Value creation in SaaS development

Abstract

Software as a Service (SaaS) development projects run for an unbounded amount of time, and it is important to continuously offer customers increased value from using the solution. Otherwise, a one-time payment for using a similar product would appear more attractive. Uncritically implementing valueadding ideas might however not always be in accordance with the business interests of the SaaS development company. We take a look at a small software development company with a SaaS business model and propose an approach to facilitate coordinated innovation on two levels: Business model and software development. We use the approach on an ongoing case from this company. Our results indicate that the case has benefitted from using the toolset presented here. The approach is designed for small SaaS companies with 5-10 developers using agile development methods.