The Hidden Cost Ruins Most Tech Businesses
Many businesses have experienced the cost of ignoring proper development models. This oversight slows down processes, leads to countless issues, results in lost customers, and ultimately causes the company to lose profit. The problem often boils down to neglecting the right development model.
The CrowdStrike Incident
On July 19, 2024, CrowdStrike, a prominent cybersecurity firm, released an update to its Falcon Sensor software. This update, intended to enhance security, inadvertently caused an out-of-bounds memory read in the Windows sensor client, resulting in millions of systems worldwide crashing and entering into bootloops or recovery modes.
The incident's immediate impact was felt across various sectors, including airlines, banks, hospitals, and governmental services. The financial damage was estimated to be at least $10 billion, making it one of the costliest IT outages in history [2].
"The system sent an update, and that update had a software bug in it," said CrowdStrike CEO George Kurtz. [3]
This incident, described as the "largest IT outage in history," serves as a hard-earned lesson. While many experienced companies take this issue seriously, it is often overlooked by small to medium enterprises. This negligence explains why many businesses did not survive the recent economic recovery. So, how do successful companies address this problem effectively?
What Is Development Model?
Before we delve deeper, it’s important to understand what a development model is. Simply put, a model is an abstract representation of our thought process. Therefore, a development model is a structured and organized approach to the development process.
Many researchers have investigated best practices for achieving software success. The key is to apply the right model to develop and market a quality product, on time and within budget. The goal is to streamline the software process to ensure product quality while minimizing issues [1].
At Anywork, we have developed a model called "Particle Improvements" that has significantly enhanced our efficiency in delivering reliable software for our clients. This model not only saves us time but also significantly reduces our clients' expenses. We will break down this model in detail later as an example.
Choosing The Right Model
There's no one-size-fits-all model. However, understanding principles and best practices is crucial for finding the best fit for your situation. Start by identifying recurring problems. What caused you to derail and miss your promises? Finding the root cause of your issues is a good starting point.
At the beginning of Anywork, we made a significant mistake that almost led us to bankruptcy. Fortunately, we learned the lesson the hard way, so you don’t have to. Here’s what we learned back then:
Simple yet substantial, this development model has been crucial to our success. We adopted bold principles from Jason Fried, focusing on effective yet simple solutions. As Fried states in "Rework," “Simplicity is the ultimate sophistication.” We allocate our resources to what matters most to our users.
Conclusion
The hidden costs of ignoring proper development models can be devastating for tech businesses. The CrowdStrike incident serves as a powerful reminder of the importance of rigorous development practices. By learning from such examples and applying the lessons from "Rework," businesses can better safeguard their operations, reputation, and financial health in an increasingly complex and competitive landscape.
References
- Ashrafi, Noushin. "The impact of software process improvement on quality: in theory and practice." Information & Management 40.7 (2003): 677-690.
- Wikipedia contributors. “2024 CrowdStrike Incident.” Wikipedia, 28 July 2024, en.wikipedia.org/wiki/2024_CrowdStrike_incident.
- "CrowdStrike CEO: 'We know what the issue is' and are resolving it". TODAY.com. 19 July 2024. Archived from the original on 19 July 2024. Retrieved 19 July 2024.
- Fried, Jason, and David Heinemeier Hansson. Rework. Crown Currency, 2010.