System development is an essential process for modern businesses and technological advancements. However, due to its complexity, understanding how to proceed can be challenging. This article explains the basic concepts of system development and delves into the details of the development process. We will also compare popular development models, highlight their advantages and disadvantages, and provide guidelines for selecting the best approach. By the end of this article, you’ll have a deeper understanding of system development and be better equipped to manage your projects effectively.

What is System Development?

System development refers to the creation of IT systems that address specific problems or needs, such as improving business efficiency, managing employees, or handling customer information.

Contrary to the belief that system development always involves creating a brand-new system, there are mainly two approaches:

• Scratch development: Building a system from zero (sometimes using a framework)
• Package implementation/customization: Modifying or extending existing software

Developing from scratch offers high flexibility and scalability, but it's costly and time-consuming. On the other hand, implementing an existing service is quicker and cheaper, though it may have functional limitations.

Rather than equating system development with "creating a new system," it’s crucial to choose the right method based on the purpose and budget. System development can involve system rebuilding, adding new functions, or maintaining existing systems. In many industries, with the rise of SaaS, simply optimizing existing systems or business processes may yield significant results.

System Development as a Means, Not the End

While there are various approaches to system development, it's important to remember that system development is a means to an end, not the goal itself.

The purpose of system development is to solve business problems and meet needs. Simply updating a system because it's old or implementing new technology like AI or digital transformation (DX) without understanding its necessity can lead to poor outcomes, including higher costs and bigger problems than before.

Before discussing system requirements, ask, "Do we really need a new system?" Understanding your business’s actual needs and issues is crucial before adopting new technologies.

Types and Characteristics of Systems

When discussing systems, many types exist. Broadly speaking, systems are classified into internal and external systems. Internal systems are further divided into core systems and business systems. Below is a brief overview of these types to help you understand how to develop systems that meet customer expectations:

Type	Overview	Example
Core Systems	Support a company’s main operations by managing data and workflows	ERP, Accounting Systems, HR Systems
Business Systems	Systems supporting specific tasks and tailored to certain business needs	CRM, Workflow Systems, Communication Tools
External Systems	Designed for external users (customers) to interact with a business	E-commerce Sites, EDI

System Development Methods

System development can follow various methods, each with distinct characteristics. The choice of method depends on the system’s objectives and requirements. The two most commonly contrasted methods are the Waterfall and Agile models.

Waterfall Model

The Waterfall model is a traditional system development method. It progresses sequentially through phases such as requirement gathering, design, implementation, testing, and deployment. It’s ideal for projects where requirements are well-defined and unlikely to change.

However, in complex projects, critical details might be overlooked during the requirements phase, leading to inaccurate products. The Waterfall model can be difficult to adapt to long-term, complex projects with frequent changes.

V-Model

The V-model addresses some of the Waterfall model’s issues by pairing each development phase with a corresponding testing phase. This allows earlier detection of issues, leading to better results for projects requiring strict testing.

Agile Model

The Agile model emphasizes iterative development and rapid release cycles, making it ideal for projects with frequently changing requirements. Agile development involves self-managed, cross-functional teams that collaborate to develop solutions iteratively.

Agile offers flexibility, allowing changes to be made easily throughout the development process. It’s particularly useful for projects requiring rapid market adaptation. However, Agile requires continuous customer feedback and frequent involvement in the process.

Popular Agile Methods: Scrum and Spiral

• Scrum: The development process proceeds in short cycles called "sprints," typically lasting 2-4 weeks. At the end of each sprint, the team reviews deliverables and plans the next sprint.
• Spiral: This method divides the system into smaller subsystems, which are developed and improved iteratively while minimizing risks. It’s suitable for large and complex projects but may come with higher management costs.

Model Comparison

Model	Waterfall	V-Model	Agile	Scrum	Spiral
Development	Sequential	Sequential with testing	Iterative	Sprint-based	Risk-driven
Testing	After completion	Parallel with development	Continuous	Per sprint	Per iteration
Risk Management	Low	Moderate	High	High	Excellent
Best For	Stable requirements	Projects requiring strict testing	Frequent changes	Projects needing progress tracking	Large, complex projects

Conclusion

System development is the process of designing, implementing, and maintaining software or applications to meet organizational needs. Selecting the most suitable development model—be it Waterfall, V-Model, Agile, Scrum, or Spiral—is critical for achieving optimal results.

At Kaopiz, with over a decade of experience, we’ve helped more than 150 companies all over the world implement hundreds of systems to expand sales and solve business challenges. We pride ourselves on providing advanced solutions, fast development, and high-quality results. Let us help turn your business ideas into reality with our flexible and effective development models.

Contact us today to discuss how we can best support your system development needs.