Sci.Int.(Lahore),25(4),1137-43,2013 ISSN 1013-5316; CODEN: SINTE 8 1137
TOWARDS A USER VALUE CO-CREATION MODEL FOR AGILE
WEB DEVELOPMENT APPROACH
Tamer Madi, Zulkhairi Dahalin, Fauziah Baharom(Universiti Utara Malaysia, Sintok, Malaysia
madi.tamer@gmail.com, {zul, fauziah}@uum.edu.my)
ABSTRACT:User value creation has become a new development trend in the era of technology. It has a crucial impact on company differentiation. Nowadays, most of businesses transform their development strategy from dominant-good into service-dominant where more attention is given to the users and their roles. As a result, the conventional development methods are replaced with more cooperative, responding and flexible methods such as agile development. The key attribute of agile is its clear focus on value creation. Several studies have been conducted to explore the process of value creation. However, the notion is still implicit. Furthermore, so far there is no a certain process or model to show how really value can be created. Therefore, the aim of this paper is to explicate the notion of value creation from the users’ and developers’ perspectives. Considering this aim, we will construct a user value co-creation model for web applications developed using agile software development approach. This study will be conducted using mixed research methods. The expected result will be a user value co-creation model capable of delivering web applications with a high superior value as a software company and user wish.
Key words: User value, Value Creation, Value Co-Creation, Service Science, Service Design, Service-Dominant Logic, Agile Development, Web Applications
1. INTRODUCTION
Delivering value with products and services is an ultimate goal in any development process. Today, there is a growing acknowledgment that enabling superior value for user is vital for business success. The changing nature of today‟s market and the new roles of users from passive users to collaborators lead the software companies to be more competitive and responsive through the active involvement of users in the development process [1]. Users now become a new source of competence, as they become more mature and knowledgeable, they become co-creators of value [2]. The companies replaced their old logic of development which is highly dependent on goods (Good-Dominant) into a new logic which is dependent on service (Service-Dominant) [2, 3]. Service dominant logic (SDL) drives the paradigm shift from exchange to value creation [4]. Value co-creation is a new form of open innovation where people share, rather than keep, their individual ideas and experiences together, creating something that they could not have done separately, thus providing a fresh perspective in development [5]. During the last decade, value co-creation research has evolved rapidly. It has been receiving a considerable attention by researchers and practitioners [1, 6-8]. However, despite the rapid rising of value co-creation as a new paradigm in service design, the understanding of this concept among the researchers and practitioners is still implicit and elusive [7, 9, 10]. In the state-of-art, researchers expatiated away on researching the components of value. While in the state-of-practice, based on their perspectives, practitioners tried to focus on the need to create value regardless how. As a result, new value co-creation models and techniques have been developed and presented. Nevertheless, even though such efforts were significant, it failed to explicate how really value can be created. In fact, there is a need to explore the process of value co-creation to enrich and facilitate the development and usage of the new products and services [3, 7, 9]. Hence, in this research the interactive process of value co-creation in agile development will be explored and explicated. This study seeks to gain
knowledge of what are the user values from the users‟ and developers‟ perspectives and how they can be aligned and co-created. The research findings could be a platform or guideline for researchers and practitioners to better understand the user value and how superior user value can be created and realized. In addition it could assist relevant software companies in developing a blueprint to design impactful value creation process.
This paper is structured as follows: Section 2 provides a theoretical background on agile development and value creation. Section 3 describes the motivations behind this work. Section 4 describes the research methods that will be used and how the study will be initiated and done. Section 5 presents the conceptual framework. Finally, we finish up with a conclusion and future research.
2. BACKGROUND
In this section the literature of agile development and value creation will be reviewed in depth.
2.1 Agile Development
The meaning of the word „„agile‟‟ refers to something that is flexible, responsive and able to move quickly and lightly, so agile methods mean its „„ability to endure in an environment of constant change and emerge with success‟‟ [11]. The official definition of Agile Software Development was established in a form of “manifesto” in February 2001 by a group of 17 noted prominent software developers, who attended a meeting to advocate for better ways of developing software and then they formed the Agile Alliance [12]. Over the past decade, Agile has proven itself as the most used process in software development industry [13]. It is characterized by multiple characteristics, making it an ideal alternative to conventional development methods. While the conventional methods pay a great focus on “process and tools” in development, Agile emphasizes “teams, working software, user collaboration, and responding to change” and these are the key benefits of agile over other methodologies [14-16].
Since 1990s, some popular Agile development methods including eXtreme Programming (XP), Scrum, Crystal,
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Feature-Driven Development (FDD) and Adaptive Software Development (ASD), have been developed and evolved. Even these methods are quite different, function for different purposes and each one has its emphasized values, all of them share the same values [17-20].
Mostly, agile software development is used to develop small-medium projects, particularly web applications [21, 22]. However, although web applications in Malaysia had been in the market for quite some time, its usage among the users had been minimal due to neglecting the user value considerations in the development process [3, 23]. Therefore, the current research will focus on addressing the user value co-creation in web applications projects developed using agile.
2.2 Value and Value Creation
The term „value‟ is referred to as complex, difficult to grasp, conceptualize and model [24, 25]. It has several meanings and there are many ways to describe it as it is subjected to an abstractive manner such as innovation, humility, idea, life and brand [26]. Also it is not static, but constantly evolves and aligned with the experiences and needs of the user. In the last decade, value creation has placed on the top of marketing research agendas and gained a lot of attention as a dominant paradigm [27-30]. Nevertheless, it is not concentrated only in marketing research, but in a variety of research areas such as institutional development, psychology and sociology. Value always associates with users [26]. User value creation is regarded as a dynamic process of creating a valuable product or service to subjectively be valued by user based on user‟s criteria of value [31, 32].
Basically, value creation takes three different approaches where each one has its own emphasized assumptions. Firm or good-dominant (G-D) logic is the traditional approach where the firm creates value and user evaluates the outcomes. In this approach, the roles of the firm and the user are distinct [2]. The second approach is referred to as user-logic. It views value as something created solely by user where the greater emphasis is on how firms can participate in user production process [33]. A midpoint is a co-creation or service-dominant (S-D) logic where users and firm participate together in the production process. In this approach, the roles of the firm and user are not distinct, meaning that value is always co-created by both of them [2]. Service dominant logic (SDL) poses an alternative paradigm for understanding value creation. It consists of 10 foundational premises which describe the roles of practitioners and value from respective perspective. On the basis of SDL assumptions a new and integrative discipline called Service Science has been raised as a new area of research [3]. Service science is a new emerging discipline of engineering, technological, and social sciences for the purpose of value co-creation with user [23]. Under this new logic users and their perspectives are viewed as active players in the co-creation of value of products and services. While the role of the company becomes ensure that the user can capture the most value and hence experience the maximum benefit from using the product or service [3]. Co-creation of value is becoming relevant as concept and practice in today‟s market [34].
There are few co-creation models in the literature [3, 34, 53, 58]. The DART model is a landmark model for co-creation which proposed by Prahalad and Ramaswamy. It stresses that the building blocks of co-creation are made up of four elements: These are dialogue (D), access (A), risk-assessment (R) and transparency (T). They emphasized that the combination of these four blocks will lead to a better value creation environment [3, 34]. However, this model focuses more on the enablers of value creation without explicitly identifying the values and how they can be created. Further models which take such a consideration are needed [3, 9, 10, 46].
2.3 Value Creation in Agile Development
Recently, agile approach has proven itself as one of the dominant development processes in software industry [13]. The hallmark of agile is its clear focus on value. Value plays a vital role in the development process, as most of the decisions are made based on [35]. It is seen as the ultimate goal of the development process [36]. The importance of value lies on that delivering defect-free code does not mean delivering valuable code. Value is in the eyes of users; if the software companies are not meeting their needs they are wasting time and money. This makes users and their perception of value crucial in the success of the development process [9, 37].
However, although value has become a concept that is commonly used by both agile practitioners and academics, it is often unclear what exactly they mean by it [9]. Keller claims that value is viewed differently from other objects, it is difficult to define as the process involves many stakeholders that each proposes value from their own perspective [38]. For instance, a developer may express value based on profit, while a user may define value based on the benefits and cost of the software product [9, 38, 39]. Indeed, users, software managers, and developers all have different perspectives on what is valuable in a software product and what criteria shape their perceptions of value [40]. Nevertheless, not all the stakeholders have the same degree of influence on the development process. Success strongly depends on the Success Critical Stakeholders (SCS) being satisfied [41, 42]. With regard to agile, it focuses on two groups of SCS, developers and users. Value creation in agile is seen as a collaborative process where developers and users are engaged in a relationship for the purpose of co-creating value [43].
Despite the receiving importance of developer-user relationship, several studies indicate that there is a conflict between their perceptions on value [44, 45]. The conflict is typically caused by the difference between their languages when defining or proposing value. Developer uses a technical terminology language, while user uses a business terminology language. These differences can reveal a mismatch between the decision criteria that software developers and users use [40]. As a result, the delivered value may be detracted and finally, their relationship may negatively influence to be ended [44].
One of the most important negative impacts of the conflict between developer and user is the absence of an explicit definition of value as noted earlier. This argument is
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supported by Racheva et al. [9] who argue that there is no a clear definition of value. They add that agile practitioners look at the concept of value as implicit since it is extensively studied in the context of marketing. They conclude that the existing sources of value definitions consist primarily of practitioners‟ reports and success stories. Typically, it is used in phrases like „companies should focus on delivering value‟ or „agile helps in delivering value‟ [9].
In fact, the absence of an explicit definition of value has serious consequences on the development process. Murtazaev et al. report that surveys done by Standish Group show that most software failures occur because the absence of value considerations in the development process [46]. In the same vein, Biffl [6] warns when value considerations remain implicit, undesirable consequences of clashing value perspectives abound, for instance, withdrawal of support or loss of momentum in development efforts [47]. If value perspectives are not explicated and reconciled, everybody loses in the end [9, 46].
Several studies have pointed out that while the value-based approach has a significant contribution in the evolution of value creation in the software development, it does not explicitly define the value, its dimensions and practices that lead to value creation [10, 46]. Racheva et al. [9] contend that there is a need to conceptualize the value in the context of agile through addressing the concept of value and its different layers from the perspectives of developer and user. Besides, recent studies indicate that value creation in agile is not very well understood and that this phenomenon was only partly explored [7, 40]. Racheva et al. [7] argue that “no study that clearly indicates how exactly agile practices create value.”
Moreover, it is worth mentioning that the literature shows that generic conceptual models describing value creation in agile are missing so far [7]. There is a consensus in the literature that agile practices become more arbitrary since the practitioners do not clearly share a common understanding of the concept of value and which practice can add more value [1, 9, 40]. Patton [48] suggest that “If we share a common idea of what is valuable, then we need not pull in opposite directions.” Deeper insight into how value is perceived and created would allow this process to be more effective [1, 7, 40].
In sum, as ambiguous as the concept of value has become, there is a necessity to explore in depth user‟s and developer‟s perceptions of user value, what criteria shape their perceptions of value, how their perceptions are aligned, and what practices should be followed to create the aligned values. The absence of suitable and practical models for value creation is prompted this research to construct a value co-creation model in agile context, that is capable of delivering a software product with a high superior value as software company and user wish. In the following section the related work is described.
2.4 Related Works
There are several pervious works on value creation in software development since the emergence of value-based software engineering in the late of 1990s. However, although value-based software development is already in
place and working, there is still a lack of approaches that make a software development process a value based [46]. Several works in this direction have been reported, but they tend to be related to some specific phases and activities of the software development process life-cycle.
For instance, most of the studies address how to embed value to the requirement engineering (RE) phase [6, 7, 35, 40]. Other few studies focus on how to add additional value to design phase [49]. The rest describe how to incorporate more value to the testing phase [50].
In general, all these attempts of value-based activities can make specific process phases and activities value-based, but they are not sufficient to transform the whole software process to a value-based process [46]. Indeed, the product value will not be realized until the whole development process is completed [51]. Moreover, value creation process does not only happen in user interface or developers interface, it includes both interfaces [52]. That is, the whole process cannot become value-based by merely addressing one of the phases of the software development process. As such, a holistic approach that helps to make a complete value-based process from value-neutral processes is needed. Currently there is no holistic software development process that explicitly considers how to gain maximal benefit with the available resources. Most of the methodologies of software development concern the technical steps of the software without considering the values of the steps [46]. Murtazaev et al. [46] proposed an approach to transform the software development process into value-based process. However, they focus on the economic value and neglect the other dimensions of value. Moreover, they built their approach based on employing cost-benefit analysis for each practice in the software development process which took more time. More importantly, their approach does not reflect how value can be created and which practice can add more value.
In the same direction, Bavani [42] propose a high-level user value creation approach which focuses on the initiatives or practices that can add more value for users. The approach is the first approach that addresses the adding-value practices in the whole development process. However, this approach is a high-level approach and has some limitations. Firstly, Bavani thinks of values in an implicit way while the values should be though in an explicit way [7, 9]. Secondly, while maximum value is evaluated after the usage of the product [53], Bavani evaluates it before. Lastly, the approach has been validated throughout testing phase, not the whole development process as Bavani claimed.
One impactful work is what [3, 57] have been done. They go beyond the narrow economic view of value to a broad understanding of value. They move from focusing on the elements of value into exploring and examining the tools and techniques of value creation. In addition, they tried to operationalize some of the foundational premises found in the service dominant logic and value- activities and methods found in Human Computer Interaction (HCI) literature for new products/services development. However, their focus
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was on improving the existing information systems by embedding the user value in the early stage of a new development process.
As stated above, the majority of the current contributions of value creation researches focus on including the economic value considerations into specific phases of the software development process. Such a trend is not sufficient to transform the whole development process into a value-based process. In addition, most of the previous work considered the developers‟ perspective and neglect the users‟ perspective. Therefore, there is a need for a holistic value creation model. The current tries have some limitations in that it does not cover all the phases of the development process, it does not include the other dimensions of value such as functional, social and emotional, and more importantly it does not explicitly show how value can be created and realized from both developers‟ and users‟ perspectives.
3. Work Motivation
The main purpose of this research is to develop a value co-creation model for agile development using inputs from selected web applications. In addition, it will suggest a guideline in developing new web applications with high user values. Based on what stated earlier, the motivations for this work are as follows:
1) What are the criteria that influence the user‟s and developer‟s perceptions of value?
2) What are the values need to be created from the perceptions of user and developer?
3) How to align user‟s and developer‟s perceptions of user value co-creation practices?
4) How to map the aligned co-creation practices with key practices of agile approach?
Following the motivation, the objectives of this research are as follows:
1) To identify the criteria that influence the user‟s and developer‟s perceptions of user value.
2) To identify the user values from the perceptions of user and developer need to be created.
3) To align user‟s and developer‟s perceptions of user value co-creation practices.
4) To map the aligned co-creation practices with the key practices of agile approach.
4. RESEARCH METHODS
A deductive approach will be employed in this research [54]. This approach begins with general idea (such as theory, principles, and concepts) in the top and moving down to more specific conclusion, it is also called “top-down” approach. It is suitable to be applied in developing a model, where theories or concepts will be derived from the literature and empirical findings. Then the proposed model will be applied and evaluated in a real environment [55]. Hence, this research will adopt mixed of qualitative and quantitative methods to accomplish the research objectives. Qualitative approach is used as it helps to explain and understand the current element [56] and quantitative is in the form of analyzed data gathered from questionnaires. The details process of this research is depicted in Figure 1.
Fig 1: Research Method
This research will be conducted through four main phases as explained in the following:
Phase I: Theoretical Study
In this phase, we will have a thorough reading about the theories in the body of knowledge in order to get the main ideas about agile software development. Besides that, theories about user value and value co-creation activities are also looked into. The importance of value co-creation and good software development practices that influence the user value will be investigated. This knowledge will be gained by reading printed and reviewed references, as well as online references. They consist of journals, books and proceeding papers. From the knowledge gained, we have defined the problem and scope of the research.
Phase II: Empirical Study
An empirical study will be conducted in two sub phases: qualitative and quantitative whereby several interviews will be conducted and a questionnaire will be produced and distributed to appropriate respondents. The respondents are agile software practitioners and users of web applications. The purpose of this study is to show the agile practitioners‟ and users‟ awareness of the importance of value co-creation. The questionnaire will be distributed using mail, online survey and meeting the respondents face to face. The collected data will be analyzed by statistical approach, using SPSS software. The outcome from this empirical study will reveal the value co-creation practices that currently being practiced by Malaysian software companies. Furthermore, it will also reveal their awareness of value creation.
Phase III: Model Development
The next phase is to construct the model. The outcome from theoretical study and empirical study will give guidance and support for constructing the model.
Phase IV: Model Evaluation and Validation
The model will be evaluated and validated whether it is reliable and practical in the real world implementation. Its ability to create value also will be evaluated. The evaluation and validation process will be conducted by consulting some experts and also using a qualitative approach, which is case study. The case study will be carried out in software
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companies where the proposed model will be adopted in a new product development process. There will be a co-operation between the companies and the researchers. The developers and project managers whom had involved in the development of the software will be brief about how the value creation process will be conducted to them. During the evaluation process, the developers, project managers and users will be asked for feedback about the model, whether it is reliable and practicable in the real environment. With the guidance and feedback from the case study, the model will be improved in order to get better figure and implementation.
5. Conceptual Framework
This research will develop a process of value co-creation for agile web development. The co-creation process comes from the aligning process between user thinking and developer thinking. Mainly, it will use the key building blocks of DART model which consist of dialogue, access, risk management and transparency, as well as some elements of other co-creation models [53, 58]. Consequently, the user is not a simple recipient but instead a collaborative partner who creates value with the form [34]. However, in this research the process will discover the value creation which is based on the experience from both parties; user and developer. The criteria, values and practices obtained from this process will give an image from the perspectives of both parties that resulting a shared understanding of value creation which makes it more explicit. Finally, the value creation elements are embedded in the process of agile. A basic concept of user and developer interaction in the value creation process is shown in the Figure 2.
Fig 2: Conceptual Framework
CONCLUSION
During the last decade, user value creation has been receiving a considerable attention by software researchers and practitioners. Nevertheless, the notion of user value creation is still implicit. Even though such efforts were significant, it failed to explicate how exactly value can be created. Therefore, the emphasis of this research is to further the understanding of the process of value creation among key practitioners in agile development. The user thinking and developer point of view will be used as the basic component to embed value creation in the agile development. This work is currently on going as such of
finding and relevant data are still need to be captured. Therefore, the results are yet to be obtained.
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