Discovery Phase: A Definitive Guide

The discovery phase is an essential part of the project development process, designed to avoid the common pitfall of jumping straight into app development without sufficient planning. Many companies have learned the hard way that bypassing the discovery phase often results in the creation of a product that fails to address a real problem or meet customer needs, leading to budget overruns and scope creep.

A recent McKinsey study highlights that nearly half of software and mobile development projects exceed their initial budgets. This issue is prevalent among startups and companies aiming to launch an app without a clear understanding of product requirements. Based on our extensive experience with startups, SolveIt asserts that skipping the discovery phase almost guarantees a product's failure.

The reality is that inadequate preliminary planning can turn any promising project into a disaster, causing constant budget overruns, missed deadlines, and increased risk of failure. Our practical experience shows that a well-executed discovery phase, especially when handled by experts, is a highly effective solution in 90% of cases.

In this blog post, we'll delve into the importance of the discovery phase in product development, outlining its goals, steps, and deliverables.

What is a Discovery Phase In Software Development?

The discovery phase is a critical initial step in the project development lifecycle, aimed at understanding and defining the project's scope, objectives, and feasibility. This phase is essential for setting a solid foundation for the entire development process, ensuring that the project is aligned with business goals and user needs before any actual development begins.

During the discovery phase, a comprehensive analysis is conducted to gather all necessary information about the project's requirements and constraints. This involves identifying the target audience, understanding their needs and pain points, and defining the key functionalities and features that the product must have to address these needs effectively. Stakeholders from various departments, including marketing, sales, and technical teams, collaborate to provide insights and expertise.

One of the primary goals of the discovery phase is to create a detailed project roadmap. This roadmap outlines the project's objectives, timelines, resources, and potential risks. It also includes a feasibility study to assess the technical, financial, and operational viability of the project. By conducting thorough research and analysis, the discovery phase helps to mitigate risks and avoid common pitfalls such as budget overruns, scope creep, and missed deadlines.

Another crucial aspect of the discovery phase is defining the project's scope. This involves setting clear boundaries for what will and will not be included in the project, which helps to manage expectations and ensure that the project stays on track. Detailed user personas and user journey maps are often created to visualize how the target audience will interact with the product, which further guides the development process.

The deliverables of the discovery phase typically include a project brief, a detailed requirement specification document, wireframes or prototypes, and a project plan. These deliverables serve as a reference point for the development team, providing clear guidance and ensuring that everyone is aligned on the project's goals and expectations.

What Specialists are Involved in the Discovery Phase?

The discovery phase involves a diverse team of specialists, each bringing unique expertise to ensure comprehensive planning and a thorough understanding of the project's requirements. Here are the key specialists typically involved in this phase:

1. Project Manager oversees the entire discovery phase, coordinating activities, managing timelines, and ensuring that all stakeholders are aligned. They facilitate communication between the team and the client and ensure that the project stays on track.
2. A Business Analyst plays a crucial role in gathering and analyzing business requirements. They work closely with stakeholders to understand their needs, identify business objectives, and translate them into detailed project specifications. Their goal is to ensure that the project aligns with business goals and delivers value to the end users.
3. User Experience (UX) Designer focuses on understanding the users' needs and designing intuitive and engaging user experiences. They conduct user research, create user personas, and develop user journey maps. They also create wireframes and prototypes to visualize the user interface and gather feedback.
4. The Technical Lead or Solution Architect assesses the technical feasibility of the project. They define the technology stack, system architecture, and integration points. Their expertise ensures that the proposed solution is technically sound and scalable.
5. A Marketing Specialist provides insights into market trends, customer preferences, and competitive analysis. They help identify the target audience and define key marketing strategies. Their input ensures that the product is positioned effectively in the market.
6. Stakeholders, including clients, end-users, and internal team members, are actively involved in the discovery phase. Their feedback and insights are crucial for understanding requirements and ensuring that the project meets their expectations.
7. In projects where data plays a critical role, a Data Analyst is involved to assess data requirements, sources, and integration. They help define data models and ensure that the solution can effectively handle and utilize data.

By involving a multidisciplinary team of specialists, the discovery phase ensures that all aspects of the project are thoroughly considered and planned. This collaborative approach helps to mitigate risks, align project goals with business objectives, and set a solid foundation for successful project development.

How Does Ardas Conduct the Discovery Phase?

The discovery phase is the foundation for 90% of development projects at Ardas. Here's a detailed look at how Ardas navigates each step of the discovery phase to ensure successful project outcomes.

Discovery Phase Steps

Step 1: Introduction

When a client begins a collaboration with us, we initiate a preliminary introduction call with a Business Analyst. This specialist gathers initial requirements to understand the client's idea, the current state of their business, main goals, and the future product's value.

Step 2: Analysis and Research

This stage involves thorough market research, analyzing industry trends, and identifying problems to gain a general understanding of the market and the motivations of the client's target audience. We also study competitors to devise a competitive solution capable of capturing a significant market share.

Step 3: Design

Our designer creates a design concept and builds wireframes or a prototype based on user journeys. This ensures a seamless user experience while allowing the client to make changes to the concept before moving to the estimation and development phase, including considerations for app design costs.

Step 4: Technical Analysis

A Technical Architect drafts a comprehensive set of documents that outline all project requirements. Clear and detailed documentation helps all participants understand the project's scope and what the final product should look like.

Step 5: Presentation and Deliverables

Upon completing all stages of the discovery phase and compiling all necessary data and insights, we arrange a meeting with the client. We discuss the details and present the product vision from both business and technical perspectives. If the client approves the project proposal, including the estimated financial and time investments, we proceed to the MVP development stage.

Discovery Phase Deliverables

After collecting and analyzing the required data, the team provides the client with a comprehensive set of documents essential for further development. These documents offer a clear understanding of the product's vision, structure, and functionality. They allow clients to review the concept and understand the development cost and timeline.

• Vision and Scope Document: Derived from market research and analysis, providing clients with an action plan.
• SRS (Software Requirements Specification): Details all technical specifications and functionalities required for product development.
• ERD Diagram: Illustrates business objects and their relationships within the system.
• 3rd Party Integration Document: Describes necessary integrations, including costs and additional comments.
• Design Concept: Visual and written descriptions of the future product to keep the client, designers, and developers aligned.
• Prototype: An interactive model that simulates the actual product to validate concepts.
• Proposal: A strategic document outlining a step-by-step development plan and estimated time and costs.

Duration of the Discovery Phase

The discovery phase typically lasts between 2 to 8 weeks, depending on the project's complexity and the level of expertise required. Developing a custom software product for enterprise automation might take up to 1.5 months or longer. In contrast, the discovery phase for less complex digital products generally takes less than a month.

Cost of the Discovery Phase

The cost of the discovery phase usually constitutes 10-20% of the total project budget. At Ardas, the cost starts around $10,000 and varies based on project complexity. We offer three tailored packages to meet different objectives: for startups, business products, and custom software for business automation, with options for customized discovery phase planning.

Benefits of the Discovery Process

• Clear Goals and Product Vision: Thorough research and analysis provide valuable insights, helping to define the project vision, goals, and scope.
• Understanding the Target Market and User Needs: Gathering information from potential users and analyzing competitors ensures the product meets user needs and market requirements.
• Detailed Product Architecture: Establishes a solid foundation for future scaling, including technical considerations, features, and functionalities.
• Defined Technologies and Integrations: Identifies suitable technologies and plans for seamless integration with external systems.
• Reduced Development Costs and Risks: Precise product descriptions minimize changes during development, reducing costs and risks.
• Effective Product Roadmap: A strategic plan outlining product goals, features, deadlines, and dependencies.
• Procurement Cycle: Ensures efficient procurement processes, including selecting suppliers, assessing performance, and negotiating contracts for maximum value.

The discovery phase, when conducted responsibly, transforms an idea into a well-structured plan of action, increasing the likelihood of securing third-party investments and achieving development success.