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<!DOCTYPE html>
<html>
<head>
<meta charset="utf-8" />
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<div class="x1d-market-research screen">
<header class="header-hDQPT3">
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</header>
<h1 class="title-hDQPT3 title titlepage">Process code for software procurement</h1>
<div class="main-frame-hDQPT3">
<div class="content-zYXKA4 content">
<div class="intro-4VbZoP">
<div class="titlepage-2Jk7jz"><div class="page-title-Vl0oS8 titlepage">1d. Market research</div></div>
<div class="content-2Jk7jz content">
<p class="this-section-will-help-you-ZVP8uf mulish-bold-black-16px">This section will help you:</p>
<div class="cluster-ZVP8uf cluster">
<article class="goal">
<img class="icongoal-BKPGu3 icongoal" src="img/[email protected]" alt="icon.goal" />
<p class="this-is-a-goal-for-a-particular-activity detail">
Become familiar with the landscape of potential solutions
</p>
</article>
<article class="goal">
<img class="icongoal-BflbWg icongoal" src="img/[email protected]" alt="icon.goal" />
<p class="this-is-a-goal-for-a-particular-activity detail">
Engage responsibly with experts, the civic tech community, and vendors
</p>
</article>
<article class="goal">
<img class="icongoal-ACPTRU icongoal" src="img/[email protected]" alt="icon.goal" />
<div class="this-is-a-goal-for-a-particular-activity detail">Circulate the problem statement</div>
</article>
<article class="goal">
<img class="icongoal-fsBIia icongoal" src="img/[email protected]" alt="icon.goal" />
<p class="this-is-a-goal-for-a-particular-activity detail">
Establish internal and external benchmarks
</p>
</article>
</div>
</div>
</div>
<div class="challenges-4VbZoP">
<div class="titlesubsection"><div class="subsection-title titlesection">Common challenges</div></div>
<div class="cluster-2Vl2H1 cluster">
<p class="you-may-encounter-th-ex9Cia body">
<span class="span0-5xVcY3 body"
>You may encounter these frictions as you do the work of market research. These are challenges the </span
><span class="span1-5xVcY3 bodylink">Recommended actions</span
><span class="span2-5xVcY3 body">
are designed to solve, or that may arise as you take those actions.
</span>
</p>
<div class="challenge">
<img class="iconchallenge" src="img/[email protected]" alt="icon.challenge" />
<div class="content-GDcIXW content">
<div class="title-3tzSWF title mulish-bold-black-16px">Legacy systems</div>
<p class="lorem-ipsum detail">
Most city governments work with a patchwork of digital systems. That means they need to
simultaneously use, maintain, and modernize legacy systems, as they consider new software that may
or may not be compatible.
</p>
</div>
</div>
<div class="challenge">
<img class="iconchallenge" src="img/[email protected]" alt="icon.challenge" />
<div class="content-CFZlI1 content">
<p class="title-d8zXO1 title mulish-bold-black-16px">Lack of attention to non-commercial solutions</p>
<p class="lorem-ipsum detail">
License fees for off-the-shelf products are predictable, and therefore easy to budget. In-house
development and open source software, on the other hand, are uncertain. However, they often provide
competitive functionality, and give you direct control over costs, end user pricing (if applicable),
data, and governance.
</p>
</div>
</div>
<div class="challenge">
<img class="iconchallenge" src="img/[email protected]" alt="icon.challenge" />
<div class="content-HZiC3W content">
<p class="title-BHcCvW title mulish-bold-black-16px">Hesitancy to engage directly with vendors</p>
<p class="lorem-ipsum detail">
Civil servants feel that engaging with vendors in advance of a project is dangerous. It isn’t! Get
to know the local and international software community. Become familiar with certain companies you
respect. Be actively involved, and ask questions.
</p>
</div>
</div>
<div class="challenge">
<img class="iconchallenge" src="img/[email protected]" alt="icon.challenge" />
<div class="content-u1uEfW content">
<div class="title-yFQoFA title mulish-bold-black-16px">
Insufficient communications between cities
</div>
<p class="lorem-ipsum detail">
Civil servants rarely engage with peers (adjacent municipalities or ones that have key
commonalities). By discussing mutual challenges, you might find existing solutions, receive
recommendations, or glean best practices.
</p>
</div>
</div>
</div>
</div>
<div class="actions-4VbZoP">
<div class="titlesubsection"><div class="subsection-title titlesection">Recommended actions</div></div>
<div class="frame-142-FtAPEU">
<div class="x1-scanning-the-landscape-iSPL3s titlesubsection">1. Scanning the landscape</div>
<p class="become-familiar-with-iSPL3s body">
Become familiar with the world of experts, civic tech enthusiasts and vendors related to your project.
And let them become familiar with you! If you are willing to openly discuss the problem you are trying
to solve, you will hear expert opinions on existing or potential solutions—potentially saving you time
and effort throughout the procurement process or pointing you to the best solution.
</p>
<div class="action">
<div class="iconknowledge">
<div class="bulb">
<img class="union" src="img/[email protected]" alt="Union" />
<img class="group-194" src="img/[email protected]" alt="Group 194" />
<img class="line-48" src="img/[email protected]" alt="Line 48" />
</div>
</div>
<div class="content-ppYHRC content">
<p class="a-knowledge-acquisit mulish-bold-black-16px">
Peer jurisdictions often face the same set of challenges
</p>
<p class="lorem-ipsum detail">
Whether in communicating with constituents, HR, or traffic management, one of your peers may have
solved the same problem you’re facing.
</p>
</div>
</div>
<div class="action">
<div class="iconknowledge">
<div class="bulb">
<img class="union" src="img/[email protected]" alt="Union" />
<img class="group-194" src="img/[email protected]" alt="Group 194" />
<img class="line-48" src="img/[email protected]" alt="Line 48" />
</div>
</div>
<div class="content-v5bRC1 content">
<p class="a-knowledge-acquisit mulish-bold-black-16px">
A rich ecosystem of vendors build and maintain software
</p>
<p class="lorem-ipsum detail">
Broadly speaking, there are several types of custom software development companies: enterprise, big
business, mid-market, small, freelance, off-shore. Supporting the local ecosystem of software
service providers may align with your broader organizational goals for economic development.
</p>
</div>
</div>
<div class="action">
<div class="iconknowledge">
<div class="bulb">
<img class="union" src="img/[email protected]" alt="Union" />
<img class="group-194" src="img/[email protected]" alt="Group 194" />
<img class="line-48" src="img/[email protected]" alt="Line 48" />
</div>
</div>
<div class="content-x0QaBS content">
<p class="a-knowledge-acquisit mulish-bold-black-16px">
There is a wide variety of open source software solutions that rival the functionality of
proprietary software
</p>
<p class="lorem-ipsum detail">
Visit the Github page and get a sense of how active the community of contributors and stewards is,
paying particular attention to how recent the activity is.
</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-24aqC9 content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Put out a call for ideas, or Issue a Request for Information (RFI)
</p>
<p class="lorem-ipsum detail">
informally, in the civic tech community, or formally, through city channels
</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-ZTmq7q content">
<div class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Engage with peer jurisdictions
</div>
<p class="lorem-ipsum detail">
Similar public sector organizations that have addressed the same problem statement.
</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-txGsk3 content">
<div class="an-action-that-requires-high-engagement mulish-bold-black-16px">Host an event</div>
<p class="lorem-ipsum detail">Invite community groups, entrepreneurs, students and vendors.</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-abuxa0 content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Reach out to the academic sector
</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-rspucF content">
<div class="an-action-that-requires-high-engagement mulish-bold-black-16px-2">…?</div>
<p class="lorem-ipsum detail">This is an opportunity for creativity!</p>
</div>
</div>
</div>
<div class="guidelinessolo">
<div class="title-7KFRzY title">
<img class="iconguidelines" src="img/[email protected]" alt="icon.guidelines" />
<p class="guidelines mulish-bold-black-16px">
What if there is only one commercially available software solution?
</p>
<img class="arrowdown" src="img/[email protected]" alt="arrow.down" />
</div>
<p class="bullet-sub-bullet-sub-bullet-bullet-7KFRzY detail">
Competition is a good thing, but in rare cases only one vendor can deliver the solution—allowing you to
bypass the open RFP. National Digital Service Agencies often provide resources to guide rationale for
sole-sourcing—you will have to develop full documentation showing that only one solution exists, and
procure it through a sole-source contract.
</p>
</div>
<div class="frame-137-FtAPEU">
<p class="x2-setting-internal-a-JbKR43 titlesubsection">2. Setting internal and external benchmarks</p>
<p class="before-you-start-wri-JbKR43 body">
Before you start writing an RFP, it’s important to establish and document internal and external
benchmarks. These outline similar projects that have happened within your organization, and similar
projects done by peer jurisdictions.
</p>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-1MTyIW content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Ask about prior projects within your organization
</p>
<p class="lorem-ipsum detail">
What have prior software projects cost to procure and to maintain? Have they been successful? What
can you learn from their process?
</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-hgkQze content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Audit other cities and other businesses
</p>
<p class="lorem-ipsum detail">
What do they use to solve the same problem? Is their software open source?
</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-6olIxR content">
<div class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Research IT standards
</div>
<p class="lorem-ipsum detail">
What are the industry best practices? What are the most common features? What are the most common
software architectures and licensing models?
</p>
</div>
</div>
</div>
<div class="frame-144-FtAPEU">
<p class="x3-mitigating-downstream-contract-issues-JMNjhB titlesubsection">
3. Mitigating downstream contract issues
</p>
<p class="as-you-analyze-avail-JMNjhB body">
As you analyze available solutions in the market, be critical and cautious of long-term issues that
arise due to a specific business model, a general approach to ownership, or monetization, software
performance, or contract details. This will influence your choice of strategy.
</p>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-SAa23y content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Research the following aspects of the available software options.
</p>
<div class="flex-container-i239739760214892-XjFeOT">
<div class="text0-i239739760214892-TNMLFT titlesubsection-p">
<span class="span0-UzMA4X titlesubsection-p">Ownership:</span
><span class="span1-UzMA4X detail"> Proprietary software; Dependence on proprietary systems </span
><span class="span2-UzMA4X mulish-normal-black-14px">(like databases)</span
><span class="span3-UzMA4X detail">; Data use and ownership; Software ownership<br /></span>
</div>
<div class="text1-i239739760214892-TNMLFT titlesubsection-p">
<span class="span4-k1ix5s titlesubsection-p">Security:</span
><span class="span5-k1ix5s detail"> Vulnerability; Risk; Responsibility<br /></span>
</div>
<div class="text2-i239739760214892-TNMLFT titlesubsection-p">
<span class="span6-T3xcHx titlesubsection-p">Interoperability:</span
><span class="span7-T3xcHx detail">
APIs; Compatibility with existing technical infrastructure<br
/></span>
</div>
<div class="text3-i239739760214892-TNMLFT titlesubsection-p">
<span class="span8-lxT2mO titlesubsection-p">Actual use:</span
><span class="span9-lxT2mO detail"> Software is licensed per “seat” </span
><span class="span10-lxT2mO mulish-normal-black-14px">(users with software access)</span
><span class="span11-lxT2mO detail"
>, and may have minimum fees. Work to ensure only people who actually use the software are
licensed.<br
/></span>
</div>
<div class="text4-i239739760214892-TNMLFT titlesubsection-p">
<span class="span12 titlesubsection-p">Maintenance:</span
><span class="span13-qw2Dzi detail">
Regular software updating; (Re)integration with new digital infrastructure; Ongoing user
support</span
>
</div>
</div>
</div>
</div>
</div>
<div class="guidelinessolo">
<div class="title-H9U6AF title">
<img class="iconguidelines" src="img/[email protected]" alt="icon.guidelines" />
<p class="guidelines mulish-bold-black-16px">Software licensing and revenue models</p>
<img class="arrowdown" src="img/[email protected]" alt="arrow.down" />
</div>
<div class="flex-container-i21082632117085-H9U6AF">
<div class="text0-i21082632117085-OQKzIW detail">
<span class="span0-CzsCMX detail"
>There are two main categories of software licenses: proprietary and open source.<br
/></span>
</div>
<div class="text1-i21082632117085-OQKzIW detail">
<span class="span1-IDFQA2 titlesubsection-p">A proprietary license</span
><span class="span2-IDFQA2 detail">
grants an end user the right to use software, typically for a fee. Users are prohibited from
modifying, copying, sub-licensing or distributing the software. Proprietary software is designed to
prevent users from accessing the source code.<br
/></span>
</div>
<div class="text2-i21082632117085-OQKzIW detail">
<span class="span3-5v0mju titlesubsection-p">An open source license</span
><span class="span4-5v0mju detail">
grants anyone the rights to use, study, change, and distribute the software and its source code to
anyone and for any purpose (often with attribution). The underlying code (“source code”) is
available to end users.<br
/></span>
</div>
<div class="text3-i21082632117085-OQKzIW detail">
<span class="span5-d1LvPC detail"
>Software development companies have adopted various models for generating revenue. Most revenue
models apply to software that is under a proprietary license.<br
/></span>
</div>
<div class="text4-i21082632117085-OQKzIW detail">
<span class="span6-DFxCqE titlesubsection-p">One-time purchase:</span
><span class="span7-DFxCqE detail">
A license can be used by a single user or a group of users. This often applies to software that is
hosted locally.<br
/></span>
</div>
<div class="text5-i21082632117085-OQKzIW detail">
<span class="span8-SYC2ut titlesubsection-p">Subscription:</span
><span class="span9-SYC2ut detail">
Unlike licensing, a user receives access to the software by paying a subscription fee on a
monthly/annual basis.<br
/></span>
</div>
<div class="text6-i21082632117085-OQKzIW detail">
<span class="span10-ogWtkg titlesubsection-p">Pay-per-use:</span
><span class="span11-ogWtkg detail">
This pricing tactic is mostly used by different cloud-based products and services that charge you
for the computing powers/memory/resources/time used.<br
/></span>
</div>
<div class="text7-i21082632117085-OQKzIW detail">
<span class="span12 titlesubsection-p">Freemium:</span
><span class="span13-BUUUy2 detail">
A user may access a basic product for free, but will be charged for additional functions, services,
bonuses, plugins, or extensions.<br
/></span>
</div>
<div class="text8-i21082632117085-OQKzIW detail">
<span class="span14-2MIKdT titlesubsection-p">Hybrid pricing:</span
><span class="span15-2MIKdT detail">
Elements of several different revenue models may be combined into a hybrid pricing plan. For
example, a freemium plan might become a pay-per-use tiered plan after passing some limit in
computation or resources.<br
/></span>
</div>
<div class="text9-i21082632117085-OQKzIW detail">
<span class="span16-JsAL6y titlesubsection-p">Service delivery:</span
><span class="span17-JsAL6y detail">
The client pays for the time and expertise needed to create, customize or implement software—not the
software itself. This is most common with open source software.</span
>
</div>
</div>
</div>
<div class="frame-138-FtAPEU">
<p class="x4-creating-a-market-analysis-report-MDCAUF titlesubsection">
4. Creating a market analysis report
</p>
<p class="map-out-the-landscap-MDCAUF body">
Map out the landscape of existing software (open source or proprietary) that can potentially address
your problem statement, as well as the vendor ecosystem who could potentially build custom software or
adapt open source software to address your problem statement. You will then analyze the landscape using
a variety of indicators.
</p>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-xit8JY content">
<div class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Document the landscape
</div>
<p class="lorem-ipsum detail">
Include software that could address your problem statement. Document the vendors who could build
custom software to address your problem statement—whether that means adapting open source software
or building new software from scratch.
</p>
</div>
</div>
<div class="action">
<img class="iconaction" src="img/[email protected]" alt="icon.action" />
<div class="content-aAgi9r content">
<p class="an-action-that-requires-high-engagement mulish-bold-black-16px">
Analyze the landscape scan a clear, neutral and objective way
</p>
<div class="flex-container-i128297560214892-UInAFB">
<div class="text0-i128297560214892-xdeFe0 titlesubsection-p">
<span class="span0-0PFnpF titlesubsection-p">Market maturity:</span
><span class="span1-0PFnpF detail"> number and size of potential vendors<br /></span>
</div>
<div class="text1-i128297560214892-xdeFe0 titlesubsection-p">
<span class="span2-NPaS2x titlesubsection-p">Commercial readiness:</span
><span class="span3-NPaS2x detail"> reliability of solutions<br /></span>
</div>
<div class="text2-i128297560214892-xdeFe0 titlesubsection-p">
<span class="span4-4HSHxb titlesubsection-p">Comparison of software solutions:</span
><span class="span5-4HSHxb detail">
consider their pricing models, feature sets, data management and ownership, integrations,
compatibilities, etc.<br
/></span>
</div>
<div class="text3-i128297560214892-xdeFe0 titlesubsection-p">
<span class="span6-RrKm4H titlesubsection-p">Open source software:</span
><span class="span7-RrKm4H detail">
consider how active the community is, feature sets, integrations, compatibilities, and whether
the codebase complies with the Standard for Public Code.<br
/></span>
</div>
<div class="text4-i128297560214892-xdeFe0 titlesubsection-p">
<span class="span8-exjF20 titlesubsection-p"
>Resources provided by higher levels of government:</span
><span class="span9-exjF20 detail">
Federal agencies like the US GSA, Data.Gov, the Canadian Digital Service maintain software
libraries.</span
>
</div>
</div>
</div>
</div>
</div>
</div>
<div class="outcomes-4VbZoP">
<div class="titlesubsection"><div class="subsection-title titlesection">Takeaways</div></div>
<div class="frame-139-UdkR7s">
<article class="outcome">
<div class="icongoal-qymiHH icongoal">
<div class="v2">
<img class="gear-2" src="img/[email protected]" alt="gear 2" />
<img class="arrow-2" src="img/[email protected]" alt="arrow 2" />
</div>
</div>
<div class="this-is-an-outcome-t mulish-bold-royal-blue-16px">Internal and external benchmarks</div>
</article>
<article class="outcome">
<div class="icongoal-BXylCB icongoal">
<div class="v2">
<img class="gear-2" src="img/[email protected]" alt="gear 2" />
<img class="arrow-2" src="img/[email protected]" alt="arrow 2" />
</div>
</div>
<p class="this-is-an-outcome-t mulish-bold-royal-blue-16px">
<span class="span0-AyDvwt mulish-bold-royal-blue-16px">Market analysis report</span
><span class="span1-AyDvwt body"
>(including a list of available software, vendors, and business models)</span
>
</p>
</article>
</div>
</div>
<div class="references-4VbZoP">
<div class="titlesubsection"><div class="subsection-title titlesection">Further reading</div></div>
<div class="frame-140-ixMvLL">
<article class="reference">
<div class="number"><div class="x1 body">1.</div></div>
<div class="content-pdx9TA content">
<div class="frame-163"><div class="source-name subtext">Code.gov</div></div>
<a href="https://code.gov/agency-compliance/compliance/procurement" target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Building and Buying Custom Software Guide
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">2.</div></div>
<div class="content-CWEdAh content">
<div class="frame-163"><div class="source-name subtext">Fullstack Labs</div></div>
<a
href="https://www.fullstacklabs.co/blog/software-development-price-guide-hourly-rate-comparison"
target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Software Development Price Guide & Hourly Rate Comparison
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">3.</div></div>
<div class="content-4zGwX0 content">
<div class="frame-163"><div class="source-name subtext">CityMart</div></div>
<a
href="https://medium.com/citymartinsights/unit-3-choosing-your-procurement-path-8e1b711d0268"
target="_blank"
><div class="link-title-here mulish-bold-azure-radiance-16px">Choosing your procurement path</div>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">4.</div></div>
<div class="content-P6AD3w content">
<div class="frame-163"><div class="source-name subtext">Carnegie Foundation</div></div>
<a href="https://www.carnegiefoundation.org/blog/why-a-nic/" target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">
Why a NIC? [Networked Improvement Community]
</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">5.</div></div>
<div class="content-cVBmjx content">
<div class="frame-163"><div class="source-name subtext">CityMart</div></div>
<a
href="https://docs.google.com/document/d/1TqDwLfeu0GuFbAos5hBtV-0fJTgXnANv4i4Iqt7Zrcs"
target="_blank"
><div class="link-title-here mulish-bold-azure-radiance-16px">Market Research Worksheet</div>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">6.</div></div>
<div class="content-noxUYQ content">
<div class="frame-163"><div class="source-name subtext">City of Boston</div></div>
<a href="https://drive.google.com/file/d/1GJUo6kR9zWmxF4835kHvSq0Rq7QuMLI-/" target="_blank"
><p class="link-title-here mulish-bold-azure-radiance-16px">Sample Request for Information (RFI)</p>
</a>
</div>
</article>
<article class="reference">
<div class="number"><div class="x1 body">7.</div></div>
<div class="content-tTCxWo content">
<div class="frame-163"><p class="source-name subtext">Treasury Board of Canada Secretariat</p></div>
<a
href="https://www.canada.ca/en/government/system/digital-government/digital-government-innovations/open-source-software/open-first-whitepaper.html"
target="_blank"
><div class="link-title-here mulish-bold-azure-radiance-16px">Open First Whitepaper</div>
</a>
</div>
</article>
</div>
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</div></a
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<div class="section-title">
<div class="x1-section-name-KmXoQ0 x1-section-name titlesection-p">2. Planning</div>
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<article class="navsubsectionv2-SDBYAK navsubsectionv2">
<div class="capacity-building body">a. Planning phase</div>
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<a href="3a-assessment-phase.html">
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<article class="navsubsectionv2-kxha6C navsubsectionv2">
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<a href="4a-implementation-phase.html">
<article class="navsubsectionv2-ex2FAZ navsubsectionv2">
<div class="capacity-building body">a. Implementation phase</div>
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<article class="navsubsectionv2-PkcoBh navsubsectionv2">
<div class="b-subsection-name body">b. Agile development</div>
</article></a
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<article class="navsubsectionv2-8RGobI navsubsectionv2">
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