical element. Proactive methods must be employed to identify potential threats at every stage of development and implementation. This approach minimizes risks in the early phases and helps prevent significant failures later on.
Effective teamwork is achieved through cross-functional collaboration. A crucial role is played by the joint work of specialists from various disciplines, such as developers, analysts, marketers, and testers. This collaboration allows for the inclusion of diverse perspectives from all process participants, facilitating quicker problemsolving.
The final but equally important principle is transparency and process control. The development of innovative software products requires close monitoring of each stage and timely reporting. Regular monitoring, use of metrics, and project management tools (such as Jira or Trello) help avoid deviations and ensure that project goals are met within the established timeframe.
One of the key approaches in developing the methodology is iterative development. Under this approach, the project is divided into small, completed cycles (sprints), each of which results in a working product or its part. Iteration allows for early testing of the product, identification of weak points, and the incorporation of necessary changes. This approach helps avoid the accumulation of errors and enables a quick response to market demands.
To speed up all stages of development and product launch, the DevOps approach and process automation are applied. Automating tasks such as testing, deployment, and system monitoring (CI/CD) helps minimize the time spent on routine operations, allowing the team to focus on improving the product's functionality.
It is also crucial to implement management through metrics and key performance indicators (KPIs). Utilizing KPIs such as task completion times, code quality, and user satisfaction allows for a more objective assessment of performance and enables timely adjustments to the strategy. For the successful implementation of the methodology, it is necessary to minimize decision-making time by distributing responsibilities. Within cross-functional teams, each member must be accountable for their specific tasks and have the authority to make decisions, thereby speeding up the process and reducing dependency on external factors.
The project management methodology for innovative projects must be closely aligned with the company's business objectives. Each stage of development should correspond to the company's strategic goals and contribute to achieving key performance indicators. This alignment ensures that the product not only meets high-quality standards but is also integrated into the broader business strategy, which is especially important for startups and rapidly growing companies.
Moreover, an important aspect is process standardization. Despite the flexibility of the methodology, certain standards and regulations must be established to ensure consistency and predictability. This is particularly relevant in large organizations where coordination between various teams and departments is required.
The methodology should also take into account the specificity of innovative projects—namely, the high degrof uncertainty, the complexity of forecasting, and the novelty of technologies. This requires flexibility not only in the development process but also in the go-to-market strategy. The ability to quickly adapt to changes becomes a key competitive advantage.
Training and team development also play a critical role. The implementation of the methodology should be accompanied by training programs for employees so that all project participants can effectively utilize flexible approaches such as Agile and DevOps.
Finally, the methodology must provide for continuous improvement. As experience and data are accumulated from real projects, the processes should be
periodically reviewed and refined to increase their efficiency. This will allow the team to remain agile and responsive to new challenges and opportunities.
The development process for innovative software products follows a sequence of interconnected stages, each playing a crucial role in the successful creation and market launch of the product. The first stage is the market needs assessment and analysis. At this stage, marketers, business analysts, and product managers analyze the market to determine if there is a real demand for the proposed solution. Competitors are researched, the target audience's needs are examined, and key market trends are identified. The main result of this stage is an analysis of the market niche, an assessment of the target audience, and forecasts of the product's profitability. If it becomes clear that the market is not sufficiently interested in the product, the project may be revised or abandoned.
Once market demand is confirmed, the project initiation phase begins, where the overall product concept is formed and key project goals are set. Business analysts, product managers, and customer representatives participate in this phase. The result is a project charter, a preliminary description of requirements, and a business case approved by key stakeholders.
Next comes the concept validation stage, which involves creating a Minimum Viable Product (MVP). The primary goal here is to test the product's market demand with minimal costs. Product managers, UX designers, and developers create the MVP, which is then subjected to pilot testing. Based on the feedback received, conclusions can be drawn about how much the product is needed on the market and what changes may be necessary.
Following successful validation, the project enters the analysis and planning stage. At this point, systems analysts, UX designers, and software architects conduct a detailed study of the product requirements and develop an architectural plan. The output of this stage includes technical requirements and an architectural plan with timelines and cost estimates, which are passed on to the development and project management teams.
The development phase is where the actual software product is built. Developers, testers, and DevOps specialists work on the product's implementation using iterative approaches such as Agile. This allows the team to adapt the product based on incoming feedback and changes in requirements. At this stage, source code and interim results are generated and transferred to version control and testing systems.
The next step is testing and quality control, where the product undergoes a thorough evaluation to ensure it meets the specified requirements. Testers and quality assurance specialists review the product, identify defects, and establish quality metrics. Once testing is complete, the results are returned to the development team for corrections.
After successful testing, the team prepares for the product launch. Marketers, product managers, and sales specialists develop a marketing strategy, define distribution channels, and create promotional materials. This stage concludes the planning of the product launch.
The next phase is the market launch itself, where the product is officially introduced to the target audience through marketing campaigns and PR efforts. Marketers, PR specialists, and sales teams ensure the execution of promotional events and the product's market presence. The result includes initial sales and marketing metrics, which help evaluate the market's response to the product.
After the launch, the product enters the operational phase, accompanied by ongoing feedback collection from users. The development team, marketers, and support services work on further product development, improving functionality, and releasing updates based on user experience analysis.
In summary, this model covers all key stages of the lifecycle of an innovative software product—from the initial market research to the ongoing support and development after the product's release to the market.
Table 1. Methods and Tools for Managing Innovative Software Development Projects
Functional Area Methods And Toots
Communication Management Stakeholder Map, Communication Matrix. Information Message Templates, Commun ieation Management Plan
Scope Management Project Charter, Work Breakdown ¡Structure (WBS). Requirements and Change Log, Deliverable Acceptance Criteria
Time Management! Lisi of Operations and Durations, Pro [eel Network Diagram, Gantt Chart, Critical Path Method (CPM)
Cost Management Project Budget, Earned Value (EV) Method, Cost Management Plan, Contracts and Supplies Register
Quality Management Quality Assurance Plan. Checklists and Templates, Process Flow Diagrams - Statistical Control Methods
Resource Management - Project Organizational Structure - Responsibility Matrix -Resource Schedule - Team Development Plan
Risk Management - Risk Register - Qualitative and Quantitative Analysis - Risk Response Strategies - Risk Management Plan
Change Management - Change Log - Change Control Procedure - Change Coordination Matrix - Configuration Management Plan
Source: developed by the author.
The proposed toolset covers key aspects of project management for software development and aims to enhance the transparency, control, and effectiveness of this process. At the same time, the final selection of specific tools depends on the project's specifics, corporate standards, and the maturity level of project management within the company.
The developed methodology for managing the creation of innovative software products represents a comprehensive system of principles, models, methods, and tools for organizing project activities. To ensure its effective implementation and fully realize the potential for improving the efficiency of software development processes, several preparatory steps must be taken, and a regulated process for its introduction into the IT company's operations must be organized.
In general, the sequence for implementing the proposed methodology can be represented by the following steps:
1. Current State Diagnosis: A comprehensive analysis of the company's existing software development processes is conducted, assessing their maturity level and compliance with best practices. Key problem areas and growth points are identified. The main diagnostic tool is the Capability Maturity Model Integration (CMMI), which helps determine the current maturity level of processes, from initial to optimizing. The assessment results form the basis for defining the target process profile and improvement areas.
2. Customization of Methodology: The next step involves adjusting the methodology's basic elements to the company's specific business model, organizational structure, and corporate culture. Specifically, the composition and characteristics of the development processes are refined, key roles and areas of responsibility are identified, and target performance and quality indicators are established.
3. Pilot Implementation: To minimize risks and test the operational mechanisms of the methodology, it is advisable to conduct a pilot implementation in one or more software development projects.
4. Gradual Rollout: Based on the successful pilot results, all software development projects are gradually transitioned to the developed methodology.
5. Ongoing Monitoring and Optimization: The methodology's sustainable operation is ensured through continuous monitoring of its implementation, measurement, and analysis of actual performance indicators of software development processes. The gathered information serves as a basis for identifying opportunities to improve the methodology and initiating targeted projects for its development and refinement.
The research conducted has led to the development of a holistic methodology for managing the process of creating innovative software products, addressing modern challenges and incorporating best practices in IT management. The proposed methodology is based on a set of scientifically grounded principles, models, and tools
that ensure effective interaction and coordination among all participants throughout the entire project lifecycle.
The core elements of the methodology are:
• A generalized model of the innovative software development process, defining the main stages, their relationships, and the flow of deliverables.
• A set of methods and tools for managing various functional areas of the project (scope, time, cost, quality, risk, communications, procurement, and change).
• Guidelines for adapting and implementing the proposed approaches in the practice of specific companies, taking into account their business model and the maturity level of software development processes.
The practical application of the developed methodology will:
• Enhance the transparency, control, and predictability of the innovative software product development process.
• Ensure closer interaction between business and IT departments at all stages of project implementation.
• Reduce the time-to-market for new software products through the parallelization of work and iterative-incremental development.
• Improve the quality of the developed software and its alignment with the requirements and expectations of target users.
• Lower project costs and risks by proactively identifying and addressing potential problems.
• Enable the accumulation, generalization, and effective use of knowledge and experience gained from project implementation.
In conclusion, the systematization and further development of the scientific foundations for the development and market launch of innovative software products will contribute to increasing the effectiveness of IT companies' innovation activities, effectively meeting the current needs of businesses and society for cutting-edge digital solutions, and ensuring technological leadership and long-term competitiveness in the context of global digital transformation.
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