How the Waterfall Methodology Promotes Productivity in Software Development Teams

For years the Waterfall methodology has supported software development projects. Some may consider it outdated with the sheer complexity of most projects and the flexibility required in the modern day. Of course, now agile approaches are very popular, and it could be argued that they were developed to get away from Waterfall altogether. If you’re unfamiliar with the key differences between the two, all you need to know is that agile releases software in increments whereas Waterfall has a strict process leading to a final output followed by verification and maintenance.

Agile was created to put an end to the common notion among project managers who believed Waterfall to be the only approach for software development. In reality, all methods are simply guidelines for problem-solving. Waterfall was super popular in the 1990s since it added structure to huge software development projects. The structure looks something like this:

1. Planning: Identify the goals of the project. This is also where the project manager needs to figure out the requirements for the project. These requirements will depend on the project sponsor's needs and involve identifying risks, dependencies, assumptions, costs, quality metrics, and the timeline. 

2. Design: This is where all decisions are put in writing. The decisions are, in this case, based on legitimizing the requirements for the project. In this phase, you’ll outline the project's goals, budget, and schedule.

3. Implement: This is where you execute the planning and design phase to materialize the product. This is a critical part of the Waterfall; everything done during this phase must be tracked.

4. Verify and Test: During this phase, testing is done to ensure that the product you’ve created serves the requirements of the project. If anything goes wrong, the team must go back as far as the first phase to identify what happened. Quality metrics are used during the testing phase to ensure the client's satisfaction. 

5. Maintenance: The maintenance phase goes past project management and now focuses on the product's longevity. Changes are made as needed to improve what was delivered in the implementation phase.

Let's make it clear that the Waterfall— like any other methodology— is not perfect, but it’s often enough to get the job done and still is. A 2017 study shows over 50% of organizations still use it in their software implementation model. The key to a great software development team is knowing what calls to make in the best interest of your team. Sometimes these calls are going to fall outside the scope of convenience to reach an optimal outcome. 

So, why were other methods created?

One of the primary concerns with the Waterfall method is that a mistake made in an early phase could be costly and detrimental later on. All methodologies are meant to add structure to software development. In 2022, it’s all about speed; whether it's deployment, access to data, or SSL performance, the list is endless. The point is, this is the purpose that agile methods were created to serve. It provides results quickly and continuously innovates to adapt to the needs of the user. 

When would you use Waterfall?

You have to first consider how different every software development project is. There is seldom a product output that doesn’t require changes. In addition, development teams need to make their budget and timelines clear to the client or co-workers from elsewhere. These are the kind of issues Waterfall takes care of since it has a very clear structure. Now, this may frustrate developers who want to interact with the client as much as possible, but it can be a necessary sacrifice to ensure quality over quick deliverables.

Another example is when persuading outside your project, whether attracting investors, seeking department approval or if you think there will be collateral effects. Waterfall can be easier for those outside to understand. Think about it: your intentions for the project are clearly outlined from the planning and design phases which, in effect, kind of drill the end goal into the teams' vision and mitigate the risk of deviating. 

For teams and projects on a small scale, there are a lot of benefits to be found in operating under this kind of focus. Teams can complete the project faster without worrying about allocating time and resources to non-priorities. So, in this instance, working on a small project or in a small team means you’ll need a framework that promotes communication among members and a clear-cut process. 

Waterfall and communication

Waterfall is very systematic and procedural; there should be no shock that communication would be an essential part of every step. Information sharing is far more efficient when documentation is consistent throughout the process. Anyone new brought into the project throughout the phases will be able to refer back to the documentation which makes Waterfall a great communication tool to keep the team in sync. 

In some cases, especially with new teams, communication and getting to know each other can be difficult and negatively impact performance. Of course, this should be mitigated in the case of any team but software development projects are usually operating in a condensed time frame with little to no room for speed bumps. 

So with that being said, take inventory before your team begins a new project. You can do this by considering these questions:

• Who are the stakeholders? How can my efforts serve them?

• Is my team reliable? Do I plan on bringing in extra help?

• What is the primary end goal?

• How much time and budget do we have to work with?

• How will we manage mistakes to not interrupt our end goals?

It’s very difficult to predict the road ahead when beginning a new project, but it will help to first Identify your requirements so you can meet that of the client’s. What hurts a lot of teams is communication barriers and a lack of transparency. 

The Takeaway

Finding the best route to take when beginning a new project is difficult, but choosing a framework that’s right for the team (not just developers) will make the process smoother. The planning stages are usually the most difficult, but when that is the case, execution is often far more efficient. If you’re new to the concept of software development, it likely sounds chaotic, which is why it is so important to work with an experienced team of professionals that can see through the chaos and bring a polished product to the table. 

Written By Ben Brown

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ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

What is Peer-to-Peer Lending?

Peer-to-peer (P2P) lending is facing a transition in its adoption and growth conquest. It has passed the skeptic introduction phase and become a mainstream financial tool. P2P lending is typically used to offer government-supported loans, supporting small and mid-sized entrepreneurs, while dodging inflation on investment returns. 

To understand how these benefits are possible you’ll first need to understand how P2P lending works. Essentially it can be broken down to technology that lets people acquire loans while eliminating the need for financial institutions to act as the middleman. It is a direct transaction between individuals which has sparked the usage of alternate terms “crowd lending” or “social lending”. 

As you’ve likely guessed, this assumes a high level of risk, particularly for those investing in the lending site. This burden is typically taken on by the institutions but in peer-to-peer, it is now placed on the individual. So why would someone even consider putting themselves in that position? 

The major incentive for going the P2P route is to avoid the high-interest rates that traditional institutions or investors would instill. In this case, small businesses can access loans while minimizing how much interest is taxed. Lending platforms then take a fee from investors and borrowers and that is how they make their money. 

This begs the question, why would someone invest in a peer-to-peer lending site as opposed to a typical GIC? Well, most investors look to diversify their portfolio and avoid the marginal rate and withholding taxes found with banks. Additionally, some investors just like to know who their money is going to and what it’s being used for.

Security of investing in P2P sites

In the case of peer-to-peer lending, investors certainly bear more burden than the borrower. These loans aren’t insured nor do they have any government protection which makes them risky just like any other investment. However, here are some components that ensure some level of security for investors:

• Secure Sockets Layer (SSL): This protocol is built to transmit communications between the user and the network securely. The SSL link will be encrypted between the server and the browser and only permit interaction once authentication is established. Instant messaging platform WhatsApp is an example of SSL encryption and authentication in action. 

• Protecting identities: SSL authenticates the server and the client in peer-to-peer platforms. Typically, SSL doesn’t operate on the client end but for these platforms, it’s just easier to have authentication be transparent. The encryption aspect is what locks down the data and privacy.

• Recent FCA regulation: In the United Kingdom, the Financial Conduct Authority (FCA) implemented new guidelines to tighten up the peer-to-peer lending sector. These guidelines are designed to protect investors. Among many features, outlining contingencies and policies for both parties as well as determining the competencies of users are included. They highlight the situation investors are getting into very clearly and this is likely the beginning of a global trend for FinTech platform security measures.

Why are people choosing P2P?

As we’ve examined and outlined, borrowers have less pressure with these funds which offers them flexibility. Lenders can have more in their pocket post-return than they would be going through a bank that uses marginal rates determined by your tax bracket. Whereas peer-to-peer lending platforms charge a 2-3% payment processing fee directly from your credit or debit. However, depending on your individual financial history, poor credit ratings could mean more fees and in some cases, disapproval of the loan. 

What’s in it for businesses?

Businesses need funding whether it’s to launch a campaign, bring on more staff, more resources, etc. The point is businesses take investments and re-invest them in themselves. Commonly this is done by bank loans to get off the ground but they often come with a lot of strings which is why a company would turn to a FinTech like P2P. Additionally, the loan can come quickly and you can pay them off early and even avoid penalties on an overpayment.

Is there a promising future for P2P?

Investments are at the forefront, a lot of people want flexibility and something that’s going to be beneficial in the long term rather than just make a quick return. In addition to this, there is an ever-growing number of startups that need funding to get over hurdles. Peer-to-peer is very with the times in its approach in that it offers what consumers are looking for. Flexibility, transparency, and saving costs, all of which will contribute to the sustainability of the service.

The performance of peer-to-peer lending has been phenomenal in terms of revenue, Canada alone has valued the market at $20 billion in 2021. Globally, it sits at almost $113 billion with projections to do well over $520 billion in the next 5 years. As a FinTech company, if you’re not looking into how you can deliver this service, there is a lot of cash you could be leaving on the table. 

The Takeaway

FinTech services branch far beyond online banking, every service provider is looking for new methodologies to make it easier and more efficient for consumers. At the end of the day, ideas like peer-to-peer lending or BNPL are going to be the major draws to the business. When taking this journey, make sure you’re developing your programs with the right software as that can make or break your products' sustainability. 

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

Why Should Businesses Use SaaS Applications?

Online services have opened a new window of opportunity for businesses globally. Beyond simply marketing, conducting business online is the only way to exponentially grow a consumer base, drive revenue, and reach new markets. Among those taking advantage of the growing virtual marketplace are, of course, software developers who are introducing technology to enhance it. One of the ways they’ve started is through cloud technologies and SaaS applications. Companies traditionally deliver their solutions as licensed software but are now moving towards SaaS applications with the help of cloud technology. 

SaaS (or Software as a Service) is a licensing and delivery model meant for users to access applications via the cloud. You can think of it as a mutually beneficial agreement for solutions providers, services using it, and users of that service. On the one hand, providers no longer sell lifetime licenses on their software, making it less intimidating to their clients. On the other hand, users don’t have to download any software and can instead use it via browser and APIs. 

This software is hosted centrally and licensed as a subscription which is why it is also referred to as “on-demand software”. Netflix, for example, is a SaaS company since they sell software that enables users to watch licensed videos on demand. Users don’t have to download the videos and can access them from any device with an internet connection. This allows them to monetize the delivery of their software and keep track of users' data in a data center.

The usage rates for SaaS are proliferating, between 2017 and 2020 alone companies have used 5 times as many SaaS applications. Businesses from all industries, whether marketing, retail, healthcare, or finance, can expand their business with SaaS applications. 

Now, SaaS has variations to it that suit the needs of different business models. The variations are categorized into business-to-business (B2B) and business-to-consumer (B2C) style applications. Here are some of the applications on both ends:

B2B SaaS Applications

• eCommerce applications: This kind of software lets eCommerce businesses manage workflows and services such as controlling inventory, processing payments, and managing supply chains.

• Human resources management software (HRM): This allows companies to manage their staff by collecting data about current and potential employees. Among many other features, managing benefits and estimating the capability of employees are common draws.

• Customer relationship management software (CRM): This is a popular choice for SaaS as it is great for overseeing a businesses' customer base. Particularly, monitoring marketing campaigns, tending to clients fast, and even tracking a product's delivery status are among many features of CRM software.

• Enterprise resource planning systems (ERPs): This enterprise software allows companies to better manage complex processes. Depending on the company's needs, manageable modules such as CRM and HRM, supply chain, inventory, and accounting are included among many others.

B2C SaaS Applications

• E-Learning applications: In 2019 in the United States, 57% of students were using e-learning tools. E-Learning use has increased significantly in recent years, especially with the circumstances instilled by the pandemic. It has become a highly efficient tool for users to access the material anytime from almost anywhere. Institutions have recognized its value and even mandated its use in some cases, making the demand for quality applications a necessity.

• Streaming services: Back to the example of Netflix, there are tons of music and video streaming services all over the world. People want to be able to listen to music or watch content from anywhere. This technology isn’t reserved for major entities but for providers of all sizes to compete.

• Editing services: Google Drive, Canva, MailChimp, Shopify— the list continues. SaaS applications allow instant access to the service where users can modify the material, whether for business or personal matters.

With this understanding of what SaaS applications can do and who they’re meant for, let’s turn over to the specific benefits this technology provides:

User Advantages

The traditional concept of licensed software is losing its fight against SaaS. Anyone who’s watched the uprise of SaaS will tell you that its popularity is due to the mutual benefits between provider and user. Here are some specific contributing factors to its dominance:

Scalability: While the extent will vary depending on the subscription, SaaS solutions can scale up or down to the needs of the user. This means the software will only utilize the resources it needs. In effect, this will save money since users aren’t paying for services they aren’t using.

Automatic updates: Recall that users don’t have to install the software to access the application. This allows providers to run updates automatically in the cloud which will eliminate downtimes and ensure constant access to the user.

Accessibility: SaaS is cloud-based which makes the applications accessible anytime and anywhere, so long as there is a connection to the internet.

Business Advantages

Consistent and stable revenue: For businesses and users, subscriptions are proving to be a far more feasible option since both are charged in increments each month compared to a large one-and-done purchase.

Access to a bigger market: SaaS doesn’t tend to a specific niche; any company or individual around the world can access it. 

Expanding clientele: because SaaS applications aren’t confined to any one language or location, they bring in users from all over. Aside from the dissemination aspect, its cost efficiency is also desirable.

The Takeaway

Cloud-based software is changing the game for businesses and consumers in that it delivers an experience that keeps people coming back. For users, this technology is flexible, and mobile, and comes at a low price. For the business, consistent revenue and endless possibilities for expansion make its implementation inevitable to anyone looking to make it in the long term. Any company that considers making their applications SaaS will need a highly experienced software development team. Do what’s best for the long-term sustainability of your business.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.