5 main errors in the application of budgets
The budget of mobile application development is a task for which many
companies are not adequately equipped. Despite the importance of mobile devices
and the number of organizations that are realizing their importance, it is
surprising how little is known about what it takes to create a fully
functional, user-ready mobile application. The result of this knowledge gap is
that many underestimate, often significantly, the time, resources and budget
they require to build a useful product. In our experience, the largest errors
of the mobile application in the budget are:
·
Ignore back-end infrastructure / development
needs
·
Misunderstanding the big differences between
applications and websites.
·
Do not consider the interdepartmental participation
required for continued delivery and success
·
There is not enough marketing budget to promote
and educate customers about the mobile application
·
No upgrade plans to meet customer demands after
the initial launch
The cost of developing mobile applications varies according
to the case, and factors such as the scope, complexity, requirements of the
features and the company you choose to associate with all end up determining
the cost of your project. We will discuss each of the errors listed above and
why these areas should be included when creating a mobile application budget
plan. At the end of this publication, you will have a more comprehensive
understanding of the time, effort and cost involved in creating a marketable
mobile application.
How much does it cost to build an infographic application?
Perhaps the biggest mistake that people make in the budget
of mobile applications is to assume that it is an independent product that
consists only of the screens with which users interact on their devices. The
reality is that the user interface of the application is a very small part of a
larger machine that allows the application to work.
There is a variety of moving parts: the content management
system (CMS); the back-end infrastructure APIs that manage business logic
(cloud-based); and third-party integrations (user commitment through push,
analysis for data capture, Facebook login, chat, etc.). Let's see these in
turn:
CMS: The mobile
CMS provides configuration and content services. Do not think about WordPress.
Think of specific mobile devices so you can create the best mobile experience.
You do not want to have to republish an application due to an API endpoint
change or a back-end maintenance window. The mobile CMS must be considered as
part of the mobile application: it provides everything from settings, menu
details, images and text content to the application.
Back-end
infrastructure: Your application may need to communicate with a server to
handle actions that cannot be performed on the device, including
authentication, business integrations such as booking appointments or
requesting status updates, business processes, notifications and messages, and
much more. Although I would have considered them as central services, I should
really think about them from a mobile context. Your customers do not want to
wait for answers. The specific services for mobile devices that are highly
sensitive are the only true solution in the world today.
Third party
integrations: you do not want to create everything from scratch, so look
for third parties that offer the best solutions for specific problems. Push
notifications, analysis, authorization and authentication are just some
elements that should be considered.
Many make the mistake of considering only the front-end when
determining the budget of a mobile application. By doing this, they are
ignoring the major cost factors, which are normally found within the backend
infrastructure and the integrations that are not immediately visible.
We can demonstrate this by using everyone's favorite
example: Uber. First of all, Uber actually has two different applications. The
first is what users see that allows them to request the service, manage their
accounts, etc. The second is the application used by the controllers. Even if
it were a single application, the amount of back-end infrastructure and
integration that the application requires to function could surprise many. You
have the location and the components of the map; a payment / transaction
system; dynamic price model based on demand; and a lot more.
Just take a look at Uber's breakdown of its technology stack
(and this is only Part 1 of 2, not including the middleware or the front
components). Applications that require this type of infrastructure are costly
to build and scale: Uber's initial financing was $ 1.5 million, with much more
capital acquired through the follow-up stages.
While Uber is a complex example, it demonstrates the many
facets required for an application to work that many do not consider when
creating a mobile application budget plan.
Think that mobile applications and websites are not very different
The applications not only require the back-end
infrastructure, but all these different components must also be integrated and
work together for the application to work. Ensure that all moving parts (the
front-end, CMS, third-party services, the backend) work together requires a lot
of time and effort; Much more than a website. The more complex the project is,
the more time and effort is required; therefore, the more it will cost.
Mobile applications are not websites. On the surface, this
may seem obvious, but it is important to emphasize when breaking down the
technical complexity behind mobile applications and how they communicate with
services and networks. Mobile ownership is limited on a mobile screen, and the
user experience is very different. The information must be more focused and the
delivery of content must be faster. Therefore, mobile applications make more
network calls more frequently and require services that can support this.
In almost all cases, it will be necessary to build the
infrastructure. Existing services that were not originally designed for mobile
devices are inadequate. It is likely that internal and legacy systems must be
recreated to support mobile devices.
The trap into which many organizations fall is to believe
that their current services are good enough. They are not.
Do not consider participation through the department
The old adage, "you need a village", could not be
more apt for the development of mobile applications. Just as there is diversity
in the technical components necessary for an application to work, there is a
need for cohesion among internal teams for the application to be successful.
Development is only part of the image.
For a typical consumer-oriented application, it must involve
a variety of business functions: IT, engineering, marketing, sales and any
relevant stakeholders. Successful products will have an internal champion, but
that person is not the only member of their team that should participate.
IT and engineering will play a key role in development,
integration with other services and ensuring that any change in internal
systems works correctly. Even if you have chosen an external mobile application
development partner, there will be people on your team who must participate.
Marketing and sales are also necessary to boost the
acquisition and growth of users, and for other tasks, depending on the nature
of their application. For example, if your monetization plan is based on
advertising, you need to sell advertising space. If you plan to do any
marketing or promotion within the application, your marketing team should
participate.
Although the level of participation will vary according to
the nature of the product, its objectives and characteristics, the
interdepartmental effort and coordination are key to the success of your mobile
application.
Lack of marketing budget
As mentioned briefly above, marketing will play a key role
in driving the acquisition and growth of the user. The application market is
highly competitive and, like any other product or service, your mobile
application should be promoted to be successful. All too often, the marketing
function is a last minute idea.
The cost of marketing your mobile application should be
considered very early in the process when you are determining what your success
metrics will be. Do you want to generate a certain amount of income in the
first 6 months? Will you measure success with a certain number of downloads of
applications or users in a certain period of time? Will the user commit to the
mobile application at the level he expects?
The objectives are essential, but the marketing budget must
be in line with these objectives. If you plan to acquire 15,000 users in the
first month, it is very unlikely that you can achieve this goal without the
paid promotion of the product. While you may not have exact numbers, you must
draw a line in the sand to be able to compare, evaluate and refine.
Customer demand for constant updates
Continuous delivery is an important part of sustained
success for any mobile application. Users are demanding and, as mobile
technology evolves rapidly, cannot expect to retain and delight users with a
"configure and forget them" mentality.
Having a broader mobile vision and a continuous development
approach to delivery allows you to meet and exceed customer demands; Drive the
direction of your product; monitor, evaluate and improve the performance of the
application; and ultimately, remain competitive.
As this is a continuous approach, the support requirements
must be taken into account when planning a budget. Again, the figures may not
be accurate at the beginning, but developing a long-term strategy with a
product road map (phased approach, deployment plan for new functions, etc.) will
give you a good idea of the effort and necessary resources.
Know how to budget for your mobile application
The five points discussed above are very important mobile
application budget factors. However, they are often completely absent when
budget proposals are created, even though they generally incur the highest
cost. If you have not considered them, you have only budgeted a small part of
your project, not a sustainable and fully functional mobile application.
Keep in mind that not all will be initial costs; is
preparing a budget framework that will allow you to maintain and improve your
product in alignment with your overall mobile strategy. By doing this, you can
mitigate the risks, more realistically evaluate the return on investment and be
flexible to optimize and improve your application and mobile strategy as the
product matures.
To help you establish benchmarks for the project of your
mobile application, we have created a definitive Guide for the costs of developing
mobile applications. If you are looking for a more specific quote for your
development project, contact us today and we can help you get started.
