The digitalization process of the business activities has increased tremendously in the last fifty years, revolutionizing several fields of activity, such as communication, medicine, production, transport, as well as all aspects of the daily social, economic and political processes. Furthermore, the IT field has developed new ways of innovating, including new management models in the production field, that allow management of IT companies to become more customer-oriented in a dynamic competitive field. As technological progress is becoming present in every aspect of everyday life, the pressure for innovation and customer involvement represent the two main challenges of producing successful prototypes and final products for the IT market. The purpose of the present paper is to analyze two of the main product development business model trends in the IT field, namely Waterfall model and Agile model, the latest being an adapting strategy to increased customer requirements and the changing business environment. In order to ensure a practical approach the case study was based on the analysis of their implementation within the company Avira Soft S.R.L. The results of the study emphasized the benefits of using the Agile model at Avira Soft S.R.L starting with 2011 in comparison to the previous model of Waterfall product development. The relevance of the paper consists in the fact that the two models indicate how the IT product development business models are evolving depending on environmental factors and the need for continuous adaptation and innovation due to increased competition. The Agile model brought improvements of the Waterfall model, but also new challenges regarding the organizational culture, communication between members of the company and more pressure for continuous improvement. However these two models are an example of how the IT product development business models are evolving and they form a basis for future product development strategies.
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