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Key Insights on Shifting to Incremental, Iterative Software Delivery in 2025

Written by Truefit | February 19, 2025

 

In today's digital economy, market success hinges on how effectively teams deploy software. Annual updates have become monthly, weekly, or even daily. Business leaders, especially non-technical ones, often ask: How do you balance creating a robust product with the need for quick market entry and revenue generation?

The key is understanding modern software development approaches that have transformed product launches.

The Shift in Software Development to Incremental, Iterative Delivery

In the past, traditional software development teams often focused on delivering a complete, predetermined product – like setting out to build a car with all its features from day one. Modern approaches, however, recognize that this "all-or-nothing" strategy carries significant risks: longer time to market, higher upfront costs, and most critically, the possibility of building something customers don't actually want.

Today's most successful software teams take a different approach. They start with a clear problem to solve for customers that aligns with their business objectives. They avoid defining a specific solution too early and build iteratively toward their vision. This shift mirrors lean manufacturing principles that evolved from large batch sizes to just-in-time production – delivering value incrementally rather than all at once.

Key Roles in Modern Software Development

One key to continuous delivery is the introduction of a cross-functional software team.  Modern software teams bring together diverse cross-functional expertise to ensure both business and technical success:

  • Product Management translates business vision into actionable development priorities, ensuring what's built aligns with market needs.
  • Software Architecture establishes technical foundations that allow for rapid iteration and scaling.
  • Engineering delivers working solutions quickly and reliably.
  • Product Design creates solutions that meet customer needs and tests assumptions about value and usability before significant investment in a solution is made.
  • Quality Assurance manages risk while maintaining speed.

Depending on your domain, cross-functional teams may also require participation from business, regulatory, content, or marketing specialists. These roles work together in short cycles, continuously validating assumptions and strategically pivoting their efforts based on technical learning and market feedback from customers and users. The best teams remain together over time so they can execute with great efficiency, communication, and high levels of trust.

Core Practices Business Leaders Should Understand

At the heart of these modern software development methods is the concept of incremental value delivery. Consider Henrik Kniberg's famous illustration: Instead of building a car immediately, you might start with a skateboard, evolve to a scooter, then a bicycle, motorcycle, and finally a car. Each stage:

  • Delivers real value to customers.
  • Generates revenue (or tests assumptions that inform future iterations).
  • Funds subsequent stages of development (directly or indirectly by increasing the confidence of stakeholders/investors).
  • Provides critical learning about what customers actually need.

Illustration of incremental MVPs  by Henrik Kniberg

This iterative approach to software development offers several business advantages:

  1. Earlier Revenue Generation: Even simple versions can start generating returns
  2. Reduced Risk: Future investment decisions can be informed by market feedback. 
  3. Flexibility: Plans can adapt based on real user behavior and technical implementation insights
  4. Competitive Advantage: Features reach market faster than traditional approaches

Flaherty & O'Hara, a leading liquor licensing firm serving nationwide hotel, restaurant, and retail clients, found their growth limited by off-the-shelf software tools. Starting in 2020, a Truefit cross-functional team developed a custom software solution that first improved internal workflow efficiency for renewals. Building on this success, the team launched a revenue-generating SaaS platform for customers. Driven by customer feedback, the team introduced tiered service options based on business volume and location-specific expertise. The platform's success has enabled F&O to increase software-generated revenues by over 20% per year and expand into new markets such as pharmacy licensing. The incremental, iterative approach to modern software development delivery has been a key driver of their success. 

Making it work in your organization

To successfully implement these modern software development approaches, executives should:

  • Harness the value of a cross-functional team 
    • Leverage diverse perspectives to generate more effective, holistic solutions.
    • Iterate and learn faster to inform key product decisions
    • Adopt a customer-centric focus to keep customer needs in the foreground
  • Focus on problems, not solutions
    • Start by aligning stakeholders around clear business problems to solve
    • Allow solutions to be informed by customer feedback and collaboration
    • Be open to unexpected insights and alternative solutions
  • Start with a Minimum Viable Product and iterate based on customer feedback
    • Define the smallest solution that delivers value for an “early adopter”
    • Plan for iterative improvements
    • Be willing to release "less complete" products that solve core needs in a way users love

 

Looking Forward

Modern software development is never truly "done." Successful organizations continuously evaluate customer behavior and market needs to improve experience, engagement, and value. While long-term vision remains important – you might still want to build that "car" eventually – the path to getting there should be flexible, iterative, and focused on delivering value at each step along the way.