Sections

How Much Does It Cost To Build An App?

Jeff Francis, Co-Founder & COO

mobile app development testingOne of (if not) the most prohibitive hurdle to developing your own app is cost. First off, you have to make a concrete calculation weighing anticipated business gains against the cost outlay for development and support. According to many market research studies, including leading firms like Forrester, development costs are can represent only the tip of the iceberg. Once you take the time to spec out and build your dream app, you’ll find little things that you could have done better; or U/I updates that would make it more intuitive; or Google released a new update to Android; or Apple changed the resolution on the newest generation of iPads. Whatever the case may be, more than 80% of IT personnel polled in 2012 by AnyPresence found that their firms were updating their apps at least twice per year. A third of the respondents were pushing new updates every month. Forrester estimates that only 35% of any app’s lifetime cost is covered in initial development. This is a major stumbling block for many companies, and rightly so.

Apps are not an experiment that you can play around with and just see how the market responds. The future of enterprises is mobility and only companies that fully embrace and integrate mobile strategies effectively will thrive in this landscape in the months and years to come. So, swinging and missing on app development is unacceptable in the modern business atmosphere.

In addition to development representing but a portion of an app’s full cost, most companies looking to work with a mobile solutions partner (or even app developer if you want more of a vendor/client relationship) don’t know what type of cost ranges within which any given app could fall. There are a huge number of factors to consider, and every app is different in some way or another. As such, there are no perfect predictions to be had. However, we can provide you with some general cost brackets broken down by complexity and, therefore, required development effort.

At their most basic levels, apps come down to hours. Whatever feature you want, whatever U/I style you desire, whatever working relationship you want with your developer or parter will all affect the number of hours that a firm needs to complete the project. Some companies might quote their rates based on features you request, others might take your specifications and simply give you a flat cost amount, while others will just estimate the total number of hours required to complete the project, break that down by employee type, and give you a granular estimate that way. Regardless of the method employed, each company is making an internal calculation about how many hours they anticipate the project will require (based mostly on the feature requests and the complexity of any external hardware/software/API integration) and which resources that company will have to utilize to accomplish you goals. So, we can break down the cost buckets similarly.

Every feature your app incorporates equals a certain number of design, programming, project management, QA, and revision hours. The more features you request, the more hours required to deliver all of them, and the more the app will cost. The more complex the feature, the more hours required, and the more the app will cost. As such, the ideal working relationship with any vendor or partner is with someone willing and able to itemize each feature by the hours required to develop those features, cross referenced with the respective cost per resource hour. That way, you can obtain a granular overview of where the largest cost factors are. If your partner can do this for you, you can make informed decisions about which features are the most important or which features you might think about scrapping to save costs.

Most market research I’ve seen categorizes mobile app costs into three buckets:

  • Lower-level complexity, smaller feature list, generally one mobility platform: <$50,000
  • Medium-level complexity, medium-sized feature list, 1-2 mobility platform(s): $50,000 – $150,000
  • High-level complexity, large feature list, 3+ mobility platforms: $150,000+

The cutoff between the medium and high complexity buckets can vary some depending on the study at which you look, but it’s generally $100K+ or $150K+. Being more realistic for an enterprise context, high-complexity mobile solutions will generally run $150,000+. But, this categorization might not clear much up if you don’t know where your app falls in the spectrum to begin with.

For example, if you want to build an app that simply interfaces with your backend database, parses and analyzes that data, and then displays the information you want via a native tablet app on only one platform, that’s a relatively simple app (assuming your back end is well designed and any legacy hardware or software isn’t too hard to integrate into).

If you want to build a field sales application that supports offline data collection and caching, third-party hardware integration for a credit card reader, API support for payment and credit card security protocols, backend database integration, and social sharing? That’s going to fall into the second bucket and run you anywhere from $50,001 to $149,999 based on how many total features you deem necessary.

If you decide to completely overhaul your CRM and you want to build a new solution from the ground up, including microphone and camera integration into the application, learning algorithms, backend integration, custom performance metric reporting, shareable and group editable files, individual device management, individual app management, individual logins, varying security protocol levels based on employee department, division, title and seniority, custom VPN requirements by device or by app, you’re looking at a very complex application. Many of these things are absolutely necessary for your ultimate app, but you have to know that every feature you add, and as each of those features requires more and more expertise to deliver on, the higher into zone three you’ll climb. That’s not a bad thing by any stretch, because you’re building a more comprehensive, safer and more useful solution. But as your solutions become better, it simply requires more to build them.

So long as you can find a mobile solutions partner with the discipline and forethought to forecast each feature by hour and resource on the front end, you’ll be able to choose the features you can’t live without and which features can wait for v2.

A word to the wise, though — even if you find such a firm and make the best choices for your business, always beware that support, updates and continual improvements often require far more capital than building the v1 of the app in the first place. Know that choosing to build a mobile app is a long-term investment to solidify your place within your target consumers’ digital lives and stick to that mindset. It’s not about the extra few dollars you spend now, but rather how can you build an integrated solution that will stand the test of time and generate business returns for years and years to come.

Comments

Why New Technology Has An Adoption Problem

Danielle Beurteaux

When 3D printing became a practical reality, in the sense that the actual printers became more efficient, less expensive, and more accessible to the average consumer, there was an assumption that the consumer 3D printing market was going to take off. We’d all have printers at home printing…. what? Our clothes? Toys? Spare organs?

That has yet to happen. 3D printing company MakerBot just went through its second employee layoff this year, driven by a market that’s developing much slower than predicted.

That same thinking is in play with a somewhat more prosaic technology – digital wallets. Apple Pay was released this year, as was Samsung Pay. There’s also Google’s Android Pay. During an earnings call, Apple CEO Tim Cook said: “We are more confident than ever that 2015 will be the year of Apple Pay.” But that expectation has yet to be realized, at least vis-à-vis consumers.

Consumers aren’t using any of the digital wallets en masse. According to Bloomberg, payments made via mobile wallets – all of them – make up a mere 1% of retail purchases in the U.S. The reason is that consumers just don’t see a compelling reason to use them. There’s no real reward for them to change from SOP.

Both these instances highlight a problem with assumptions about mass adoption for new technology – just because it’s cool, interesting, and accessible doesn’t mean a market-worthy mass of people will use it.

Who is more likely to use mobile wallets? Emerging economies without a stable financial and banking systems. In those environments, digital payments present a more secure and quicker method for purchasing. These are the same areas where mobile adoption leapfrogged older technologies because there was a lack of telecommunications infrastructure, i.e. many never had a landline phone to begin with, and they went directly to mobile. The value-add already exists. (But there are also security issues, to which consumers are becoming more sensitive. A hack of Samsung’s U.S. subsidiary LoopPay network was uncovered five months post-hack. Although one was expert quoted as saying the hackers may not have been interested in selling consumer financial info but instead in tracking individuals.)

Here’s some interesting data and a good point made: mobile payments are most popular in situations where the buyer already has his or her phone in hand and the transaction is made even quicker than swiping plastic. For example, purchases made for London Transit rides are responsible for a good portion of the U.K.’s mobile payments.

Mass technology adoption is no longer driven simply by the release of a new product. There are too many products released constantly now, the market is too diverse, and the products often lack a true raison d’être.

Learn more about how creative and innovative companies are finding their customers. Read Compelling Shopping Moments: 4 Creative Ways Stores Connect With Their Customers.

Comments

Mobile Marketing Continues To Explode

Daniel Newman

If your brand isn’t among those planning a significant spend on mobile marketing in 2016, you need to stop treating it like a fad and step up to meet your competition. Usage statistics show that today people live and work while on the move, and the astronomical rise of mobile ad spending proves it.

According to eMarketer, ad spending experienced triple-digit growth in 2013 and 2014. While it’s slowed in 2015, don’t let that fool you: Mobile ad spending was $19.2 billion in 2013, and eMarketer’s forecast for next year is $101.37 billion—51 percent of the digital market.

  1. Marketers follow consumer behavior, and consumers rely on their mobile devices. The latest findings from show that two-third of Americans are now smartphone owners. Around the world, there are two billion smartphone users and, particularly in developing regions, eMarketer notes “many consumers are accessing the internet mobile-first and mobile-only.”
  2. The number of mobile users has already surpassed the number of desktop users, as has the number of hours people spend on mobile Internet use, and business practices are changing as a result. Even Google has taken notice; earlier this year the search giant rolled out what many referred to as “Mobilegeddon”—an algorithm update that prioritizes mobile-optimized sites.

The implications are crystal clear: To ignore mobile is to ignore your customers. If your customers can’t connect with you via mobile—whether through an ad, social, or an optimized web experience—they’ll move to a competitor they can connect with.

Consumers prefer mobile — and so should you

Some people think mobile marketing has made things harder for marketers. In some ways, it has: It’s easy to make missteps in a constantly changing landscape.

At the same time, however, modern brands can now reach customers at any time of the day, wherever they are, as more than 90 percent of users now have a mobile device within arm’s reach 24/7. This has changed marketing, allowing brands to build better and more personalized connections with their fans.

  • With that extra nudge from Google, beating your competition and showing up in search by having a website optimized for devices of any size is essential.
  • Search engine optimization (SEO) helps people find you online; SEO integration for mobile is even more personalized, hyper local, and targeted to an individual searcher.
  • In-app advertisements put your brand in front of an engaged audience.
  • Push messages keep customers “in the know” about offers, discounts, opportunities for loyalty points, and so much more.

And don’t forget about the power of apps, whose usage takes up 85 percent of the total time consumers spend on their smartphones. Brands like Nike and Starbucks are excellent examples of how to leverage the power of being carried around in someone’s pocket.

Personal computers have never been able to offer such a targeted level of reach. We’ve come to a point where marketing without mobile isn’t really marketing at all.

Mobile marketing tools are on the upswing too

As more mobile-empowered consumers themselves from their desks to the street, the rapid rise of mobile shows no signs of slowing down. This is driving more investment into mobile marketing solutions and programs.

According to VentureBeat’s Mobile Success Landscape, mobile engagement—which includes mobile marketing automation—is second only to app analytics in terms of investment. Mobile marketing has become a universe unto itself, one that businesses are eager to measure more effectively.

Every day, mobile marketing is becoming ever more critical for businesses. Brands that fail to incorporate mobile into their ad, content, and social campaigns will be left wondering where their customers have gone.

 

For more content like this, follow Samsung Business on InsightsTwitterLinkedIn , YouTube and SlideShare

The post Mobile Marketing Continues to Explode appeared first on Millennial CEO.

photo credit: Samsung Galaxy S3 via photopin (license)

Comments

About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies. Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book "The Millennial CEO." Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter. Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5). A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

The Future of Cybersecurity: Trust as Competitive Advantage

Justin Somaini and Dan Wellers

 

The cost of data breaches will reach US$2.1 trillion globally by 2019—nearly four times the cost in 2015.

Cyberattacks could cost up to $90 trillion in net global economic benefits by 2030 if cybersecurity doesn’t keep pace with growing threat levels.

Cyber insurance premiums could increase tenfold to $20 billion annually by 2025.

Cyberattacks are one of the top 10 global risks of highest concern for the next decade.


Companies are collaborating with a wider network of partners, embracing distributed systems, and meeting new demands for 24/7 operations.

But the bad guys are sharing intelligence, harnessing emerging technologies, and working round the clock as well—and companies are giving them plenty of weaknesses to exploit.

  • 33% of companies today are prepared to prevent a worst-case attack.
  • 25% treat cyber risk as a significant corporate risk.
  • 80% fail to assess their customers and suppliers for cyber risk.

The ROI of Zero Trust

Perimeter security will not be enough. As interconnectivity increases so will the adoption of zero-trust networks, which place controls around data assets and increases visibility into how they are used across the digital ecosystem.


A Layered Approach

Companies that embrace trust as a competitive advantage will build robust security on three core tenets:

  • Prevention: Evolving defensive strategies from security policies and educational approaches to access controls
  • Detection: Deploying effective systems for the timely detection and notification of intrusions
  • Reaction: Implementing incident response plans similar to those for other disaster recovery scenarios

They’ll build security into their digital ecosystems at three levels:

  1. Secure products. Security in all applications to protect data and transactions
  2. Secure operations. Hardened systems, patch management, security monitoring, end-to-end incident handling, and a comprehensive cloud-operations security framework
  3. Secure companies. A security-aware workforce, end-to-end physical security, and a thorough business continuity framework

Against Digital Armageddon

Experts warn that the worst-case scenario is a state of perpetual cybercrime and cyber warfare, vulnerable critical infrastructure, and trillions of dollars in losses. A collaborative approach will be critical to combatting this persistent global threat with implications not just for corporate and personal data but also strategy, supply chains, products, and physical operations.


Download the executive brief The Future of Cybersecurity: Trust as Competitive Advantage.


Comments

Tags:

Unleash The Digital Transformation

Kadamb Goswami

The world has changed. We’ve seen massive disruption on multiple fronts – business model disruption, cybercrime, new devices, and an app-centric world. Powerful networks are crucial to success in a mobile-first, cloud-first world that’s putting an ever-increasing increasing amount of data at our fingertips. With the Internet of Things (IoT) we can connect instrumented devices worldwide and use new data to transform business models and products.

Disruption

Disruption comes in many forms. It’s not big or scary, it’s just another way of describing change and evolution. In the ’80s it manifested as call centers. Then, as the digital landscape began to take shape, it was the Internet, cloud computing … now it’s artificial intelligence (AI).

Digital transformation

Digital transformation means different things to different companies, but in the end I believe it will be a simple salvation that will carry us forward. If you Bing (note I worked for Microsoft for 15 years before experiencing digital transformation from the lens of the outside world), digital transformation, it says it’s “the profound and accelerating transformation of business activities, processes, competencies, and models to fully leverage the changes and opportunities of digital technologies and their impact across society in a strategic and prioritized way.” (I’ll simplify that; keep reading.)

A lot of today’s digital transformation ideas are ripped straight from the scripts of sci-fi entertainment, whether you’re talking about the robotic assistants of 2001: A Space Odyssey or artificial intelligence in the Star Trek series. We’re forecasting our future with our imagination. So, let’s move on to why digital transformation is needed in our current world.

Business challenges

The basic challenges facing businesses today are the same as they’ve always been: engaging customers, empowering employees, optimizing operations, and reinventing the value offered to customers. However, what has changed is the unique convergence of three things:

  1. Increasing volumes of data, particularly driven by the digitization of “things” and heightened individual mobility and collaboration
  1. Advancements in data analytics and intelligence to draw actionable insight from the data
  1. Ubiquity of cloud computing, which puts this disruptive power in the hands of organizations of all sizes, increasing the pace of innovation and competition

Digital transformation in plain English

Hernan Marino, senior vice president, marketing, & global chief operating officer at SAP, explains digital transformation by giving specific industry examples to make it simpler.

Automobile manufacturing used to be the work of assembly lines, people working side-by-side literally piecing together, painting, and churning out vehicles. It transitioned to automation, reducing costs and marginalizing human error. That was a business transformation. Now, we are seeing companies like Tesla and BMW incorporate technology into their vehicles that essentially make them computers on wheels. Cameras. Sensors. GPS. Self-driving vehicles. Syncing your smartphone with your car.

The point here is that companies need to make the upfront investments in infrastructure to take advantage of digital transformation, and that upfront investment will pay dividends in the long run as technological innovations abound. It is our job to collaboratively work with our customers to understand what infrastructure changes need to be made to achieve and take advantage of digital transformation.

Harman gives electric companies as another example. Remember a few years ago, when you used to go outside your house and see the little power meter spinning as it recorded the kilowatts you use? Every month, the meter reader would show up in your yard, record your usage, and report back to the electric company.

Most electric companies then made a business transformation and installed smart meters – eliminating the cost of the meter reader and integrating most homes into a smart grid that gave customers access to their real-time information. Now, as renewable energy evolves and integrates more fully into our lives, these same electric companies that switched over to smart meters are going to make additional investments to be able to analyze the data and make more informed decisions that will benefit both the company and its customers.

That is digital transformation. Obviously, banks, healthcare, entertainment, trucking, and e-commerce all have different needs than auto manufacturers and electric companies. It is up to us – marketers and account managers promoting digital transformation – to identify those needs and help our clients make the digital transformation as seamlessly as possible.

Digital transformation is more than just a fancy buzzword, it is our present and our future. It is re-envisioning existing business models and embracing a different way of bringing together people, data, and processes to create more for their customers through systems of intelligence.

Learn more about what it means to be a digital business.

Comments

About Goswami Kadamb

Kadamb is a Senior Program Manager at SAP where he is responsible for developing and executing strategic sales program with Concur SaaS portfolio. Prior to that he led several initiatives with Microsoft's Cloud & Enterprise business to enable Solution Sales & IaaS offerings.