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What is the Discovery Phase: Outputs, Benefits and Steps

What is the Discovery Phase: Outputs, Benefits and Steps

May 17, 2022
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8 min read
Business
By
Vadym Kostiuk
Sales executive
Simon Shcherbak
Business Analyst

In software development, the discovery or scoping phase is a process of collecting and analyzing information about the project, its goals, scope, and targeted market. This initial phase is crucial as it sets the foundation for the entire development process.

The product discovery stage focuses on gathering information and defining requirements, including the creation of system requirements specification (SRS). This document encompasses essential information required for product development, including primary and additional features, measurable deliverables, and more 📄

Let's find out what is the discovery phase, its key steps, and the impact it has on shaping the success of a software development project.

What are the outputs of the discovery phase?

New startups are launched worldwide almost every day, from sunny Cape Town to Alaska. However, for each successful business idea, there are thousands that fail. Nearly half of the startups (42%) fail because they don't meet a market need.

How can we avoid these pitfalls in IT project delivery? And how do we ensure that product development stays on track? 🚴

Comprehensive analysis is a great navigator for your product development process. It includes the discovery phase, a crucial software development stage to complete projects on time and budget.

The business analyst and account manager take the lead during the discovery stage, supported by team leads, software developers, and designers. Together, they collaborate on tasks such as defining project scope, creating SRS, and developing prototypes.

The outputs of the discovery phase are crucial for your development project. Once this stage is complete, you will receive:

  • System requirements specification. This document describes the project's goals, features, technology stack, and architecture. Study it carefully and suggest any necessary corrections before approving it.
  • Preliminary design. Long before developers start working on your project, you will receive showcase of UI, UX wireframes and user flows. Together with an SRS, the preliminary product prototype provides a clear understanding of the further development stages and the final result.
  • MVP development plan and estimates. An MVP (Minimum Viable Product) development plan outlines the strategy and steps required to create and launch a basic version of a product with the minimum set of features to satisfy initial users. You will get a suggested team lineup, an accurate development timeline, and a budget estimate
You will receive

The discovery stage tackles uncertainty at the beginning of any project. Communication, research, and analysis form the power of three that help businesses set goals and define the direction of the development process. Moreover, they are essential to identify and address potential roadblocks and risks.

What are benefits of the project discovery phase

When everyone is rushing to get the product launched, the project discovery phase may seem like a waste of time. However, this step is pivotal for successful development. It helps:

Reduce risks
A clear understanding of your goals and requirements helps the development team create accurate estimates of time and budget. The risk of missed deadlines is reduced by 75%. The overall cost savings can exceed 50%. Ultimately, the meaning of the product discovery process is the difference between success and failure.
Create a roadmap
When the team relies on a clear set of requirements, they can develop a step-by-step plan and keep to it. You get a complete project timeline with interim goals, deliverables, and deadlines. That will take the product from an idea to launch without rescheduling or alterations.
Enhance collaboration
The discovery phase  is a crucial stage where teams deeply explore the project's requirements and potential challenges. This shared understanding minimizes misunderstandings and conflicts later in the project. Such collaborative efforts ensure that various viewpoints are considered, leading to more comprehensive solutions and fostering a conducive environment.

With benefits addressed, let's consider what happens when you skip the project discovery stage and start the development process without clearly defined goals and milestones:

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Your project fails to meet user needs
A failed project is one that doesn't achieve its objectives or doesn't deliver what was planned on time and on budget. Poor requirements gathering, lack of stakeholder involvement, and lack of idea validation can result in such a gap.
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Scope creep
Scope creep is what happens when changes are made to the project scope without measurable deliverables and without any control procedure like change requests. Additional features or changes beyond the initial scope lead to increased costs, project delays and team demotivation.
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Bloated budget
The lack of clear goals and direction leads to constantly changing requirements and driving up expenses. This, in turn, often results in running out of funds long before the team can deliver the finished product or even a usable one.
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Missed deadlines
In addition to overspending, poor requirements management and scope creep causes shifts in the development timeline and delivery dates. In a competitive market, missed deadlines translate to significant business losses.
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Challenges of switching to a new vendor
When dissatisfied with the development team, switching to another one becomes challenging and time-consuming without the initial documentation, including SRS and prototypes. You should start over, this time without skipping the discovery phase.

How to run a discovery phase?

Time and budget estimations are foundational elements that guide the software development processes. They help ensure alignment with business goals, manage expectations, and minimize risks associated with project delivery.

The business development team accurately estimates the time and costs needed to create MVP or a full-scale product. The size of the project can extend the duration of this stage, but the framework of the discovery phase remains the same:

1
Define the stakeholders and clarify expectations
Your list should include product owners, end-users, developers, investors, and other individuals involved in creating the app. As a product owner, you should have a vision of the final product and be able to answer the discovery session questions. The team might need to engage other people involved in the project to ensure alignment and fulfillment of all needs and requirements.
2
Review documents and existing research
If you have already conducted market surveys or customer development interviews, there is no need to duplicate efforts. Provide the business analyst with relevant documentation for review and analysis.
3
Conduct competitive research
Market research and discovery help identify the strengths and weaknesses of existing solutions. Competitive research empowers businesses to make informed decisions, understand their position in the market, and leverage opportunities for growth and improvement.
4
Create user avatars and user journey
User avatars, also known as user personas, help in understanding the target audience. User journeys map out the steps users take while interacting with an app. These tools are vital for tailoring product to meet users needs and preferences.
5
Create SRS
At this stage, all gathered information transforms from a dataset into an actionable requirements list. A good SRS (Software Requirement Specification) provides a detailed description of the project's scope and forms a realistic basis for estimating costs and schedules.
6
Estimate the budget and timeline
All the hard work finally pays off and enables the team to calculate the time, costs, and human resources needed to implement the idea into an MVP or a full-fledged product.

When do you need the discovery phase checklist?

Our business development team has prepared a self-guided discovery checklist to save time and money. It's a simple and free roadmap designed to identify the key points on your product development journey.

Why do you need this checklist?

  • you can save 10-20 hours of discussion with IT companies (describe once and immediately answer the most important questions)
  • find the most efficient and cost-effective solution for your business needs
  • get a more accurate budget and timelines
  • avoid the mistake of lacking product-market fit

In this checklist you will come up with the following:

  • product requirements (business requirements, user requirements, non-functional requirements, etc.)
  • project requirements (deadlines, technology stack, etc.)
Discovery Phase Checklist 2.0
Your assistant in the world of software discovery phases
Powered by Notion
and free to use
Learn more

How Freshcode conducts the discovery phase

The discovery phase is a crucial checkpoint on the map of startup development. IT professionals help businesses avoid failed decisions and save resources.

Therefore, it is a vital tool to present a project to stakeholders with a clear picture of your product development journey.

Are you looking for a real-life example of how to conduct a discovery phase and why it matters? Here it is! We share our case of a significant discovery phase that helped us realize successful project development.

Freshcode use case discovery stage

The described project discovery enables us to prevent misunderstandings and establish a development plan with well-defined requirements and development tasks derived from discovery session findings.

Final thoughts

Software development companies don't try to increase the price by adding services besides coding. With dozens of projects in their portfolios, they know the value of the discovery stage.

Our clients have firsthand experience with the benefits of the project discovery, ensuring clarity, reducing risks, and aligning stakeholders' expectations.

Contact us for a free consultation if you're looking to start your project, scale existing business, or receive professional advice about software solutions.

Let's discuss your idea and suitable solutions we can approach. Please, fill out the form on our website or contact the Freshcode representative on Linkedin.

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Author
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Vadym Kostiuk
Sales executive

Probably was born as a skilled problem-solver and outside-the-box thinker. Builds and nurtures strong relationships with clients and partners worldwide. 

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Simon Shcherbak
Business Analyst

With six years at Freshcode, Simon adeptly transforms business needs into clear technical solutions. He partners with stakeholders to ensure IT projects meet strategic objectives.

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