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Architectural drift and erosion in software development can seriously impact the business and go-to-market strategy, causing delays, decreased quality, and even product failure. Companies must have processes and workflows in place to detect architectural gaps but historically, those manual checks have been time consuming and prone to human error.

In this paper, we explore the different types of manual architecture review and propose automated alternatives to reduce the time and resources required even while producing better outcomes. You’ll learn:

  • What architecture drift and erosion are, and how they impact the business.
  • How dependency analysis, peer reviews, and other manual inspections work.
  • Why even though they catch issues not prevented through the application of best practice good architecture governance, manual reviews are not the ideal solution.
  • Specific considerations to keep in mind around compliance, data security, DevOps, and more when evaluating architecture review solutions.
  • What automating architecture checks may look like in a series of example use case scenarios.

You may already know some of the benefits of a strong, robust DevOps strategy. This approach to combining software development and operations can improve security,  reduce friction between IT and other business units, and reduce time to market. DevOps is a key ingredient in a product-centric organization and most importantly, can dramatically improve product quality.

But what exactly is it, and what do you need to know about DevOps to reap the maximum possible advantages from it to benefit your business?

In this article, you’ll find a quick overview of what DevOps is, why it matters for businesses, what it looks like across the lifecycle, and how to handle common challenges. We’ll share tools, technologies, and best practices to help you build and support a DevOps mindset and culture in your business, as well.

What is DevOps?

DevOps refers to how software developers and operations work together throughout the development lifecycle. It’s an ever-evolving practice of collaboration between software development and IT to create a culture of shared success.

DevOps combines the flexibility and speed of agile development with automated testing, continuous delivery, and monitoring. This enables the teams to quickly iterate on code while ensuring quality and stability in production. The software delivery process is streamlined while maintaining high quality and security levels, giving companies an efficient way to deliver high-quality software quickly while reducing operational costs.

Organizations can improve performance by streamlining their processes from concept to deployment by leveraging DevOps principles.

The DevOps Lifecycle

The DevOps lifecycle spans ideation, planning, coding, testing, releasing, and monitoring software. It begins with a clear definition of the goal and desired outcome for the project, and the team uses agile software development techniques to create working code effectively. They then test that code in a secure environment to assess the overall quality and pinpoint areas of improvement. There are a couple of ways to test how your code is developing.

With a DevOps approach, developers and their counterparts in IT work collaboratively at every stage.

Benefits of Taking a DevOps Approach in Your Business

The benefits of DevOps are far-reaching and can have a significant impact on an organization’s success. By leveraging DevOps principles, enterprises can reduce costs, improve team collaboration, and accelerate the time-to-market for new software.

  • DevOps practices can reduce labor costs by automating testing, deployments, and infrastructure management.
  • DevOps promotes more effective collaboration between development, operations, and security teams by making them more aware of each other’s needs and objectives.
  • Companies can take new products to market faster and enable developers to deliver iterative updates faster and more accurately.
  • Multiple test cycles before deployment reduce the risk associated with complex software releases.
  • DevOps practices promote faster and more frequent software releases with automation, collaboration, and continuous integration/continuous delivery (CI/CD).
  • It gives organizations greater control over managing their software lifecycle without sacrificing quality or security.

Challenges in DevOps Implementation

DevOps is a powerful tool for businesses trying to improve their software development processes, but it comes with its challenges. For example, the tools and techniques necessary for successful DevOps adoption require significant resources and expertise.

Organizations also have to deal with the complexity of different systems, resources, and people that must be integrated to manage DevOps projects successfully.

Additionally, a lack of organizational culture or buy-in from senior management often makes it difficult to implement DevOps successfully.

It’s important to understand that DevOps isn’t simply integrating new tools but creating a culture guided by its principles. It can take time to effectively shift the internal culture to a DevOps mindset and ensure the appropriate expertise is available to make it a long-lasting change.

Finding the right team who can handle modern technology and practices and adapt to change can be a difficult adjustment for a company. Prioritizing training the development and operational teams in the principles of DevOps and related best practices is key.

Recommended reading: Security Training for the Development Team

On top of finding and training the right talent, organizations must ensure that they have sufficient infrastructure and resources to support continuous delivery pipelines.

Finally, many organizations struggle to create an automated testing environment that can adequately test all aspects of their codebase to ensure quality before deployment. It’s crucial for organizations to thoroughly understand their specific needs and plan accordingly when adopting DevOps so they can mitigate or avoid these challenges.

DevOps Practices

DevOps practices include the processes, tools, and techniques to facilitate valuable collaboration between development teams, operations teams, and other organizational stakeholders. It promotes agile development by automating manual processes, streamlining team communication, and providing feedback loops throughout the software release process to help teams avoid miscommunication and errors in development.

DevOps practices require integrating various tools, such as continuous integration (CI) servers, configuration management (CM) tools, and container orchestration systems.

Security is another priority in DevOps. Security teams should be involved at each step through the software lifecycle to ensure that applications remain secure. Investing in training staff on DevOps and security best practices will help them successfully manage the complex environment created by DevOps adoption.

DevOps practices can help provide organizations with a competitive edge in today’s rapidly changing digital landscape. Let’s take a closer look at the various aspects of a DevOps practice.

Continuous Integration and Delivery

Continuous integration (CI) and continuous delivery (CD) are essential parts of the DevOps framework, allowing organizations to rapidly and reliably release software updates. It is a process that automates the build, test, and deployment of applications, allowing developers to quickly respond to customer needs and changes in the business environment.

CI/CD requires that organizations standardize processes for code reviews, automated unit tests, integration tests, and deployment scripts. The goal is to ensure that newly developed code can be quickly tested in production-like environments before being released into production.

By automating these processes, organizations can reduce time-to-market for new features and increase the quality of their software releases. Additionally, continuous integration and delivery allow developers to identify potential issues earlier in the development cycle, which helps them create more reliable software.

CI/CD helps organizations reduce costs associated with manual processes while improving overall product quality. It is a powerful DevOps practice that helps organizations increase efficiency while ensuring consistency in their applications and systems.

Recommended reading: Zero-Touch Test Automation Enabling Continuous Testing

Version Control

Version control is essential to the DevOps framework, allowing organizations to track changes to their source code. By utilizing version control systems like Git, developers can easily view and compare different versions of the same software project. This allows teams to quickly diagnose and correct errors in their work and that of other team members.

Additionally, version control enables teams to collaborate remotely by providing a single platform for storing source code. Team members can make changes and push them up to a central platform where they are visible to collaborators.

It helps teams maintain a source code history, which they can use for debugging or reverting to previous versions when necessary. Version control also helps with software release management by providing developers with a clear timeline of when each feature was released.

Infrastructure as Code

Infrastructure as code enables organizations to automate their systems, configure networks, and scale resources quickly and efficiently. It simplifies deploying applications, allowing for more frequent updates and releases. It also makes it easier to track changes as code.

By using infrastructure as code, organizations can achieve flexibility in their deployments by having templates that define the desired state of their environments. This allows them to manage multiple domains from one source of truth easily. It helps improve security by providing visibility into system configurations to identify and address potential weaknesses quickly.

Infrastructure as code helps organizations improve speed, reliability, scalability, and security when managing their IT infrastructure. It provides a powerful way to ensure your systems are always up-to-date and functioning optimally.

Configuration Management

Configuration management is a process used to ensure configuration items (CIs) within an IT environment remain consistent and predictable. It involves creating, monitoring, and maintaining a record of the configuration items in the system. This complete CIs inventory enables organizations to identify changes that occur over time (such as hardware updates or software upgrades) and ensure system consistency.

Configuration management helps teams automate repetitive tasks associated with managing software and hardware configurations, ensuring that all changes are applied in an organized manner.

Configuration management also helps in troubleshooting by providing administrators with information on which components are up-to-date and which need updating or maintenance. Teams can quickly test new configurations before they go into production environments so problems can be identified and fixed before they become major issues.

Collaboration

Collaboration is an essential part of any function and successful team. Organizations can achieve faster development cycles and better results by bringing together different teams to work together on projects. In addition, improved collaboration helps bridge the gap between development and operations teams, allowing them to communicate more effectively. This reduces the time it takes to implement product changes while improving product quality.

With a clear understanding of their roles in the DevOps environment, teams can quickly identify potential areas for improvement. When companies focus on improving collaboration and prioritizing the organizational culture, they can build better products while ensuring reliability in their applications and systems.

DevOps Tools & Technologies

Platform solutions play a vital role in the successful implementation of DevOps practices. These tools and technologies help automate processes, improve team collaboration and performance monitoring, ensure security, and provide insights into the production environment. Popular DevOps tools include Docker for containerization, Ansible for configuration management, Kubernetes for orchestration, and ELK Stack for logging.

Organizations can also use services like OpeNgine to create CI/CD pipelines, install tools, and automate cloud infrastructure setup. By leveraging these tools and technologies, organizations can streamline their software development lifecycle while ensuring greater quality control over their applications and systems.

Getting Started with DevOps

Building and nurturing a collaborative culture with a solid DevOps practice won’t happen overnight, but the benefits make it more than worth the effort. The first step is to identify the goals and objectives of your organization, which will help guide what tools and technologies best suit your needs. Once you establish these objectives, you can create a plan incorporating continuous learning and a comfortable DevOps culture.

GlobalLogic helps businesses implement DevOps solutions from start to finish, with advisory services, expert guidance through implementation, and access to proven frameworks and best practices. Contact us today and let’s see how we can help your business modernize, streamline, and meet your business objectives with a DevOps approach to product development.

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Software engineers naturally strive to write code that is not only functional but also of high quality. However, ensuring code quality can be a challenge, especially when working on complex projects with multiple developers. This is where continuous testing, an essential process for measuring and improving code quality, comes in.

Continuous testing is a methodology that involves ongoing code analysis, in order to identify and fix issues as they arise rather than waiting until the end of the development cycle. By integrating this process into our development workflows, we can catch potential issues early on and achieve not only higher-quality code but faster development cycles, as well.

In this article, we will explore the importance of continuous testing and how it can help us measure and improve code quality. We will discuss some of the key metrics used to measure code, the greatest challenges you’ll have to overcome, and common mistakes to avoid.

Common Barriers to Code Quality

Managing Complexity

As software systems become more complex, it becomes increasingly difficult to ensure that every part of the codebase is high-quality. This is particularly true in large-scale projects that involve multiple developers working on different parts of the system. As the codebase grows, it becomes more difficult to understand, debug, and maintain, which can lead to quality issues.

Ensuring Consistency Across the Codebase

When multiple developers are working on the same project, it’s important to ensure that they are all following the same coding standards and best practices. This can be challenging, particularly in larger organizations where different teams may have different approaches to software development. Inconsistencies can lead to quality issues, as well as increased development time and effort.

Balancing Code Quality with Business Needs

While high-quality code is desirable, it’s not always possible or practical to achieve perfection. Developers must balance the need for high-quality code with the business needs of the organization. This can involve making trade-offs between code quality, development time, and resource allocation. Sometimes, speed and agility are more important than code quality, especially in fast-paced environments or when responding to urgent business needs. Balancing these factors can be a delicate task, requiring careful consideration and a nuanced understanding of the organization’s goals and priorities.

Recommended reading: In Software Engineering, How Good is Good Enough? by Dr. Jim Walsh

Scaling Testing

While automated testing has become more prevalent in recent years, it can still be difficult to create comprehensive test suites that cover all possible scenarios. Additionally, manual testing is still required in many cases, which can be time-consuming and error-prone. Incomplete or inadequate testing can lead to quality issues, such as bugs and performance problems, that may only become apparent after the code has been deployed.

Maintaining Documentation

While documentation is often overlooked, it is an essential part of maintaining high-quality code. Documentation provides context and guidance for developers who may be working on the codebase in the future. However, creating and maintaining documentation can be time-consuming, particularly in rapidly evolving systems.

Technical Debt

Technical debt is another challenge that can impact code quality. Technical debt refers to the accumulation of shortcuts and compromises made during development that can impact the quality and maintainability of the codebase. Technical debt can arise due to time constraints, changing requirements, or other factors. As technical debt accumulates, it can become increasingly difficult to maintain code quality, as well as slowing down future development efforts.

Staying Current with New Technologies and Best Practices 

As software engineering continues to evolve rapidly, it can be challenging to keep up with the latest developments in technology and best practices. Staying up-to-date requires continuous learning and experimentation, which can be time-consuming and require significant effort. It also requires an investment of budget from the company, and tends to be early on the chopping block when executives are looking for places to trim costs. However, failing to stay up-to-date can result in quality issues and missed opportunities for improvement.

What is Continuous Testing?

Continuous testing is a software development methodology that involves continuously monitoring and analyzing code to identify and fix issues as they arise, rather than waiting until the end of the development cycle. 

The goal of continuous testing is to ensure that software is of high quality and meets the organization’s requirements, while also reducing the time and effort required to find and fix defects.

How Does Continuous Testing Improve Code Quality?

When you implement continuous testing in your development process, you use automated tools to analyze code continuously throughout the development process. These tools can detect a wide range of issues, including coding standards violations, security vulnerabilities, performance bottlenecks, and other issues that can impact code quality.

This enables organizations to catch and fix issues earlier in the development cycle, reducing the risk of defects and improving code quality. Continuous testing can also help to ensure that code is maintainable, scalable, and secure, and can help companies meet their regulatory and compliance requirements.

Continuous testing is often used in conjunction with other development methodologies, such as continuous integration and continuous delivery. By integrating these methodologies into a unified workflow, organizations can ensure that their software is of high quality and is delivered quickly and efficiently.

How to Measure Code Quality

The best code quality measurement practices are proactive rather than reactive, and ongoing. Let’s take a look at the different ways to measure code quality and the pros and cons of each approach.

Code Reviews

Code reviews are a manual approach to measuring code quality, in which one or more developers examine the code for adherence to coding standards, performance, readability, maintainability, and other factors. Code reviews can be time-consuming, but they offer a comprehensive view of the codebase and can provide valuable insights into the quality of the code.

Automated Code Analysis

Automated code analysis tools are designed to identify potential issues in code by analyzing its structure, syntax, and other characteristics. These tools can identify issues such as coding standards violations, security vulnerabilities, and performance bottlenecks. Automated code analysis tools are fast and efficient, but they can be less accurate than manual code reviews and may produce false positives.

Recommended reading: Which Software Metrics to Choose, and Why?

Code Coverage

Code coverage measures the percentage of code that is executed by tests. This metric is useful for identifying areas of the codebase that are not adequately covered by tests, as well as detecting bugs and defects in the code. Code coverage is a quantitative approach to measuring code quality, but it is not a comprehensive measure of code quality and should be used in conjunction with other metrics.

Technical Debt 

Technical debt is a metaphorical term that describes the accumulation of shortcuts and compromises made during development that can impact the quality and maintainability of the codebase. Measuring technical debt involves identifying and quantifying the trade-offs made during development and the impact they have on the codebase. Technical debt can be measured using tools such as SonarQube or CodeClimate.

Cyclomatic Complexity

Cyclomatic complexity is a metric that measures the complexity of code by counting the number of independent paths through the code. This metric can help identify areas of the codebase that are overly complex and may be difficult to maintain or modify. Cyclomatic complexity can be measured using tools such as McCabe IQ or SonarQube. See the guide below to learn more:

Click to read What is Cyclomatic Complexity? How to Calculate & Reduce it? | GlobalLogic

Conclusion

Continuous improvement means rather than fixing quality issues as they surface in reports, you tackle them proactively and commit to detecting and fixing them as they occur. Apart from quality plugins used with automated builds, IDE plugins and CI plugins help a great deal in achieving the holistic agenda of clean code.

Committing to continually reviewing and improving your testing practices helps ensure the delivery of high-quality software that meets the needs and expectations of users and will make your business more sustainable over time. Here are a few tips for implementing continuous testing in your organization:

  1. Make testing a collaborative effort: Involve your entire development team, including developers, testers, and quality assurance professionals, in the testing process. This can help ensure that everyone is working towards the same goal and can improve the overall quality of your software.
  2. Automate as much as possible: Automation is an essential part of continuous testing, as it enables you to run tests quickly and efficiently. Invest in automated testing tools and frameworks, and make sure that your tests are easily repeatable and scalable.
  3. Use metrics to measure progress: Define metrics that help you track progress and measure the effectiveness of your testing process. For example, you might track the number of defects found, the time it takes to fix defects, or the percentage of code coverage achieved.
  4. Continuously evaluate and improve your testing process: Take a continuous improvement approach to testing and evaluate your testing process regularly. Look for areas where you can improve and implement changes that can help you test more effectively and efficiently.
  5. Foster a culture of quality: Quality should be a core value of your development team. Foster a culture of quality by setting high standards and expectations for your team, and by recognizing and rewarding quality work.
  6. Stay up-to-date with industry trends: The software development industry is constantly evolving, and it’s important to stay up-to-date with the latest trends and technologies. Attend conferences, read industry publications, and engage with other professionals in your field to stay informed and learn new techniques and strategies.

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From virtual assistants like Siri and Alexa to self-driving cars and generative AI platforms like ChatGPT, artificial intelligence (AI) and its subset, machine learning (ML), are changing how we live, work, and play.

In the five years McKinsey has been tracking AI use worldwide, adoption has more than doubled, although its use in business organizations has held steady between 50-60% for the past few years. While the first-mover advantage has passed, there’s still plenty of opportunity to gain a competitive advantage by implementing AI to help your business be more agile, responsive, and innovative than others in your field.

If you’re still on the fence about adopting AI for your business or are searching for new ways various AI technologies could benefit your business, read on. In this post, you’ll find a comprehensive overview of what exactly AI is and why it matters, a timeline of AI milestones, the advantages and disadvantages of various AI technologies, and how it’s being used in different businesses today. 

What is Artificial Intelligence?

Artificial intelligence enables computers to simulate human thought processes and behavior, such as making decisions, solve problems, understanding language, recognizing images and faces, and more. Using constantly learning and adapting algorithms, AI systems can provide near-human accuracy and dramatically scale operations across many tasks and industries.

AI is one of our most significant technological advances, and its applications are becoming increasingly widespread. Businesses of all sizes are taking advantage of AI’s potential to improve customer service, increase efficiency and productivity, reduce costs, make better predictions about markets or customers, automate time-consuming and redundant tasks, analyze vast amounts of data, and develop new products and services faster than ever before. 

Recommended reading: AI’s Impact on Software Development: Where We Are & What Comes Next

In addition to being an effective tool for improving efficiency and productivity, intelligent systems can anticipate user needs and provide tailored solutions quickly and accurately by leveraging deep learning algorithms.

Additionally, AI can help organizations identify trends in data faster and more accurately. With access to large amounts of data from both inside and outside a company’s own network, AI can uncover insights that would otherwise remain undetected. This enables companies to make better decisions about allocating resources and gain a competitive edge in their industry. AI is fast becoming essential for any business looking to stay ahead of the competition.

A Brief History of AI Development

Artificial intelligence has come a long way since its inception in the 1950s. Some of the key dates in AI development include:

1956: The term “artificial intelligence” was coined by John McCarthy at the first AI conference at Dartmouth College.

1967: Frank Rosenblatt created the Mark 1 Perceptron, the first computer utilizing a neural network. It was able to quickly learn through continued experimentation. 

1980s: Symbolics Lisp machines are commercialized, and neutral networks using the backpropagation algorithm became common in AI applications.

1997: IBM’s Deep Blue defeated world chess champion Garry Kasparov.

2008: Google achieved significant advancements in speech recognition technology, which it incorporated into its iPhone application.

2011: Apple introduced Siri, a virtual assistant powered by artificial intelligence, to its iOS operating system.

2018: Google launched BERT, a natural language processing engine that made it easier for machine learning applications to translate and understand conversational queries.

2022: OpenAI released ChatGPT, a conversational AI that utilizes a large language model.

2023: Microsoft has recently released a new AI-powered version of its search engine Bing, which utilizes the same technology as ChatGPT. In response, Google has introduced its own conversational AI called Bard, creating competition in the market.

Thanks to advances in machine learning models such as deep neural networks and reinforcement learning algorithms, AI technology is constantly improving. These milestones in AI development demonstrate AI technology’s increasing sophistication and capabilities and its potential to revolutionize various industries.

Types of Artificial Intelligence

There are two main categories of artificial intelligence: narrow AI and strong AI. Narrow or weak AI focuses on specific tasks and can be used for language processing, facial recognition, and natural language understanding. On the other hand, strong AI or artificial general intelligence (AGI) has the potential to emulate human-level intelligence across a wide range of skills and tasks.

Weak AI (Narrow AI)

Weak AI, also known as narrow AI, is artificial intelligence that focuses on one specific set of tasks and is limited to the task for which it was designed. It cannot be applied to different problems. This makes it ideal for applications where speed and accuracy are essential, such as language processing, facial recognition, and natural language understanding.

One of the most significant advantages of weak AI is that it can quickly process large amounts of data while making fewer mistakes than humans. Businesses can use weak AI to automate mundane tasks or uncover insights from large datasets more accurately than manual labor. Additionally, weak AI can be trained rapidly due to its narrow scope.

Strong AI (Artificial General Intelligence)

Strong AI or Artificial General Intelligence is the next step in artificial intelligence. It refers to machines that can perform a specific task and possess a human-like level of understanding and reasoning. 

Unlike weak AI, strong AI has the potential to think for itself and solve complex problems without needing any kind of external programming or instruction. This means it can learn from its environment and even develop an understanding of its capabilities without human intervention.

Deep Learning vs. Machine Learning

Deep learning and machine learning have become increasingly popular in recent years as companies of all sizes seek to leverage the power of AI for their businesses. But what’s the difference between deep learning and machine learning? While both are branches of artificial intelligence that use algorithms to learn from data, there are essential differences between them.

Machine learning focuses on identifying patterns in data and using those patterns to make predictions or decisions. 

Deep learning takes this concept further by using layers of “neurons” to simulate how a human brain works and improve its ability to recognize patterns. This allows for much higher accuracy when making predictions or decisions based on data.

Deep learning is often used for tasks such as speech recognition and natural language processing, which require understanding complex relationships between words and concepts — something machine learning alone cannot do. 

Machine learning and deep learning each have unique advantages that make them useful for different applications. Companies should consider carefully which is best suited to their needs before investing in either technology. With the right guidance, companies can seamlessly integrate these AI capabilities.

Advantages of Using AI in Business

The advantages of using AI are numerous; here are some examples.

Personalization: AI can help businesses personalize customer interactions by analyzing customer data and tailoring marketing and sales efforts accordingly. This can lead to better customer experiences and increased customer loyalty.

Enhanced decision-making: AI can analyze vast amounts of data quickly and accurately, providing insights that can inform business decisions. This can lead to better decision-making and more informed strategies.

Cost savings: AI can help businesses save money by automating tasks and reducing the need for human intervention. For example, AI-powered chatbots can handle customer inquiries and support requests, reducing the need for human customer service representatives.

Improved efficiency: AI-powered systems can automate repetitive and time-consuming tasks, allowing employees to focus on higher-value tasks. This can lead to increased productivity and efficiency in the workplace.

Competitive advantage: Businesses that adopt AI early on can gain a competitive advantage over their peers by leveraging the technology to improve their operations, products, and services.

Predictive analytics: AI can be used to analyze historical data and identify patterns and trends. This can help businesses predict future outcomes and make more accurate forecasts.

Fraud detection: AI can detect fraudulent activities and transactions in real time. This can help businesses prevent financial losses and protect their reputation.

Improved customer service: AI-powered chatbots and virtual assistants can provide round-the-clock customer service, responding to inquiries and providing support at all hours.

Automation of complex tasks: AI can automate data analysis, financial modeling, and supply chain optimization tasks to save time and reduce errors.

Improved cybersecurity: AI can detect and respond to cyber threats in real time, helping businesses protect their data and infrastructure from cyber-attacks.

AI Disadvantages & Limitations

Despite the numerous benefits of artificial intelligence, there are also some potential drawbacks. One of the most prominent disadvantages is that AI systems require significant amounts of data to function correctly. This means that if a company does not have access to enough data, it may not reap AI’s full benefits.

AI-powered systems can sometimes make mistakes due to errors in programming or incorrect data input. This could lead to problems such as inaccurate customer service information or even security breaches if sensitive information is compromised due to an AI system’s mistake.

Overall, while AI offers numerous advantages for businesses, companies must consider the potential benefits and risks of using these systems before investing time and money into developing one. GlobalLogic can help you assess where to incorporate AI technology and help with the transition management.

How Businesses Use AI in Various Industries

Intelligent automations can augment and amplify the best of human performance, enabling a business to scale and grow at a rate that would otherwise be impossible. 

As Sanjeev Azad, Vice President of Technology here at GlobalLogic, shared with CXO Today recently, “Contact-center automation, customer segmentation & service analytics, business process automation and services optimization, predictive maintenance and remote assistance, risk modeling and analytics, and fraud detection and analytics are few businesses use cases where adoption of AI is playing a significant role.”

  • GlobalLogic Intelli-Insights helps companies in all industries activate the power of their data by providing pre-defined standard AI apps and custom app-building capabilities inside our AI-powered data analysis platform. This digital accelerator enables companies to quickly transform data into actionable insight without having niche data science skills in-house. 

Here are several more examples of how companies use AI to their advantage in different industries.

Finance

In finance, AI is used for fraud detection, risk assessment, regulatory compliance, investment strategy, and more. Anywhere data can be analyzed and used to make predictions and decisions, AI can help. 

You can read about a specific application of AI in fintech here. In this example, a well-trained machine learning model constantly analyzed market data and made appropriate portfolio adjustments to continuously improve performance.

AI is being used to help insurers identify and mitigate risks by analyzing data from various sources, including social media, weather reports, and satellite imagery. Using AI to analyze customer data and predict future needs or behavior can help banks offer personalized services and products. It works to detect fraud and prevent financial crimes, saving banks money, and can automate repetitive tasks such as data entry for companies in insurance, investments, fintech, cybersecurity, and more.

Healthcare

One of the most impactful ways AI is used in healthcare is in diagnostic imaging. AI algorithms can analyze CT scans, MRIs, and X-rays to process results faster and detect anomalies that may not be visible to the human eye. AI can help doctors diagnose diseases earlier and more effectively manage patient care by analyzing patient data to predict disease progression and identify potential complications.

AI is used to develop personalized patient treatment plans based on their medical histories and genetic makeup. It’s also valuable for creating new drugs and treatments, and analyzing clinical trial data to help researchers identify new treatments and therapies. 

Check out other ways AI is used in healthcare here:

Click to read How Digitization Is Changing Medtech, Life Sciences, and Healthcare

 

Media

AI is used in the media industry in various ways, from content creation and audience targeting to creating personalized news feeds and analyzing social media data to determine what topics are trending.

AI can be used for transcription, translation, and image and video analysis tasks. Major media and entertainment brands have used AI for video encoding, augmented reality projects, and analyzing and predicting consumer content.

Recommended reading: AI is the Future of Media

Retail

AI is used in the retail industry in various ways, such as personalized customer experience, inventory management, and supply chain optimization. For example, retailers use AI to gather data about their customer’s preferences and behaviors and then use that data to offer personalized product recommendations and promotions. AI-powered chatbots also provide customer service and support.

Additionally, AI optimizes inventory management by predicting demand and ensuring that the right products are available at the right time. AI is also used in supply chain optimization to improve logistics, reduce costs, and increase efficiency. Here is a case study of how AI was used to create a next-gen retail product that blends online and in-store shopping.

Manufacturing

AI is used in the manufacturing industry in several ways. One of the most common applications of AI in manufacturing is predictive maintenance. By using sensors and data analysis, AI can predict when a machine is likely to fail and schedule maintenance before it does. This can save companies money in unplanned downtime and repairs.

AI can also optimize production processes by analyzing data on everything from raw materials to energy consumption to identify opportunities for improvement. Additionally, AI can improve quality control by analyzing data from sensors and cameras to identify product defects and anomalies as they are manufactured. 

Today’s business landscape is changing rapidly, and those that can take advantage of AI have the edge over their competitors. By leveraging AI’s power, businesses can better understand their customers and increase productivity while reducing costs and creating new efficiencies.

Final Thoughts 

Artificial intelligence is a potent tool for businesses of all sizes. AI can help streamline processes, improve efficiency, and save time and money. Additionally, AI can provide real-time insights into customer and user behavior to inform marketing campaigns or product development. 

Businesses need to take advantage of these benefits to remain profitable in the long run. While a wide variety of AI applications are available, it’s essential to thoroughly assess each before deciding which suits your company. Training employees on how to use these tools effectively to get the most out of them is also critical to the success of each AI implementation.

GlobalLogic developed our AI/ML Center of Excellence to help customers make informed decisions about and implement AI to increase business efficiency, continuity, and profitability. The best practices, tools, and proven processes available via our CoE are based on our extensive experience helping customers transform their businesses with AI-powered solutions and developing AI products.  

 

Get in touch today and see how we can put this experience and expertise to work for you.

Blockchain is best known for its usage in cryptocurrency, where it provides each network that uses it with a digitally distributed, decentralized, public ledger for tracking holdings and transactions. 

However, blockchain technology has a variety of applications in many industries, including healthcare and pharmaceuticals, financial services, cybersecurity, manufacturing, and supply chain management. Anywhere transactions occur, blockchain can help improve security, privacy, and data transparency.  

Businesses of all kinds are transitioning to this secure infrastructure to reduce the costs of the traditional transactional model, automate processes, strengthen security, protect personally identifying and other sensitive information, and improve security. It’s no wonder the global blockchain market, valued at USD $7.18 billion in 2022, is expected to grow to USD $163.83 billion by 2029.

What exactly is blockchain, and how does it work? This unique technology has already changed how many businesses operate, from financial transactions to smart contracts. In this article, you’ll learn about blockchain, its advantages and disadvantages, different types of blockchain applications, and how various businesses currently use it. 

What is Blockchain Technology?

Blockchain is a decentralized, distributed ledger that records transactions in a fixed format across multiple computers on a network, providing organizations with a way to securely track and verify digital transactions. 

Blockchain enables participants to keep track of their assets without relying on a centralized authority or intermediary. Transactions are verified by computing power provided by the network rather than depending on manual verification or any third-party source. In addition, the entire network is constantly updated and monitored, ensuring transparency and accuracy of the record-keeping process.

What is Tokenomics?

Tokenomics refers to the study of the economics and mechanics of cryptocurrency tokens. It combines the terms “token” and “economics” and describes how a token operates within a blockchain ecosystem. Tokenomics involves the creation, distribution, and management of tokens, as well as how they are used and exchanged.

It includes factors such as token supply, demand, utility, and value, and the incentives for users to hold or use the token. Tokenomics also helps establish the governance of a blockchain network and the rules that govern the behavior of participants in the network. Overall, tokenomics plays a critical role in the success and sustainability of a blockchain project.

Recommended reading: Tokenomics with Blockchain: GlobalLogic’s Tokenomics Position

Blockchain Myths & Misconceptions

These are some of the more persistent myths around blockchain technology:

  1. Blockchain is only used for cryptocurrencies: While it is true that blockchain technology was first used for cryptocurrencies, it has evolved to have many other applications, such as supply chain management, voting systems, and smart contracts.
  2. Blockchain is completely anonymous: Although blockchain is based on a decentralized system, transactions are recorded on a public ledger that can be traced back to their source.
  3. Blockchain is completely secure: While blockchain is highly secure due to its decentralized structure, it is not completely immune to attacks. There have been cases of hackers exploiting vulnerabilities in the system to steal cryptocurrencies.
  4. Blockchain is only for tech-savvy people: While blockchain technology is complex and may seem intimidating, it has become more user-friendly with the development of user-friendly interfaces and applications that make it accessible to the average person.
  5. Blockchain is a magic solution to all problems: While blockchain has many potential benefits, it is not a cure-all solution. It’s important to carefully consider the specific needs and limitations of each use case before deciding to use blockchain technology.

Advantages of Blockchain Technology

The advantages of blockchain technology are continuously expanding. By operating on a decentralized, distributed ledger system, blockchain technology offers unprecedented security and accuracy, surpassing most traditional methods. In addition: 

  • The digital nature of the ledger allows for faster transaction times and lessens the need for intermediaries to facilitate transactions.
  • Blockchain technology is highly scalable and can easily expand to accommodate more users and transactions. 
  • Blockchain networks are resilient against cyber-attacks due to their distributed architecture and consensus mechanisms.
  • Because of its open-source nature, anyone can develop applications on top of a blockchain network without relying on a third party or centralized authority. 

These advantages make blockchain technology attractive for many industries looking to increase efficiency and reduce costs.

Limitations and Disadvantages of Blockchain Technology

The disadvantages of blockchain technology are mostly related to its data storage limitations and cost. In addition, blockchain networks require a large amount of computing power and energy to operate, which can be costly and difficult to scale up as demand increases.

Many blockchain systems aren’t designed to handle large amounts of data, which can lead to slower transaction speeds. Since the technology is relatively new, there are still some unknowns about how it may be impacted in future by regulations and laws in different regions.

As blockchain technology matures and more companies become involved in its development, these issues should be addressed and resolved. At GlobalLogic, we’ve researched blockchains’ ability for large-scale interoperability and have discovered solutions like introducing a third party and identifying the state distribution between permissioned and permissionless ledgers.

Types of Blockchains

Several different types of blockchains offer varying levels of security and access.

Public Blockchains

Public blockchains are becoming increasingly popular due to how data is stored, managed, and transferred. With no central authority, these blockchains allow anyone with an internet connection to view or add information to the ledger. In addition, public blockchains are highly secure and don’t require third parties to verify transactions.

This means businesses can save time and money while providing a safe environment for their customers. Additionally, public blockchains offer transparency, as all users can view all transactions on the chain. Cryptocurrencies Bitcoin and Ethereum are two well-known examples of public blockchain technology.

Private Blockchains

Private blockchains allow businesses to keep their data secure while still providing control over the access and permissions of who can view and add information to the ledger. Private blockchains enable companies to manage their records and transactions without relying on third parties, making them more efficient and cost-effective.

Additionally, private blockchains offer extra security as only those approved by the company can access or make changes to the chain. This makes it easy for businesses to protect sensitive data from unauthorized access or malicious attacks. 

Private blockchains are an ideal solution for businesses looking for a secure way of managing digital records without sacrificing privacy or security. Tracr, a system developed by De Beers for verifying the provenance of diamonds and tracking them to eliminate “blood diamonds” in the value chain, in an example of a private blockchain. 

Consortium Blockchains

Consortium blockchains, also known as federation blockchains, allow companies to retain control over who can access or make changes to the ledger while enabling them to collaborate with other companies or institutions to share computing power or resources. This allows organizations to work together without sacrificing their security measures.

Additionally, consortium blockchains are an ideal solution for businesses looking for an efficient and secure way of managing digital records without sacrificing privacy or security. Hyperledger, Quorum, and Ethermint are all consortium blockchains. 

Hybrid Blockchains

Hybrid blockchains are for organizations looking for a secure and private way to manage digital records. Hybrid blockchains allow companies to take advantage of both public and private blockchains, allowing them to keep sensitive data securely within their network while benefiting from the added security of a public blockchain.

Furthermore, hybrid blockchains provide organizations with an efficient way to manage digital records, streamlining internal processes and reducing costs associated with third-party intermediaries. IBM Food Trust – where farmers, distributors, and wholesalers can transact privately and securely – is a great example of a hybrid blockchain. 

Components of a Blockchain System

A blockchain system comprises several key components that all work together to ensure the security and integrity of data stored on the network.

Digital Ledger

A digital ledger is a powerful and secure way to store data online. It is composed of a distributed database that records transactions immutably. In addition, cryptographic algorithms verify transactions, ensuring the integrity of the data stored on the ledger.

Each node in the network has its own copy of the ledger, creating redundancy and ensuring the data remains secure even if one node goes offline or malfunctions. This makes digital ledgers ideal for the use of all blockchain types.

Businesses can create smart contracts, record keeping in supply chains, and power digital currencies. Digital ledgers are changing record keeping with their trustworthiness and reliability, making them an essential technology for many industries today.

Decentralized Network

Decentralized networks are the backbone of blockchain technology and its rise in popularity. By leveraging the power of distributed computing, decentralized networks enable data to be stored, shared, and processed securely and reliably.

A decentralized network comprises multiple computers that work together to process transactions and store data on a shared ledger. This makes it virtually impossible for any computer or person to control or manipulate the data, creating a more secure environment than centralized systems.

Decentralized networks also require less computing power, giving them an advantage over centralized systems in terms of scalability and cost-effectiveness.

Shared Ledger / Public Ledger

A shared ledger, also known as a public ledger, is a digital record of transactions that can be used to store and share data across multiple parties. The data is stored in a distributed database, meaning any single entity does not control it. This makes it virtually impossible for anyone to manipulate or control the data, creating a secure and trustworthy environment. As a result, a shared ledger has many advantages over traditional centralized systems, such as improved security and scalability, cost-effectiveness, and greater privacy.

By leveraging the power of distributed computing and cryptography, shared ledgers are revolutionizing how we store and process data. With their ability to provide greater trust between users and organizations, shared ledgers are quickly becoming the preferred method for storing and sharing information in various industries.

The use of shared ledgers is changing how we store and process data, giving us a secure, trustworthy and cost-effective alternative to traditional centralized systems.

Distributed Consensus Protocols

Distributed consensus protocols are an integral part of blockchain technology. They provide a secure and reliable way for multiple computers to agree on the contents of a digital ledger or database. This allows for increased security, as all parties in the network must approve any changes to the data. These protocols also help ensure that only valid transactions are recorded on the ledger and that all users have access to the same version of data.

The most popular distributed consensus protocol is called Proof-of-Work (PoW). It requires network participants to solve complex mathematical problems to validate transactions and create new blocks on the blockchain. As more computers join the network, more computing power is needed to secure it, making it highly resistant to malicious attacks.

Distributed consensus protocols are essential in facilitating trust and ensuring the integrity of public ledgers. By providing a secure and reliable way for multiple computers to agree on data stored within a blockchain, they facilitate trust between parties, reduce costs associated with maintaining records, and help prevent fraud and other malicious activities from occurring within networks.

Cryptography and Digital Signatures

Cryptography and digital signatures are two essential components of blockchain technology. Cryptography is used to secure data by encrypting it so that only users with the correct key can access the information. It also helps prevent malicious actors from changing the data stored in a blockchain network.

Digital signatures verify the authenticity of transactions and ensure that they have not been altered or tampered with. The signature is created using a combination of public and private keys, ensuring that only authorized users can change the ledger.

Cryptography and digital signatures are two important components when implementing blockchain technology. By understanding how they work together, organizations can ensure their data is secure, and transactions remain trustworthy.

Use Cases for Blockchain Technology

From financial institutions to supply chains, blockchain has given organizations the tools to track and manage their records securely.

Financial Transactions and Banking Systems

Financial transactions and banking systems have traditionally been time-consuming and expensive. However, with the emergence of blockchain technology, these processes are becoming much more efficient.

Users can securely store and transfer digital assets using a decentralized ledger system without needing a third-party intermediary. This eliminates transaction fees associated with traditional banking systems, making it an attractive option for those looking to make financial transactions quickly and sec

Furthermore, blockchain technology is more secure than traditional methods as it eliminates the risk of fraud or data manipulation. With its ability to create an immutable record of all transactions, blockchain provides greater transparency into the financial sector while ensuring all parties involved follow through on their commitments. Blockchain offers a cost-effective solution for those looking to streamline their financial transactions and banking processes.

Supply Chain Management & Traceability Solutions

Supply chain management and traceability solutions through blockchain are vastly growing. With the emergence of blockchain technology, companies can securely track the movement of products from their origin to their destination. This allows for greater transparency in the supply chain process, ensuring all parties involved follow through on their commitments.

Recommended reading: Strengthen Your Supply Chains with Blockchain

Using a digital ledger system, people can easily verify product authenticity and track any changes made throughout the process. Furthermore, it eliminates the risk of fraud or data manipulation as every transaction is stored immutably on the blockchain. As a result, blockchain provides an efficient and secure solution for those looking to streamline their supply chain management processes.

Digital Identity and Authentication Services

With blockchain technology, users can quickly and securely verify their identity without sharing personal data or information. This process is done through a unique private key linked to each user’s digital identity. In addition, the private key allows for secure access to online accounts while ensuring that only authorized users can access them.

Additionally, this system eliminates the need for passwords, making it even more secure than traditional authentication methods. This technology provides a safe and secure way to protect your data from malicious actors and hackers.

See how Hitachi digitized its contract process with an electronic signature service secured on the blockchain using Hyperledger Fabric here.

Digital Coupons

Digital coupons are becoming a norm for customers and businesses in recent years. As a result, companies can efficiently distribute coupons through their website, apps, and social media for customers to redeem effortlessly.

They can also use third-party services with blockchain, distributed ledger technology, and smart contracts to reduce the cost of coupon management and distribution.

Incorporating blockchain technology into coupon marketing strategies offers companies many advantages and use cases. However, understanding the critical components behind blockchain technology is essential to creating impactful coupon campaigns.

Smart Contracts and Automated Business Processes

Smart contracts and automated business processes are influencing technologies that can help streamline and simplify how businesses operate. They are digital agreements, or contracts, that are written on the blockchain. 

Smart contracts execute automatically when pre-defined conditions are met, making them incredibly efficient and secure. And because they exist on a decentralized network, there’s no need for a third-party intermediary – meaning faster transactions with lower costs.

Automated business processes also leverage blockchain technology to create more efficient operations. By utilizing smart contracts to automate mundane tasks like document management and payment processing, businesses can save time and money while improving accuracy and transparency.

Cross-Border Payments and International Remittances

Blockchain technology makes global payments faster, easier, and more secure. In addition, by leveraging smart contracts, payments can be automatically executed when predetermined conditions are met – meaning transactions occur without needing a third-party intermediary.

Additionally, because all data is stored on an immutable ledger, users can trust that their transactions are secure and traceable. From faster, more secure payments to lower costs and improved traceability, blockchain technology is improving the global payments platform.

Recommended reading: Real-Time Payments Lessons from India’s Wildly Successful UPI

With its versatile capabilities, businesses of all sizes now have the opportunity to make their international remittances easy and efficient – without compromising on security.

Data Privacy & Protection Solutions

Data privacy and protection are of utmost importance in today’s digital world. But with increasingly sophisticated cyber threats, how can businesses ensure their data is secure?

By leveraging the power of a decentralized network, blockchain provides an immutable record of transactions that is tamper-proof and highly secure. Additionally, using smart contracts, businesses can control access to their data and set parameters for who can view it. This ensures that only authorized users can access sensitive information – making it impossible for unauthorized individuals to gain access.

Finally, with end-to-end encryption and cryptographic hashing, businesses can rest assured that their data is safely stored on the blockchain – making it virtually impenetrable. So if you’re looking for a reliable solution to keep your data safe and secure – look no further than blockchain technology.

Final Takeaways

Blockchain technology is a powerful tool that can transform how multiple industries function. Whether for finance, healthcare, logistics, retail, or elsewhere, implementing blockchain helps improve your systems’ security, scalability, and data transparency. 

As an experienced, proven digital engineering partner, GlobalLogic can provide the proper support to seamlessly integrate blockchain technology into your operations and business strategy. Contact us today, and let’s see how we can help you.

Learn more:

Contributors:

Anton Boretskyi  – coordination

Oleksandr Bereza – contributor

Oleksandr Yevtushenko – reviewer

Harsimrat Singh – reviewer

 

The world is undergoing a rapid and dynamic transformation, with technological advancements taking center stage. Embracing modernization and implementing a Total Experience (TX) strategy can help companies stay ahead of the curve and gain a competitive edge while remaining agile and responsive to new opportunities. 

Gartner predicts that by 2024, organizations providing a total experience will outperform competitors by 25% in satisfaction metrics for both customer experience (CX) and employee experience (EX). In this blog post, learn how to embrace modernization and revamp your products, applications, and solutions to stay ahead of the competition and drive revenue with a Total Experience strategy. 

What is Total Experience (TX)?

As Gartner defined it, Total Experience “is a strategy that creates superior shared experiences by weaving together the four disciplines i.e., the multi-experience (MX), customer experience (CX), employee experience (EX) and user experience (UX).”

Multi Experience (MX) 

The predecessor of the Multi Experience (MX) strategy was omnichannel, which combines a company’s multiple touch points – website, social, email, mobile, etc. – into a single approach based on information from various sources. 

Multi-experience extended omnichannel by shifting the focus from channels and technology to thinking about how people will use an application and interact with the company or product. It aims to provide an optimal experience tailored to the individual customer or user, touchpoints, context, and interaction methods. 

Customer Experience (CX)

The holistic perception of a product or brand is customer experience (CX). The total result of how end users interact with business: talk with the support team, order and buy something on the website. It’s essential to build the best customer experience for repeat sales. Loyalty to the brand, customer satisfaction, and positive recommendations could bring in new customers and generate sales. 

Employee Experience (EX)

The Employee Experience (EX) evaluates employees’ journey stages: engaging, developing, and retaining. People are the most import and resource in most different business areas. A person who grows and feels comfortable in work could give the company more than expected. Loyalty and satisfaction can bring a new idea for a feature, product, or business.

Recommended reading: Improving Employee Experiences – A Playbook, from Method

User Experience (UX)

How the end user interacts with a product or application and how the system is flexible and understandable is what the User Experience (UX) is. UX is essential for all products or applications users and delivers the end user to the expected destination without additional help or explanation. 

How Total Experience Impacts the Modernization Process

Application modernization is a process that improves the performance of business software delivery by upgrading rather than replacing older software systems. Modernization is not easy, but it can be a lighter, more affordable lift when we understand all needs before updating a product. 

Applying the TX strategy to application modernization maximizes the value of the output for both customers and employees, providing users with more contact points and empowering employees with the tools they need to deliver intelligent customer service.

Here’s why each TX component – MX, CX, EX, and UX – matters in the context of a modernization process.

Why Multi-experience Matters in Modernization

Multiple touchpoints are essential for building a sales strategy for the individual user, and businesses should remember the MX method when updating an application. Use a technique for selecting technologies that suits the final goal; for example, cloud migration could open the door to new cloud features and give a new vision of Multi-experience. 

Of course, modernization will add new MX features to the latest version of the product, increasing loyalty and customer and employee experience in general. 

Why CX Matters in Modernization

CX is the most crucial factor of any modernization application process, as the customer is the epicenter of all products. External feedback is critical in furthering your understanding of how the product or application is used, and it’s essential to gather this before starting the modernization process. Modernization is more than updating a technology stack or migrating to a cloud infrastructure. The proper updates can significantly increase the number of new users and drive existing satisfaction. What’s more, CX can substantially decrease development time, increase customer satisfaction and loyalty, and fuel a successful product. 

Why EX Matters in Modernization

Many companies invest a lot in CX but skip employees’ interests, and it’s a costly oversight. End users communicate with employees, and their feedback can inform new ideas. Employees are experienced product experts with valuable insight into pain points, challenges, and opportunities to improve the customer experience.

Why UX Matters in Modernization

Updates to the user interface must be considered and tested carefully, given the impact UX can have on customers and employees – and business results. Streaming for video calls, for example, requires new technology changes. Sometimes, this is a killer feature for a product, and it’s impossible to forget when modernizing the application. Other times, you might think a change in navigation or updating a button is inconsequential – until it has a significant impact. 

Benefits of Applying a Total Experience Lens to Application Modernization

Upgrading legacy applications and products isn’t a one-and-done operation. Products become legacy the day after each subsequent release. The ongoing modernization process provides a framework for improving experiences and reaping benefits. Here are some examples.

Increasing Brand Loyalty 

Total Experience is a powerful tool to increase brand loyalty when a business modernizes the application. Building brand loyalty requires over-delivery on expectations and is fueled by two-way client communications that focus on integrating feedback. A TX strategy helps further product recognition, satisfaction, and customer and employee feedback. 

Reduced Business Silos 

Segregated organizational cultures are common, and UX, CX, and EX representatives rarely collaborate on the same project simultaneously. Typically, the project moves from stage to stage without a cohesive understanding of the problems the previous Experience confronted or solved. In a TX strategy, various experiences work together seamlessly so that everyone can understand the needs of others and how their actions affect the overall product. This is crucial in the application modernization process, where getting to market faster with a superior product can mean a significant business win. 

A Healthy, Stimulating Culture of Innovation

Moving a project from stage to stage without the input and perspective of all Experiences has another major drawback: it hampers innovation. Rather than having all types of professionals and their richly varied points of view pulling together in the same direction, they may only be aware of the task at hand. Taking a TX approach helps everyone involved understand the needs of others and how their actions affect the overall experience.  

More Creative Product

Creative products result from innovative ideas that win enough support to become innovations. They must bring something new that serves a purpose and solves a problem in a new way. Fresh, creative ideas exist throughout the modernization process, but what features hold the most significant potential value for the business? Motivated employees (EX) can share new, exciting ideas, and pairing those with CX and UX insights can only strengthen the use case. 

Increase the Speed of the Modernization Process

Taking a TX approach means each Experience team understands the needs and goals of the others. All parties agree on the required technologies and can work together to reduce the iteration count. With an overall view of who provides which inputs, when – and, importantly, why – teams can better budget their time and prepare for their next steps. 

A Clear, Shared Final Product Vision

The collaboration process can result in more inputs than expected, but this combination of opinions and experiences drives a successful product. The key is clearly defining a vision for the product’s future and ensuring all teams have ongoing access to it. By its very nature, TX considers each of the Experiences and incorporates that into the product vision. When all can see the final picture, they understand each stakeholder’s steps to achieve the goal. The definition of each step could change a modernization process flow and significantly reduce time and costs. 

Successful TX Strategy in Action: Modernization via Multi Experience for a Fast Food Brand

This theory is great, but what does it look like in practice? In the process of modernization application, the first step is to draw a picture of the system as it currently exists. The state of a system describes different people from a domain and other points of view. This analysis provides incredible results; often, modernization results in an entirely new product that will grow and evolve with the business for years to come.

That’s precisely how we approached a modernization request from McDonald’s, one of the world’s largest fast-food corporations. To meet consumers’ increasing expectations for self-service options, the restaurant brand needed a new system for order-taking. 

Now, customers can browse the menu, place their order, and process payment without communicating any of this to a counter clerk. Those employees, in turn, are freed up to focus on other essential elements of the customer experience: cleaning the store’s interior and exterior, preparing and packaging orders with great accuracy, maintaining equipment, providing a comfortable dining room experience, etc. 

Multi-experience brought a new device to the ordering process, and the modernized application offers an intuitive UX. More than ticking the boxes across the TX spectrum, this solution meets the needs of every type of stakeholder and the business as a whole.

Conclusion

Our current reality requires dynamic adaptation, and businesses must modernize legacy solutions. Applying a Total Experience strategy that weaves together four disciplines – multi-experience (MX), customer experience (CX), employee experience (EX), and user experience (UX) – allows us to do it most profitably.   

TX can offer improved modernization process speed, internal and external brand loyalty, creative new solutions and features, reduced silos, and a healthier atmosphere of innovation across the company.

GlobalLogic has stayed at the forefront of the latest technology trends, strategies, and concepts for more than two decades. We apply best practices and TX lessons learned to each new application transformation process so that digital solutions can improve the consumer’s experience (CX), optimize operations (EX),  and approach UX with a deep understanding of what each user needs.

Whether modernizing the solution involves AI and ML, virtual reality, IoT connectedness, mobile friendliness, or other technologies, our experience in high tech ensures we take an MX approach. This fuels more user touchpoints and a final product that will delight users and exceed their expectations. 

Learn more:

Composable enterprises are a new paradigm for business. Made up of smaller, independently operating units that can be easily combined and reconfigured to meet changing business needs, it’s a model that is gaining traction. 

Packaged business components make it possible for businesses to respond to changes in the market, customers, and technology quickly and more effectively. 

In this whitepaper, readers will learn:

  • What a composable enterprise is and how the model is used to develop new ideas by combining pre-configured business parts.
  • How the composable enterprise model reduces time to market, improves flexibility, boosts innovation, and drives higher productivity.  
  • Why companies are using packaged business components and how they’re doing so successfully.
  • What factors are driving the adoption of the composable enterprise model and how they’re impacting businesses right now.
  • Precisely what organizations need to consider when putting a composable enterprise model in place.
  • Tips for successfully implementing a composable enterprise model in your organization.

Is sustainable growth keeping you up at night? Are you (like many) still using time-consuming processes and outdated technologies?  

Keeping up with technological advancements is hard; coming from behind is harder. If any of the above resonates with you, it’s time to look hard at your digital transformation strategy.

But what is it, exactly?

Digital transformation is more than a buzzword. It’s a necessary shift today for a sustainable business tomorrow.

In this article, we’ll explore the meaning of digital transformation, what it looks like in practice, how to do it successfully, and why digital transformation is so important for companies to remain sustainable and profitable in the years ahead.

What is Digital Transformation?

Digital transformation is the integration of digital technology into all areas of a business, resulting in fundamental changes to how companies operate and deliver value to customers.

In today’s world of digital disruption, businesses must keep up with the changing technological trends by adopting new technologies and processes to stay competitive. Digital transformation is integral for automating processes to find efficiencies and reduce costs, improving customer satisfaction, shoring up data and information security, developing solutions faster, and more.

Recommended reading: If You Build Products, You Should Be Using Digital Twins

Digital transformation is often confused with digitalization and digitization. To clarify, here’s what each means:

Digitization is the process of converting analog data into a digital format. For example, this could involve scanning documents, then saving them as digital files.

Digitalization is the use of digital technologies to enable a business to operate better or become more efficient. It may involve using cloud computing, automated processes, machine learning, artificial intelligence, and new methods.

What’s the Purpose of Digital Transformation?

The purpose of digital transformation is to enable organizations to adapt to the ever-changing demands of the modern business world. By utilizing the latest technologies, companies can gain a competitive edge by increasing efficiency and customer satisfaction.

Digital transformation helps companies identify new opportunities and gain insights into their internal processes and customer behavior. This is why digital transformation is essential for any organization trying to remain agile and responsive to customer needs.

With digital transformation, businesses can stay ahead of the competition by unlocking new levels of operational success and profitability.

COVID’s Impact on Digital Transformation

The COVID-19 pandemic has changed the digital transformation trend from gradual change to accelerated adoption. Businesses quickly recognized that working remotely was beneficial in keeping employees safe while still staying productive. As a result, most companies embraced the virtual workplace.

Now, companies are adopting digital processes and workflows more quickly to fit the remote or hybrid work model. To help accelerate change, cloud computing, and remote collaboration tools have become essential for many businesses.

Organizations of all sizes are now benefiting from more efficient data management, increased analytics capabilities, improved customer experiences, and lower IT costs due to the increased scalability of digital transformation.

The Benefits of Digital Transformation

Digital transformation can revolutionize organizations by affecting every aspect of their operations. Some of the key benefits include:

Improved Efficiency and Productivity

Improved efficiency and productivity are cornerstones of success for any business in the digital age. By embracing digital transformation, companies can unlock the power to design custom experiences that meet the needs of their customers while creating new opportunities for growth.

In addition, digital transformation can help businesses save time and money by automating manual processes, streamlining operations, and leveraging data-driven insights to gain a competitive edge.

With improved efficiency and productivity, businesses can better serve their customers while gaining valuable insights into their needs and preferences. Companies can also use digital transformation to identify areas where they need to improve their processes or services to stay ahead of the competition.

Enhanced Customer Experience

Enhanced customer experience is another key benefit of digital transformation. By leveraging the power of technology, companies can create tailored customer experiences that exceed their expectations.

Digital transformation enables businesses to optimize their processes and services to deliver a seamless and efficient customer experience. With access to data-driven insights, companies can understand the preferences and needs of their customers to develop personalized solutions for them.

In addition, digital transformation opens up new communication channels, such as chatbots and online support, enabling businesses to provide quick responses and solutions when customers need them most. Finally, with an enhanced customer experience, companies can increase loyalty among existing customers and attract new ones.

Increased Innovation

Digital transformation is essential for any business looking to innovate in the modern age. By leveraging the power of technology, companies can streamline their processes and create innovative solutions that meet customer needs. In addition, with access to data-driven insights, businesses can identify new opportunities and develop strategies to capitalize on them.

Digital transformation also enables businesses to stay ahead of the competition by embracing automation and artificial intelligence, two technologies disrupting almost every industry in today’s world.

Improved Decision-Making Capabilities

Digital transformation improves decision-making capabilities. By leveraging data-driven insights, businesses can make informed decisions based on real-time data. This leads to better outcomes for both customers and the company itself. It can also help them gain a competitive edge by responding quickly to changes in customer behavior or trends in the industry.

In addition, digital transformation enables companies to remain agile and adapt quickly to changing market conditions. Companies can use analytics tools such as machine learning and predictive analytics to assess their current situation and predict future scenarios, allowing them to make smarter decisions faster.

Tips for Future-Proofing Your Business with Digital Transformation Success

Digital transformation is an ongoing journey, and organizations must remain committed to continuously improving their operations to stay ahead of the competition.

Click to read Managing Complex Digital Transformation Programs

By taking time to understand the current system and processes and implementing the necessary technology, businesses can ensure they are correctly leveraging their digital transformation. This includes assessing the current state of IT systems and identifying potential risks or gaps in data security.

Digital transformation initiatives can also identify and target new markets and opportunities. Organizations should look for ways to leverage customer data, analytics, and automation to gain insights into new customer needs or services.

Additionally, consider how digital technologies can help you better understand customer trends and behaviors to meet their changing needs, as well as address any internal process concerns. Here are some more tips for successful digital transformation.

Involve the right people

Digital transformation involves many stakeholders, processes, technology, and resources. A change management strategy will help ensure alignment between departments. Additionally, it’s important to provide employees with adequate training to become familiar with the new system and develop communication plans to keep everyone informed throughout the process. Fostering an environment where change is embraced and encouraged is essential.

Digital transformation is a complex undertaking, which is why companies typically enlist an experienced partner’s help to ensure they focus on the right areas and have the resources they need to succeed.

Stay ahead of future disruptions with a dedicated team

Create a dedicated team to support leadership and cross-functional teams across the business in exploring digital transformation opportunities, assessing and prioritizing, then executing. Three key roles here are:

The analyst, who can create the case for a digital transformation investment based on business value and data. This team member is also essential for analyzing the impact of innovations on other areas of the business and finding ways to improve and map out processes.

The visionary; a big, bold thinker with a vision for the company’s digital future and the ability to build a digital-first culture at every level of the organization.

The project manager, whose exceptional planning skills ensure each digital transformation is supported from ideation through implementation and maintenance. 

Together, this dedicated digital transformation team brings the vision, data, and processes it takes to win executive buy-in, ensure positive ROI, and successfully transform the business. These teams often involve external partners with specialized skills and insight.

Prepare to move quickly with an implementation framework

Once you’ve assessed a need and identified that this digital transformation is one you’ll move forward, how will your team(s) implement it? Cut the learning curve and implement faster by creating a framework consisting of best practices, proven processes, and lessons learned. 

These don’t often exist in organizations new in their digital transformation journey. In that case, look for a digital transformation partner with their own digital accelerators – pre-built technologies and engineering best practices – to accelerate your implementation at a reduced cost, without sacrificing quality.

2023 Digital Transformation Trends

In 2023, we expect to see a continued focus on digital transformation strategies and technologies that can help businesses streamline operations and improve customer experiences.

Here are some of the top digital transformation trends we anticipate will dominate the landscape this year:

  1. Automation: Automation tools will be vital in allowing businesses to reduce manual labor costs and increase efficiency across various departments. These tools can help organizations improve customer service with faster response times and personalized services.
  2. Cloud Computing: By embracing cloud technology, businesses can access data and applications securely over the internet, eliminating the need to maintain their servers or infrastructure. Cloud computing offers greater flexibility in organization-wide systems by making them easier to scale and adapt as needed while improving user experience through improved performance and accessibility.
  3. AI and Machine Learning: Artificial intelligence and machine learning will become integral components of any successful digital transformation strategy, driving advanced insights from large datasets and helping teams make informed decisions more quickly.
  4. Cybersecurity: As more companies move their operations online, cybersecurity will be essential for protecting against potential threats such as cyberattacks, malware, data breaches, and other malicious activities on networks or systems.

Digital Transformation FAQs

How can I measure ROI on digital transformation?

Measuring return on investment (ROI) in digital transformation starts with defining what success looks like for the individual company. To calculate ROI on digital transformation, organizations should consider quantitative and qualitative metrics that help assess the value of their efforts.

This can include assessing customer satisfaction, operational efficiency, and cost savings. Additionally, organizations should track the progress of their digital transformation efforts to ensure they are meeting their goals.

To accurately measure ROI, companies must have established metrics for a baseline. Then, over time, businesses can track the impact of any digital transformation efforts on those baselines.

To properly monitor results across the entire life cycle, it can be beneficial to outsource digital transformation assessment and management.

Since companies typically deal with an upstream change or the transition from a business-ready to an engineering-ready project and a downstream change when a project goes from an engineering-ready to an acceptance-ready project, these changes can be challenging to implement.

Why is digital transformation important?

Digital transformation fundamentally changes the way organizations operate and deliver value to customers. It is important because it allows businesses to adapt to changing customer expectations, optimize operations, and stay competitive in a rapidly evolving digital landscape.

How do I get started with digital transformation?

Getting started with digital transformation involves several steps, including assessing your current technology infrastructure and identifying areas for improvement, developing a clear digital strategy, investing in the right tools and technologies, and building a culture that embraces innovation and change.

What are some common challenges associated with digital transformation?

Some common challenges associated with digital transformation include resistance to change, difficulty in integrating new technologies with legacy systems, cybersecurity risks, and a shortage of skilled digital talent. Overcoming these challenges requires a comprehensive approach that addresses both technical and cultural issues.

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5 Real-Time Payments Lessons from India’s Wildly Successful UPI

On a recent trip to India, I was inspired to rethink current real-time payment opportunities for U.S. businesses of all kinds. QR codes for cashless transactions are ubiquitous and you’ll see them everywhere you go in India. 

It’s estimated that nearly 65% of all payment transactions that happen in India are done through UPI (Unified Payment Interface). Indian merchants processed 19.65 billion transactions in volume and Rs 32.5 lakh crore via UPI in Q3 2022 alone, with the bulk of transactions taking place in popular apps such as PhonePe, GooglePay and Paytm Payments Bank App.

And so, as we visited a prominent historical site in South India, I had stepped out in the morning to drink a cup of ‘chai’ (tea). The cost of the tea was 5 Rupees – less than 10 cents in USD. I did not have the required cash on me and paid the Chaiwalla digitally, in real time, by simply opening my mobile phone and scanning a QR code. 

It blew my mind how far India has come in terms of adopting real-time payments and cashless transactions. What are some of the lessons businesses in the U.S. can learn from India’s runaway success with UPI systems?

What is India’s Unified Payments Interface (UPI)?

The Unified Payments Interface was developed and launched in 2016 by a non-profit government entity called the National Payments Corporation of India (NPCI). UPI allows users to instantly transfer money from one bank account to another using a mobile phone.

UPI enables users to link one or more bank accounts to a mobile phone, and transfer funds between them without requiring the bank details of the beneficiary. It provides a single platform for various banking services such as money transfer, bill payments, and merchant payments.

Operating on a two-factor authentication process that includes a unique Virtual Payment Address (VPA) and a Mobile Personal Identification Number (MPIN), UPI makes it secure and convenient to process digital payments. It has played a significant role in promoting a cashless economy in the country.

Recommended reading: If You Build Products, You Should Be Using Digital Twins

5 Real-Time Payment Lessons We Can Use

There are several lessons that the United States can learn from India’s implementation of UPI. Here are a few key outcomes and benefits, and what we can learn from them.

1. Promoting cashless transactions

UPI has been successful in promoting cashless transactions in India, which can help reduce the use of physical currency and improve transparency in financial transactions.

2. Interoperability

UPI allows for interoperability between different banks, which means that users can transfer money between different banks seamlessly. Real time payments adopted in the U.S. by over 400 financial institutions through the likes of Zelle does not allow for this interoperability.

3. Encouraging innovation

UPI has encouraged innovation in the fintech space in India, with many startups building innovative products and services on top of the UPI platform. You can use mobile applications from Paytm, GooglePay, BhartPe etc. on your mobile phone to do UPI.

4. Financial inclusion

This is a huge part of the success in India. Everybody from a small tea vendor on the street to a large merchant in a high-tech shopping mall, can use the UPI infrastructure. 

5. Transaction security

UPI has been designed with the customer in mind, with a focus on ease of use, security, and convenience. With your mobile phone acting as the key part of the identity, every transaction is secured either through face recognition or through an OTP (One-Time-Password) mechanism. 

Overall, the implementation of UPI in India has been a runaway success and has revolutionized the payments landscape in the country. The United States can learn from the Indian experience and adopt similar measures to improve the financial ecosystem and promote financial inclusion.

Recommended reading: Fintech in the Metaverse: Exploring the Possibilities

The Current State of Real-Time Payments in the U.S.

The United States has made significant strides in implementing RTP payments in recent years. The Federal Reserve launched the Faster Payments Task Force in 2015, for example, to explore ways to improve the speed, efficiency, and safety of payments in the US.

In  2017, the task force released a report recommending the creation of a faster payments system and as a result, several real-time payments systems have been developed and launched in the US in recent years. The Clearing House (TCH), a consortium of US banks, launched its real-time payments (RTP) system in 2017, which allows for instant payments between banks 24/7/365. The RTP system has seen significant growth in recent years, with over 400 financial institutions in the US now offering RTP to their customers.

In addition, other real-time payments systems have been launched in the US, such as Zelle, which is owned by a consortium of US banks and allows for instant peer-to-peer payments between bank accounts. Venmo and Cash App are also popular real-time payments apps that allow users to send and receive money instantly.

Looking Ahead to a Friendlier RTP Future

While the US has made significant progress in implementing real-time payments, there is still room for improvement. Existing real-time payments systems are not yet fully interoperable, which means that users may not be able to send money between different systems or banks. In addition, concerns about the security and privacy of real-time payments, and regulatory issues must be addressed.

There is still work to be done to ensure that these systems are fully interoperable, secure, and regulated. With continued investment and collaboration between banks, fintech companies, and government agencies, real-time payments have the potential to revolutionize the payments landscape in the US and improve the speed and efficiency of financial transactions for consumers and businesses alike.

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A recurring challenge in software — especially for newly developed systems or major upgrades — is knowing when you’re ready to deploy or ship for the first time in production. When is “good enough” actually “good enough?”

In this article, we’ll explore this concept of good enough and the nuance around it. You’ll learn key differences between internal and external success, how ship decisions are made by various stakeholders, and where teams and individuals often disagree on precisely what makes a product or update “good enough” and ready to go. Finally, we’ll work through different approaches using real-world use cases and see what lessons can be learned from those.

Part 1: Internal vs. External success

Perceptions of risk depend heavily on company culture, with fear of failure (individually or corporately) being a major driving factor. Most companies agree that a reputation for secure, high-quality products is important to achieve market and business success. 

What differs is how success is measured: internally or externally. 

Companies with an internal focus generally use key performance indicators (KPIs) and other internally-defined metrics to provide incentives or disincentives to drive desired employee and departmental behaviors. These metrics are proxies for desired outcomes; for example, “minimize the number of security penetration vulnerabilities detected post-ship.” 

Causes and risks of an internal focus

Many large companies, in particular, see proxy metrics as the only way to effectively communicate goals throughout a complex organization, to achieve alignment, and to measure success business function-by-function or department-by-department.

Unfortunately, this focus on modeling desired outcomes using proxy metrics often results in the individuals within the company seeking to maximize (or minimize) the metrics that apply to them, rather than focusing on the overall success of a given product in the marketplace. 

No one in this system has the wrong intent. Who could argue that it’s good to ship with more security vulnerabilities? By seeking to eliminate security vulnerabilities, the security group (for example) is merely seeking to do its job. With an internal focus, they will see their job as ensuring compliance to the policies the team has established to achieve the goals set by upper management. 

However, a department-by-department optimization approach can lead to a bad outcome for the company. It is impossible — or at least economically infeasible in a finite time — to create a product of any kind, software or hardware, that is literally perfect in every dimension. And even in those areas where the product is “perfect,” time:

  • exposes new patterns of usage
  • introduces new vulnerabilities in underlying infrastructure or integrated systems
  • results in changes in the operating environment
  • spreads new usability paradigms
  • and introduces other factors that will make even an initially ‘perfect’ product imperfect. 

Successful products are a balance of features, time to market, and non-functional requirements like usability, security, quality, and many others. Which aspect of a product should be emphasized at a given time to achieve a given business outcome requires balance across multiple factors that are sometimes — in fact, often — in conflict. 

In an internally-focused company, ship decisions are often made by executives based on the input from the various business functions and departments. Each of those stakeholders is trying to follow corporate direction by maximizing (or minimizing) the appropriate metrics. 

This can result in some groups having an incentive to avoid shipping a product at all, in order to minimize their department’s or their own exposure to a potentially negative impact on their group’s KPIs. And sometimes, not shipping is the right thing to do. 

On the other hand, in an internally-driven culture, a product that might otherwise be highly successful in the market might never be seen as “good enough” by all its internal stakeholders because shipping it poses a risk to a particular group’s KPIs or other departmental incentives. No one is doing anything ‘wrong’ or ‘dishonest’ in this scenario;in fact, the groups are responding to the direction they have been given by upper management in the form of these metrics. 

However, the net effect is that such companies tend to be highly conservative. They tend not to ship innovative products because they pose a risk of failure to meet internal metrics for one group or another.

How externally-focused organizations differ

Externally-focused companies, on the other hand, are market-focused and look for their signs of success or failure from their buyers, customers and end users. They, too, are sensitive to the risk of failure, but it’s commercial failure in the marketplace that keeps them up at night. 

No single group can afford to place its individual departmental success or mission above the goal of shipping a successful product. This is not out of altruism, or because the individuals involved have different skill sets, quality standards or personalities than their counterparts in an internally-focused company. Rather, it’s because of the way success is measured. 

Recommended reading: Culture at the Core: A Playbook for Digital Transformation

In an externally-focused company, the whole team — all departments — succeed or fail based solely on the success of the product in the market. No department is viewed as successful, even if it hits its individual metrics, if the company or the product fails. Market success is a shared goal, and all teams in an externally-focused company have no choice but to work together to achieve it.

That doesn’t mean that teams within a market-focused company always agree with each other. Far from it. 

Product Management and Engineering may disagree on dates and feature sets; the quality and security groups may raise red flags that are heeded or ignored; DevOps and Ops may fight with the business over tool choices and FinOps. What is different in an externally-focused company, though, is that all of these disagreements are in pursuit of a common goal rather than a departmental goal. 

That shared goal is to quickly ship a featureful-enough, secure-enough, sufficiently high-enough-quality product that succeeds in the marketplace. In this context, maximizing the metrics of an individual group is irrelevant if the product fails, because all lose. 

When all stakeholders are focused on a common goal, disagreements tend to be healthy and rapidly resolved because all are in pursuit of a common goal: product success.

Small companies, and startups in particular, tend to be externally, market-focused. The major incentive and KPI at a startup is stock options, and these only become valuable if the product and company succeeds in the marketplace.

Differences in focus between small and large companies 

Small companies tend to have only a small number of products — sometimes just one. If the product and company do NOT succeed in the marketplace, then a small company will likely close down, making the stock options worthless. Despite the market risk, these factors and others align to make startups externally focused (which is part of their attraction to many good engineers and investors).

Large companies may be or become externally focused, as well. Apple is a very good example. Before Steve Jobs rejoined as interim CEO in the late 1990s, Apple had become very much an internally-focused company. Jobs’ and Apple’s tremendous achievement was due in large part to Steve’s success at flipping Apple’s focus from internal to external. 

He did that by getting a critical mass of people focused on their product’s success with consumers, and in the marketplace. Jobs did this while maintaining what most of us would agree were high quality and security standards. “Externally focused” does not mean “sloppy.” 

Externally focused does mean “risk-based,” though. As a market-focused company, it does not make sense to put effort into areas that fail to generate business value. 

This means that instead of absolute, unalterable, KPI- or departmentally-driven standards for each individual aspect of a product, an externally-focused company instead looks at how best to maximize the business value of the entire product for each release. That is the essence of creating a product that is “good-enough,” “secure-enough,” “featureful-enough,” and so on. This does not mean ‘sloppy,’ but it does mean a ruthless focus on creating release-by-release business value.

Now, how do you quantify “good enough” when making risk-based ship decisions?

Part 2: Approaches to “Good Enough”

With this understanding of how market-focused companies make risk-based ship decisions based on maximizing the business value of each release, we can begin to explore different ways to quantify “how good is good enough.”

Achieving external market-based success often requires a balancing act. In general, you want to get a new product in front of real, live customers as soon as possible. This not only delivers value to your users, but also allows you to gather their feedback so you can improve the product (“pivot or persevere” in Lean/Agile terminology). Success here also lets you unlock potential revenue streams from investors, internally from your own company, and from customers themselves. 

On the other hand, if your product is not “good enough” when customers first see it, you may lose them irreparably and fail in a different way to unlock your revenue stream. In other words, there are risks in shipping, and also risks in not shipping. 

How do externally-focused companies make the tradeoff?

I started studying this issue back in the 1990s. At that time, I read a book that described Hewlett Packard’s quality criteria for at least some of their products at the time (this is pre-split, before HP became “HP” and “HPE”).  

The book said that HP’s quality criteria was met for a given product when it became more expensive to find the next critical bug internally through testing than the cost of letting the customers find that critical bug post-ship. In other words, they would ship when it was more costly to find the bug through testing than to let the customers find it, reputation and remediation costs included.

This was a very high bar in the ‘90s. In those pre-cloud days, systems were deployed on premises, on customer equipment. For at least some systems, replacing them in the field required flying technicians to multiple points of the globe to physically install from media, apply configuration options, transition data, and perform other operations. Replacing a critical system in the field was expensive, so this quality bar was very high. Today, of course, we can deploy in production automatically multiple times a day, so it might not seem like a big deal. But it was then.

Future events are always probabilistic; we don’t know for sure how much testing will be required to find the next critical bug, or how much customer use will uncover it. We can use tools like the defect discovery rate and projections based on past releases to put numbers on these events. But in the end, we are balancing one uncertainty or “risk” against another. This 1990s era HP criteria was therefore “risk based;” that is, they shipped when the probabilities dictated that it was likely that it had become more expensive to continue testing, than the likely cost of finding and remediating a serious quality issue found after shipping. 

I followed HP’s example with a number of products in that timeframe, and for many of them I was accused of being too conservative as the customer never did find that next critical bug. Still, we were playing the odds and very conscious of it.

HP’s approach appealed to me because it made sense, business-wise and quality-wise. You ship when it’s more costly not to ship. 

The potential cost of shipping could be defined so as to include all the factors that keep people up at night: security incidents, production-down incidents, reputational damage — even loss of life. These would be weighted by their probability of occurrence. The cost of not shipping, on the other hand, would include:

  • loss of revenue, 
  • loss of opportunity and competitive advantage, 
  • the cost of continued development and testing, 
  • development infrastructure costs, 
  • and everything else that goes into keeping a product under on-going development without a supporting revenue stream.

Steve Jobs is quoted as saying to the original Apple MacIntosh team, “Real artists ship.” What he meant by this, I believe, is that software systems (or anything else) must be put in the hands of end users to be valuable to anyone. A system delivers no business value while it is under development. 

A system that never ships, because its developers or other stakeholders believe it’s imperfect, delivers no value at all. And, of course, no system is ever perfect. Even if it did start out being perfect, a real-life system is unlikely to remain perfect given emerging security threats, changes to the underlying software components a given system depends on, and many other factors outside the boundaries of the system itself.

Recommended reading: If You Build Products, You Should Be Using Digital Twins

Years ago, I was lucky enough to work with some PhD-level experts on economically-based business decision making. One then-widely accepted approach to such decision making was probabilistic and risk-based. I was surprised and a little shocked to learn that this often included putting a dollar value on lives lost, in order to calculate potential risk. 

For example, if an airline company wanted to determine whether a potentially life-saving improvement to one of their jets was worth the investment, they would go through a thought process something like this simplified illustrative example using fictitious numbers:

  • Replacement cost of the plane is $100M.
  • The plane carries 200 passengers.
  • Our expected liability for each passenger death is $10M USD (this was in the early 2000s, so today this figure would be closer to $20M USD per passenger).
  • The probability of a fatal crash over the 150,000 flight-hours expected service life of the airplane is 1.78%.

Using these made-up figures, we see that the “expected loss” (probability of loss times the $2.1B potential amount of loss) is $37M USD over the life of the aircraft. 

In other words, if you were going to set aside a reserve to cover future losses from the crash liability for “N” number of airplanes of the same type, you should set aside “N x $37M USD.” If the lifetime probability of loss could be reduced to zero through an investment of $37M per plane or less, then it would be economically justified to spend it on improving the safety of the aircraft. 

If it costs more to reduce the risk to zero, or in general if the amount at risk would be reduced by less than the amount invested, the additional investment to improve safety would not be justified in purely economic terms.

This is a very simplified analysis and perhaps morally repugnant because human life is involved. How can one put a financial value — even double the original value, or $20M in today’s dollars — on an individual human life? 

Yet the alternative is to never ship. If we had to reduce the risk of a fatal airplane crash to zero, no one would ever be able to fly. 

The cost of creating such a plane would so far exceed the potential losses from the current generation of planes that no company (or group of companies, or (probably) nations) would ever be able to make the investment. And even if it were possible to build a perfect plane, external factors like deliberate malice, meteor strikes or other non-engineering factors would mean that some people will still die. The cost of the added investment in safety would also have to be passed along to the consumer, raising the price of travel for the end user — perhaps raising it more than the decreased risk would be worth even to the traveler themselves. 

It’s heartless, but if one wants the benefit, one needs to take the risk. The art is making the risk of loss smaller than the expected reward, to the company and to the customers, who follow their own risk/reward calculus.

We each make risk-based decisions every day, yet we hardly think about them. We risk our lives, to a greater or lesser extent, every time we commute to work. For those who drive in the U.S., the cumulative lifetime risk of dying in a car accident is about 1 in 93. Yet we continue to drive and take other risks, because we believe the benefit outweighs the risk. We also put the lives of our loved ones at risk each time they accompany us in a car, ride a bike, or even go for a walk. We rarely worry about it or think about it, but at some level our brains do the math and decide to take a risk to get a reward. 

Even following a risk/reward model, we can still set the quality bar as high as we like by making the expected cost parameters as high as we choose. Instead of $10M liability per life, we can increase it to $100M or $1B per life, for example. We can continue to invest until an arbitrarily high degree of perfection is achieved — or until we run out of money. However, in the meantime, both the customer and the company are denied the benefits they would get through real-life use of the product. This is also a very real cost. 

We can safely assume you believe your product will deliver value to its users: If you didn’t think so, why would you build it in the first place? If that is your belief, then withholding your product from the market hurts its potential users by denying them the benefits that using your product would bring. While you obviously don’t want to ship them something bad or that doesn’t work, bringing something to market that delivers positive benefits to its users is valuable to them, and therefore worthwhile. 

Considering only the potential risks associated with shipping a product, without weighing the potential benefits internally and externally, is not a sound or a balanced ‘engineering’ approach to ship decisions. Weighing both costs and benefits when making a risk-based ship decision is not a compromise. It’s the essence of a value-based business and engineering approach.

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