DEV Community: Kateryna Pakhomova

SaaS Ideas that Are Quick and Easy to Implement

Kateryna Pakhomova — Thu, 10 Nov 2022 16:39:40 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/micro-saas-ideas/

Currently, there are around 14 billion SaaS accounts globally.

It is much bigger than our planet’s population. And if you find such a number unrealistic, just think that some people may have up to dozens of accounts on different SaaS platforms.

What is even more impressive is that these numbers keep on growing.

It is expected that the global market for SaaS platforms will grow from USD 130.69 billion in 2021 to USD 716.52 billion in 2028.

What’s really cool is the fact that you shouldn’t necessarily have a great budget to run your own SaaS platform. You can go with either a large and costly SaaS platform or a cost-efficient micro-SaaS project.

In both cases, a really good idea is your key to success.

And if you don’t know where to find one, read this article.

Here you will find the information that will help you understand SaaS benefits much better and come up with stellar ideas for both large SaaS projects and micro-SaaS startups.

SaaS Ideas and How They Can Help You
Let’s start with a traditional clarification of what a SaaS platform is.

Basically, it is a software service (usually, cloud-based) that is accessed by its users online. It is usually offered via a subscription principle.

If you need more information on this term and its meaning, make sure to check out our article on the SaaS business model.

The most important thing about SaaS is that it can bring great profit to software founders. After all, there are already 25.000 companies using SaaS worldwide.

And this means that there’s a solid demand for SaaS products.

What stands behind the popularity of this software model?

We will explore this in the next chapter.

Why Are SaaS Startups so Popular Today?
Basically, there are two aspects of SaaS popularity.

First, they bring solid advantages to software founders running such products.

Secondly, the SaaS model has many features making it popular among users.

SaaS Platform Benefits for Software Founders
If you are a software founder with great SaaS software ideas, expect to receive the following benefits:

High customer retention. Most customers don’t like switching from a SaaS platform that fulfills their basic needs. Therefore, the overall customer retention rate for SaaS products ranges between 92-97%.
High lifetime value. This advantage is especially relevant when it comes to B2B SaaS startups. For example, most Ahrefs users are SEO-oriented companies with significant budgets that are ready to spend solid money on the platform that fulfills their needs.
Great marketing opportunities. With a market that is annually growing by 27.5%, SaaS development remains a hot trend. And each hot and popular software trend means great opportunities for marketing promotion. SaaS Platform Benefits for Customers One more important reason for SaaS popularity is that this software model brings many benefits to ordinary customers. Here are the ones that deserve the most attention:

Handled maintenance. Customers are very comfortable with SaaS products because fixes, maintenance, and upgrades are usually handled by a software provider.
Scalability. Typically, SaaS solutions are really big and fully employ the scalability of cloud technologies. That’s why any user can easily scale the platform up by paying an additional fee. This benefit may be especially relevant to the owners of rapidly growing businesses.
Flexible pricing. Most SaaS platforms, such as Adobe, have different pricing plans. This means that users pay only for resources and features they really use.
Ready solutions here and now. Most business customers don’t have too much time to develop a software product. Meanwhile, while subscribing to a SaaS platform, they receive a ready solution instantly. What is Micro SaaS? A great thing about SaaS is that you don’t need to be a rich business genius to succeed.

Some SaaS platforms are developed with a very moderate budget. These are typically called micro SaaS apps.

How will I define a micro SaaS platform?

Well, it is a niche market product that is run by one person or a small team. Surely, a micro SaaS is also about a very moderate budget.

What is an example of a micro SaaS platform?

Pramp, a tool for interview practice and voice training would be a perfect example.

This platform is run by a small team and has a very niche-specific functionality that allows it to stay out of the competition.

How Does Micro-SaaS Differ From Traditional SaaS?
Now that you know about micro SaaS, let’s clarify what are the main features distinguishing it from traditional SaaS.

The table below clearly illustrates those differences.

SaaS:

Cash source - VC Money
Differentiation - Competitive advantage
Market - Total market
Growth model - T2D3 growth
Investment style - Aggressive
Team size - 1-up to a dozen of people

Micro SaaS:

Cash source - Self-funding
Differentiation - Uniqueness
Market - Niche
Growth model - Steady growth
Investment style - Controlled
Team size - Dozens or hundreds of members

Way to Validate Startup Ideas
Suppose you have an interesting SaaS startup idea.

How can you be sure that it will, actually, work?

Everything depends on you and your goals/plans/desires/dreams.

However, I can certainly provide you with a list of points to consider while validating SaaS ideas.

These are:

Adequate price. Choose the price that is adequate according to you and your budget. Just remember that overspending on questionable and risky ideas, usually, makes no sense.
High expected ROI. One more time, choose ROI measures that are adequate for you. Then, do your best to reach your dream ROI and beyond.
Moderate competition. To create a product that will thrive in a competition-loaded niche, you should deliver something special. It’s always better to come up with a relatively new idea and enter a market with moderate competition.
Fast development. If SaaS development takes you too much time, your product may become irrelevant by the time of its release. That’s why we recommend you focus on apps developed within a few month-half a year.
Market demand. You may develop an excellent app but what’s the point if it doesn’t bring actual value to the audience? Always be sure that your SaaS idea is demanded and helps your target users. 15 Great SaaS Ideas and How to Build Them Now, it’s time for the main thing that has gathered all of us here.

SMM Management Platform Social media marketing remains one of the most popular business promotion directions in the world.

And the demand for SMM management apps remains high. These are the platforms that help companies automate their SMM practices, enhance competitor research, find the most relevant topics, pick up the most popular hashtags, and analyze SMM strategy efficiency.

Just mind that some features can be challenging to implement, and you may go for AI/ML Python algorithms to establish solid analytics.

Example: HubSpot

Approximate MVP cost: $130,000-$180,000

Approximate MVP development time: up to 5-6 months

Step-by-step approach:

Thoroughly research the market and your target audience to come up with a list of the most demanded features. You can choose a specific marketing niche to narrow down the research.
Start developing a highly-scalable software that can be easily expanded with new services on demand.
Support your app with powerful analytical algorithms. You can create ones with AI/ML technologies.
Release your product MVP to collect user feedback.
Improve your SaaS using this feedback and choose the most suitable subscription model.

Workforce Communication System Although the market has many workforce communication systems, the demand for such apps remains high.

The point is that new companies and professional teams appear at an ever-increasing pace. And all of them need tools to create chats, enable them to share files, and host online meetings.

Moreover, many teams have very specific demands and may switch from the most popular industry picks to the newcomers who provide more attractive pricing or customizable experience.

This means that you can thrive with a workforce communication SaaS platform despite the competition.

Example: Slack

Approximate MVP cost: $90.000-150.000

Approximate MVP development time: 3-5 months

Step-by-step approach:

Research the market and identify user needs.
Ideally, come up with a unique or rare feature that will be your platform’s selling point (for example, the ability to merge different chats upon demand).
Develop your platform and pay much attention to its security and flexibility.
Validate the app and its design to provide the best customer experience.
Release the MVP and collect user feedback for, at least, one month to see how you can improve it.

CRM System for Freelancers Freelance is on the rise, as more and more companies rely on the network of remote workers.

Some freelancers may have dozens of active projects at once.

So, a CRM system that will help them keep everything under control would be more than relevant.

There’s some competition in this niche, but it mostly lacks indisputable leaders.

That’s why such a platform is listed among the best SaaS ideas.

Example: Zoho

Approximate MVP cost: $100.000-160.000

Approximate MVP development time: 3-4 months

Step-by-step approach:

Identify user demands and research the products that your competitors offer.
Come up with a list of features. It may include interactive calendars, scheduling options, communication channels, task dashboards, file repositories, and so on.
Develop the platform with the best CRM development technologies.
Validate the MVP and release it to collect user feedback.
Use the feedback to expand the platform’s functionality.

Personal Finance Management Platform With the growing popularity of financial literacy, there appears a great demand for personal finance management apps.

If you need a tool that will help you track your spending, set budget limits, schedule payments, and build budget plans, such apps are your panacea.

Following such SaaS product ideas is not an easy task because the app should be secure and perfectly integrate with payment systems. However, the promises are really high, and you may read my recent article onbuilding a personal finance app for more detail.

Example: Mint

Approximate MVP cost: $80.000

Approximate MVP development time: 2-3 months

Step-by-step approach:

Come up with the best product strategy and roadmap for its development. Research the market and choose a feature set that proves to be the most demanded.
Create a user-friendly UI/UX design.
Develop an MVP and integrate it with popular payment systems.
Ensure top-quality security of your personal finance management app.
Release the MVP and collect user feedback to enhance further product development.

Interface Design SaaS The app and website development market is growing at an annual growth rate of 23%.

This means that new web apps appear constantly, and each needs a unique design and interface.

Give web developers and designers what they need with a tool that will allow them to create custom designs, share them with other designers, and collaboratively improve these interfaces.

Example: Figma

Approximate MVP cost: $140.000-190.000

Approximate MVP development time: 5-6 months

Step-by-step approach:

Research the market and choose the most relevant feature set and workforce model.
Create a user-friendly UI/UX design.
Develop an MVP and enhance it with various web design development plugins.
Release the MVP and develop the platform according to the user feedback.
Choose the most relevant pricing model for your product.

Service Management and Customer Relationships Platform Many small businesses and regular specialists have challenges with managing their services and customers.

That’s why building a SaaS platform that helps them manage their services, communicate with buyers, and provide customers with paid or free consultations is a good idea.

Just make sure to choose the right niche for your product. In this case, you may even avoid the competition.

At least, that is how ForwardForms, an excellent customer management SaaS for stylists and beauty studios, has been built.

Example: ForwardForms

Approximate MVP cost: $60.000-130.000

Approximate MVP development time: 2-3 months

Step-by-step approach:

Research the market and find the niche that perfectly fits your idea.
Come up with a set of features that would be relevant to entrepreneurs working in this niche.
Develop an MVP that provides the customer with the basic functionality.
Release the MVP, collect user feedback, and use it to develop your platform.
Choose the best subscription model for your service.

Commercial Intelligence Platform Financial analysis and complex estimations take digitized businesses too much time and effort.

That’s why quality analytical apps that help them automate these processes are always in great demand.

Just make sure that your app securely stores all financial data and corresponds to the needs of a specific industry.

Example: Revenue Compass

Approximate MVP cost: $60.000-90.000

Approximate MVP development time: 2-4 months

Step-by-step approach:

Choose the niche that your product will focus on and decide on the scope of features to include in it.
Create user-friendly mechanics and a solid UI/UX design.
Develop your platform and integrate it with excellent analytical features. You may also use AI/ML algorithms for more efficient analytics.
Release the MVP version of your product to see how it helps specific businesses that agree to use its trial version.
Improve your product, expand its functionality, and decide on the subscription model.

Feedback Management Platform Whether companies need to measure the experience and progress of their employees or to know the satisfaction rates of their customers, a feedback management platform is a solution.

It is a SaaS product that processes employee reviews or customer feedback surveys and provides dynamic reports.

Such an app should also include interactive dashboards and interactive storage for feedback records.

Example: Feedier

Approximate MVP cost: $50.000-80.000

Approximate MVP development time: 2-3 months

Step-by-step approach:

Research the market, decide on the functionality of your solution, and create a detailed project roadmap.
Build a solid UI/UX design that will fit your target audience.
Develop the app and pay special focus to interactive reporting features.
Release the MVP and collect user feedback.
Establish your platform, improve it, choose a subscription model, and focus on its market promotion.

Data Storage SaaS As long as data rules the Internet, data storage SaaS platforms will always remain relevant.

Even with the great competition, non-flexible pricing plans make companies and ordinary users seek more cost-efficient and customizable data storage solutions.

That’s when you can take advantage. The key point is to deliver a truly secure and scalable platform with an attractive pricing plan.

Example: Dropbox

Approximate MVP cost: $120.000-190.000

Approximate MVP development time: 4-5 months

Step-by-step approach:

Research the market and decide on the set of features that will help your data storage solution stand out from the competition. More flexible pricing plans, auto-scaling, or expanded data exchange options may go as good variants.
Develop your data storage with a special focus on scalability.
Pay attention to security testing as a separate stage that is extremely vital to your project and its success.
Release your app MVP and collect user feedback.
Improve your platform, add features, and implement a customer-oriented approach in your placing and platform distribution.

Accounting SaaS Platform Big companies have large departments responsible for accounting.

But when it comes to small businesses with solid cash flows, accounting is typically handled by a limited number of employees.

Or, sometimes, companies don’t have professional accountants at all.

That’s why a solution that automates accounting processes is a hot property among small businesses.

Example: QuickBooks

Approximate MVP cost: $40.000-70.000

Approximate MVP development time: 2-3 months

Step-by-step approach:

Focus on a specific user group, come up with a list of features that you will implement, and develop a detailed project roadmap. Competitor research will also come in handy.
Develop an app with a special focus on strong analytical features and storage capabilities.
Establish data labeling and strong information security safeguards.
Release an MVP and see how specific companies run your product during trials.
Expand your platform, fix the issues, and choose a pricing model that perfectly fits both you and your target customers.

Sales Automation Platform With the growing awareness of customer journeys, tools that allow businesses to control each stage of this journey become increasingly popular.

That’s why releasing a platform that would create “buyer funnels” would be a great idea.

The basic functionality for such an app is emailing and distribution of links across the Internet, link tracking, user behavior analysis, and customer management.

Surely, there are many more to include in your app. The key point is that a sales automation platform will help you handle your routine sales processes more efficiently and with less effort.

Example: Click Funnels

Approximate MVP cost: $140.000-170.000

Approximate MVP development time: 5-6 months

Step-by-step approach:

Decide on your target audience and come up with a set of features that are especially relevant to your potential customers. And don’t forget about competitor research.
Create a user-friendly and simple UI/UX design for your platform.
Develop your app MVP with basic functionality, such as ad automation and customer conversion analysis features.
Release the MVP to collect early user feedback and see how they apply your platform’s basic functionality.
Use MVP feedback to improve your app according to market demands.

Construction Design CRM Construction companies that provide specific services to households often have to provide their customers with visual schemes of their services and their outcomes.

And, for sure, a tool that helps them plan the design and visualize it may be very useful to these guys.

If you’re a software founder, a very valid benefit of such software is the opportunity to choose a narrow market niche and take your place in it.

For example, LocalPower, one of the best SoftFormance customers, has successfully implemented a solar panel planning CRM platform.

Example: LocalPower

Approximate MVP cost: $80.000-90.000

Approximate MVP development time: 2-4 months

Step-by-step approach:

Choose the niche you want to occupy and the set of features that will be relevant to this niche.
Develop your MVP with a user-friendly design and rich customer management functionality.
Add technical planning features. You may also integrate your application with tools for design visualization.
Release an MVP and see how your customers use its basic functionality.

Improve your app, implement additional features, and get prepared for continuous upgrade and maintenance tasks.

Property Management SaaS Real estate is always in demand. Moreover, it usually goes about real money in this sphere.

That’s why creating a property management SaaS platform may be an excellent idea.

And don’t forget to include functionality for both property managers and real estate agents.

If all of them find your platform useful, it may have a very bright future.

Example: DoorLoop

Approximate MVP cost: $60.000-90.000

Approximate MVP development time: 1-3 months

Step-by-step approach:

Decide on the features you will include in your property management tool. Also, research the competitors to understand their selling points and deliver a better product.
Create different UI/UX designs for different platform user groups.
Develop the application. If needed, integrate it with third-party tools for financial planning, analysis, and market research.
Release an MVP and deliver it to the representatives of your target user categories.
Optimize your platform, add new features, and choose a pricing model that fits you the most.

Email Automation SaaS A typical mid-size business spends $10-$1500 per month on email marketing.

To be closer to the “$10” party, a business executive should save the time and effort required for email newsletters and related marketing practices.

And email automation platforms are here to help such businesses.

Not only do they automate most email marketing processes but also increase the percentage of letters that avoid the “spam” folder.

So, quality automation software is a great opportunity to bring real value to businesses that want to run their email marketing campaigns as successfully as possible.

Example: Mailchimp

Approximate MVP cost: $80.000-145.000

Approximate MVP development time: 3-4 months

Step-by-step approach:

Research the market and try to outclass your competitors’ main selling points.
Develop user stories to come up with an excellent UI/UX design for your platform.
Integrate your app with the world’s best mailing platforms. If needed, support it with analytical tools that will research the efficiency of email campaigns.
Find a limited group of businesses that will test your MVP in practice for free.
Optimize your platform, choose the best pricing model, and go on with its continuous support and development.

Document Management Platform People don’t like messing with documents. I, personally, hate it, especially if there are too many such documents.

And using document management platforms is the best solution to all these troubles.

Deliver a SaaS app that will enable users to share, store, distribute, and sign documents, and you will get your audience.

Example: DocuSign

Approximate MVP cost: $80.000-130.000

Approximate MVP development time: 3-4 months

Step-by-step approach:

Decide on the functionality you include in your document management platform.
Build user-friendly UI/UX design that accepts different roles (document creator, document receiver, etc.).
Develop a SaaS platform MVP.
Ensure the best security practices and integrate your platform with the best security monitoring tools to prevent data leaks.
Release your MVP, collect user feedback, and improve your document management SaaS according to this feedback.
Conclusions
With all its tangible benefits, SaaS development remains a hot trend in the software industry.

Just consider that even a micro SaaS that costs you $60.000 can bring you more than $10.000 monthly.

BUT!

It won’t go without a good SaaS startup idea.

Luckily, you already have, at least, 15 of them.

And you may check out my recent YouTube video where I share more tips on how to create and validate great SaaS startup ideas.

The only thing left is to find a great partner that would implement these SaaS startup ideas.

SoftFormance, a company with more than 200 successful software projects and a strong focus on SaaS development, is ready to become one.

Contact me and see how we can handle your most ambitious plans in style.

And remember, people need your software!

FAQ
How to find a good idea for micro SaaS?
Market research is your key to success, but you can always find the right direction if you check out the ideas from this article or watch this video.

Are micro SaaS startups really profitable?
Yes, with the right idea and quality development even a SaaS startup that costs you $60.000 will bring you more than $10.000 per month.

Is it true that implementing SaaS ideas can really increase project efficiency?
It is one of the greatest SaaS selling points for your potential customers. They don’t need to wait for a solution or invest in its development. Instead, they receive a ready solution that starts automating their processes and improves their efficiency from the start.

Where can I find competent experts to implement SaaS ideas in my product?
You have already found ones. SoftFormance is a SaaS development company with more than 10 years of expertise and more than 200 successfully completed projects. We know everything about SaaS development and are ready to share our knowledge and expertise with you.

Data Science Business Ideas: How to choose?

Kateryna Pakhomova — Wed, 02 Nov 2022 16:57:48 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/business-analytics-data-science-ideas/

Businesses in most industries these days use data science for their projects and business growth. Business owners realize that it is high time to jump on this bandwagon and use data science while it’s trending and brings businesses the most benefits.

Machine learning and AI are among the top used technologies now, and they can be used practically anywhere: targeted advertising, eCommerce, internet search, education, medicine, video streaming, you name it.

However, knowing the definition of data science is one thing, but you also need to understand how to use it wisely and generate ideas for your business that will bring you profit, boost your growth, make the delivery automated, and will benefit all departments of your organization.

Don’t worry, though! Thousands of companies these days use data science – more than 65% of organizations invested in analytics in 2020 and this number continues to grow rapidly.

Thus, if you want to join these companies and start to grow your business using data science, but you are in need of fresh ideas – you can use this article as your guide and source of inspiration as we will talk about the businesses that use data science, AI, machine learning, and analytical tools for years.

Data Science Benefits for Your Business
Data has been called “the oil of the 21st century,” and for a reason. There’s just so much of it that one can’t help but wonder: what do I do with it to benefit my business?

That’s where data science comes into the picture. Data science is the process of using different techniques and tools to extract useful insights from all the data that there is. It combines programming skills, domain expertise, and knowledge of statistics, maths, and analysis.

Before jumping into the data science startup ideas, you need to understand why exactly you need data science and how it will benefit your company. In this article, we have discussed the benefits of data science in detail, but let’s summarize them once again here.

Increases business predictability
Data science involves analysis, and analysis means higher predictability. It is essential for any business that wants to avoid errors and extract more valuable insights. This thorough analysis helps you make decisions that will have a positive impact on the future of your business as you can predict the outcomes more easily.

Innovation and new products
Data science allows business owners to collect and analyze information about customers, do it faster and more effectively, and be able to make accurate predictions about customers’ decisions and future trends. As a result, it is much easier to come up with new ideas, innovate, and create new products.

Improves the decision-making process
Data science is a great booster for the decision-making process in any organization. Newly developed systems that allow viewing data in real-time increase the agility of your business managers, and business executives have more flexibility. For example, you can use dashboards and projections enabled by a data scientist’s data treatment.

Ensures real-time intelligence.
When data scientists collaborate with RPA professionals, they can identify various data sources of their business to create automated dashboards. Since these dashboards search for data in real time, it helps an organization make more accurate decisions and do it faster.

Improves your business’s data security
The data scientists work on fraud prevention systems. These systems keep customers safer. Furthermore, with data scientists, it is possible to identify possible architectural flaws.

Favors the marketing and sales area
Marketing is data-driven these days. Data scientists help organizations collect more insights about their customers and use this data to improve their marketing operations. With data science, it is possible to obtain the entire customer journey map and understand one’s customers better.

With all these benefits, it becomes clear that it is high time to start using data science for your business, but you also need a clear strategy to see all the benefits in practice. We have discussed data science strategy in detail here, so make sure to get acquainted with it before reading about the business ideas.

The Top Data Science Business Ideas
There are numerous ways how you can use data science for your business, the choice depends on your capabilities, interests, and goals. Let’s look at a couple of the most profitable data science ideas for business that you can use.

Build an analytics tool
Analytics tools help people make data-driven decisions, and you can help people do it by providing them with the ability to access, visualize, and analyze the data.

If you have a great team of experienced experts with strong technical skills, building an analytical tool can be a profitable business idea.

For example, QlikView is one of the best analytical tools on the market. In 2022, it generated $750M in revenue. According to the app’s website, it closes the gap between data, insights, and action with the only cloud platform built for Active Intelligence.

Other analytics tools include Microsoft Power BI, Tableau, Looker, Klipfolio, and Zoho Analytics.

Here are the steps for creating your own analytics platform:

Business analysis
Business analysis is an essential step in building any application, especially if you’re creating an analytics tool. First, set your business objectives and identify the mission of your future project.

Second, examine your domain: analyze the market segment you plan to enter, review your competitors’ solutions, and analyze their strengths and weaknesses. Next, identify functional and non-functional requirements.

Visualizing and design
When you move on to this step, make sure to prioritize information architecture. An analytical tool should be structured in a way that allows each user to understand how everything works.

IA (Information Architecture) includes a lot of parameters: infrastructure and hierarchy, platform navigation, functionality arrangement, and others. Thus, the success of your platform depends on its IA. If you want to learn more about the specifics of UI/UX design, read this article.

Development
There are three approaches to building an analytics tool: using already existing software solutions, developing from scratch, or merging the two approaches.

Using already existing software solutions
Usually, business owners choose to use already existing software solutions when they are about to create an MVP version of their product. This strategy allows you to test the viability of your idea and identify its weaknesses.

First, you need to extract data from some sources. External data sources include ERP, CRM, flat files, etc. To create an MVP of an analytics tool, you may choose one of these platforms. Popular ETL (extract, transform, load) providers include Apache Airflow, Xplenty, AWS Glue, and Stitch.

After the ETL process, data is loaded into the data warehouse. There are three types of data warehouse architecture (single, two, or three-tier). Choose a data warehouse that is voluminous enough to store all your data. Examples of warehouses include Hadoop, AWS S3, AWS Redshift.

The next step is data modeling. A data modeling component extracts data from the warehouse and prepares it for mapping, but you would need to develop this component from scratch since there are no corresponding market solutions.

Then, the time comes for monitoring and administration. It ensures that all components of the data analytics tool are properly functioning. Popular monitoring tools include Amazon CloudWatch and Site24x7.

Finally, you would need to develop a query builder to connect the data warehouse and data modeling component and then move on to data visualization. The tools for data visualization include JasperReports, Sisense, and Grafana. Data visualization involves the creation of graphs, reports, dashboards, etc.

Development from scratch
This is the most time, money, and resources consuming strategy. A great idea would be to use this strategy if your MVP satisfies your business requirements, and you are ready to transform it into a final functional product. If you want to build an analytics tool from scratch, you need a team of experienced developers, so consider this as well.

Merging the two approaches
This approach is a perfect mix of the previous two strategies. You can use it if you have already started developing the MVP version of the analytics tool and understood that some solutions do not work for your project, and you need to develop them from scratch.

Start a healthcare startup
Data science is frequently used in healthcare. This sector benefits from data science the most. It was back in 2008 that data science was first used in the healthcare industry when Google created Google Flu Trends – a map of documented flu cases. Even though the project was not successful at first, it demonstrated great potential for the use of data science in healthcare. Now, data science is used in healthcare for these purposes:

Medical image analysis
Genetics & genomics
Drug development
Virtual assistance for patients and customer support
The most popular projects that use data science for healthcare include Google, Clue, Oncora Medical, and Veeva.

Google
Since the failed attempt in 2008, Google hasn’t abandoned its attempts to apply data science to healthcare.

The company developed LYNA – a tool that helps identify breast cancer tumors that metastasize to nearby lymph nodes. Even though more testing is required, LYNA can accurately identify metastatic cancer 99% of the time.

Clue
The Berlin-based Clue app forecasts users’ menstrual cycles and reproductive health. It tracks cycle start dates, moods, hair conditions, and other metrics. Data scientists mine all this data with Python and Jupyter’s Notebook. Users get notifications when they are most fertile, when the next period is going to start, or when they are on the cusp of pregnancy.

Oncora Medical
Oncora is based on software that uses machine learning to create personalized recommendations for current cancer patients based on data from past ones. The data collected for this app includes diagnoses, treatment plans, outcomes, and side effects from more than 50,000 cancer records.

Veeva
Veeva is a cloud software company that provides software solutions and data for the healthcare industry. The company works in clinical, regulatory, and commercial medical fields.

MyOme
We have also created a healthcare project MyOme that uses the latest algorithms and computational capabilities to help people determine the risk of rare and common hereditary conditions. A person takes a DNA test, and MyOme analyzes data and provides reports on-demand to answer all clinically relevant questions throughout the person’s lifetime.

Start an e-commerce startup
Online shopping has almost become a substitute for offline shopping. More and more people choose to shop without leaving their houses instead of going to shopping malls.

Thus, online retailers now allow people to create their personal profiles where they can track their orders, save their wishlists, and many more.

Some stores can even adjust their prices based on people’s ability to pay. Here are examples of apps that use data science to personalize the online shopping experience:

Sovrn
Sovrn is used by advertisers and outlets like ESPN and Bustle to sign deals. Since these deals happen millions of times a day, this application has collected tons of data for analysis, insights, and improvements to its advertising technology. Sovrn interface can monetize media with minimal human oversight.

Airbnb
Airbnb uses data science to improve its search function. Now, the app prioritizes the search rankings of a rental if it’s in an area that has a high density of Airbnb bookings. People can look for rentals in cool neighborhoods rather than merely focusing on price and availability.

Instagram
Instagram also uses data science. Mainly, it uses data science to target its sponsored posts. Meta, Instagram’s owner, has tons of data on many users, including their age, education, shopping preferences, and search history. Thus, Instagram uses this data to craft algorithms that convert all this data into predictions of what people might want to buy.

Start a CRM business
A CRM, or Customer Relationship Management software, keeps track of your prospects, clients’ info, and their contacts, and it helps you monitor sales and create reports. Here, data science is used for collecting, storing, and analyzing customer data, forecasting, and information management.

The CRM market is a $50B and growing industry. The correct CRM helps achieve lead management, sales forecasting, and even instant messaging between your employees, tracking emails, and integration with Gmail and Outlook.

Famous CRM systems include Salesforce, SAP, ZOHO, Oracle, Microsoft Dynamics, Nimble, and others.

CRMs provide a better customer-client relationship, boost staff, and client satisfaction, support cross-functionality, and reduce overall costs and manual efforts.

LocalPower
LocalPower is also one of our projects. It is a roof design tool with the automated best placement of panels on top of it. We have created a CRM for solar panel agencies with a unique Roof Design Tool and proposal. Moreover, we have worked on front-end solar software, modeling, proposal, and project management by applying data science.

Develop an online survey tool
All businesses need to gather customer feedback, and online survey tools help them with it.

Thus, one of the data science business ideas is to create a tool like this. Usually, an online survey tool includes a survey builder, a data collection tool, and a reporting system.

One of the most popular online survey tools is Typeform. This tool allows customers to ask questions and gather their feedback. Typeform includes built-in photo and video libraries, custom layouts and themes, and a sleek interface that ties it all together.

Taking into account the demand for data collection these days, building an online survey tool is a great idea, and you can be among the top companies doing it right now.

Start a music streaming app
In recent years, the global music streaming market recorded a CAGR of 14.7%, and it is expected to reach $29.45 billion in the next few years.

All music streaming apps available on the market these days use data science to collect information about the users, their listening habits, statistics, and preferences. Then, using machine learning and AI, the apps create personal playlists for the users, recommend new music, and make their listening experience more personalized.

For example, let’s look at Spotify. Using CNN (convolutional neural networks), Spotify analyzes raw data such as the song’s BPM, musical key, loudness, etc., to classify songs based on music type and further optimize its recommendation engine.

Data science and analytics are also used by Spotify‘s marketing department to ensure that the record sells.

Enter the video gaming market
In 2021, the global video game market was valued at $195.65 billion, and it is expected to grow by nearly 13% by 2030.

AI and data science have been used in video games for decades, and now the ways to implement data science in gaming are growing at an incredible pace.

Here are some examples of the use of data science in gaming.

Activation Blizzard
This company is behind popular games like World of Warcraft, Call of Duty, Candy Crush, and Overwatch. Activision Blizzard uses big data to improve people’s gaming experiences.

Unity
Unity creates and operates interactive, real-time 3D content, including games. Companies like Riot Games, Respawn Entertainment, and Atari use Unity to make data-driven decisions to monitor business metrics.

2K
2K Games is a studio that has created Bioshock and Borderlands, as well as PGA and WWE games series. It extracts gaming data and builds models to improve its sports games. The studio also uses data to analyze players’ behavior and suggest how to improve their player experience.

Build a social media platform
People share a lot of information about themselves on social media: their age, education, occupation, places they visit, what they watch, listen to, etc. All the friendships, relationships, and even coworker connections leave tons of data that can be collected and used by various companies.

Many relationships these days begin online: friendships, romantic relationships, and working relationships, and the data about a user influences who they will meet next online. Here is how data science is used by social media platforms:

Meta
One of the most popular features that Meta uses data science for is the “People You May Know” sidebar. It appears on Facebook, Instagram, and other Meta platforms’ home screen, and it is based on people’s friend lists. It is also based on a great algorithm that uses a type of data science known as network science.

Tinder
When people match on Tinder, it is thanks to the company’s data scientists. The app uses an algorithm that boosts the probability of matches, showing users those people who they will most probably like. It also prioritizes matches between active users, those who are near each other, and people that might be each other’s “type.”

Kidiboard
One of the recent projects that we have finished is KidiBoard. It’s an application for parents that contains both a marketplace and a social network. Parents who use KidiBoard can connect with each other, find clubs, seminars, and activities for their kids, and even look for personal tutors there. Users can look for art classes for their kids, yoga, photography courses, and other activities in their location. They can also chat with other users and make posts on their feed.

More SoftFormance cases
At SoftFormance, we believe that because of the many data science benefits, it promotes growth and boosts effectiveness, and our aim is to apply it to as many of our projects as possible. In recent years, data science has helped us successfully finish projects like DashPro & AdsPro, Revenue Compass, Opesta, LocalPower, and others. Let’s talk about them shortly.

AdsPro is a Facebook ads management tool for one of our previous clients. It allows setting up FB Ads Customer Segments API and Bid Multiplier APIs, with a custom ads builder. We used data science to identify customer segments, analyze reviews, and recommend specific products.

Revenue Compass is the fastest, most advanced, and most user-friendly commercial intelligence platform designed to enable fast-moving consumer goods manufacturers to reduce enterprise-wide price leakages, optimize trade spending and maximize value capture by charging every channel partner prices that are uniquely right for them.

Opesta is a marketing automation SaaS app that instantly increases open rates, click-through rates, and conversions by providing everything you need to generate leads, market, and sell using Facebook Messenger. We utilized data science to identify a potential customer base, for forecasting their potential needs, and analyze what would sell best.

Wrapping up
Data is everywhere these days, and there’s an unbelievable amount of it. That is why organizations are actively using it and coming up with new business ideas that would allow them to apply machine learning and AI to their greatest benefit.

It is essential to know what data science is, how it works, and how to build an effective strategy, but you also need to know how to put it into use and make your ideas a reality. Thankfully, there are multiple examples of successful cases on the market.

Thus, if you are not sure yet which path to take, you can just get inspired by these cases and analyze which one suits your business objectives best.

You can either occupy an empty niche in the market, with little to no competitors or create a product that has numerous analogs but makes it unique and broaden your client base. There are multiple ways to use data science, you just need to find your perfect patch.

A clear vision and an idea are the keys to success. Therefore, if you need help in developing your vision or need a consultation, contact us.

FAQ
When is the best time to contact data science experts, before launching your project or after launching?
The best time to consult data science experts is before you start working on the project. Share your ideas, vision, and expectations with the data science team, and they will help you get on the right path, and save time and resources.

What do data scientists need to successfully influence my project?
When looking for data scientists, make sure that they have experience in working on projects similar to yours and that they share your vision and business goals. Furthermore, they need to have both strong technical and non-technical skills. They should be skilled in statistical analysis, deep learning, machine learning, data visualization, programming, big data, mathematics, and processing large data sets. Moreover, it is important that they are great team players and can communicate with other team members effectively.

Where can I find data science talent that can help me implement my ideas for my project?
Remember that data scientists come from everywhere! They are very diverse in their education and background. There are numerous data scientists who have backgrounds in software engineering or data analysis roles, which are very common pathways to data science.

The key is to know the role you are actually hiring for. For example, if you need a data scientist, but your role is heavy on engineering, hire an expert who has experience in engineering.

On-premise vs SaaS: What to Choose and When?

Kateryna Pakhomova — Thu, 13 Oct 2022 12:20:54 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/saas-on-premise/

My customers and business partners often ask me what to choose between SaaS and on-premise software development.

Usually, I respond with a story of two entrepreneurs.

The first one, John, wanted to develop a patient management platform for healthcare businesses.

The second entrepreneur, Alex, decided to launch a content management system for marketing companies.

John decided to go with a cloud-based SaaS solution. Very soon, he recognized that medical companies were very suspicious about his platform’s security.

Besides, one potential client told John that he was unwilling to use a SaaS platform because of security regulations. This client had to use a solution for storing tons of personal patient data, and he wasn’t recommended to use cloud solutions hosted by a third party.

That’s when John came to realize that choosing a SaaS architecture could be a mistake.

At the same time, Alex rapidly grew his service and expanded its target market. He decided to upgrade the content management platform by adding some new features.

Unfortunately, this took Alex too much time. His team had to prepare upgrades for all on-premise versions of his app installed on the computers of his customers.

This was challenging and time-consuming. So, Alex started to doubt his on-premise choice.

So, what is the moral of the story? Both SaaS and on-premise solutions can be right or wrong, and everything depends on your needs and the needs of your target customers.

And if you want to learn what kind of software to run in your specific case, make sure to read this article.

Here you will find a comprehensive comparison of on-premise vs SaaS software architecture that will help you decide on which way to choose.

Prepare your copybook for taking notes and let’s get started!

The Difference between On-premise and SaaS
I will start with a general clarification of the two terms.

On-prem solutions, these are platforms that are installed locally on the customer’s hardware.

A provider offers such software to its customers and, sometimes, provides them with support and upgrade packages.

A perfect example of on-premises software is Microsoft Office.

Customers can install a desktop version of their product, receive upgrades, and update the system locally from time to time.

As for SaaS (Software as a Service), it is a business model where a third-party provider hosts a platform with particular services. And its customers buy access to these services (usually, on a subscription basis).

In most cases, SaaS platforms are cloud-based and provide excellent availability.

A perfect example of a SaaS platform would be Slack.

It provides communication channels and chat management options to businesses that purchase its subscription packages.

So, basically, the main difference between SaaS and on-premise software architecture is in the fact that one is hosted on the cloud while the second is hosted locally.

And, for sure, both approaches have their advantages and disadvantages.

High Level Competitive Advantages of On-premise
The idea of running an on-premise app brings you a few valuable high-level benefits.

Here I will focus on the ones that come into mind first.

Licensing Incomes
Consider the example of Microsoft.

The company provides its software products to all customers, but they should have an active license to keep it running on their hardware.

In simple words, you provide the customers with a permission key that unlocks the platform’s functionality.

And if you want to apply a tiered system, you can offer different licenses that unlock completely different functionality sets.

Contrarily to SaaS, tracking those licenses and their expiration is completely the customer’s business.

Less Maintenance
Most SaaS businesses have to handle all the maintenance of the provided software.

Consider the example of Salesforce. If something about this platform crashes, the provider has to handle all the issues.

Meanwhile, if there’s a problem with the customer’s on-premise platform, such as Microsoft Office the customer may be required to handle it by oneself.

This means that you should put much less effort into platform support and maintenance.

High-Level SaaS Differentiated Benefits
Now, let’s clarify some high-level benefits of running a SaaS solution.

You can find more information on this topic in our recent article on B2B SaaS development.

Here, I will briefly enumerate some essential points.

High Customer Lifetime Value
The first great advantage applies to B2B SaaS development. As your customers are business owners who feel comfortable with a highly-available SaaS platform, they are ready to pay a significant cost for your services.

Therefore, the customer lifetime value is rather high.

Excellent Customer Retention
And their retention is high as well. After all, a business owner that has tuned up his processes according to your platform’s functionality may be very unlikely to switch to another SaaS platform.

A great example is Solvenzio, a fintech industry SaaS that allows business owners to check for the credibility of their partners.

This platform, which, by the way, has been developed by my team, builds on customers getting used to its functionality and interface.

The platform does its job so well, the users don’t even need to think of any alternatives.

And that’s how customer retention should work.

Marketing Opportunities
One more high-level benefit of SaaS platforms is their popularity.

Never underestimate the value of market trends!

If SaaS platforms are popular, some customers definitely know this and would be more likely to rely on exactly such products. Anyway, you have a great bunch of SaaS selling points that will help you ensure SaaS marketing.

On-prem vs SaaS: Features Comparison
Now, let’s dive deeper into our comparison.

It’s just about time to discuss and compare more specific features of SaaS and On-premise platforms within the context of running such a platform.

The table below illustrates the basic differences between the two.

SaaS on premise comparison by critical features

SaaS:

Scalability +
Customization +
Deployment and Access +
Technology Requirements +
On-prem:

Security and Compliance +
Let’s compare the two software types feature-by-feature in more detail.

Scalability
SaaS technologies provide great space for scalability because any app may be easily scaled up or down on demand.

Often, they are created with built-up scalability options. So you, as a SaaS provider, can easily scale your platform once any customer needs it.

I can mention the example of Dropbox. The architecture of the platform enables you to easily scale it up for specific customers each time they purchase more space or services.

And there’s nothing challenging about such changes. There’s a single server hosting everything, and its capacity is immense.

So, each time you want to scale the platform up for a specific customer, you just do it on the server side. And that’s all!

Meanwhile, when you run an on-premise solution, you should send all your customers platform upgrades that they have to install.

Or you may even need to get access to their servers to ensure quality scaling.

And don’t forget about the limited capacities of on-prem servers.

If you think that it is only your customer’s pain, you’re dead wrong. Just think that your customers will switch to another solution when they see that their servers are no longer capable of coping with your data loads.

So, an on-prem platform may be not the best solution if you want to provide your users with smooth scalability.

Customization
Some people say that SaaS is not the best solution in terms of customizability.

But!

It generally applies to customers who cannot customize SaaS platforms, such as Ubersuggest, according to their needs.

Meanwhile, if you’re the guy running a SaaS platform, customization will, actually, be not so challenging to you.

At least, you can just add and deploy a new feature on a single server, and all your customers will receive it.

For example, if the founder of Ubersuggest decides to add settings for more specific organic keyword searches, he just implements this feature on one’s server.

And when all the users access this web platform from their devices, the feature will already be there.

Sounds convenient?

Right, and there’s also a great contrast between the way you customize a SaaS platform and an on-prem solution.

Just like with scalability, you may upgrade the platform by delivering all your licensed users upgrade files and patches that they will need to install.

At least, this is the way SDL Trados Studio, a popular translation platform for personal computers, upgrades itself.

Or you may interact with multiple local servers to enhance your on-prem app for all the customers.

And there may be a lot of work to do.

So, just like with scalability, SaaS platforms win over on-premise software in terms of customizability. At least, when it comes to the software providers’ perspective.

Security and Compliance
That’s when things start to become more challenging for SaaS providers.

Most of us heard about the excellent security provided by the cloud.

And, in most cases, such arguments are relevant. The world’s biggest cloud providers invest millions in development and implementation of the most efficient security practices.

However, this means less control because you need to rely on a third party to keep a platform safe.

Besides, some customers can feel much less confident when they depend on a remote server that stores their data. And, sometimes, this data is really sensitive.

Finally, one of the biggest issues about SaaS platforms is compliance. Some governmental organizations, banks, or entities that ensure security regulations may consider such solutions not secure enough to stand up to their standards.

If you think that those organizations are not your target audience and there are no problems with this, there are chances that you’re wrong. For example, your customer can interact with such organizations. And if they consider a partner with a SaaS system to be not reliable enough, they won’t cooperate with him.

You won’t find such situations too often. In most cases, SaaS solutions won’t face any security or compliance problems.

But I must admit, on-premise solutions win here.

At least, you can fortify your vital on-prem Windows Office infrastructure by installing additional firewalls and security tools.

The space for such security optimization is great. Most of these highly-official and solid guys in suits that represent governmental entities or regulation compliance agencies clearly understand this.

That’s why they prefer on-premise solutions over SaaS platforms.

What is my recommendation for this part?

Carefully consider your target audience and its interactions. In most cases, you will easily go with a SaaS solution but if you want to work with more “official” guys, on-prem may be a better choice.

Deployment and Access
The accessibility part is what should concern your customer more.

Here it goes about their convenience. And that’s where SaaS platforms that can be accessed via the Internet from almost any device rule.

As for on-premise solutions, your customers can access them only from authorized devices. Usually, it goes about using the devices where desktop versions of the on-prem system are installed.

As for you, a software founder, cloud-based SaaS platforms are usually more accessible to you than systems installed on the customer’s premises.

Is it something really valuable to you? Do you really need to have access to customer data and systems except for some maintenance cases?

Besides, limited access to the customer’s on-prem solutions means that you take much less responsibility for maintaining their software.

So, I would say that system accessibility is not a top-priority issue for you as a SaaS or on-prem software provider.

Another question is system deployment.

In this regard, SaaS solutions prove to be much simpler than on-prem systems.

For example, Confluence Cloud is deployed on AWS cloud servers. There’s no need to redeploy it each time you get a new customer.

Instead, you provide this customer with access to all your services that have already been deployed.

Meanwhile, on-prem solutions require separate software deployment for all customers.

For example, they need to tune up and deploy the on-prem version of Confluence on their servers and adjust them to their systems.

So, here we have a seemingly evident victory of SaaS apps over on-prem solutions.

The only thing is that you, as a software founder, do not necessarily have to handle on-prem customer deployments.

Sometimes, you just need to deliver the newest version of your software product to the customer, and they will handle the rest.

Still, get ready to consult your customers on on-premises deployment questions.

So, still, I would say that this part of on prem and SaaS comparison is won by SaaS solutions.

Technology Requirements
Just like in the previous point of comparison, this question is more relevant to your customers.

But it also matters to you because strict technology requirements are what can distract many potential customers from your solution.

Getting straight to the point, SaaS solutions help you stay on the safe side in terms of tech requirements.

They run online and the customer can access them from almost any device.

If your customer is not using a computer that has witnessed mammoths and dinosaurs, they will have no problem running Adobe Creative Cloud, which is a great example of a visual design SaaS platform.

This online software may require the users to install some additional plugins but it will, generally, fit any customer with stable access to the Internet.

So if you’re running a SaaS solution, neither you nor your customers shouldn’t bother yourselves with the question of tech requirements too much.

Meanwhile, on-premise solutions can have particular tech demands to the devices they’re installed on.

Even such popular platforms as Adobe Photoshop may not run on all devices. All is about some tech inconsistencies and tech stuff that makes the real difference.

This brings you, as a software founder, two significant challenges.

First of all, your platform becomes less accessible to the audience.

Secondly, you may try making your on-prem platform more compatible with various devices. And this means even more work and challenges.

That’s why I place a checkmark near SaaS solutions when it comes to this part of on premise vs SaaS comparison.

In Conclusion
So, the final question that concerns you the most is the same: is launching a SaaS platform better than running an on-prem platform?

Looking at the feature-by-feature comparison above, I’d say that SaaS is really a better solution.

There are cases where you cannot go with SaaS and should accept on-prem platforms. Yes, I’m talking about projects that involve official regulations and extreme security demands.

But in 9 out of 10 cases, you may go with a good SaaS.

But how to develop it the right way? And what you should do if you’re from the 10% that require on-prem?

The answer is simple — find a reliable software development partner.

SoftFormance is ready to become one. Just check out our portfolio and you will see that we’re a real deal.

So, don’t hesitate to contact me if you have a great idea for a SaaS or on-prem product.

You’ll see that both variants may sparkle if handled by the right hands.

And remember, people need your software!

FAQ
Private cloud and public cloud — what’s the difference between types of cloud deployments?
Private cloud is a cloud that is entirely taken and managed by a specific organization. Meanwhile, a public cloud is accessed by various users by subscription.

Can I use SaaS and on-premise at the same time?
Yes, there may be SaaS on premise solutions. However, SaaS will be hosted by a third-party provider, while traditional on-premise platforms are hosted in-house.

What are the basic technology requirements for using SaaS and on-premise?
To use SaaS, a customer should have a stable Internet connection and a web browser supplied with some plugins (usually, very basic). Meanwhile, on-premise solutions can set more specific tech requirements to hardware.

Data Science Strategy - How to properly develop a strategy based on collected data

Kateryna Pakhomova — Thu, 06 Oct 2022 08:37:38 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/data-science-business-strategy/

A full-scale revolution is happening right now caused by the use of data science in most industries.
Machine learning, AI, and automation tools are used in targeted advertising, eCommerce, internet search, education, medicine, video streaming, and dozens of other fields.
Organizations that aren't investing in data science will likely soon be left in the shadow of their competitors. In fact, the Big Data Analytics market is projected to reach $105.08 billion by 2027, and small and medium-sized businesses are seen to drive the market's growth.
Indeed, utilizing new technologies like machine learning and AI will boost your business growth, simplify operations, and even drive down costs, but you can't just start using them without having a strategy.

You need to know how to invest in data science wisely, where to look for data, how to extract the most valuable insights, and how to utilize the data for it to be beneficial for your business.
That's why you need a data science strategy. It will help you find the most effective data science team, build a great data architecture, and approach the commercial aspects of data science the right way.
In this article, you have learned the theory of data science, and now it's high time to learn about its practical part - building an effective strategy. If you're ready to start taking the most out of machine learning and AI, keep on reading.
The value of data science
The amounts of available data are overwhelming, but does this mean that all of it is valuable? Data itself is not valuable, but once you define the problem you need to solve and find the right data to extract insights from, it becomes priceless.
What is data science? It's the process of collecting useful information out of all the data there using different tools and techniques.
Data science has a five-stage life cycle:

Capture
Maintain
Process
Analyze
Communicate

You can read in detail about data science, its uses, and benefits here but let's summarize it shortly again. Thus, data science:
Increases business predictability
Boosts innovation
Improves the decision-making process
Favors the marketing and sales area
Ensures real-time intelligence
Improves data security

As you can see, data science can create lots of value for your business if implemented right. That's why data is often called "the new oil" of the 21st century. It drives much of the transformative technology these days with the help of machine learning, AI, advanced analytics, and automation.
Data can also help replace old solutions with new ones, create new services, and continuously improve your business operations.
Having a data science expert in your team will help you solve complex issues that cannot be measured directly. They break a process into factors, which helps determine to what extent each factor contributes to the problem.
What is a data science strategy?
A data science strategy is a company's vision of how and what elements of data should be used to achieve one's business goals. Moreover, it's about the ways to build a thriving data culture within an organization and where and how to get the skills and knowledge required to execute this vision.
For example, let's say that you have decided to build a house. To do it, you need to find a professional team of designers and constructors, buy all the necessary tools and building materials, and, most importantly, have a detailed plan of the house.
You won't be able to build a house if you just have bricks and nails just like you won't be able to do it without the builders. Great results are only possible if all elements of the strategy are in the right place because they depend on one another.
The same applies to your data science strategy. Its success depends on the codependence of all of its elements and your ability to use them wisely.
How to define goals and sources of information
Any business strategy should start by asking yourself a question: what are my goals and what do I want to achieve in the first place?
All businesses have the same end goal - to generate more revenue, but their paths there are different and depend on the business owners' decisions.
To use data science to its fullest potential and see its real benefits, you need to set a measurable goal.
For example, let's say that you work in eCommerce, and your company is facing some customer conversion issues. Your main measurable goal is to increase conversion rates and boost current statistics. First of all, you need to check the current conversion rates, bounce rate, user flow, and conversion funnel in the analytics software. This will help you identify where the problem lies.
Once you identify the main issue, you can see how to achieve your goal of improving conversion rates. You can either ensure the most popular items on your website are easy to find, the search process is smooth and easy, and that there are enough filters so that users only get those choices that meet their needs.
The key is to identify clear goals, and then it will be much easier to build a strategy and achieve those goals. Once you have a measurable goal, you will understand what can be done with all the data you have and the insights you extracted from it.
Data science strategy pieces
Once you define a measurable goal and identify potential data sources, it's time to start building your data science strategy. It can consist of various pieces, but let's focus on the 9 main elements.

Vision
The first element of a data science strategy is vision. Building an effective vision is essential if you want your team to stay motivated, open to change, and move in the same direction. Without a clear vision and a data science mission statement, you risk being overly focused on short-term goals and facing multiple everyday challenges.
A great vision is one that aligns with your company's mission, focus on successful outcomes, and is not too complicated and overly technical. If you want your vision to be clearer and more well-defined, you can support it with mission statements and value statements.
Always remember that vision should be the first element of your data science strategy. All the next elements can interchange, yet vision should always remain the first. It should serve as a guide that helps you define the rest of the plan and where to move next.
For example, IKEA's vision statement sounds like this: "Our vision is to create a better everyday life for many people." It makes it clear that they are in the market to offer high-quality goods that suit everyone's lifestyles for low prices.
In SoftFormance, when we first meet with the client, we talk through their vision and mission statements or help them develop them. Before moving forward with the next elements, we ensure that our vision and the client's vision coincide and that there's no misunderstanding on any level.
Culture
According to the NewVantage Partners Big Data and AI 2021 Survey, "the greatest challenge for leading companies in their efforts to become data-driven continues to be due to cultural barriers - 92.2%"
That is why if you want to build an effective data science strategy, you should identify organizational and industry cultural challenges. These challenges include:
Business processes
Communication
Organizational alignment
Change management
People skillsets
And a lack of understanding

An effective data science strategy can also help you see how data can support your employees' individual motivators and how to use it to support your company's values.
For example, you can organize a data science club, recruitment events, dev discussions, and other events to support communications within the enterprise.
At SoftFormance, we frequently organize events like that to allow our employees to communicate with each other, share their experiences, and build closer relationships.
Team
When you're building a data science strategy, it is also important to think about who will work on your project and each person's role.
Usually, company leaders choose to stick to the agile team structure which we have covered in this article.
A typical team structure consists of a project manager (PM), a business analyst (BA), UI/UX designers, developers, and a quality assurance engineer (QA). However, you are free to add more team roles depending on your data science strategy.
When creating a team, always consider these questions:
Who will be responsible for the vision and its execution? If you have a larger organization, your choice may be the Chief Data Officer. However, if you have a smaller business, hiring a Data Science Team Manager could be a great idea.
How will you structure data: in a centralized or a decentralized way? Which one would be more effective for your project? Regardless of the choice, make sure that the communication strategy is aligned among all team members.

Data
In 2017, the Economist declared data as the world's most valuable resource.
Moreover, almost all of the top companies worth over 1$ trillion are built on strong data strategies as you can see in the table below.
Apple:
Market Cap - $2.417 T
Strong Data Strategy - Yes

Saudi Aramco:
Market Cap - $2.105 T
Strong Data Strategy - Oil

Microsoft:
Market Cap - $1.774 T
Strong Data Strategy - Yes

Alphabet (Google):
Market Cap - $1.290 T
Strong Data Strategy - Yes

Amazon:
Market Cap - $1.159 T
Strong Data Strategy - Yes

These are the world's top five most valuable companies according to this website.
As you can see, all of them except Saudi Aramco take data as their most valuable asset, and their market cap only continues to increase because of that. This means that having a strong data science strategy allows one to capture, store, and retrieve data more effectively.
If you want your data science strategy to be effective, make sure you make data FAIR.
Findable - data and metadata should be easy to find by people and machines.
Accessible - everyone can access the needed and appropriate data, be it authorized or unauthorized users.
Interoperable - the sets of data should combine easily with each other.
Reusable - data sets should be reused constantly.

Technology
Technology is constantly evolving, especially in the field of data science. Thus, it would be a huge mistake not to follow the trends and be left behind. Your goal should be to constantly discover and purchase the evolving data science tech stack.
For example, the top technologies that can be used in data science include:
Amazon Web Services (AWS). AWS is a cloud computing service. These services include Amazon Machine Learning, Amazon Redshift, Amazon Simple Storage Service, and Amazon Rekognition, Amazon Textract.
RFID (radio-frequency identification) and NFC (near-field communication) will allow you to use the Internet of Things (IoT). It's a new network of physical objects embedded with software, electronics, and sensors that help them collect and exchange data via the internet. You can use them to predict maintenance or determine a customer's risk profiles for various incidents.
Natural Language Processing. With this technology, you can use Text Mining for your data science projects. This practice is about extracting data from text-based information such as documents and articles. It is widely used in industries like law enforcement and healthcare. NLP is used for extracting valuable information from unstructured information, discovering hidden topics, and sentiment analysis.
Stream engines like Apache Kafka, Spark stream, and Flume, can be used for Streaming Analytics. It allows data scientists to analyze data in real-time. During this process, experts can have a deeper insight into the events as they occur, which helps organizations stay proactive.

New technology allows companies to collect and retrieve data faster, in bigger amounts, and, as a result, be more effective and competitive. Thus, ensure that your tech stack provides your team with effective machine learning tools and resources.
Product management
Product management is essential in data science. When working on a strategy, you need to ensure that you focus only on those opportunities that will work out and bring you the most benefit, deferring the other ones not to waste time and resources.
To achieve this faster and easier, invest in data science product management. Your data science strategy needs to outline the type of research and the type of products your data science team will deliver.
That is what a data science product manager does. This person works with the data science team, data engineering team, and product development team. The tasks of a data science product manager include:
Understanding customer needs.
Figuring out ML solutions.
Identifying good use cases.
Understanding business needs.
Launching new products on time.

You can use the Data Science Product Manifesto to help you create a strategy easier.
Program Management
A data science lifecycle is different from the software product lifecycle. Thus, that is why you should identify a strategy behind it and decide how you will manage your data science projects.
Usually, a data science lifecycle consists of these steps:
Capture. This stage involves data acquisition, data entry, signal reception, and data extraction.
Maintain. Next comes data warehousing, data cleansing, data staging, data processing, and data architecture.
Process. Data mining, clustering/classification, data modeling, data summarization.
Analyze. Exploratory/confirmatory, predictive analysis, regression, text mining, qualitative analysis.
Communicate. Data reporting, data visualization, business intelligence, and decision-making.

Always make sure that there is a collaborative framework for your team to use and know how to coordinate their tasks. Moreover, it is essential to adopt agile principles and make all the processes repeatable.
Machine learning operations
Machine learning operations, or MLOps are rapidly gaining momentum among Strategic Data Scientists. These are the reasons why this is happening:
MLOps unify the release cycle for machine learning release.
MLOps allow applying agile principles to machine learning projects.
MLOps reduces technical debt across machine learning models.
MLOPs allow to automatically test machine learning artifacts.

When you build your machine learning operations, consider operational strategy and processes, model management, cloud systems management, and data management.
Strategic roadmap
It is impossible to execute a strategy without a roadmap. You need to set priorities and work on some aspects of the plan first and then use them as building blocks. This will allow you to assess how much time it will take to execute a project and how to communicate priorities.
What are the prerequisites for a good project roadmap?
A good validated idea
Product strategy
A trusted development team
Team roles: programmer, business analyst, UX/UI specialist, and project manager

Three steps for a successful data science strategy
Now that we have covered the basic elements of any data science strategy, it's time to focus on the steps you need to take to ensure that this strategy will be ab effective one. You need to find ways in which AI will help you be two steps ahead of your competitors and will benefit your data science strategy the most.
These tactics include such steps: aligning with a vendor that will support you and your team, gathering the right information and determining which metrics to track, and, finally, setting goals that will show valuable results.

Align with the right vendor
Building a successful data science strategy is not easy, and you don't want to work on it alone. It's always a great idea to find a vendor to partner with, someone who will support you and your team and help you build a successful strategy for your business.
We have already talked about how to find the right tech partner for your business here. Shortly, you need to find a vendor who understands your business specifics, aligns with your business objectives, and, most importantly, has a similar experience to your project requests.
It also needs to be someone who values communication and is committed to your project.
Finally, as you develop your data science strategy, you need to choose a vendor who values continuous growth and has enough expertise in the strategic data science field.
Gather and track the right metrics
Having all the right tools is not enough to create a successful data science strategy. You also need to track the key metrics if you prioritize the return of investment and long-term value.
Here is a list of metrics to keep track of:
Component reuse
It is a great idea to track component reuse as a KPI. Reusing components created by your data science team allows future models to be produced faster.
Moreover, reusing valuable data, using standardized templates, and preserving effective software configurations allows your team to work smarter, produce results faster, and make fewer mistakes.
Team productivity
Another metric that is preferable to track is your team's productivity. What I mean here is setting targets to measure productivity, and data scientists do it to prove that they are not wasting time every day.
For example, your team can report on the data they collected from a user activity database or create a base model with 70% accuracy.
Set use-case-driven goals and demonstrate valuable results
Use-case-driven goals closely align with the tactical part of your data science strategy. These goals can look like this:
Increase sales as compared to the last couple of months
Train your data science team on the new type of machine learning algorithm

These goals are not strategic, they are operational because they are the small milestones that your organization needs to meet to achieve long-term success and strategic vision.
Keep in mind that with data science, you won't see immediate results. That is why you need to set those daily goals to track progress and see the results sooner.
Create a template
A good idea would be to create a data strategy template. It will help you focus on your priorities and have the essential elements of your future strategy in front of you.

Take a look at this data science strategy template. As you can see, it consists of 5 use cases, cross-cutting goals, data requirements, technology, skills, etc. Let's talk about each element briefly.
Use cases
First thing you need to do is fill out the Data Use Case Template for each of your future projects. It will help you prioritize your data science projects and know exactly what you want to include in each of them.
Here are a few examples of data use cases/projects:
Optimizing prices
Automating the production process to make it more efficient
Identifying smarter services or products
Delivering a better, more personalized user experience

Data requirements
Now, look at this part of the template. In this section, you need to identify what data you are going to need and how you will source it.
For example, you may focus on data diversity for all of your data projects. This means that you will combine different data structured and unstructured, for instance) to ensure that you get a full picture and more possibilities.
Data governance
This section is about data quality, ethics, ownership, privacy, and security. These issues may arise in all user cases, so they are cross-cutting.
For example, data quality or privacy issues can be a problem across the whole organization. Thus, to achieve your data priorities, you need to solve these issues. You need to ensure that data is accurate and that no one's privacy is violated.
Technology
In this section, identify the cross-cutting issues that relate to technology, or the software requirements that are common across all use cases.
Identify what technology you would need to collect data, store it, process it, and communicate insights.
Sometimes, you might already have the software required for all of the processes, but it can also happen that you would need to invest in new software.
Skills and capacity
Usually, the lack of skills and knowledge of data science is a common issue in many organizations. That is why you would need to have cross-cutting requirements for closing this gap.
To ensure that these issues are addressed, train your staff or outsource your data science processes to external experts. You can also work with a data provider.
Implementation/change management
You should also think about the common issues that might prevent you from meeting your goals and turning your plans into reality.
For example, your teams may not be as excited about the data science implementation in your business. Thus, a requirement would be to invest time and money into educating managers and teams on the benefits of using data.
This data science strategy template and leadership in your niche can make a great deal in the world and help you be ten steps ahead of your competitors in the market, so use this template to your benefit.
How does the wrong strategy affect your business?
Just like a great data science strategy can lead you to success and be two steps ahead of your competitors, so can a wrong strategy have severe effects on your business. Thus, it's better to know about the possible adverse effects as they will help you focus more on the tactics and each element of the strategy.

Lack of objectives
If you don't have a coherent strategy, it is impossible to identify business objectives. Without these objectives, you wouldn't know where to move next and what processes to focus on. Thus, it's highly unlikely you would be able to move forward and grow.
Moreover, if you have no clear objectives, how do you know when you accomplished them? That's why it is so important to focus on your business objectives and find a tech partner who will understand them.
For example, that's how we started work with one of our clients - Opesta.com. On the first call, Ethan and SoftFormance's team realized that our business backgrounds coincide, and we see a clear roadmap of what to do with Ethan's idea next.
Resources not properly allocated
One of the reasons why businesses create strategies is to allocate corporate resources to their projects and operations that require those resources the most.
If there's no proper planning or it's not coherent, it is almost impossible to create budgets for business projects and understand how much money you will need to hire a team and develop your app.
Dispersing funds randomly is not the best idea as you can easily find yourself short of funds and have no more money for essentials such as paying your vendors.
Unclear organizational structure and communication issues
As we have already mentioned, one element of a successful data science strategy is clearly identifying the team roles. The number of people on the team and their responsibilities depends on your unique strategy and approach, but it is essential to make sure that you have a clear organizational structure.
It will ensure that each member of the team does their job, everyone collaborates and communicates with each other, and that there's consistency and coherence to the team's work.
In SoftFormace, we meet every Monday and discuss the agenda for the following week. On Wednesday, all team members send mid-week reports in Slack channels about how much work has been accomplished and whether everything goes well.
On Friday evening, team members send weekly Slack client channels, including info about all weekly progress, issues, and achievements.
Thus, each member of our team understands their role, responsibilities, and tasks, and frequently sends reports about their progress.
Data science at SoftFormance
At SoftFormance, we believe that because of the many data science benefits, it promotes growth and boosts effectiveness, and our aim is to apply it to as many of our projects as possible. In recent years, data science has helped us successfully finish projects like DashPro & AdsPro, Revenue Compass, Opesta, LocalPower, and others. Let's talk about them shortly.

DashPro is an analytics platform for Solar Panel Agency. There is a Dashboard tool to collect and adjust data from different sources, like Facebook and SalesForce. That is where data science was applied - we created a tool for the collection and analysis of data as well as for extracting valuable insights for Solar Panel Agency.
AdsPro is a Facebook ads management tool for one of our previous clients. It allows setting up FB Ads Customer Segments API and Bid Multiplier APIs, with a custom ads builder. We used data science to identify customer segments, analyze reviews, and recommend specific products.
Revenue Compass is the fastest, most advanced, and most user-friendly commercial intelligence platform designed to enable fast-moving consumer goods manufacturers to reduce enterprise-wide price leakages, optimize trade spending and maximize value capture by charging every channel partner prices that are uniquely right for them.
Opesta is a marketing automation SaaS app that instantly increases open rates, click-through rates, and conversions by providing everything you need to generate leads, market, and sell using Facebook Messenger. We utilized data science to identify a potential customer base, for forecasting their potential needs, and analyze what would sell best.
LocalPower is a roof design tool with the automated best placement of panels on top of it. We have created a CRM for solar panel agencies with a unique Roof Design Tool and proposal. Moreover, we have worked on front-end solar software, modeling, proposal, and project management applying data science.
Should you hire a data science team and where to find experts?
If you decide to work on a data science strategy, you need a team to help you. It can either be an in-house team or you can decide to work with outsourced experts.
Taking into account the number of data science experts in the global talent pool, outsourcing seems a smart option. This way, you can choose the best of the best, save money you spend on the hiring process, increase efficiency, and have more access to innovation.
Furthermore, hiring an entire data science team from scratch can take months, while working with an outsourced team is easier and faster.
Where do you find data science experts? I have already answered this question in detail here. Shortly, if you are looking for a generalist data scientist, don't throw out someone's resume just because this person has a different degree or is from a different field than what you expect.
Remember that data scientists come from everywhere! They are very diverse in their education and background. There are numerous data scientists who have backgrounds in software engineering or data analysis roles, which are very common pathways to data science.
FAQ
Ordinal data vs. nominal data: What's the difference?
Original data is a type of categorical data that has an order. Thus, all variables in the original data are listed in an ordered manner and they are usually numbered. For example, it can include positions in class like "first" or "second."
Nominal data, on the contrary, is used for naming or labeling variables, without quantitative value. Thus, there's no ordering to its variables. Examples of nominal data include race, gender, country, hair color, etc.
Consider this example:
How was your experience with our customer service?

And this:
How was your experience with our customer service?

Good
Neutral
Bad

The first is the example of nominal data, and the second - ordinal data.
How long does it take to gather information for a strategy?
The amount of time it takes to collect data depends on many factors: your project's scope, data availability, project tasks, and unexpected events. Thus, to answer the question "How long will this take?", first determine the scope of the project, then ensure that there is enough data available, define the high-level tasks and see the estimated time for each task, and apply a fudge factor (time spent on unexpected events, on meetings, answering questions, etc).
Who are the Data Science experts?
A data science expert is an analytical expert who uses both technology and social science to manage data. A data scientist structures and manages data using computer science, statistics, and maths.
Wrapping Up
Adding data science, machine learning, and AI to the technologies you are already using is a brilliant idea because it will allow you to keep up with the times and stay competitive in the market and save a lot of resources.
Every business needs a data science strategy right now, big or small. It allows business owners to have a clearer vision of their company's future, the possibilities for growth, and ways to attract new clients.
It can seem that building a data science strategy is difficult and requires a lot of time and resources, but it's not entirely true.
If you define your goals, choose a team of experts who will help you, and focus on your tasks, you will be able to build an effective strategy with little to no challenges.
This way, you will avoid unnecessary problems, will know what to expect from the final product, and all members of your team will know their roles and responsibilities.
A great strategy saves you time, and money, and protects you from unnecessary stress, so why risk it?
We have already helped dozens of our clients with building a data science strategy for their business, and we are ready to help you, so if you want to work with us or need a consultation, just contact us.

Things You Should Know about B2B SaaS Business Model

Kateryna Pakhomova — Fri, 30 Sep 2022 16:12:06 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/b2b-saas-company/

By the end of the year, the annual growth rate of SaaS technologies will most likely surpass 17%.
What stands behind such rapid growth? I'll explain with an example.
John is an ambitious software founder who wants to develop a content management platform to a broad audience.
However, he sees a strong competition. Besides, the users' paying ability is questionable, and John has to attract a great number of consumers to cover the expenses.
Therefore, he decides to shift the focus and deliver a more complex content management system for business founders.
He develops a feature-packed B2B SaaS platform that attracts business owners with reasonable pricing policies and relevant features.
The platform becomes an overnight sensation. In less than 12 months, John generates millions in revenues.
He often recalls his early project planning and feels happy that he has chosen B2B SaaS instead of consumer-focused SaaS platform.
So, if you decide to launch a B2B SaaS solution that brings real value to businesses, you'll have no problems with finding the target audience.
Sounds attractive?
Then you should read this article to know the main features of B2B SaaS products, their main benefits, tips on how to promote such platforms, great B2B SaaS examples, and many more!
What is SaaS?
Let's start with a general definition of SaaS.
This notion stands for software as a service.
Basically, it is a business model in which a customer pays a software provider to buy a particular software solution.
In most cases, the customer will:
Receive a cloud-based product that provides you with specific functionality;
Be charged on a subscription basis (annually or monthly);
Get a core technological value (features, code, platform) that is maintained by a SaaS provider.

What is B2B SaaS?
In the introduction, I have mentioned the notion of B2B SaaS.
What is it, and how is it different from SaaS?
Actually, B2B SaaS can be viewed as a SaaS subcategory.
This notion stands for business-to-business SaaS solutions.
These are cloud-based platforms that provide particular functionality and value to businesses.
A perfect example of SaaS is Jira Atlassian.
It is a web platform that provides various businesses with task and workforce management functionality.
What's the Difference between B2B SaaS and B2C SaaS?
Sometimes, people confuse B2B SaaS with B2C SaaS.
Well, although both involve SaaS technology, these notions are very different in their essence.
B2B SaaS provides value to businesses. Hence, it is all about workforce management, automation, and task organization.
Meanwhile, B2C SaaS is oriented toward final consumers instead of providing value to businesses.
We can mention Netflix as an example of a B2C SaaS. This media hosting platform provides entertainment value to ordinary consumers.
So, the main difference between B2C and B2B SaaS is, actually, in the target audience.
The choice is up to you, but with B2B SaaS, you will focus on the most solvent customers.
How Does B2B SaaS Work?
Let's consider the example of Forward Forms to illustrate the flow of a B2B SaaS platform.
Forward Forms is a platform that provides stylists and beauty business owners with rich functionality for managing their online consultations and automating the documentation flow.
Here are some of the main features of this platform that are worth mentioning.

Cloud Infrastructure
Forward Forms is a cloud platform.
Therefore, it is based on a virtual server, which ensures its availability, scalability, and quality maintenance.
Most B2B SaaS solutions rely on cloud technologies provided by such giants as AWS, Google Cloud Platform, or Microsoft Azure.
Maintenance by the Provider
While using Forward Forms, stylists and beauty business owners don't need to update the platform or handle its maintenance.
Instead, all such issues are covered by the SaaS provider.
Updates are automated and any software crash is immediately fixed by Forward Forms administrators or specialists hired by the provider.
This principle is one of the core features of the SaaS approach.
Accessibility from any Device
Forward Forms customers can access the platform remotely anytime they want.
And, for sure, it goes about using any device.
This accessibility and convenience make business management features provided by Forward Forms even more convenient.
And one more time, it is a fundamental feature of most B2B SaaS platforms.
Forward Forms is an example of a B2B SaaS solution for small and mid-size businesses.
However, don't forget that there exist large B2B SaaS systems that bring advantages to big corporations.
Corporate B2B SaaS
A perfect example of a corporate B2B SaaS solution would be Confluence.
It is a team collaboration software applied by large corporations to help employees to communicate and exchange information.
Moreover, this corporate B2B SaaS platform integrates with various apps to bring even more value to big corporations.
For example, Confluence is included in the tech stack of Facebook, one of the world's biggest social networks.
Why did I mention this example?
Well, I'm just telling you that no company size is too big when it comes to B2B SaaS solutions!
How to Follow a B2B SaaS Business Model?
Now, let's provide our traditional step-by-step approach to developing an app.

Just like any other software development project, this platform development flow starts with idea generation.

Generate the Idea What type of businesses do you want to target? And which value will your product bring to them? Both these questions have to be answered at the idea generation stage. To keep everything safe and dry, make sure to run solid market researchю Identify the competitors, and determine the factors that will help your B2B SaaS platform sustain the competition. For example, the founders of Opesta, one of our notable SaaS projects, had the idea of creating a social media marketing automation platform. After a brief market overview, they decided to launch a platform that would automate Facebook advertising. In addition, they identified moderate competition and decided to make maximized customizability their main selling point.
Create a Roadmap Once the idea is generated, it's just about time to decide on platform functionality and create a step-by-step plan for its development and promotion. From my perspective, this stage usually involves a lot of communication. You and your tech partner should understand all project implications and create a map that will guide the project over time. That was exactly the case with Opesta. My team thoroughly researched project requirements to provide the customer with a step-by-step approach to its implementation.
UI/UX Design Development The next step involved developing a UI/UX design for a B2B SaaS platform. All these user interface parts and their components are extremely vital. Even though business owners are more focused on WHAT your app provides, they also pay attention to HOW it provides its benefits. So, make sure that your design is as simple as possible. At least, that is the approach that we have followed while developing Opesta.
Choose a Pricing Model You should earn something from your B2B SaaS platform. And make sure to choose a subscription model before you start active app development. Stripe B2B SaaS integration may be a solution for easy in-app purchases. A popular way is to launch a SaaS platform with a tiered subscription. In this case, the customer gets different functionality sets, depending on which subscription type he or she purchases. Other subscription options for B2B SaaS platforms include: Fixed fee subscription; Pay-as-you-go option (you pay for the time or scope of the SaaS service you choose); Mixed subscription (unites elements of different subscription models); Custom subscription model organized according to your specific demands.

Returning to the case of Opesta, these guys decided to go with a fixed fee for a monthly subscription.

Develop your B2B SaaS System That's when some real action breaks in. Your tech partner follows your requirements and the roadmap to create a B2B SaaS platform. There are many practices and technologies that help them handle this stage as fast as possible. Still, get prepared for some challenges! In the Opesta project, the challenge was integrating the platform with the Facebook API. Fortunately, we managed to find walkarounds and solve the problem in the shortest terms.
Promote your Product with the Best Marketing Practices One thing is to develop a great B2B SaaS platform, and another is to promote it so that it gains a solid customer base. I will tell you more about the B2B SaaS sales strategy and marketing practices in the next chapter. As for the case of Opesta, these guys are a marketing startup. So, they definitely knew how to organize targeting and ad automation to increase their social media outreach. What Technology Can Help with the B2B SaaS Sales Process?Just like any other software development project, this platform development flow starts with idea generation.
Generate the Idea What type of businesses do you want to target? And which value will your product bring to them? Both these questions have to be answered at the idea generation stage. To keep everything safe and dry, make sure to run solid market researchю Identify the competitors, and determine the factors that will help your B2B SaaS platform sustain the competition. For example, the founders of Opesta, one of our notable SaaS projects, had the idea of creating a social media marketing automation platform. After a brief market overview, they decided to launch a platform that would automate Facebook advertising. In addition, they identified moderate competition and decided to make maximized customizability their main selling point.
Create a Roadmap Once the idea is generated, it's just about time to decide on platform functionality and create a step-by-step plan for its development and promotion. From my perspective, this stage usually involves a lot of communication. You and your tech partner should understand all project implications and create a map that will guide the project over time. That was exactly the case with Opesta. My team thoroughly researched project requirements to provide the customer with a step-by-step approach to its implementation.
UI/UX Design Development The next step involved developing a UI/UX design for a B2B SaaS platform. All these user interface parts and their components are extremely vital. Even though business owners are more focused on WHAT your app provides, they also pay attention to HOW it provides its benefits. So, make sure that your design is as simple as possible. At least, that is the approach that we have followed while developing Opesta.
Choose a Pricing Model You should earn something from your B2B SaaS platform. And make sure to choose a subscription model before you start active app development. Stripe B2B SaaS integration may be a solution for easy in-app purchases. A popular way is to launch a SaaS platform with a tiered subscription. In this case, the customer gets different functionality sets, depending on which subscription type he or she purchases. Other subscription options for B2B SaaS platforms include: Fixed fee subscription; Pay-as-you-go option (you pay for the time or scope of the SaaS service you choose); Mixed subscription (unites elements of different subscription models); Custom subscription model organized according to your specific demands.

Returning to the case of Opesta, these guys decided to go with a fixed fee for a monthly subscription.

Develop your B2B SaaS System That's when some real action breaks in. Your tech partner follows your requirements and the roadmap to create a B2B SaaS platform. There are many practices and technologies that help them handle this stage as fast as possible. Still, get prepared for some challenges! In the Opesta project, the challenge was integrating the platform with the Facebook API. Fortunately, we managed to find walkarounds and solve the problem in the shortest terms.
Promote your Product with the Best Marketing Practices One thing is to develop a great B2B SaaS platform, and another is to promote it so that it gains a solid customer base. I will tell you more about the B2B SaaS sales strategy and marketing practices in the next chapter. As for the case of Opesta, these guys are a marketing startup. So, they definitely knew how to organize targeting and ad automation to increase their social media outreach. What Technology Can Help with the B2B SaaS Sales Process?

So, let's discuss SaaS marketing practices in more detail.
Surely, it goes about applying the right practices and marketing approaches.
So, here are some technologies that will help you enhance B2B SaaS sales.
Unsurprisingly, most of these technologies are examples of B2B SaaS as well.
Targeting Software
First of all, you should establish your target audience. Those are the people that will see your ads and be convinced to use your B2B SaaS platform.
Guess what? You can handle all these challenges with targeting software.
It will help you research the market and find the right target audience.
A perfect example of such a platform is Audiense. It provides business owners with business insights that help develop the right targeting strategy.
Email Automation
Nowadays, email marketing is a must-have way to promote your software product.
But it may also be very time-consuming.
To handle all things faster, you should apply software that will automate all your mailing lists and messaging.
A perfect example of a great emailing automation platform would be Mailchimp.
SEO Platforms
One more essential type of marketing software includes SEO platforms.
If you're into content marketing, you should load your content with the right keywords distributed in the right proportion.
That's when SEO platforms come into action.
B2B SaaS apps such as Ubersuggest will help you come up with the right selection of the most promising keywords.
In our agency, we're using Ubersuggest pretty successfully to get blog posts and landings from this website to the top of Google search results.
SaaS B2B Marketing vs. Traditional Marketing

There's a great temptation to apply traditional marketing approaches. And, in many cases, they will go.
Still, there are some differences between B2B SaaS marketing and traditional marketing that you should discuss.
The table below illustrates them.
Traditional Marketing:
Buyer Journey - A typical buyer journey takes from a few seconds to a few days and involves around 4 steps (awareness, consideration, decision, and delight).
Buyer Impulse - Buyer impulses account for 40–80% of online purchases.
Customer Retention - Average customer retention across most technology-driven industries ranges between 63% and 84%.

B2B SaaS Marketing:
Buyer Journey - The B2B SaaS buyer journey may take weeks or even months and often involves more steps. Or some steps are repetitive.
Buyer Impulse - Buyer impulses are almost non-existent in B2B SaaS sales because most decisions are well-thought and supported with analytics.
Customer Retention - Average B2B SaaS retention rate is 92–97% because business owners embrace stability and rely on tried and trusted solutions.

B2B SaaS Marketing: 6 Best Practices to Know
Here are six useful tips that will help you boost SaaS B2B sales.

Thorough Product Pages Business owners need to know everything about your product or service. So, make sure to provide them with all possible information they may need to know. The more details you include in your product descriptions, the better.
Targeted Ads Targeting is a must-have solution for B2B SaaS lead generation. Don't run for high numbers of people who see your ad. Make sure that it is seen by people who are really interested in your services. So, make sure to analyze the market properly and apply the best targeting apps. In this case, your offers will find the right people.
Free Consultations Business owners are easily attracted to free offers. That's why you may offer a free consultation where you will share some useful details. Don't get too specific, but provide enough information to keep your potential customer intrigued. You cannot imagine how much this intrigue matters when it comes to acquiring a new customer!
Embrace Sales Led Marketing In this case, your sales team becomes the main driver of your marketing process. Rely on experienced and flexible sales specialists who certainly know how to transform any promising lead into an actual customer. And make sure to reach each and every lead because you never know who will bring you real profits.
Account-based Marketing It is a tried and trusted marketing practice in the tech industry. Account-based marketing means treating each potential customer as a market. This means reaching potential clients personally and delivering custom presentations for each and every of them. Sounds too challenging? Then, remember that you're working in the B2B sphere. Here, just a few solid customers can cover all your software expenses.
Personal Sales Many business owners believe that valuable cooperation decisions should be settled with other business owners. That's why they may expect you, as a B2B SaaS founder, to convince them why your product is the best solution for them. Mind this because, sometimes, to attract really promising customers, you should practice your personal communication skills. And, surely, don't forget about high (like, really high) levels of personalization in B2B marketing. What Are KPIs for B2B SaaS?

Now that you know a little bit more about B2B SaaS marketing practices, let's find out how you can evaluate their results.
Let's dive into key performance indicators of B2B SaaS platforms.
The list of B2B SaaS customer retention metrics to keep track of includes the following:
Customer Retention Rate
It is a rate showing how your business retains customers over a certain period of time.
Renewal Rate
Here it goes about the percentage of customers who renew the subscription for your service once their subscription period has expired.
Customer Churn Rate
This metric is the complete opposite of customer retention.
Here it goes about the percentage of customers who have stopped using your service over a specific period of time.
Revenue Churn Rate
Here's one more rate to show the losses.
The revenue churn rate is a rate at which your business loses revenue from existing customers over a specific period of time.
Existing Customer Revenue Growth Rate
Everything seems to be quite evident here.
The existing customer revenue growth rate shows the impact of your customer retention efforts on your revenue.
Customer Lifetime Value
Basically, it is about the amount of money or other value that a single customer will bring you over his or her lifetime.
The Average Revenue per User (ARPU)
How much revenue does a single subscriber bring you over a given period?
The average revenue per user metric is the answer.
Net Revenue Retention (NRR)
This metric shows the security of your B2B SaaS business.
It provides you with information on recurring revenue that you have retained from current customers over a specific time period.
Basically, this metric enables you to see the full picture of your platform's profitability.
Net Promoter Score
This metric is more about customer satisfaction.
It helps you understand how satisfied your customers are and whether they are ready to recommend your service to others.
Customer Acquisition Cost (CAC) Payback Period
This metric shows the amount of time it will take you to return what you've spent on acquiring your customers.
Advantages of B2B SaaS Products

Now, let's dive into some crucial advantages that a B2B SaaS platform will bring you if everything is done well.
Scalability
When you're running your B2B SaaS platform, you get prepared for the upcoming updates from the start.
That's why B2B SaaS platforms are often built with dynamic architecture that is simple to upgrade.
Also, you easily identify your customer demands and implement new features to give business owners what they want.
High Customer Lifetime Value
When you run a B2B SaaS startup, most of your customers are business owners.
And they are ready to pay solid money for your services.
That's why customer lifetime value is higher than in B2C SaaS company solutions.
This means that even a few well-paying customers can cover most of your expenses.
Moderate Competition
I'm not trying to convince you that the B2B SaaS market is completely devoid of competition.
No, actually, there are many B2B software as a service companies.
However, there's a great space for variation and exceptional ideas.
Any business type may have unique needs that can be covered by your product or service.
For example, there's even a B2B SaaS platform that automates proposals for creative businesses.
What I'm trying to tell you is that there's always an opportunity to find a B2B niche with moderate or low competition.
Low Entry Barrier
While planning your B2B SaaS startup, you can dream big without spending too much.
Generate your unique idea, find the right software developers, and develop an MVP (Minimum Viable Product) for your platform to see how it works.
You won't need to allocate a very big budget. But you will have a great opportunity to see whether your idea is as promising as you think.
Shortcomings of B2B SaaS Products

There are always downsides, and B2B SaaS products are not exceptional in this regard.
Although these disadvantages are far from critical, you should know and consider them before launching your SaaS B2B platform.
You Handle the Maintenance and Upgrade
It is a great advantage for B2B SaaS customers but a great disadvantage for its founders.
Meanwhile, you cannot avoid it because handled upgrades and maintenance is one of B2B SaaS selling points.
Consider the example of Shopify. Its customers won't fix anything when the platform crashes or shows productivity issues.
They will expect a SaaS provider to handle these problems instead.
Fortunately, with the proper software development approach and ahead-planning, maintenance and upgrades of your platform will be much less challenging than they seem.
Competition with PaaS, IaaS & B2C SaaS
There are popular alternatives to SaaS. These are PaaS (platform as a service) and IaaS (Infrastructure as a Service). And don't forget about B2C SaaS!
With PaaS, the customer receives a cloud platform on which he or she can build his solution.
With IaaS, it goes about a ready infrastructure for the upcoming app.
The main benefits of these approaches are higher customizability and enhanced control over the app.
Perfect examples of PaaS and IaaS are Windows Azure and Digital Ocean, respectively.
The good news is that many customers seek speed and handled maintenance, things that PaaS and IaaS won't give them.
As for B2C SaaS, these solutions are oriented towards a different user category.
So don't be afraid that business founders will gladly substitute your professional B2B platform with a B2C service and its limited functionality aimed at a mainstream user. Such cases are far from frequent.
What Are the Most Common Problems in a B2B SaaS Company?

Surely, you'll never avoid challenges while building your software product.
And B2B SaaS development is not an exception.
Here are the most common problems that you may encounter while building your B2B software as a service solution.
Setting Up
Imagine that you have developed a decent software as a service app for business owners.
You expect everything to run well, but you lack expertise and encounter some minor problems while setting the app up.
As a result, some features don't work the way they should, and the system crashes from time to time.
You quickly fix all the troubles, but your early customers have already had some unpleasant experiences with your product.
And they're quickly spreading the word, which ruins your reputation.
And there's almost nothing more challenging than restoring the ruined reputation.
That's why you should execute everything brilliantly even in the earliest stages.
It is a matter of experience, and that's why a solid tech team will help.
Growing
I've already mentioned that you should constantly upgrade your B2B SaaS product to stay competitive.
However, this growth brings many issues.
What features should you include in your product? How can you implement it properly? How to update your app without disrupting its work? How not to ruin everything with your updates?
One more time, you must rely on experts to handle all these problems in style.
Stabilizing
And, for sure, no customer will be satisfied with a product that doesn't know what stability is.
Whether it goes about productivity issues, crashes, or too frequent platform updates, such issues may harm your business.
That's why maintenance and stabilization matter to your revenues.
And that's why consistency and a thorough ahead-planning are vital for your product development and upgrade strategy.
14 Great Examples of B2B SaaS Companies

Now that you know about both ups and downs of running your B2B SaaS product, let's take a look at some inspirational success stories.
I've already mentioned some products from this list in the previous chapters.
However, B2B SaaS platforms mentioned here are so good they definitely deserve to be mentioned a few times.

Google For many people, Google is only about the online search bar and information provided per request. In reality, it is a large digital system that involves a great range of services, ranging from Google Sheets to Google Ads. With more than 6 million buying businesses using its suite, Google proves to be the most popular B2B SaaS platform in the world.
Slack Here's one of the world's most popular CRM systems applied by many thousands of businesses worldwide. What makes Slack special is that it is a convenient and feature-packed business messenger. No wonder the platform already had 18 million active users in 2020.
Adobe When you think of digital content, you think of Adobe. With an impressive 22.7% year-over-year growth, it is the world's most popular image and content management platform. Also, Adobe is a great example of a B2B SaaS with a quality upgrade strategy. Legacy services are constantly retired and replaced with the ones that bring real value to the users.
Shopify It is a huge e-commerce system with thousands of businesses using its accounts for sales. To prove that Shopify is a real market giant, I'll just tell you that it generates around $3 billion in annual revenues.
MailChimp I've already mentioned MailChimp as the leader of the email automation software domain. With its solid marketing practices and premium offers, the company has obtained a loyal fanbase that constantly expands. Actually, it already has more than 12 million loyal users.
MathWorks When it comes to mathematical computing software, MathWorks is one of the global leaders. According to their best SaaS B2B sales deck, more than 5000 colleges and universities are already subscribed to MATLAB, their most popular product.
SurveyMonkey If a business founder wants to enhance one's business practices with dynamic surveys, SurveyMonkey is a great solution. The platform already has 600,000 active users. And this number is constantly growing, as the demand for online surveys never ceases.
AVADA Here's one more SaaS service that brings value to marketing specialists. AVADA helps business owners automate marketing practices and perfectly integrates with e-commerce platforms. The list of such platforms includes Shopify, which has been mentioned above.
Salesforce Here comes the world's most popular Customer Relationship Management (CRM) platform. Salesforce collects customer data, gets insights from such information, and ensures quality customer communication. Nowadays, the platform is actively used by 150,000 customers from various businesses across the world.
Solvenzio Here's a cutting-edge SaaS solution for the fintech industry. The platform enables businesses to check whether their customers can pay them. Solvenzio provides business owners with two crucial options: long-term annual subscription to monitor specific companies; a one-time payment validation request.

I must also say that this brilliant SaaS platform has been developed by my team 🙂

Xero Xero is feature-packed accounting software for small and mid-size businesses. Just one number can tell you how successful this B2B SaaS is. The total lifetime value of Xero subscribers exceeds $4 billion.
Ahrefs If you're working on SEO optimization, you know Ahrefs. As one of the world's most popular SEO tools, it runs thousands of keyword searches and provides accurate estimates of keyword traffic. This year, Ahrefs has reached an important milestone as its revenue have exceeded $100 million.
Opesta I've already mentioned this SaaS platform in this article. Opesta is one of our most notable creations - a feature-packed marketing automation tool that perfectly integrates with Facebook Messenger. My team coped with many challenges to create a B2B SaaS platform supplied with data load balancing and monitoring tools.
Growth Empowerment Here's one more B2B SaaS platform developed by my team. Growth Empowerment is a SaaS for psychologists & therapists. It allows them to easily manage customers, assign appointments, set consulting sessions, and manage payments. In Conclusion Let's return to the story that I've mentioned at the beginning. John was extremely satisfied with his SaaS business. Because despite some challenges, it is always better to have business owners as your users instead of ordinary hobby-lovers with questionable customer lifetime value. That's why B2B SaaS solutions will be more profitable than B2C SaaS businesses in the vast majority of cases. And it is challenging to find a better moment for building your B2B SaaS product. From my practice, the ROI is extremely high, much higher than in stock, real estate, and many other lucrative industries. So give business owners what they want! This guide is what will help you plan your B2B SaaS product properly. And we will handle all the technical stuff. Contact us and let's give business owners what they need with your brilliant B2B SaaS solution. FAQ How to measure metrics for B2B SaaS companies? To measure their metrics properly, B2B SaaS companies should record the following parameters: customer retention rate, renewal rate, customer churn rate, revenue churn rate, customer lifetime value (CLV), existing customer revenue growth rate, the average revenue per user (ARPU), net revenue retention (NRR), customer acquisition cost (CAC) payback period, net promoter score (NPS). How do I find an idea for a B2B SaaS company? Choose a sphere you're interested in, thoroughly research the market, analyze the competitors, and find demand gaps that can be covered by your product. How do I start a B2B SaaS business? First, you should come up with a good idea. Then, create a roadmap for B2B SaaS development. Further steps involve design and subscription model planning. After that, you can develop the platform and, then, promote it with the best marketing practices.

Elements of the User Experience | Why does it matter, and who should do it?

Kateryna Pakhomova — Wed, 14 Sep 2022 14:54:27 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/elements-of-the-user-experience/

When you visit any website, be it to purchase something or to read some information, you make a number of decisions. All of them constitute your user experience of the website you are using. Depending on how easy you make the decisions and how smooth the process is, your user experience may be pleasant or not.

Did you know that 88% of online customers say they wouldn’t return to a website after having a bad user experience? That is why a goal of any UX project is to make one’s experience as positive as possible and ensure that the person will come back and will use the website or an app again.

Therefore, the task of a UX designer is to help users make a set of decisions at the right time of using a website and make this process easy and functional.

That is the reason why the 5 elements of UX design exist. They function as a guide for designers that helps them create designs with flawless user experience.

These user experience elements include strategy, scope, structure, skeleton, and surface, and in this article, I will talk about them in detail and discuss why UX design is important and what are its best practices.

If you have been thinking about creating your own product, you need to know about the UX part. So keep on reading. You will learn how to make the experience of using your product as positive as possible, increase user loyalty, and ensure that your product is successful on the market.

What is UXD and why is it important
Would you use an application that brings no real value to you? Probably not. You would easily search for other options that are useful, functional, and pleasant to use.

That is where UX design comes into the picture. With so many alternative options, people stick with those that offer them a better user experience. We all want to have a positive experience when purchasing something, reading the news, or posting our photos online.

If using a product becomes a challenge, why would you keep using it, right?

Thus, UX design has become a critical part of our lives as it is built into everything we interact with.

The term was created by Donald Norman, Apple’s VP of the Advanced Technology Group, who said:

“I invented the term because I thought human interface and usability were too narrow. I wanted to cover all aspects of the person’s experience with the system including industrial design, graphics, the interface, the physical interaction, and the manual.”

We have talked about UX design in detail in this article, but let’s summarize what UX design is again.

Firstly, UX design is a process, not just a step in the process. It begins with brainstorming ideas and results in having a tangible product.

Secondly, UX design is about studying user experience. Designers study users’ experience and all the actions users can make while interacting with the product, enhancing user experience, satisfying their needs, and making sure that the product has real value.

UX design is also about knowing one’s users, understanding how they act, what they need, love, hate, what they see as valuable, and what is appropriate for them.

It is also important to remember that UX design is a problem-solving process. Designers identify the problems that need to be solved, set priorities, what impact the product will have, and what value it will deliver.

Now it is clear what UX design is, but let’s also talk about what it’s not.

What UX design is not
UX design often gets confused with UI design, but it’s important to remember that UID is a part of UXD, not vice versa. UID is about the visual part; it includes mood boarding, design concept, style guide development, and final design. Thus, it is a part of the user experience because if it’s not appropriate, no one will continue using the product.

User experience design is also not only about technology. It’s not only about mobile apps and websites but about any product that is being used by people. It can include anything people use in their daily lives, such as pens, microwaves, drawers, etc. Everything people contact with has some aspects of UX design built into it.

Even though UX has the word “user” in it, it is not only about users. Each organization has certain business goals that are to be met, so they can’t always do only what is best for the users. It is essential to consider both the users’ needs and your business goal when designing a product.

Finally, UX design is not only about usability. Even if the product is usable, there is still a possibility that people won’t use it. The reason is that it is also important to consider other aspects such as whether it is relevant, if it solves users’ issues, whether there are alternatives on the market, etc.

Now, let’s talk about the elements of user experience.

The five elements of UX
The elements of the user experience are dependent on each other, and there are five of them. Each level builds on the level before it, and they start with an abstract level toward a concrete one (from bottom to top).

Let’s talk about each layer and apply it to one of our recent projects, KidiBoard – an application for parents that contains both a marketplace and a social network.

Strategy

The first layer is strategy. Before creating any product, it is essential to come up with the idea and the reason why you are doing this.

Think about why you create the product, who you are doing it for, why people want to use it, and what issues will it solve. The goal is to define both your business objectives and user needs.

Here are some of the key questions to answer during this phase:

What should this product accomplish for the business?
How does this product fit with the company’s business strategy?
Why do customers use a product like this one?
What do customers complain about most often?
To do this, business owners usually go through Strategic Research Process. It involves interviewing users and stakeholders as well as market research to analyze current competing products and companies.

According to “The Elements of the User Experience” by Jesse James Garrett, the first layer consists of User Needs and Site Objectives.

User Needs are externally derived goals for the site, identified through user research, ethno/techno/psychographics, etc. Site Objectives include business, creative, or other internally derived goals for the site.

When we were working on the UX of KidiBiard, our goal was to understand the key needs of parents and make a user-friendly interface with a lot of useful features.

Scope

The next step of UX design is defining the functional and content requirements.

When working on KidiBoard, we created a list of features, and content contained on the website, and made sure that the requirements were fulfilled and aligned with our strategic goals.

Functional Requirements. There are requirements about the functional part of the app or its features. These requirements cover how the features work with each other and how they interrelate. These features are what users need to reach their goals.

Content Requirements. These include all the information that we need to provide value. This information includes text, images, video, audio, etc. it is important to define the content to be able to assess the size of the project and how much time it will take to complete it.

Here you can see the key MVP features we identified for KidiBoard:

Structure

This phase defines how users interact with the product, how the system behaves, and how everything is organized and prioritized.

There are two key components that define the structure of the product: Interaction Design and Information Architecture.

Interaction Design defines how users can interact with the product and how the system responds to these actions. It strives to create meaningful relationships between people and the products they are using.

A good Interaction design:

Communicates interactivity and functionality
Reveals simple and complex workflows
Informs users about state changes
Prevents errors
Interaction design has 4 main principles:

Consistency helps people use what they know
Visibility of opportunities promotes interaction
Learning becomes easier with accurate predictions
Feedback facilitates learning
Information Architecture defines the arrangement of content elements and the way they are organized to facilitate human understanding.

A good Information Architecture organizes, categorizes, and prioritizes the information based on people’s needs and business aims. It makes it easier to understand how to move through the presented information, it is appropriate for the audience, and it is flexible to accommodate growth.

Here are the different types of Information Architecture:

Hierarchical Tree – a standard structure with an index page and a series of sub-pages
Nested List – linear path for a person to navigate to more detailed content
Filtered View – allows people to create an alternative view from a specific information set
Hub & Spoke – users navigate from a Central Index
Bento Box – displays portions of related content on the main screen
During this phase, we created user and app flows:

Skeleton

The next element of user experience is the Skeleton. The Skeleton of your product is what the user sees on the screen: the presentation of the app or website, the arrangement of all its parts, and what makes the user interact with the functionality of the system.

This phase usually involves wireframing. It involves drawing overviews of the products and creating sketches that help understand what an app will look like.

A wireframe is a very simple sketch that is also called page architecture or a page schematic. It’s what your design will be based on.

Here is what a wireframe may look like:

Skeleton is usually split into three components: Interface Design, Navigation Design, and Information Design.

Interface Design is about presenting and arranging all the elements to make the system highly functional and enable users to interact with it.

Navigation Design is about the ways to navigate through the data using the interface.

Information Design defines the presentation of information in a way that makes it easy to understand.

These are the questions that the Skeleton of your app should answer:

What will be presented on the screen and in what visual form
How all the interactions will be presented
How users will move around the app
How to present the content clearly
If you want to create a successful interface, you should pay attention to these core principles:

Predictability
A successful interface is highly predictable. What it means is that all buttons, icons, and images tell users what to do, what will happen next, and where the user should and can go next. As a result, a user can predict the outcome of any action and any interaction with the interface. The higher the predictability, the higher is user’s confidence to continue using the product.

Consistency
The ways of interaction with the interface should be similar across the whole application. They should stay consistent so as not to confuse the user and simplify usability. If interactions are not consistent, it can discourage people from using the app.

Progressive disclosure
It is essential to display only necessary or requested information and avoid noise at all costs. The user should receive only the most important information, and everything that is not relevant or requested should either be avoided or de-emphasized.

More choices – more time
The more choices there are, the more time a user needs to make a decision, and the higher possibility that a person will choose nothing. That is why it is important to use filters to narrow down a large number of options and personalize them based on people’s preferences.

Easy to learn and remember
Users should not spend hours trying to remember how to interact with content. All ways of interacting with the interface functionality should be easy to learn and easy to remember. Having a consistent layout that is predictable really helps.

During this phase, we have created an MVP mockup for KidiBoard to see what the app will look like:

Surface

According to Jesse James Garrett, this phase is about the graphic treatment of interface elements (the “look” in “look-and-feel”).

It is the sum total of all the work and decisions made during previous steps. The Surface of your product determined how it will look like and what typography, visual elements, colors, and layout to choose.

Everything created in Surface is meant to communicate and improve understanding of all the elements on the screen. This is achieved by choosing the right fonts, colors, visuals, etc.

The Surface is created by a number of graphical techniques: layout, typography, color, imagery, sequencing, and visual identity.

Moreover, this phase has a component called Visual Design. It is concerned with the visual appearance of content, and it is supposed to give users clues about what they can do and how they can interact with this content.

The great visual design has three purposes:

Organize. It provides users with a clear structure that indicates how the elements on the screen relate to each other. It improves navigation and makes the app/website more intuitive to use.
Economize. An effective visual design includes only necessary and relevant information. Anything that is not essential but still needed is de-emphasized.
Communicate. It communicates users’ expectations, their needs, and what information they value the most. It also considers users’ capabilities.
And here is the final look of our product:

How UX elements work together
In user experience design, all UX elements are interdependent. Each layer is dependent on the other UX layers below it. For example, if you make some mistakes during the Strategy phase, you will feel the consequences later in the process.

Thus, don’t consider decisions to be fixed. It is better to go back one step or two and make necessary changes than to create a product that no one wants. For instance, if you are currently in Surface but you need to enhance functionality, you can easily go back to Structure and do it.

To understand how the five elements of UX design work together, we start with Strategy. It is the foundation of any successful UX. Once the user and business needs are translated to requirements for functionality and content, Strategy becomes Scope.

Then, when we define the ways of interaction with this functionality, the system response, and data organization, Scope is given as Structure.

The product receives its Skeleton once each screen of the system is sketched and we can see how people will interact with the content and how the information will be presented.

Finally, in Surface, all the work done and decisions are transformed into the final presentation.

UX best practices
Designing the way you like is not the key to great design. In fact, successful UX design has nothing to do with the designer and everything to do with the audience. Thus, all decisions made during the design process should be based on what would be better for the user.

Let’s talk about the best UX practices that will help you ensure that your design is user-friendly, functional, and competitive on the market.

Put yourself in the users’ shoes
Perhaps one of the most important principles. If you want to create a website or an app with the ideal user experience, you have to have a deep understanding of your audience. You should think about the user throughout the entire process. What do they need from your product? Why would they use it? How are they feeling at each touchpoint?

The great idea is to create a customer journey map. It’s a great tool to help you imagine the experience your future customers will have. Moreover, these maps present your user research in an accessible way.

Make it accessible
Great design can be used by everyone, including people who experience sight and hearing disabilities. For example, color blindness affects about 7-8% of the population, which is more than 350 million colorblind people in the world. When working on the design of your product, make sure that 8% of people can also use it.

By doing that, you will increase the number of people who can interact with your product. To ensure that your website or app is accessible, you can use online evaluation tools.

Keep it consistent
Consistency is the key. You don’t want your website or app design to be all over the place, with different photos on one page and, suddenly, illustrations on the next page.

The consistent design makes your product feels cohesive and positively influences your brand image.

Make a sitemap
A site map is an essential tool for good UX design. It helps categorize content and create a cohesive hierarchy. This way, using your website becomes more intuitive and users can easily find the right information there.

Test and test again
Before you launch your website, test it a couple of times in a staging environment so you’re not making changes to a live site. Then, you can use data to improve your design. You can collect live feedback from users as they interact with the product. Then, adjust according to the collected feedback and test again. Keep in mind that your design can evolve and improve, so don’t let it remain stagnant.

Keep it simple
The simpler your design is – the better. White space helps people’s brains better process information and it decreases cognitive load. We get it, it might be tempting to create complex designs with a lot of colors, animations, and other elements, but it’s better to keep it simple.

Avoid colored backgrounds, a lot of different fonts and images, and cluttered text boxes. Keep everything minimal. Consider creating low-fidelity mockups at the early stages of design to see what the most important design elements are.

Practice a UX Audit
What is a UX Audit? It is the way to see the parts of your digital product that needs to be changed, improved, or eliminated. A UX audit uses empirical methods to expand an existing situation, and it offers recommendations for improvements.

What exactly happens during a UX audit? An auditor uses different methods to see where the product is going wrong or right:

Conversion metrics
Mental modeling
Sales data
Consumer customer data
Review of business and user objectives
Wireframing
Prototyping
Traffic/engagement
A Ux audit can tell you about what is working and what isn’t, which metrics are already collected and which should be collected, what the data tells you about your needs, what has already been tried, and what should be tried next.

F.A.Q
What are extreme cases in design?
Extreme, or edge cases in design, are occurrences that fall outside of the primary function of the product. For example, when some group of people is underrepresented in the build of the product or people who need some additional technology to access the product are ignored. To ensure that there are no edge cases when using your product, make sure that it is highly accessible and can be used even by users with low-quality access tools.

What is mapping the user experience journey?
A user journey map is a diagram that visually illustrates user flow through the site, the decisions made by the user, and all the steps they take to make a certain action. It identifies key interactions and touchpoints with your product and describes customers’ needs, goals, and expectations.

How long does user experience analysis take?
The timeline of UX research depends on your product and your research methodology. You can use both qualitative and quantitative research. With data-driven UX research and implementation, you can complete the research process in less than 3 months.

Summary
When developing any digital product, it is essential to keep in mind that its design is the face of your company, of your brand. And the clients’ desire to keep using your product depends on its design.

However, some business owners may think that design is only the visual part of the product. Even though the looks are important, too, the functionality should be your first priority when developing a website or an app.

That is why there are five key elements of user experience that all designers know about and use to make their designs flawless.

The success of every digital product is in how customer-oriented it is. Thus, these elements help designers to put themselves into users’ shoes, map out their user journey, and understand their goals, motivation and needs better.

UX is not as complicated as it may sound. If you know its five key elements and follow these steps, the final product will pleasantly surprise you!

If you want to create your own digital product and make sure that each element of UX is thought through perfectly and works without any issues, it is high time to look for a team of designers who will help you with that.

With the right team, you will have a product that will be incredibly competitive on the market that is packed with thousands of different products, you will attract new customers and increase customer loyalty, and you will save both time and resources.

If you have questions or need a consultation, contact us.

Data Science Benefits

Kateryna Pakhomova — Wed, 07 Sep 2022 14:35:23 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/data-science-benefits-for-business/

Data science has revolutionized business development in the last decade. Now it dominates almost all industries: banking, finance, healthcare, manufacturing, transportation, education, e-commerce, etc. Thus, data science’s value for business these days is incredible.

It’s no wonder that this shift is happening. By 2025, it is estimated that there will be around 175 zettabytes of data floating around.

Data is everywhere, and there’s so much of it that it might be challenging to understand what exactly to use for your business, and how you can benefit from it.

Using data properly will allow you to broaden your business capabilities and open the world with even more possibilities. You will improve your decision-making processes, discover new insights, reduce costs, and optimize resources.

In this article, I will talk about everything you need to know about data science, and we will cover the advantages of data science. Moreover, you will learn about the reasons why it’s high time to start using data to benefit your business and future projects and what is the value of data science.

If you want to read about all the benefits of data science for business, the examples of projects that used it, and how to choose the right team for this, keep on reading.

What is data science?
Data has already been called “the oil of the 21st century.” There’s so much of it, that one can’t help but ask: what do we do will all this data and how do we make it useful?

Data science is meant to answer all these questions.

So, what exactly is data science?

It is the process of using various techniques and tools to extract useful information out of all the data that there is. This field of study combines programming skills, domain expertise, and the knowledge of statistics, maths, and analysis to be able to extract meaningful insights from data.

Data science has a five-stage life cycle:

Capture. This stage involves data acquisition, data entry, signal reception, and data extraction.
Maintain. Next comes data warehousing, data cleansing, data staging, data processing, and data architecture.
Process. Data mining, clustering/classification, data modeling, data summarization.
Analyze. Exploratory/confirmatory, predictive analysis, regression, text mining, qualitative analysis.
Communicate. Data reporting, data visualization, business intelligence, and decision-making.

In 2009, Hal Varian, Google’s chief economist predicted the importance of adapting technology’s influence and reconfiguration of different industries.

“The ability to take data — to be able to understand it, to process it, to extract value from it, to visualize it, to communicate it — that’s going to be a hugely important skill in the next decades.”

– Hal Varian.

Thus, data scientists can identify relevant questions, collect data from multiple sources, organize it properly, find solutions in this data, and communicate their findings to positively influence business decisions.

Data scientists often use machine learning algorithms to produce AI systems that will perform the tasks that usually require human intelligence.

They also detect patterns that are hidden within huge volumes of data, analyze those patterns, and make takeaways. With the use of specific advanced algorithms and machine learning models, data scientists help business owners make predictions and accurate assessments.

During the last decade, data science has progressed to being used in practically all industries. Let’s see where it is best applied and focus on real-life examples.

Data science application examples
It is safe to say that data scientists have changed almost every industry for the best. For example, in sports, the models and metrics they create have redefined what “athletic potential” is. In medicine, it is easier now to predict possible side effects. This influence will only strengthen with time as the quantity of data is growing.

Here are a few examples of where data science is best applied:

Healthcare
This sector benefits from data science the most. It was back in 2008 that data science was first used in the healthcare industry when Google created Google Flu Trends – a map of documented flu cases. Even though the project was not successful at first, it demonstrated great potential for the use of data science in healthcare. Now, data science is used in healthcare for these purposes:

Medical image analysis
Genetics & genomics
Drug development
Virtual assistance for patients and customer support

The most popular projects using data science for healthcare include Google, Clue, Oncora Medical, and Veeva.

Google

Since the failed attempt in 2008, Google hasn’t abandoned its attempts to apply data science to healthcare.

Clue

The Berlin-based Clue app forecasts users’ menstrual cycles and reproductive health. It tracks cycle start dates, moods, hair conditions, and other metrics. Data scientists mine all this data with Python and Jupyter’s Notebook. Users get notifications when they are most fertile, when the next period is going to start, or when they are on the cusp of pregnancy.

Oncora Medical

Oncora is based on software that uses machine learning to create personalized recommendations for current cancer patients based on the data from past ones. The data collected for this app includes diagnoses, treatment plans, outcomes, and side effects from more than 50,000 cancer records.

Veeva

Veeva is a cloud software company that provides software solutions and data for the healthcare industry. The company works in clinical, regulatory, and commercial medical fields.

Sports
By 2026, the global market for sports analytics is expected to reach 8.4 billion. Here is where data science is used in sports:

RSPCT

This application is a shooting analysis system adopted by NBA and college teams. It relies on a sensor placed on a basketball hoop’s rim. The camera of the sensor tracks when and where the ball strikes. Then, the data is transferred to a device that shows the details in real time.

RSPCT helps predict when a shooter is about to take the last shot to win the game.

WHOOP

WHOOP creates devices that track people’s physical data: resting heart rate, respiratory rate, and sleep cycle. These wearable devices help athletes understand when to push their training and when to rest.

Trace

Trace is a company that provides football coaches with AI systems that analyze game film as well as recording gear. Players wear Tracers – tracking devices – that record the game. Then, this footage is stitched together by an AI bot, and the most important moments in the game are highlights. It allows the team and the coaches to collect detailed insights from each game.

Government
Governmental agencies maintain their own databases full of people’s data: ID photos, phone activity, fingerprints, etc. They have access to more data than Google and Meta combined!

Such data is often used for investigations, for example, when investigators reach out to various agencies to get certain information about people.

The government’s data will only grow in size, so here are some of the government agencies that use data science:

Equivant

Equivant is used by the American judicial system and law enforcement. The app uses Northpointe software that helps assess the risk of an incarcerated person’s reoffending.

It is based on an algorithm that predicts the risks based on a questionnaire that cover’s people education level, employment status, and many more. According to ProPublica analysis, Equivant’s predictions are 60% accurate.

US Immigration and Customs Enforcement

ICE, or the US Immigration and Customs Enforcement, uses facial recognition technology to extract people’s driver’s license photo databases. The goal is to deport undocumented immigrants.

This practice has been criticized by many Americans for being unethical and because of its facial recognition technology which is still not working properly. Still, it is data science as facial recognition builds on raw data with AI and machine learning systems.

IRS

IRS uses data science to modernize its fraud-detection protocols. The agency has created multidimensional taxpayer profiles from data available to the public (on social media, mostly), assorted metadata, payment patterns, and emailing analysis. This helps the agency to forecast individual tax returns.

E-commerce
Online shopping has almost become a substitute for offline shopping. More and more people choose shopping without leaving their houses instead of going to shopping malls.

Thus, online retailers now allow people to create their personal profiles where they can track their orders, save their wishlists, and many more. Some stores can even adjust their prices based on people’s ability to pay. Here are examples of apps that use data science to personalize the online shopping experience:

Sovrn

Sovrn is used by advertisers and outlets like ESPN and Bustle to sign deals. Since these deals happen millions of times a day, this application has collected tons of data for analysis, insights, and improvements to its advertising technology. Sovrn interface can monetize media with minimal human oversight.

Airbnb

Airbnb uses data science to improve its search function. Now, the app prioritizes the search rankings of a rental if it’s in an area that has a high density of Airbnb bookings. People can look for rentals in cool neighborhoods rather than merely focusing on price and availability.

Instagram

Instagram also uses data science. Mainly, it uses data science to target its sponsored posts. Meta, Instagram’s owner, has tons of data on many users, including their age, education, shopping preferences, and search history. Thus, Instagram uses this data to craft algorithms that convert all this data into predictions of what people might want to buy.

Taboola

Taboola uses AI, deep learning, and large datasets to create engagement opportunities for advertisers. Its discovery platform places ads throughout a variety of online publishers, creating new monetization, audience, and engagement. On Taboola, readers can find news, advice, or topical info as well as find new services and products.

Gaming
In 2021, the global video game market was valued at $195.65 billion, and it is expected to grow nearly by 13% by 2030.

AI and data science have been used in video games for decades, and now the ways to implement data science in gaming are growing at an incredible pace.

Here are some examples of the use of data science in gaming.

Activision Blizzard
This company is behind popular games like World of Warcraft, Call of Duty, Candy Crush, and Overwatch. Activision Blizzard uses big data to improve people’s gaming experiences.

Unity

Unity creates and operates interactive, real-time 3D content, including games. Companies like Riot Games, Respawn Entertainment, and Atari use Unity to make data-driven decisions to monitor business metrics.

2K Games is a studio that has created Bioshock and Borderlands, as well as PGA and WWE games series. It extracts gaming data and builds models to improve its sports games. The studio also uses data to analyze players’ behavior and suggest how to improve their player experience.

Social media
People share a lot of information about themselves on social media: their age, education, occupation, places they visit, what they watch, listen to, etc. All the friendships, relationships, and even coworker connections leave tons of data that can be collected and used by various companies.

Tinder

When people match on Tinder, it is thanks to the company’s data scientists. The app uses an algorithm that boosts the probability of matches, showing users those people who they will most probably like. It also prioritizes matches between active users, those who are near each other, and people that might be each other’s “type.”

How to Build a SaaS Application in 6 Steps

Kateryna Pakhomova — Wed, 24 Aug 2022 10:46:23 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/how-to-create-saas-application/

Just 15 years ago, when people heard about SaaS, they did not quite understand what it meant. SaaS was a new and exciting concept back then.

These days, though, it’s one of the top trends on the market due to its versatile nature. SaaS is suitable for almost all industries: marketing, finance, travel, healthcare, retail, and many more.

If your business belongs to any of the before mentioned industries, you have probably thought about developing SaaS applications, especially if your goal is to grow your business and compete with the leading companies.

It’s not a surprise that so many business owners decide to launch SaaS applications these days.

The market for SaaS solutions is predicted to reach $307.3 billion by 2026, so the prospects are exciting!

What makes SaaS products so appealing for business owners?

Their cost efficiency, flexible pricing model, automation, and personalization.

If you have been thinking about whether you need a SaaS solution for your business but have no idea where to start, this article is for you.

I will talk about the nature of SaaS apps, their advantages, and disadvantages, as well as the key steps of their development in detail. Moreover, you will learn about possible pricing models, how to choose a perfect development team, and save time and money. So, keep on reading!

What is a SaaS application?
SaaS stands for Software as a Service. A SaaS application is a web-based app that replaces offline software. Usually, it is subscription-based, and people don’t have to install it on their devices.

It is an alternative business model to traditional software licensing. The thing is, with SaaS, developers don’t sell their programs with a lifetime license or wait for a long time to release updates.

What they do is market their software as a service – it can be rented and used according to clients’ needs.

Usually, SaaS software is hosted in the cloud that is maintained by a SaaS provider. What is more, a SaaS product’s core value is provided to people through some code, some technology, and some software that is maintained by a SaaS provider.

What is the difference between SaaS and on-premises software? Here is an illustration:

SaaS is also different from on-premises software due to its technical peculiarities. Let’s talk about its technical basics:

Accessibility. SaaS apps can be easily accessed by different authorized users, from various devices.
Multitenancy. SaaS platforms share the same infrastructure and codebase for all users.
Simple customization. SaaS allows business owners to easily customize their apps.

One of the great examples of SaaS apps that will help you understand how they work is Adobe Photoshop.

When it first launched years ago, the application was sold to users for a one-time price. Once a person purchased Adobe Photoshop, they received an activation key to access the just-bought version indefinitely.

However, this is not how everything works now. If you go to the Adobe website now and try to purchase the application, you’ll see that Adobe customers sign-up for a monthly subscription to Adobe Creative Cloud.

It is a completely different subscription model, and it is way more beneficial than buying a lifetime license.

First of all, it is much more affordable for different types of users as a monthly fee is only $10. Secondly, users are free to cancel their subscription at any time if they don’t need a service anymore and not feel sorry for buying a program they won’t use to the fullest.

This is what SaaS apps are all about: users’ ability to test the programs for little money and decide whether they want to continue using them.

This is just one of the many benefits of SaaS applications, so let’s talk about the rest of them.

Advantages of SaaS products
We have alredy talked about the advantages of SaaS in this article but let’s summarize everything once again.

Advantages of SaaS for users
SaaS apps not only allow users to use great apps for a low price; they are also very accessible, have instant and regular updates, are super reliable, and are easy to scale.

Accessibility. Once a user purchases a subscription to a cloud-based web app, they can access it with any device, from anywhere in the world. The only thing a person needs to work with a SaaS app is a stable internet connection.
Scalability. Most SaaS apps offer several subscription plans, depending on users’ needs. Once these needs change, people can upgrade or downgrade their plan in a few clicks.
Instant and regular updates. Mobile and web app users have to download new software updates if they want to use the latest version. SaaS application users have an advantage – they don’t even notice once their apps are updated. SaaS apps update automatically, and users always have access to the latest version of the software. For example, Slack or DropBox.
Reliability. SaaS cloud-based apps are super reliable because the servers are located all around the world, and if one server goes down, the app will remain online.
Advantages of SaaS for business owners
If you have been thinking about launching a SaaS app but are unsure of whether it is worth it, take a look at these benefits. They will help you see a full picture of what a SaaS app development can bring you.

Ability to enter a growing market. The SaaS market is growing super fast, and it’s high time to jump on the bandwagon and enter the market.
Ability to attract a large customer base. With more and more SaaS applications appearing on the market, the customer base is growing. Thus, there’s a great possibility for business owners to attract a large customer base and build loyalty. Moreover, with cost-efficient monthly subscriptions, software becomes affordable even for new businesses with limited budgets.
Regular and long-lasting revenue. The SaaS model allows business owners and SaaS developers to gain stable revenue in the form of subscriptions.
Apart from these benefits, SaaS is a product that is much easier to start than a Marketplace or Social Network startup. All of this makes SaaS apps so appealing to both businesses and customers.

Types of SaaS Apps
With the SaaS market growing fast, this business model offers solutions for almost any task: social media marketing, accounting, gamification, etc. Still, it’s worth mentioning that it is more suitable for those people who use the app regularly rather than as a one-time solution.

There are two types of SaaS applications: B2B (business-to-business) and B2C (business-to-consumer). Let’s focus on their differences and focus on the examples of such apps.

B2B app examples
B2B applications are built for companies that sell products or services for other companies. This software can be used for tasks like accounting, office productivity, customer relationship management, and other tasks.

It is predicted that by the end of this year, 78% of companies will be running purely on B2B SaaS.

Here are some types of apps that can adopt this model.

ERP systems
ERP, or enterprise resource planning systems, are cloud-based web apps that consist of numerous modules aimed at managing and optimizing internal business processes.

An ERP software system can integrate planning, purchasing inventory, sales, marketing, finance, human resources, and more.

These systems have several benefits: free flow of communication between business areas, a single source of information, and real-time data reporting.

Some of the best examples of ERP systems include NetSuite ERP, Acumatica, Rossum, and Oracle Cloud ERP.

Project management tools
Trello and Jira are the most popular project management apps out there. With these tools, companies can manage their everyday business operations and processes more effectively.

Marketing software
Marketing plays an essential role in any business development, and that’s why so many businesses use marketing SaaS. This includes social media marketing platforms (Sprout Social, Hootsuite, Zoho Social) and marketing analytics tools (Improvado, Domo).

Collaboration tools
In 2020, the popularity of collaboration tools rose by 322% compared with 2019. That is when apps like Zoom, Slack, and Google became the leading sources of communication for teams from all over the world.

B2C app examples
B2C applications allow people from all over the world to benefit from using SaaS software as they use these apps for education, leisure, and other daily tasks.

Streaming services
Probably the most frequently used B2C apps worldwide. Streaming services allow people to watch their favorite movies and TV shows from any device as well as listen to music and even save it to be able to listen to it offline.

For example, Netflix is an American streaming service with various subscription plans and tons of content. Spotify is another streaming service but for music and podcasts. It is much cheaper to purchase a Spotify subscription and listen to music without limits than to buy each album separately.

E-learning apps
SaaS software is also used by a lot of online learning applications. For example, the most widely known app for learning languages, Duolingo, offers users two subscription plans: Free and Plus.

Other online education platforms include Coursera. This platform offers access to the whole library for $59 a month.

Canva is also frequently used for educational purposes. It allows people to create professional graphics, such as presentations, posters, social media posts, and flyers.

SaaS app development in 6 steps
SaaS software development is quite different due to the nature of cloud-based apps. We have already covered web app development in this article, but let’s focus on the main aspects here once again.

Usually, developing SaaS applications includes 6 main steps: planning, a discovery phase, application design, architecture design, development and testing, and further development.

Step 1: Planning
Building a successful SaaS app starts with thorough planning. It’s not only about the technology used but about the research you make and the data you collect about the market and the target audience.

During this phase, your goal should be to learn as much as possible about the market and to decide what the aim of your future app is and what its main features will be.

You can always collaborate with your team to plan your future app, especially if the team has experience in building SaaS applications. They can offer you business analysis services and offer you the most efficient solutions for your specific case.

Step 2: Discovery phase
After your planning phase is completed, it’s time to move on to the discovery step. It’s all about structuring your plans for SaaS application development and preparing documentation that will help the process.

During this development step, a Business Analyst sets up meetings to learn more about your project. Moreover, that is when all the documents are created. They include:

Software requirements specification (SRS) – this document incudes all the requirements for your cloud SaaS application. In it, you describe the future features, its technical specifications, objectives, user groups, and the scope of work.
Risk assessment and mitigation plan – it is essential to assess the possible risks you might face during the development phase of your SaaS app. This will help you minimize the risks and develop the app faster.
Feature breakdown list – this is a table that contains all features that you want to include in your future cloud app, as well as the rough estimates for their implementation.
Cost estimate – this document includes an estimated budget you would spend on the development of the app.
Step 3: Application design
The success of your SaaS application largely depends on its interface and usability. That is why it is so important to invest in the creative and innovative product design cycle.

We have already covered this step in detail in this article, focusing on the UI and UX parts of the design process. For SaaS applications, the steps are the same, the key is to make sure that it meets the needs of the target audience.

Usually, the design process includes the discovery phase, setting a goal, the user experience part, branding, and user interface design.

When developing an app, always keeps in mind the devices your audience will use, since SaaS applications work both on smartphones and computers.

Step 4: Architecture design
This step is inherent to SaaS solutions, and there are two options to choose from: a single- or multi-tenant approach.

The single-tenant architecture
This type of software architecture provides every client with their own server when using the developed software. Thus, it is more suitable for bigger companies who can exhaust the developer’s resources more quickly.

The multi-tenant architecture
Unlike the single-tenant architecture, this type allows numerous users to access the database at the same time. They can do it through separate accounts, which means that they don’t know about each other’s existence.

This approach can be implemented in two different ways:

One app instance, one database. You have one database, and all users who enter your cloud app access this database until it’s full. This approach is quite easy to implement, but it is harder to scale because of the limitations. As a result, it affects the performance of the app and user experience.
One app instance, several databases. When you have several databases, they are filled only to a certain point. Once one database is filled, new users are redirected to the next one. It allows users to access more resources, the app to have great performance and be more responsive. However, this approach is more expensive and requires more resources.
The next step after choosing a type of the architecture is development and testing phase.

Step 5: Development and testing
This is a typical step of any app development, and it does not require much explanation. If you want to read more about it, we have prepared this article.

During this step, the development team focuses on the MVP build, MVP release, front end, and back end of your app. Then, QA engineers check each part of the software and whether it is working properly.

The key aspect to remember is that SaaS developers always build an MVP first to gather feedback from the first adopters and think about which features need to be improved on or added.

Most SaaS founders follow the Agile approach when developing their apps, and we have talked about it in detail here.

Step 6: App maintenance and further development
After the MVP becomes available to users, it is time to collect feedback and assess its performance. Gathering feedback, analyzing it, and deciding what should be changed allows to make the app more user-friendly and attract new clients.

What to consider when developing a SaaS app
Before you start developing your cloud app, you need to think through a number of important things, such as the technology stack, tenancy model, and pricing strategy. Let’s discuss all of them.

Technology stack
When building a SaaS cloud app, you need to choose a technology stack for it. It’s what the development team will use to build and run your application.

What you will need first is a number of tools to develop client-facing components, such as:

HTML + CSS
JavaScript frameworks (Angular, React, Vue.js)
To develop the server side, you would need a number of programming languages and frameworks to choose from:

Python (Django)
JavaScript (Node.js)
PHP (Laravel)
Ruby (Ruby on Rails)
This is the criteria for selecting the best SaaS technology stack:

The coding language used by the development team/your company.
The community size of the language used.
The learning curve should be as low as possible. Choose a coding language and a framework that is easier to learn. For example, Python has a simple syntax, and intuitive reading code, and it is very versatile.
Ease of hiring a development team for your SaaS tech stack.
Long-term support and cooperation.
Tenancy model
As has already been mentioned in the part about the architecture design, there are two tenancy models to choose from: single-tenant and multi-tenant.

Tenancy determines how many tenants share the same database, computer resources, and software instance. The choice of architecture depends solely on your requirements as both of them have their pros and cons.

If you need help choosing, a software architect and a business analyst can help you choose the right model.

Pricing strategy
Throughout the last couple of years, the SaaS business model has changed a lot, and business owners now choose between three main pricing strategies: the freemium model, the pay-as-you-go model, and the tiered pricing model.

The choice of the model has a strong influence on your application, so let’s see which one would be the best for your project.

The freemium model. This pricing strategy allows users to choose from two main subscription plans: free and premium. The core features are usually present in the free plan to attract a wider audience. Once they become interested in the app and want to have access to more features, they can purchase a premium subscription. The advanced set of features can be purchased for a one-time or a monthly fee. For example, Duolingo uses this pricing strategy.
The pay-as-you-go model. This strategy presupposes that the users pay more if they want more features. For instance, Amazon charges users for the number of API requests the app sends to the server. Some accounting apps also use this strategy: the price depends on the number of generated invoices.
Tiered pricing model. This model is similar to the previous one. The more features a person wants to use, the more they pay. Still, in this case, the revenue is more predictable as there are monthly packages. An example of an app that uses this model is HubSpot – there are three packages to choose from (starter, professional, and enterprise).
SaaS development team
If you want to develop a SaaS application that will be a success on the market, you need to find an experienced development team that will help you put your idea into action.

Usually, when building a SaaS application, business owners tend to choose an Agile team structure. The arrangement of such a team depends on the scope of your project, the requirements, deadlines, and other factors.

You can read more about the approaches and the team structure here, but let’s summarize the key facts.

Usually, a development team consists of these people:

A project manager (PM)
This person is responsible for the planning and execution part of the project. They take into account all client demands and technical implications to deliver a perfect final product.

A business analyst
BAs are in charge of creating a roadmap of how to build your particular project and how to make it practical. This person determines the features that would be perfect for your product, taking into account the trends in the market and your specific demands.

Designers
Designers’ main aim is to make your product visually appealing with the right use of colors, shapes, and other elements. Apart from the visual part, UX designers ensure that your product is highly-functional.

Developers
The team of developers is in charge of building the actual product. There are back-end, front-end, and full-stack developers.

Back-end developers work with the app’s server-side. They work with the fundamental part of the product, its “walls.”

Front-end developers work on the visible elements of the product, its exterior. Their aim is to make it attractive and pleasing to look at.

Full-stack developers combine the best of both worlds. They handle every task in software development, both the fundamental parts of app building and its exterior parts.

QAs
QAs test the product before its release to ensure its functionality. They make sure that the product meets the expectations and requirements of the client.

This is not the full list of team members. Depending on your project, you may also need a technical writer, a marketing specialist, or a product manager. In some instances, you may also need a DevOps engineer.

Choosing the right team saves you time and money, and results in faster delivery of a high-quality SaaS application.

Wrapping up
The popularity of SaaS applications has grown in recent years, and for a reason. They offer both business owners and app users tons of advantages that make them hard to resist.

SaaS apps are accessible, reliable, scalable, and updated without people even noticing it. That is why more and more business owners consider building their own SaaS applications and entering the growing market.

By developing a cloud-based SaaS app, you will be able to attract a wider customer base, grow your business, and keep up with the latest trends in the market. Furthermore, it will allow you to work with experienced SaaS developers.

Thus, if you have been thinking about starting your SaaS app, it’s high time you turn your ideas into action. Following the 6-step process of development, I talked about there will make the process smoother and will help you avoid major mistakes.

Still, if you need a consultation or are looking for a team to develop your app, contact us.

How to Build a Personal Finance App Like Mint: An Ultimate Guide for 2022

Kateryna Pakhomova — Wed, 17 Aug 2022 14:42:54 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/persona-finance-app-like-mint-guide/

Between 2014 and 2019, the popularity of financial apps grew by 354%, and it is expected to grow at least 1.5 times by 2026.

Why?

More and more young people reject reckless consumerism, which has been popular in the 1990s-early 2000s. Nowadays, being financially cautious is really hot.

And this trend is largely promoted through popular culture. Just check out how popular is Robert Kyosaki’s bestseller Rich Dad Poor Dad.

One of the most evident messages of this book is that rich people accumulate so much wealth because they’re inherently thrifty.

And it is a book admired by millions of people all around the world, which means that it is influential, to say the least.

Do you see where I’m going?

Right, I’m telling you that financial awareness is on the rise, and a product that supports it will definitely find its audience!

A great example is Mint, the world’s most popular personal finance management app. Released in 2007, it managed to reach 10 million in just a few years.

Despite such great success, Mint still doesn’t have too many competitors that really deserve attention.

And that’s why building a personal finance app startup in 2022 is an amazing idea!

But how to create a budgeting app and do all the things right?

This article has all the answers you need.

Here you will find a detailed overview of points to consider while building your budget app like Mint, get useful insights on what to expect from such a development project, and read what makes the success story of Mint so amazing.

Read on if you want to take advantage of the latest trends and run a truly successful startup!

A Brief Dive into Mint Success Story

The story of the Mint app started in 2006 when a young and ambitious entrepreneur Aaron Patzer left a well-paid job to take a risk and build a successful startup that would disrupt the banking industry.

He decided to run a personal finance app with a simple yet memorable name “Mint.”

Patzer released his app in 2007, and quickly gained an audience with his revolutionary idea.

However, the best was yet to come. In 2009, a promising app with 1 million users was bought by Intuit, one of America’s biggest financial software companies.

The guys from Intuit admired the uniqueness of Patzer’s idea and spent $170 million to buy an app that started as a cost-efficient digital startup.

What came next was a rapid growth of a user base (to 10 million in just a few years) and the status of one of the most popular apps finance helpers in the world.

But all these remarkable achievements would be impossible without a unique idea and clearly recognized market opportunities.

I recommend you lean canvas startup methodology as one of the best ways to detect these opportunities.

But this requires a thorough market overview.

And if you want something to start with, here’s a general overview of things you should know before you enter the market of personal finance apps.

Personal Finance App Market Overview for 2022

Let’s focus on trends that are especially relevant in 2022. We may have this list a little bit longer, but let’s leave all market insights for more specific research. These are just a few tech tips that I believe to be especially relevant.

The Growing Popularity of Chatbots
Your users will always have some questions and need answers to them.

For such cases, a chatbot is a stellar idea because it releases you from the need to hire a customer support team.

And it can provide the users with tips and other pieces of content without your need to administrate the process.

So, whether you go with a rule-based or an AI-driven chatbot, this feature will improve the user experience with your app.

Competition with Banking Apps
Banks understand the opportunities of budget apps. That’s why they introduce budgeting features in their digital bank applications.

So, the users of many banking applications, such as Alliant Mobile Banking can plan their budget and control their spending with such features.

The good news is that budgeting functionalities provided by such banking apps are, usually, no match to features of the apps that focus solely on personal finance management.

Another good thing is that you can sell your promising budget app to a bank for a very attractive price.

The Users are Getting Younger
The global population is rapidly becoming younger. This means that many users of your personal finance app may be teenagers and even kids who want to learn to manage their personal finances.

So, consider making your product attractive to a younger audience. There are many methods, such as gamification, pop culture references, educational materials, and so on.

Or you may go with a youngster-focused solution that helps teenagers learn smart spending. For example, consider the case of Greenlight.

Cryptocurrencies Rule
Around 1 billion people globally use cryptocurrencies. And this number will definitely grow.

Could there be any more significant argument for considering cryptocurrency payments while developing a personal finance app?

Make sure to integrate your platform with the cryptocurrency platform or add other features that allow your users to manage their crypto transactions.

Otherwise, you’re risking losing a significant part of your target audience.

In-app Financial Literacy Education
Nowadays, more and more budget apps provide educational value to their users.

Whether it goes about simple tips or more user-specific financial insights based on their spending, such a feature automatically makes the app more useful to the audience.

Therefore, consider including educational tips in your budget app. At least, because your competitors, most probably, provide such features in their products.

Automatic Apps Take Over Manual Ones
Personal finance management software can be divided into two types.

There are manual apps that require the user to insert all information manually.

And more technically-advanced automatic apps that integrate with banking accounts and payment systems to count the user’s spending automatically.

The trend is that automatic budget apps leave manual applications almost no chance in the competition.

By the way, the Mint app, which is a perfect example of a great budgeting software, is a vivid example of an automatic finance management application.

6 Things that a User of a Personal Finance App Needs

Building on the previous chapter, we can come up with a list of 6 things that a user expects from a personal budget app. Let’s briefly describe each of them.

User-specific Finance Coaching
As we have already mentioned, educational tips are very important for users of personal budget apps.

And the more personalized these tips are, the better.

Consider integrating your finance app with analytical tools and AI algorithms that will provide client-specific tips and suggestions based on the analytics.

Python language will become a great solution for building such AI algorithms.

Integration with Payment Systems
As we have already mentioned, the users of personal finance apps prefer processes to be automated.

If you don’t want your customers to upload various receipts into the application, integrate it with banking apps and payment systems.

In this case, all the information on incomes and spending will be automatically uploaded into your app.

And don’t forget about payment system integration for the users who purchase some premium features in your application!

Minimalistic Interface
Never underestimate the value of UI/UX design!

Even if you want to deliver an app packed with an extreme list of various features, you should keep the design as minimalistic as possible.

Just remember that the youth (and not only the youth) hate the overloaded interfaces of the early 2000s with hundreds of buttons and icons randomly placed all over the screen.

Gamification
Let’s return to the question of the young audience one more time.

To be attractive to such an audience, software should bring them fun and competition.

Therefore, gamification is a great idea. Moreover, there’s nothing really challenging about implementing it.

No need to reinvent the wheel, just add a system of in-app tasks, challenges, or bonuses.

Preferentially, add a social element as well. In this case, there may be leaderboards for friends and random people.

Just let them complete who passes more finance literacy lessons (if your app provides ones) or donates more to charity.

Application Personalization
I’ve already mentioned the value of personalized tips and suggestions.

But app personalization goes far beyond this.

Personalized greetings, interface customization, and app adjustment to specific user preferences – all these things matter.

So make sure to consider such features while designing a budget app that your user really needs.

Features to Include in the Mint-like App and How Much Will it Cost You?

Now, it is time to go from more general insights to a specific list of features that should be included in a personal budgeting app. Here’s the list of must-have functionality for all those who wonder how to create a budget app.

User Account
So, the first thing any personal budgeting app should include is a user account. It is all about the profile where a user can add personal information and review the relevant information.

Basically, it is the core of an application. And all other parts that will be developed further shall be connected to this user profile.

One more vital thing about a user account is the basic user authentication principle.

Actually, there may be many things to do at this stage, so developing a quality user account may take from 1 to 2 weeks.

Fetching Transactions from Bank Accounts
Implementing this feature may be challenging, and some finance platform developers avoid it.

However, if you want to run a user-friendly automated budgeting platform, transaction fetching is a must.

Here it goes about connecting your platform to various banking accounts and payment systems so that the app will receive enough data on your income and spending.

It may take up to a week to fully design this feature.

Financial Goals Section
In most personal budgeting apps, a user can set their financial goals and limits.

Later, he or she may keep on adhering to these goals. And don’t forget about challenge mechanics that come into action if the app is gamified!

Anyway, there will be a section that shows spending limits and a user’s adherence to them.

And it may take 3-4 days to implement such a feature.

Analytical Features
If you think of how to create a budget app that provides the user with relevant stats and projections, analytical features are vital.

Sometimes, it goes about integrating the app with existing analytical software, but there’s still much customization to go.

So, building analytical mechanics and making it run smoothly with other app financial features may become a challenge.

Nothing tragic, but it takes some time. From our experience, around a week.

Dynamic Reporting
Here’s one more task for around 6 days of active development.

One thing is to add analytics, but another is to make the results of the analysis accessible to a user.

That’s when dynamic reporting comes into action.

Again, integrating the app with an existing reporting solution may work.

But there’s still much room for customization if you want to make reports truly insightful and convenient to the users.

Mechanics for Recording and Storing Expenses
After each transaction, there remains a bill or a receipt.

And, sometimes, there may appear a need to review these “papers.”

For example, in case you want to return a recently purchased jacket that is too small for you.

The best personal finance management apps allow you to store such receipts and retrieve them when needed.

But, surely, there’s developers’ effort behind such functionality

From our experience, implementing such storage mechanics will take around 5 working days.

Schedule with Payment Reminders
An interactive schedule is a very important feature for a personal finance app.

Time frames are vital for any sort of analytics, whether it goes about spending or creating spending limits.

But it can also provide useful payment reminders to those users who should do monthly rent payments, credit payments, and so on.

So, a customizable and dynamic calendar where a user can add events and reminders is a very useful feature for a budget app.

It will take around 4-6 working days to implement it.

Push Notifications
If you have a calendar, you need push notifications as well.

These are the notifications that will appear on the user’s home screen once he or she receives a reminder.

Actually, it is not the most challenging part of creating a budget app.

However, it is important to make notification mechanics as convenient as possible.

One more valuable thing is taking into account UI/UX design considerations.

Doing all things right may take around 2-4 days.

Financial Projections
A personal finance app may require a separate tab with financial projections.

It should be connected with a built-in analytical tool and, probably, work with the dynamic reporting system.

As long as most work on this feature has been done before, its development may be not too challenging.

From my viewpoint, it is a 1-2 day task.

Saving Tips
Here it goes about the app’s educational value.

It may provide the users with useful tips on saving money and becoming more cost-efficient.

You may go with rather general tips displayed somewhere in the application’s tabs.

In this case, the active development task shouldn’t take more than 2-3 days.

However, if you want your app to provide more personalized tips, you should go with more complex mechanics.

Probably, you should even consider AI-powered solutions.

In this case, developing such tips will be a much more challenging task.

It can take developers up to a month. Everything depends on the complexity of AI features and mechanics you include.

Security Features
As long as we’re talking about an app that deals with finances and finance-related data, security is a great concern.

That’s why developing all the required safeguards is mandatory.

And it may be a hell of a task because there are so many points to consider!

All in all, application security development may take up to two weeks.

Architecture, DB, Design, and other Fundamentals
I have discussed some valuable financial app features, but I should also mention the fundamentals.

Architecture, database development, and even design may be not as recognizable as app functionality.

However, no software can exist without these essentials.

And their implementation can take quite a long, depending on your app’s complexity.

Let’s take a term from two weeks to one month.

So, what we get here, is roughly, around 130 days of active development.

This means around 1040 hours. At a rate of $60/hour, the project will cost you $62 400.

Surely, these estimates are very basic. Many tasks may be completed much faster, while there may also appear additional tasks that will make a project even more durable.

Hence, the development of a budgeting app like Mint finance manager will, most probably, cost you $40,000-$80,000.

How to Make Money with Personal Finance Apps?

So, this part was, primarily, about expenses.

But how about the more lucrative side, namely your opportunity to raise money with a personal finance application?

Here are the basic monetization models for such an application.

Paid Apps
Users will buy your app for a specified sum of money. Just make sure to attract them with a free version and provide a product that is really worth its cost.

In-app Purchases
I believe that this approach to application monetization is the most popular nowadays.

Attract the user with the app’s basic functionality and make them buy in-depth extra features.

In-app Advertisements
This approach is also very popular nowadays. You may load the application with various ads from companies that pay you.

Ideally, these ads should be personalized according to your user’s buying habits.

But be cautious with those ads. There’s always a risk of making your app too annoying for the users.

Subscriptions
Make users subscribe to your app to unlock its main features.

You may also add different subscription types that will define what your user receives.

A Step-by-step Approach to Building a Personal Finance App

It seems that I have been including our 7-step product development approach in almost any article.

But what can you do, if this methodology is basic for us and can be applied to any app development project?

So, as usual, I’ll leave the link to the article on our product development approach for those who want a more detailed description of how to make a budgeting app.

And I will leave a more general description of the 7 steps for those who want to focus on this article.

So, here are the basic product development stages we follow at SoftFormance.

Idea Generation
The first step is all about generating the idea. Here it goes about defining project basics without diving too much into detail.
Product Strategy
Here we make the most valuable decisions on how to implement the idea.
Project Roadmap
This stage is about more detailed and deliberate planning on how to make an idea a reality. Actually, this is the most valuable step for the project’s practical organization.
Design
Here we make the basic decisions on the app’s UI/UX design. This step defines the application’s look and user experience with this product.
MVP Build
We create finance application minimum viable product (MVP). It is the product’s early version with the basic functionality.
MVP Release
Once the MVP is developed, it’s time to release it to a narrow audience. The most important thing here is to collect early user feedback and improve the app according to it.
Post-launch Logistics
If you think that everything ends with a product release, I must disappoint you.

It’s only the beginning because there are so many tasks to be done!

The app should be constantly optimized, upgraded, managed, and monitored. And all these efforts go as the 7th step in our methodology.

10 Examples of Successful Software Similar to the Mint App

Now that you know the most valuable insights on the personal financial app and its story let’s take a look at some more examples.

These are, basically, Mint’s main competitors.

Although I’m pretty sure that they mostly lag behind Mint, these finances apps still deserve your attention.

Acorns
It is an investing app that teaches its users financial literacy.

Acorns offers the users various investment options and helps them save every cent of a spare change.

As a result, Acorns proves to be a perfect hybrid of an investment and a personal budgeting app.

You Need a Budget (YNAB)
It is a perfect solution for a user who wants to manage future expenses more efficiently.

Once a user gets paid, he or she can create different spending categories and efficiently plan expenses for a month.

YNAB is not the best solution for those who want to track past expenses but a perfect solution for future-focused users.

Qapital
Qapital is a perfect budget app for people who are trying to save money for something really BIG.

The app finance mechanics help users save funds for one or more goals.

There’s also an opportunity to unite with other users and work together to reach shared goals.

Albert
Albert is known as one of the best apps for personal finance. It is a great example of a feature-rich personal finance application.

This software helps you save money, track your expenses, and plan your budget.

And it also offers human-assisted personal finance advice.

PocketGuard
It is a great solution for those people who’re into simplicity.

PocketGuard offers a minimalistic design, as well as is rich in functionality.

For those who need even more budgeting features, there’s an option to buy a paid version.

Mvelopes
One more example of a great budgeting app with rich financial planning and expense tracking functionality.

The main drawback of this application is that you should buy a subscription to get any of its features.

Fortunately, you may try a one-month free trial.

EveryDollar
Here’s a really big name in the market of personal budget apps.

EveryDollar provides standard finance planning features, along with personalized spending tips.

It also offers a great user experience across various platforms.

Just mind that its premium version is rather expensive.

Goodbudget
Here’s a great app for those users who need help with planning their expenses.

There are useful financial projection features and an opportunity to create and track various spending categories.

Besides, Goodbuget enables the user to connect numerous devices in a single expense-planning network.

But this feature is available only to the owners of paid premium accounts.

Honeydue
Honeydue is a perfect choice for partners.

The app enables different users to create a shared budget or track each others’ expenses.

Besides, Honeydue provides payment reminders and includes a messenger for more efficient communication between partners.

Fudget
Here’s one more personal finance planner that is extremely convenient to use.

The app doesn’t aim to provide its users with extremely complex functionality.

However, it stands for an intuitive interface and the basic finance planning features that make personal budgeting simpler than ever.

Summary
So, let’s summarize the most important insights from this article.

Software similar to the Mint app is demanded in the market, and if you follow the trends and give users what they want, it won’t take long for you to start gaining profits.

But to cut all the corners, you absolutely must find the right technical partner.

And SoftFormance, a company with 200+ successfully completed projects, is ready to become such a partner for you.

We have solid experience in developing fintech solutions with the most accurate analytical mechanics.

To name a few, I will mention Solvenzio and Revenue Compass, but you may check out our portfolio for even more interesting projects.

So, if this article has brought you inspiration or just a glimpse of an idea, make sure to share it with us.

And we will find out how we can make it a reality and help you take your winning niche in the budgeting app market!

Top 15 Mobile App Development Frameworks [2022]

Kateryna Pakhomova — Thu, 11 Aug 2022 06:49:06 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/top-mobile-app-development-frameworks-2022/

More than 6 billion people in the world own smartphones. Out of the time they spend using their phones, 88% of the screen time is spent on mobile applications.

People use mobile apps for various purposes, be it to wake up in the morning, order pizza or a taxi, track their progress while running, cycling, or doing yoga, chat with friends and even work. This is just a small part of all the possible uses of the millions of mobile apps present on the market.

It is hard to imagine a life without mobile apps. What if it wasn’t possible to download maps and use them offline while traveling? You would have to carry a paper map with you all the time. It’s even scarier to think about life without social media, food delivery services, and music streaming apps.

Mobile applications make people’s lives easier, let’s agree. That’s why the demand for them is growing and more and more of them are appearing on the market.

Since the competition is unimaginable, the key focus now is on the speed of app development and on encouraging the user to stay and choose your app from the number of others.

In the past, it was essential to know complex coding languages to develop an app and spend a lot of time on it. Nowadays, there are many frameworks that allow you to create mobile applications much faster, spending fewer resources, time, and money.

If you want to expand your customer base and create a mobile app for your business, this article is for you. Here I will talk about mobile framework development, and describe the main frameworks, their advantages, and working principles.

As a result, you will be able to choose the framework that will speed up the development process, make it more efficient and allow you to be competitive in the market.

Types of Mobile Apps
There are three main types of mobile apps: native, web, and hybrid applications. The choice of the app a business owner decides to create largely depends on the trends in the market. For example, according to a recent report by Gartner, 80% of customer service organizations will abandon native mobile apps in favor of messaging by 2025.

It’s essential to understand the app dynamic before building your own product if you want to succeed in the world of mobile applications. So let’s focus on the three main types of apps that dominate the market these days.\

Native Apps
Native apps are designed for a specific operating system: Android, IOS, or Windows. A native app built for an IOS smartphone cannot be run on Android and vice versa.

These apps are specifically built for a particular OS, and their programming languages are also built for these OS.

For IOS, developers usually use Xcode and Objective-C. Eclipse and Java are used for Android apps.

Building applications for a specific OS allows you to make the most out of its features and tools, and ensure high performance, and a great user experience.

Advantages of native apps:
Fast performance because the code is simple and specific to a device and its OS.
Interactive UI/UX.
Fewer compatibility issues.
Better use of the OS and device functionalities.
Disadvantages of native apps:
OS-specific programming languages like Java and Swift are hard to learn.
Time-consuming to build.
Longer release cycles.
Need separate codebases to add new features.
Web Apps
Web apps are accessed via a web browser on your smartphone. They are not mobile apps that you can download and install on your device. These are responsive websites that adapt their interface to the device a person is using.

There is a type of web app called a progressive web app, or a PWA. It is a native app that runs inside a browser.

Web apps are designed using HTML5, CSS, JavaScript, Ruby, and similar programming languages.

Advantages of web apps:
No installation is needed.
No need to customize to a platform or OS.
Cuts down development costs.
Always up-to-date.
Disadvantages of web apps:
Dependent on the browser used on the device; some functionalities may not be available depending on the browser.
Don’t work when a person is offline.
Longer development time.
Security risks.
Hybrid Apps
The third type is hybrid apps. There are web apps, but they look and feel like native apps. They have fast performance, function offline, have a home screen app icon, and a responsive design. However, these are web apps.

Hybrid apps are developed using Ionic, Objective C, Swift, HTML5, and other programming languages.

They are built on a single platform and then distributed across app stores like Google Play or AppStore.

Advantages of hybrid apps:
Easy to build.
It can be a minimum viable product (MVP).
They load very quickly.
They use a single code.
Can work offline.
Easy to add new features.
Disadvantages of hybrid apps:
Might lack in speed and power.
More expensive than web apps.
Less interactive.
Cannot perform OS-specific tasks.
Top mobile app development frameworks in 2022
All modern applications are built on specific development frameworks, and there are thousands of them. All of them are focused on giving people the best user experience possible, yet some are more frequently used than others. I have chosen the 15 most popular and widely used mobile app frameworks, and I will talk about them in detail now.

React Native

This framework is a leader in mobile framework development. It combines the best parts of native development with React, a best-in-class JavaScript library for building user interfaces.

It is developed by Facebook, and it has become one of the most popular frameworks in recent years.

It allows for building mobile apps for all devices and platforms. Thus, you don’t have to choose between various OS. With React Native, your app will be compatible with both IOS and Android.

You can use React Native in your existing projects or create apps from scratch. Moreover, you can create platform-specific versions of components. This way, a single codebase can share code across platforms. This allows one team to maintain two platforms and share the same technology – React.

Features of React Native
Reusable components.
This framework allows reusing the same components all over again. This shortens the development time significantly. Moreover, both Android and IOS have their counterparts in React, and that’s how the developers deliver consistent results across all platforms.

Cross-platform app development.
At first, React Native was only available for IOS devices, but its awesome performance encouraged developers to start using it for Android devices, too. Instead of using Java, Kotlin, and Swift, developers put all the building blocks together using JavaScript and React. As a result, it is much easier and faster to build apps for IOS and Android simultaneously.

Easier maintenance.
React Native projects are incredibly easy to maintain. The framework’s single code base saves time, and resources, and allows one team to take care of both versions of the app.

React Native App Examples

Swiftic

Swiftic is a mobile app framework for the IOS platform. It allows the creation of custom apps and loyalty programs for your business using its DIY mobile app solution. Moreover, it is a very convenient option as you get a 30-day money-back guarantee option for all its plans. If you don’t want to start from scratch, Swiftic lets you import your online content and choose from their wide selection of design themes.

Swiftic features
Loyalty cards
Your own mobile store
Interesting push notifications
Deliveries option
In-app coupons
Scratch cards to win prizes
App Promotion
Social & media feeds
Third-party integration
Advanced analytics
Swiftic is a mobile app framework for the IOS platform. It allows the creation of custom apps and loyalty programs for your business using its DIY mobile app solution. Moreover, it is a very convenient option as you get a 30-day money-back guarantee option for all its plans. If you don’t want to start from scratch, Swiftic lets you import your online content and choose from their wide selection of design themes.

Native Scripts

Native Scripts is an open-source framework that allows the creation of native mobile apps empowered with JavaScript, Typescript, Angular, CSS, and Vue.js.

This framework was designed and developed by Progress. Apps created with this framework result in fully native apps. They use the same APIs as if they were developed in Android Studio or Xcode.

If you want to reduce the code and time the app loads on the system, choose Native Scripts.

Native Scripts features
Cross-platform application
Native user interface without WebViews
Mission-critical business support
Full access to Android & IOS APIs

Sencha Ext JS

Sencha Ext Js is another cross-platform mobile development framework. It was first known as Sencha, but it later merged with Ext JS. This framework can be used for creating data-intensive applications for the web and smartphones.

Ext JS includes 140+ pre-integrated and tested high-performance UI components, such as HTML5 calendar, pivot grid, trees, lists, D3 adapter, forms, panels, windows, toolbars, and much more.

This framework includes pre-integrated tools like Sencha Architect, Stencils, and Themer. Architect allows developers to build Ext JS applications using drag-and-drop features, and Stencils enables developers to easily prototype, mock-up, and evaluate interface designs.

Sencha Ext JS features
Easy to manage loads of data
Visual data representation
Powerful analytics
State-of-the-art Data-Driven Documents package
Powerful analytics

Xamarin

Xamarin is a .Net-based mobile app development native framework. It was introduced by Microsoft. Xamarin allows delivering native Android, IOS, and Windows apps with a single shared .NET code base.

All apps built with Xamarin contain standard native user interface controls. Moreover, they have access to the entire spectrum of features and functionality depending on the device a person is using. For example, ARKit and Android Multi-Window mode.

Xamarin is an open-source framework, and it is available under the MIT license.

Xamarin features
A big community of more than 60,000 contributors
Android SDK manager
Diagnostic tools
Storyboard files
Application loader
Google emulator manager

Ionic

Ionic is an open-source mobile toolkit for building high-quality, cross-platform native and web apps. It has a single code base, and it runs everywhere with JavaScript and the Web.

Ionic offers premium services for creating applications. Developers can use the framework’s pre-designed UI components, typography, and base theme, and adapt them to a specific platform.

This mobile app framework also lets developers ship apps to the app stores and as PWA with a single code base.

There is also a lighter but not less powerful version of Ionic called Ionic Studio. It can be installed locally to have an easy visual development environment.

Ionic features
Faster development time
A huge community of 5 million developers
Powerful and stable development platform
Intuitive UI components
Complete control over the building process

Onsen UI

Onsen UI is a mobile app development platform that allows for building HTML5 hybrid and mobile web apps. It is considered to be one of the most powerful tools when it comes to developing complex applications.

It uses JavaScript, CSS, and HTML to build apps, and it supports libraries like Angular JS1, React, Angular 2+, and Vue. Onsen UI provides tabs, a side menu, stack navigation, and tons of other components such as lists and forms. All of them have IOS and Android Material design support, with automatic styling that will change the appearance of the app based on the platform.

While being an extremely powerful tool, Onsen UI is very easy to learn. There are tons of learning resources and tutorials on the website.

Onsen UI features
Simple to use and easy to learn
Fast set-up
Cost-effective and time-effective development
Works great with Monaca
Performance optimized for mobile
Lots of ready-to-use components

Flutter

Flutter is a UI toolkit by Google that helps develop native apps for web, mobile, and desktop. It’s an open-source framework that is fast, productive, and incredibly flexible.

Flutter code compiles to ARM or Intel machine code as well as JavaScript, for fast performance.

It is also possible to deploy to multiple devices from a single codebase. Flutter’s layered architecture ensures a faster rendering of components.

Flutter features
High-performance applications
Built-in material design
Supports both IOS & Android
Rich motion APIs
Built-in Cupertino widgets
Strong widget support

Corona

Corona (now Solar2D) is an open-source, cross-platform mobile app development framework that is mostly used for building games. Developers use it to create projects once and then publish them to multiple types of devices: iPhones, iPads, Android phones and tablets, Windows and Mac Desktops, and even Apple TV, Android TV, and Fire TV.

Corona is Lua-based. Lua is an open-source scripting language designed to be fast, lightweight, and powerful. It has been used to create games like Angry Birds, Warcraft, and Civilization.

Developers can call any native library or API using Corona.

Corona features
Cross-platform
Plugins for all needs
Completely free
Strong API support
More than 500,000 developers

JQuery Mobile

JQuery Mobile is an interface system based on HTML5. It is used to develop applications for smartphones, desktops, and tablets. Instead of writing unique applications for each mobile device or OS, the jQuery mobile framework allows designing a single highly-branded responsive website or app that will work on all devices.

It also offers developers the possibility to use ThemeRoller for Mobile to customize all elements of an app or a website to make it branded.

JQuery features
Simple API
Lightweight size
Automatic initialization
Configured with HTML5
Built on JQuery Core

PhoneGap

PhoneGap is an open-source cross-platform mobile app development framework that does not require the use of complex languages such as Java for Android or Swift for IOS.

This framework allows the development of hybrid apps for all devices using web-based languages such as HTML5, JavaScript, and CSS3.

Initially, PhoneGap was launched as “Apache Cordova” by Nitobi. Later, Adobe purchased Nitobi and renamed the framework.

The goal of the framework is to make the gap between hybrid and native apps smaller by enhancing the functionality of native mobile applications.

PhoneGap features
Cross-platform compatibility
Robust support
Flexibility with web technologies

Intel XDK

Intel XDK is a cross-platform development environment for hybrid mobile applications and web apps. This framework allows developers to build apps at a very low cost, using only JavaScript and HTML5.

Intel XDK has one code base, and it can be used to create apps for IOS, Android, Windows, and other OS.

Another major benefit of this framework is that it does not require developers to learn new languages or acquire special skills. Business owners and enterprises only have to hire developers with a single skill set, and that is why the development costs go down.

Intel XDK features
It has code hinting and automatic code completion
The ability of device testing
Cordova and third-party plugins

Appcelerator

Appcelerator is an open-source mobile app development framework that allows the creation of native, hybrid, or mobile web apps across all platforms from a single JavaScript code base.

It is based on Titanium, and it allows developers to deliver an immersive user experience very quickly, with the same results as native platforms.

Appcelerator allows to reuse of up to 90% of code if the goal is to target multiple platforms. It is also possible to add various marketplace modules and extend the framework’s capabilities.

Appcelerator features
Useful features for API management
Hyperloop makes it possible to directly access and integrate every Android and IOS API using JavaScript
App designer allows to design and develop apps for various platforms

Mobile Angular UI

Mobile Angular UI is a mobile UI framework that combines the use of the Angular and Bootstrap framework. It makes the app development process very simple so that applications can be built only using HTML5.

It provides essential mobile components that are missing in Bootstrap3: overlays, switches, sidebars, scrollable areas, and absolute positioned top and bottom navbars that don’t bounce on scroll.

Mobile Angular UI features
Lightweight because it does not require you to add jQuery dependencies
A lot of useful and asthetic mobile compnents included
Easy to move from desktop to mobile or vice versa

Kotlin

Kotlin is a programming language and a modern framework used for server-side mobile app development.

This framework allows sharing of application logic between web, mobile, and desktop platforms while keeping an experience native to users.

Use Kotlin if you need to create a cross-platform app mostly prioritizing Android.

Kotlin features
Compatible with the Java ecosystem
Large community
Allows using different JVL libraries and frameworks
Ktor multi-platform toolkit
Platform-specific APIs
SoftFormance Case
When clients come to us asking to build their mobile apps, the framework we usually choose is React Native.

The most popular React Native apps include Instagram, Tesla, Skype, Facebook, Discord, and others. Why not put your app in such a company?

At Soft Formance, we use React native for multiple reasons. First of all, it has one codebase for two platforms. Moreover, it complies with native Java and Swift code. As a result, we don’t need two separate development teams for two platforms, there is no need to synchronize features, and it allows us to build apps much faster and save our client’s budget.

Second of all, Reactive Native is constantly developing because it has a huge community that is working on adding new features and improving the existing ones.

We believe that if you need to develop an app for Android and IOS, React Native is the best choice. It will help you save time and money as it can reduce the codebase by almost 95%. Its open-source libraries of pre-built components also help us speed up the development process, so that is why we use this framework most of the time.

Frequently Asked Questions
What is the most widely used mobile app development framework?
React Native is without a doubt a leader when it comes to mobile app development frameworks. It is the best JavaScript library to build native apps, it’s compatible with third-party plugins, and it supports both IOS and Android.

Hot to select the right mobile app framework?
Consider these factors when choosing a framework:

Speed considerations
Security risks
Platform feature support
Cost of development
After launch updates
How much time does it take to build a mobile app?
On average, it takes from 2 to 6 months to build an app, but the speed depends on the chosen framework, app requirements, and the skills of the development team.

Which programming language is the best for app development?
Java is the best choice for app development. It is the official language for Android app development and it is the most frequently used language among developers.

Wrapping Up
Modern frameworks have been changing the direction of business development and in the future, their influence will be even more noticeable. These mobile app development frameworks allow business owners to save time, money, and resources and receive awesome results in a short time.

The choice of the best framework for your app depends on many factors: your requirements, type of the app, budget, and expectations. You should consider which OS you are targeting, how experienced the developers are, and what programming language they mostly use, and then it will be easier to choose a framework.

This list of 15 mobile app development frameworks will allow you to create any type of mobile app: native, hybrid, or web app. You can launch a taxi service, food delivery app, social media, or even healthcare technology solutions.

If you have been thinking about building a new mobile application but want to use fewer resources and have time constraints, contact us. Together, we will create a list of requirements and define the key framework for your app.

The Ultimate Guide to Web Application Development for 2022

Kateryna Pakhomova — Thu, 04 Aug 2022 05:11:57 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/web-app-development/

Over a decade ago, the Internet was filled with static apps that show a few images and text scattered around.

But the times changed, and web development gave birth to web APPLICATION development.

Instead of limited and static websites, we have scalable web apps with almost unlimited features for communication with clients, data exchange, sales, and customer retention.

So, if you want to launch a successful digital startup, a web app is a solution.

But there’s a risk of becoming just another software founder who runs one of those thousands of apps with nothing to stand out.

Or you may aim at the stars and try to follow the examples of Netflix, Prezi, Pinterest, YouTube, and other startups that became giants through web app development.

How can you deliver something really worthy and promising in the domain of web app development in 2022?

That’s why you MUST read this article.

Here you will find the most important general information on web application development, an overview of web app types, benefits of web app development in 2022, information on web app development pricing and trends, a step-by-step approach to web app development, and, finally, 10 great examples of web apps.

There can’t be a more comprehensive and up-to-date overview of web app development!

And it’s just about time to dive into the overview of web app development basics and start with a question…

What is Web Application Development and What Should You Know About It?

Unsurprisingly, a web app is an app that runs on the web 🙂

There’s no need to download an app and install it on your device.

Instead, you can access a web application with your browser.

And, for sure, it is dynamic, interactive, and provides a certain scope of functionality to its users.

If you want a web app to run smoothly, make sure to create an appropriate architecture.

Web application architecture involves backend and frontend. Let’s explain these notions with my favorite metaphor of a house.

Backend is all about the fundament, the walls, and other basic components of your construction.

Frontend is your app’s visual appearance, just like the exterior of the house.

Actually, this backend/frontend architecture is peculiar to a great range of application types.

But don’t confuse web apps with mobile applications or websites.

Web App vs. Mobile App
The main difference between the two is that a mobile application is built with a “mobile first” approach. It often doesn’t run on personal computers and is designed specifically for iOS and Android smartphones.

Besides, you may download a mobile app to your device and access it even without an Internet connection.

On the contrary, the Internet connection is a must if you want to access and interact with an online web app.

Web App vs. Website
Actually, a web app is a website category. Just like a website, it is accessed via a web browser and needs the Internet connection.

However, there are still some things that distinguish a web app from a website in its traditional meaning. The table below illustrates it.

Web app:

Dynamic
Interactive
Needs authentication in most cases
Complex functionality
Needs precompilation

Website:

Static
One-way information feed
Doesn’t require any authentication
Usually, simple and limited functionality
Doesn’t necessarily need precompilation

But how about developing web applications? You may create most websites with builders and simple web development application technologies.

Creating a web app requires you to engage in much more complex application for web development, such as web development frameworks.

Web Application Development Frameworks
All types of software are built with programming languages.

However, to develop web applications much smoother and more convenient, specialists use web app development frameworks.

These are the sets of libraries and templates that can skyrocket web application development.

If you want to know more about such frameworks, make sure to check out our recent material on this topic.

Here we’ll just mention that there are frontend and backend frameworks.

The most popular frontend frameworks are React.js, Angular, and Vue.js. And we think that React.js is the best solution for most cases.

As for backend frameworks, the most popular ones are Django (for the Python language ), Laravel (for PHP), and Ruby on Rails (for Ruby). Here our choice is evident: Python/Django combination is our favorite solution for backend development.

Now, let’s get straight to the point. What can you build with these web application development technologies?

Let’s now discuss…

The Main Types of Web Apps

Probably, I will sound like Captain Obvious, but there are different types of web applications.

Here is a short overview of the most notable ones.

Static Web Application
These are portfolios, instructions, or other web apps that display non-interactive content.

Actually, a static web app is often a typical old-fashioned website.

But there’s no time for jokes about outdated software design and so on.

Some web apps just do not need rich functionality and interactivity.

Dynamic Web App
This software type is the complete opposite of static web apps.

Dynamic applications involve much interactivity. The user makes requests and a dynamic platform provides him or her with real-time data from the server.

A perfect example of a truly complex dynamic app that operates with high data loads is a social media platform, such as Facebook.

eCommerce Platform
It is a dynamic web platform that provides users with a list of items for sale.

And this list is, often, very big and dynamic.

Don’t forget about payment system integration, different account types (at least, for buyers and sellers), transaction integration, and admin panel integration.

A perfect example of a truly big eCommerce web application is Walmart.

CMS Web Apps
If you want to update the content of your web platform without asking developers for help, a CMS (content management system) web app is exactly what you need.

You may use a CMS web app to create media sources, personal blog posts, or corporate websites.

The most popular CMS web apps are WordPress, Drupal, and Joomla.

Portal Web Applications
Those who have worked for large digitized businesses are, most probably, familiar with such apps.

These are portals that provide access only to authorized users. Usually, these are employees of a particular company or students of a specific faculty.

Users can apply such web portals to access particular data, share files with other authorized members, set up activities, and create chats.

A workforce management system, such as the Slack portal created for a particular company is a perfect example of such an application.

Single-page Application
In this dynamic application type, a browser rewrites a single page instead of redirecting the user to other pages upon each request.

In simple words, a single-page application (SPA) is a fast dynamic app that provides a user with a seamless experience despite receiving many requests.

A perfect example of a SPA is Gmail.

Multi-page App
As you may understand from this type’s name, a multi-page app consists of multiple pages. Once you make a request, the app redirects you to another page.

The main benefit of such platforms is their great scalability because you may add as many pages as you need.

Business portals, catalogs, and online stores, such as eBay, are great examples of multi-page apps.

Rich-Internet App
These are rather complex web apps that provide the users with a desktop-like experience.

What makes such apps so similar to desktop platforms?

Rich functionality, seamless user experience, high productivity, and the use of built-in tools.

Do you need examples? Some user favorites, such as Google Docs and YouTube are rich-Internet web apps.

Progressive Web App
These are the applications created with responsive web design, which is one of our favorite approaches we use to build web applications.

The gimmick of such apps is the fact that they provide a native experience to both desktop and mobile users.

Great adaptivity to different devices and viewpoint sizes is what makes such platforms extremely demanded.

To see how this works, visit the websites of Forbesand The New York Times from different devices.

So, you know what web app creation is and what you can build with it.

But there’s still, at least, one significant question…

Why Developing a Web App in 2022 May Become a Stellar Idea?

Believe me, the Internet is constantly growing and despite all these cosmic numbers of web apps, launching yours may be a great start for your ride to success.

Here are just a few benefits of web app development you should consider.

Enhanced Online Presence
To be successful, you should be recognizable on the Internet.

And it is challenging to find a better idea for enhancing your online presence than launching your app.

So, if you’re into kickstarting your business in the digital domain, launch an app that will resonate with your services and customer needs.

Just take a look at many examples of taxi businesses that become much more popular after dropping an Uber-like app to the market.

Chances are high that digitization will launch your business into a rocket ride as well. Regardless of the industry in which you operate.

Portability
If you are a software founder with a great product idea, go for a web app solution.

With a responsive design done right, you will create a product that smoothly runs on both mobile devices and personal computers with different operating systems.

After all, the most popular web browsers are the “universal soldiers” of the Internet.

And what is this all for?

User convenience and your app outreach. Probably, these arguments will be enough.

Simple Development Solutions
Web development is as old as the Internet, and there are so many solutions and technologies for web application development.

Also, mind that you will have to develop separate mobile apps for Android and iOS if you want to go native.

Meanwhile, in the case of web application development, you create only one responsive web app with tried and trusted web app development frameworks.

…and that’s all! Your product will be delivered fast and run smoothly on various platforms.

Cost-efficiency
Basically, this point largely overlaps with the one of simple development.

There are many cost-efficient frameworks and tools for web application development.

Some basic web apps may be completely built with customizable templates.

Also, remember about developing a single web app instead of multiple native products.

All these things mean less work.

And this, in turn, means great cost savings.

High Development Speed
Here we return to the notion of framework web application for development one more time.

With customizable templates and pre-set software development solutions, web app development can be truly fast.

Forget about ponderous software development projects that last for years.

With the right approach, you can develop web apps in 2-4 months. Or, sometimes, even faster.

You Know What to Expect
We at SoftFormance have so many successfully completed web app development projects that we can provide accurate estimates on how long a project will take and, thus, how much it will cost.

You may check out my recent article on developing an app like Uber for approximate web application development estimates.

Here we will just say that all features have their terms of implementation, and these terms are rather simple to predict.

And this knowledge already matters a lot. It’s already something to rely on while making estimates and planning your budget.

Now that you understand why you should develop your dream app, let’s go to the practical side. Let’s discuss…

7 Steps to Developing Your Perfect Web App

Here’s the practical approach that we consider to be the most efficient. At least, this is the way that we choose at SoftFormance.

We’re not trying to convince you that this way is the only right one. Just empirically, these 7 steps help developing web applications much faster and much more efficiently.

You may check out our article on product development process for a more complete overview of these steps. In this material, I will try to be as brief as possible.

Idea Generation
That’s when you come up with your idea. This stage involves market research and consulting with people who understand both the technology and market trends. You also make basic decisions on the application of web development.
Product Strategy
At this stage, we get more specific on the product, its development, and promotion. Some startup planning techniques, such as the lean canvas, are involved.
Project Roadmap
We get even more specific, as we create a roadmap that will help us reach project goals.
Design
Here we create the visual part of your app. For a better understanding of the design stage, check out our ultimate UI/UX glossary.
MVP Build
We follow with the actual product development. Our team creates a minimum viable product (MVP), which is a web application version with limited functionality.
MVP Release
When our work on MVP is over, we deploy it to let users interact with the app and evaluate it. User feedback is what guides further product logistics.
Post-launch Software Logistics
We respond to various requests, including the ones that are based on MVP user feedback, to update the app and make it better.

In addition, we take into account various trends and innovations while working on our web apps.

And that’s when we come to the chapter dedicated to…

8 Web Application Development Trends Relevant in 2022
I constantly research various market innovations. Not for just being ‘trendy’ but rather for finding solutions that really matter and can bring web app development to a new level.

These are the ones that seem “the hottest” to me.

Responsive Design and Progressive Web Apps We’ve already mentioned the benefits of responsive design and progressive web apps. Without repeating all these things about multi-platform outreach and efficient development, let’s just focus on one number.

A shift to a progressive web app increases website views by 134%.

And that’s something that can be converted into ponderous profits.

Dark UI Never make the mistake of underestimating UI/UX design matters.

If a corresponding report says that 95(!)% of Internet users prefer a dark UI design over a light one, going with a dark UI may be a very good idea.

Just make sure that this design solution doesn’t contradict your branding.

AI Integration Artificial Intelligence (AI) ensures that your app works efficiently with much less human involvement.

In many cases, it goes about developing AI-powered chatbots that will handle communication with clients.

Surely, it would be strange if such a revolutionary technology had been limited to mere conversations with clients.

Fortunately, there are many more wonders that you can create with AI.

Examples include document processing tools, voice recognition software, analytical application features, and so on.

What really matters is that we have mastered a perfect technology for AI software development.

Surely, it goes about Python. And you can find more information on this matter if you follow this link.

Voice Search Studies show that the voice search market is expected to reach $27.16 billion by 2026, which is more than twice bigger than in 2020.

While not all web applications require AI-powered voice search technology, I believe that you should consider these numbers while planning your dream software product.

Believe me, it’s much easier to implement than it seems.

And if this innovation improves customer satisfaction with your product, then, let it be.

SaaS Architecture This abbreviation stands for Software as a Service.

Unsurprisingly, a SaaS is when you rent software as a service (wow!).

The key features of such architecture are the following:

Software product is hosted in the cloud and maintained by a SaaS provider;
This product is licensed on a monthly or annual subscription basis;
You receive a technology that provides you with a specific core value.
The main benefits of SaaS architecture are the following:

Convenience and customizability;
Accessibility from various devices;
Scalability;
Lower maintenance cost (most maintenance is handled by a SaaS provider);
Small monthly payments instead of costly development from scratch;
Better opportunities to grow the user base, especially with SaaS social media.
If you want to know more about these and other advantages of SaaS architecture, make sure to check out our material on this topic.

Internet of Things (IoT) With the rapid development of firmware technologies, the Internet of Things gains momentum. It goes about connecting software and devices into a single system.

Most sources on the topic will appeal to the hardships of COVID-19 and remote patient monitoring in healthcare.

But I think that reducing the great potential of IoT only to healthcare is a great mistake.

At least, we have many examples of providing IoT solutions to customers from various industries, such as education, security, and so on.

Blockchain Security It has started as a cryptocurrency trend, but now it is a technology that is widely applied to ensure data security.

We can compare a blockchain to a real chain that is strong because all of its parts stick together.

However, contrary to a real chain, the break of a single chain part won’t cause a destructive chain reaction.

Any attempt to steal data from any part of the chain will impact the entire chain and, thus, will be immediately detected.

To sum up, blockchain is all about great security and some more benefits that make it a perfect solution for web application development.

Python Programming I’ve already mentioned Python as my favorite programming language.

But I’m not the only one to admire this technology.

According to recent research, Python is the most popular software development language in the world with a market share reaching almost 30%.

Impressive? The main reasons are simple and efficient coding, a vibrant community, and a great selection of frameworks.

With Django, surely, being my favorite.

If you want more evidence in favor of the “sweet” Python/Django combination, make sure to check out our recent materials on the best Python apps and the most impressive web platforms built with Django.

Surely, there’s a great temptation to enrich your dream web app with as many trendy things as possible. But this may cost you a fortune.

And that’s when we come to the next question…

How Much Will Web App Development Cost?
Let’s take a hypothetical example of an average eCommerce application.

The development of the user profile will take around 1-2 days.

We will need 7-8 days to create a proper listing of services/goods and 2 additional days to supplement it with a search bar.

Payment method integration will take 5-6 days, and we will need around 6 days to implement admin features.

Let’s add 8 days that may be required for building communication features and 3 days for creating a system of reviews.

User history will take around 3 days, while up to 7 days may be needed to implement great security monitoring.

And we almost forgot about such things as building the infrastructure, creating the DB architecture, and production setup for a product. All these tasks will take around 8 days.

So, what we’ve got here is an approximate number of 53 days required for building an MVP (minimum viable product) with basic features for your app.

Add the implementation of extra features, software development planning, and post-release logistics, and you will get a 2-3 months project.

At a rate of $640/day, such a project will cost you around $35,000-$45,000.

But, surely, there may be additional factors and different work scopes.

So, it’s always better to approach me with a specific project idea and I will provide you with an approximate estimate for its implementation.

Now, as a final shot, let’s take a look at even more specific examples of successful web application development.

This is the time to consider…

10 Great Examples of Successful Web Apps

A complete overview of successful digital startups that have managed to thrive through web app development would take a few big almanacs.

That’s why we will focus only on 10 examples. But these stories are enough to make you understand the great potential of web application development.

Netflix I think there’s no need to introduce Netflix to a broad audience.

With a customer base reaching over 33 million, it is one of the world’s most popular media content and television broadcast web platforms.

Besides, Netflix is a great example of a digital startup becoming a global sensation.

And, yes, it is a user-friendly and highly-dynamic web app built with Python.

The Washington Post I don’t want to sound too pathetic, but in the digital era, newspapers should digitize to survive.

The guys from The Washington Post have realized this a long time ago.

Therefore, they have launched a large dynamic web app filled with high loads of media content.

And public response shows that it has been a stellar decision.

The media giant’s website attracts more than 60 million users per month, which is pretty solid.

YouTube The world’s biggest media hosting has once been a small digital startup.

Nowadays, it is a ponderous web application with elements of a social network, video hosting, and marketing platform.

And some videos posted on this website reach up to 7 billion views.

If this number is not amazing, I don’t know what can be regarded as “amazing” at all.

Also, YouTube is a perfect example of a digital business that goes with both great responsive design and a native mobile app.

Prezi Here it goes about a great web platform that provides its users with various presentation and educational services.

The Prezi web platform is rich in various types of content.

Also, it provides its users with an excellent responsive design.

No wonder the user base of this platform already exceeds 100 million.

Pinterest Here’s one more heavyweight from the world of web applications.

With over 478 million active monthly users, Pinterest is one of the world’s biggest image-sharing social media platforms.

And, what makes it especially interesting for us, it has been created with a Python/Django combination.

Opesta Now, it’s time to tell you about a web platform that has been created by my team.

Check out a corresponding article for a more detailed description of Opesta.

In brief, it is a marketing automation platform that integrates with Facebook messenger.

It is also a great example of how a SaaS idea transformed into something bigger, as we expanded Opesta with various monitoring tools and other rich functionality.

Facebook The world’s most famous social media is one more example of successful web development.

Built with a large tech stack, which, by the way, includes Python, Facebook is also a great example of a single-page app.

The platform is fast, scalable, and works with immense loads of media content.

And what is even more significant about Facebook is the fact that the platform generates its owners solid income.

The number of active Facebook users worldwide has almost reached 3 billion.

There couldn’t have been more impressive numbers to highlight the great success of this digital startup.

KidiBoard Here’s one more project that I am especially proud of. After all, it was my team to develop web app.

KidiBoard is a great combination of a web marketplace for parents and a social network.

Its target users are parents, and they can use KidiBoard to find the best tutors for their kids, review various child activities, and communicate with other parents.

With its interesting idea and seamless user experience, KidiBoard is a great example of successful web app development.

The Onion Here’s a famous online publication service that works as both a newspaper and a social media for journalists and writers.

And it is a great example of a brilliantly implemented tech side of the project.

Unsurprisingly, a Python/Django combination stands behind the development of the web app of Onion.

Revenue Compass And here’s one more web development app created by my team.

It is a commercial intelligence platform that helps businesses take their manufacturing efforts and financial planning to a new level.

It is feature-rich and applies the most innovative mechanics to operate with great data loads.

Sounds like a perfect example of successful web apps development, doesn’t it?

If you want to know more about this project, make sure to check out our recent article on it.

And now, that almost all vital aspects of web application development have been covered, let’s conclude with a …

Summary
Well, I suppose, it has been pretty much information.

The key takeaway is that web applications development has potential, and this potential is almost unlimited.

And now you know the most valuable points to consider while starting the development of the web app for your startup.

So, your home task for today would be structuring all the information from this article and trying to come up with or develop your own software development ideas.

Write down what you’ve got in the comments, or contact us for an even more insightful discussion on web application development.

As a company with over 200 successfully completed startup projects, we’re ready to help.

Because we’re sure that people need your software.

Django vs Flask vs FastAPI for Software Founders

Kateryna Pakhomova — Thu, 28 Jul 2022 07:45:18 +0000

The original article was written by SoftFormance https://www.softformance.com/blog/django-vs-flask/

With how the IT sector is looking right now, it’s hard to imagine that only 20 years ago, programmers were developing software practically from scratch. Yes, they had no templates and frameworks. Sounds terrifying, I know.

These days, no one develops software from scratch because it has become much more expensive and complex. To make this process faster and cheaper, different frameworks and templates appeared on the market, and they make programmers’ lives easier.

Software becoming more complex also resulted in stricter requirements and regulations for the development teams.

There are a bunch of different frameworks for each of the modern dynamic programming languages, but we want to focus on the most popular programming language.

The majority of developers now use Python. According to JetBrains, 84% of programmers use it as their primary coding language and 16% – as their second language.

Python has three main frameworks that developers work with: Django, Flask, and FastAPI.

They are used in different cases, and all three have their pros and cons. Thus, if you have been thinking about developing your website, app, or any other digital product, and you can’t choose between these frameworks, this article is for you.

Here, I will talk about their advantages and disadvantages, their detailed comparison, and the cases of their usage.

Choosing Django vs Flask vs FastAPI will help you manage your money wisely, save time and find the perfect team to develop your web product, so keep on reading.

What are Django, Flask, and FastAPI?
Django is a high-level Python web framework created by Adrian Holovaty and Simon Willison in 2003. Django follows the Model-Template-View (MTV) pattern, and it was invented to meet all fast-moving deadlines and the most complex requirements of modern development teams.

The main goal of the creators of Django was to make the development process simpler. They wanted to be able to create web applications and launch them in a matter of hours, not even days.

One of the reasons why Django is so popular is its straightforwardness and the fact that it is free and open source.

This explains why it’s one of the most widely-used development frameworks used globally, even by tech giants like Youtube, Instagram, etc.

Flask is another Python-based microframework widely used for web application development. It is even more popular than Django. Compared to the previous year, Flask usage has grown by 15%, and now it has become the most popular framework.

Did you know that Flask was initially just an April Fool’s joke? Armin Ronacher, its creator, has first written two other solutions called Werkzeug and Jinja2. He decided to put them together in a zip file, and that’s how he wrote the Denied Framework.

When developers opened this file, the installation program automatically unzipped the file and run the two solutions. That’s how Flask was born.

According to the official Flask website, its success created a lot of additional work in issue tickers and pull requests.

The reason why Flask is categorized as a microframework is that it does not depend on external libraries to perform the tasks of a framework. Flask has its tools, libraries, and technologies that help support all functionalities of web app development.

FastAPI is a fast, high-performance web framework for building APIs with Python 3.6+ based on standard Python type hints.

According to Github, FastAPI is one of the fastest Python frameworks available. It is built to optimize the development experience so that a team can write simple code to build effective APIs.

Compared to Django and Flask, FastAPI is indeed fast! This score chart from Techempowershows the difference in performance between the three frameworks.

Shortly, FastAPI supports asynchronous code and has great documentation, and it’s quite different from Django and Flask. Thus, let’s discuss its pros and cons later.

Django: Pros and Cons
Django is popular for a reason. Its advantages convince more and more developers to use it for web app development, so let’s discuss them.

Ridiculously fast
This framework was designed to help developers build apps as fast as possible, in a matter of days.

Great performance
Performance is an essential indicator of functionality. Django’s performance has awesome results, and it is used by high-traffic websites and applications such as Youtube and Instagram. It shows how effective this framework is.

Efficient code structure
The framework’s code structure makes it easy for developers to add more functionality to their websites and apps.

Fully loaded
Django has numerous extras that can be used to handle common web development tasks. The tasks Django can handle include content administration, RSS feeds, user authentication, site maps, and many other tasks.

Django Rest Framework
Django has a powerful toolkit for building Web APIs. It is called Django REST. This framework is used by companies like Heroku, Mozilla, Red hat, and Eventbrite. It is fully customizable and has great community support.

Highly secure
Django is also known for its security. It helps developers avoid such security mistakes as SQL injections, cross-site request forgery, cross-site scripting, and clickjacking. It also provides a secure way to manage user passwords and accounts.

Scalable
Django ensures scalability as it allows making changes in different layers without additional costs and effort. It also ensures maintenance as the code can be reused and maintained properly so it cannot be duplicated.

Cons

Too many reusable modules
Django’s software has too many reusable modules, and it can affect the development speed. Its slow nature can also be explained by the fact that it is necessary to ensure that all previous versions are compatible with the new ones.

Prior knowledge is necessary
It is a complex framework to work with so it requires prior knowledge of its specifics and way of work.

No conventions
This framework does not have a set of principles developers can use for development, and that is the reason why some programmers may dislike Django. The lack of conventions also slows down the development speed.

Not suitable for small projects
You can build small and big projects with Django. But it got a lot of batteries under the hood, so it’s better suitable for a bit bigger projects. If you want something super simple, Flask might be a better option.

Flask: Pros and Cons
Now, let’s move to the next framework. Flask is different from Django in many aspects, and some of its advantages convince developers to choose it instead of Django, or vice versa.

Pros

Flexible
Flask is an incredibly flexible framework. You can add changes at almost any step of the development process, which is its unique characteristic.

Scalable
Flask is a microframework. It means that it can be used to grow a tech product very fast. For example, you want to start small, but have a goal to grow your product in the future. Yet, you haven’t decided in which direction to move. Flask will give you time to consider the possibilities and scale up.

Lightweight
Flask does not rely on numerous extensions. Its design is simple and lightweight while also being incredibly functional. Its functionality can be split into several interchangeable modules. All these parts are flexible and easy to change, move, and test on their own.

Promotes experimentation
Every Flask project has its own set of libraries and frameworks built in. As a result, Flask is very fun to use for developers. It promotes experimentation and is very easy to use for most programmers.

Great for small projects
Unlike Django, Flask has a smaller codebase size. Moreover, it is easier to use and more flexible, which means that it is more suitable for smaller projects.

Beginner-friendly
Due to its simplicity, Flask gives developers time to learn and comprehend its principles better. Thus, it is more suitable for beginners than Django.

Cons

Less secure
Flask uses Modules, which means that it is more prone to security breaches. It also has no CSRF protection. Cross-Site Request Forgery is an attack that uses the victim’s credentials to perform various actions on behalf of the victim. To address this issue, developers often use Flask-WTF extension to enable CSRF protection.

Not suitable for big projects
Using Flask for big apps can be incredibly time-consuming. It is better to use for simple and innovative cases rather than for big projects that require complex features and fast development time.

Small community
Flask’s community is smaller than Django’s one. It may be more challenging to find a solution to some issues as there are fewer people to answer your questions.

Not a lot of tools
Since Flask is a microframework, it does not have a lot of tools to choose from. Developers often need to add extensions manually. For instance, they frequently add libraries. If you add too many extensions, it can slow down the development process because the framework would need to process a lot of requests.

Slower MVP development
If you need to build an MVP, using Flask will require more time to do it. The reason is that in Django, you can add a frontend quicker to collect feedback.

FastAPI: Pros and Cons
FastAPI is a relatively new framework, and its believed to be the fastest out of the three. Some developers even state that is the best out of the three frameworks.

Well, is FastAPI betten than Django?

We can’t give you a definite answer because they are completely different, and the choice depends on the type of your project. Let’s read about FastAPI’s pros and cons and then decide.

Pros

Incredibly fast
This framework got its name for a reason. It’s at the same level as NodeJS thanks to Starlette and pydantic.

Supports asynchronous code
Probably the most exciting feature of this framework. FastAPI supports asynchronous code out of the box using the async/await Python keywords. The asynchronous code allows to significantly reduce the execution time.

Standards-based
FastAPI is based on the open standards for APIs: JSON Schema, Open API, and OAuth 2.0.

Automatic docs
Open API, Swagger UI, and ReDoc come packed automatically with FastAPI. As a result, all documentation is automatic and developers don’t have to worry about it. It allows them to focus on the code rather than on setting up the tools.

Cons

Small community
Python FastAPI is a relatively new framework. Hence, its community is smaller than Django and Flask ones. Even though it has detailed documentation, it will be challenging to find external educational materials.

Crowded file
During the development process, you need to tie everything together in the FastaAPI application. As a result, the main file becomes too crowded.

Comparison of Django, Flask, and FastAPI
Now that we have covered the main advantages and disadvantages of the two frameworks, let’s look at the comparison of Flask vs Django vs FastAPI based on certain parameters and help you decide which one to choose.

Django:

Type of Framework: Full-stack framework
Project Layout: Suitable for multiple-page applications and big projects
Working of Framework: Follows an object-oriented approach. It allows linking databases and tables with classes
Bootstrapping Tool: Has the inbuilt bootstrapping tool called Django-admin. It allows the creation of apps without any externally added features
Database Support: Django supports MySQL, Oracle, etc.
Flexibility: Not as flexible as Flask due to multiple built-in features and tools. Developers can’t add changes to the modules
Control: Developers do not have full control over the functions and modules
Template Engine: Inspired by the Ninja2 template. However, Django has its built-in model view template that makes the process of development much easier
Debugger: Does not support virtual debugging
HTML: Supports dynamic HTML pages
Usage: Suitable for complex projects and high-end technology companies like Youtube, Instagram, Udemy, and Coursera

Flask

Type of Framework: Microframework that is lightweight and offers multiple features without external libraries
Project Layout: Suitable for single-page applications and small projects
Working of Framework: Works on a modular approach. It allows working through extensions and manually added libraries
Bootstrapping Tool: Flask does not have any built-in bootstrapping tool
Database Support: Flask does not support the basic database management systems. It uses SQLAIchemy for database requirements
Flexibility: Flask is incredibly flexible because it has no built-in extensions. Developers can manually add libraries and make changes
Control: Flask allows having full control over the creation of an app without depending on any external libraries
Template Engine: Used Ninja2 template design
Debugger: Has an in-built debugger
HTML: Does not support dynamic HTML pages
Usage: Suitable for projects and companies that are willing to experiment with the module. For instance, Reddit, Netflix, Airbnb, etc.

FastAPI

Type of Framework: Fast (high-performance) web framework for building APIs with Python 3.6+
Project Layout: Suitable for multiple-page applications and big projects
Working of Framework: Works on a modular approach
Bootstrapping Tool: FlaskAPI does not have a bootstrapping tool
Database Support: Supports most relational databases: SQLAlchemy, PostgreSQL, MySQL, etc.
Flexibility: Flexibility is provided by Pydantic models while keeping the code simple and short
Control: FastAPI is similar to Flask. It is simple to use, developers have control over the process, and it is easy to integrate other components with FastAPI
Template Engine: You can use any template engine with FastAPI. A common choice is Jinja2
Debugger: Has an in-built debugger
HTML: Can be used for building web apps that serve HTML using Jinja
Usage: Tech giants like Microsoft, Netflix, and Uber use FastAPI for building their APIs

Projects built with Django

Django is usually used to build scalable complex web applications or websites with a growing audience. The majority of famous projects built with Django are SaaS apps, marketplaces, social networks, content-based portals and news sites.

Let this list of websites not only demonstrate how you can use Django but also inspire you to apply its features to your new projects.

Instagram

Instagram is probably the most popular social network these days. It has enormous amounts of data and various user interactions such as likes, stories, shares, replies, etc. Django allows Instagram developers to handle all of it without any major issues as well as add new features constantly and scale the app.

Spotify

The developers of Spotify chose Django for two main reasons: fast backend and machine learning options. This app is known for its personalized music recommendations, weekly playlists, and the ability to create your own playlists. Recently, Spotify also added the lyrics feature. If the app had been built with Flask, it would not have even half of these features.

Youtube

At first, Youtube was built with PHP, but its audience grew quickly, and there was a need for more features and stability. Thus, the team joined the Django community, and the app grew even quicker. Django allows the Youtube team to add new features regularly and grow the audience.

DropBox

DropBox is the most famous cloud-based storage app for all types of files: documents, graphics, videos, etc. You can store your data on DropBox and access it from any device.

The team used Django to make the backend and client desktop software. This choice allowed the team to build the product quickly and add the user history option. Two main features that would be impossible to add if it was not built with Django are the file sharing option and the ability to synchronize accounts across devices.

Projects built with Flask
The use of Flask has increased from 41% in 2017 to 47% in 2018. More and more leading companies are using this framework when building their apps. The reason why they choose Flask is that it gives them more control and allows them to experiment. It also allows adding any extensions they wish. No wonder why Reddit and Airbnb teams chose Flask.

Reddit is a Social News Aggregation platform. It is mostly used to discuss various topics and rate content, and it started with Flask for its backend. On Reddit, users register and have the ability to post, comment, and share content. Reddit user community is huge, but it does not have such complex features as Instagram or Twitter so it functions well on Flask.

Patreon

Patreon brings content creators and their followers together and allows them to share unique content with the subscribers. While people buy a monthly subscription to their favorite blogs, content creators can earn monthly income. This membership platform is rather simple as it does not have many features, and that is why Flask was a perfect fit for its backend.

Netflix

Netflix is the most popular video streaming service. It manages tons of data, but it does not have many features that would require a Django backend. On their tech blog, they talk about the technology behind their platform. For example, in this article, they talk about their backend being built with Flask and talk about its scalability, extensibility, usability, and why they chose Flask as the main framework.

Airbnb

All travelers know this app. Airbnb allows people to search for accommodation all over the world, communicate with people renting their apartments, and leave reviews. This website uses Flask for a smaller tool they have: Airflow.

Airflow is a platform they built to “move fast, keep their momentum as they author, monitor, and retrofit data pipelines.”

Projects built with FastAPI
Netflix (Dispatch)

Netflix has recently started using FastAPI for their new crisis management orchestration framework called Dispatch. According to the company, Dispatch helps their team effectively manage security incidents by integrating with existing tools used throughout an organization (Slack, Jira, GSuite, etc). Dispatch uses the following components: Python 3.8 with FastAPI, VueJS UI, and Postgres.

SoftFormance Case
Which framework do we usually choose for a marketing SaaS or a marketplace? The choice depends on the size of the project, the client’s requirements, and the features that should be added.

In 90% of the cases, we stick with Django because we usually work with mid-sized and large projects. If our clients want to move and deploy fast, be able to make changes along the way, and save their budget, then Django is the best choice for them.

Once, we were working with a marketplace community that had a fast-growing community of users, and they needed fast and accessible scaling. That’s why we used Django. We handled the project without a single issue, even when their business developed in rapid terms.

If we need to build a unique marketplace app, we use Flask. It is light, flexible, and simple so it gives our team room to experiment and create. Moreover, if a client wants to build an app with a customizable structure, Flask is a perfect fit.

We have not been using FastAPI yet, but considering its growing popularity on the market and excellent features, we will undoubtedly utilize it soon.

Wrapping up
Django, Flask, and FastAPI are Python frameworks used by developers worldwide. Even though they all are based on Python, they have considerable differences.

Django is an open-source framework for rapid development and apps with complex features. It allows you to achieve maximum efficiency in the shortest terms. It’s perfect for marketplaces, fintech companies, building SaaS solutions, and social networks.

Flask is a microframework. It is more suitable for unique projects, where there is a need for experiments, more flexibility, and creativity.

FastAPI is by far the fastest framework, but it’s not used as frequently as the other two.

In this article, you learned about their main advantages and disadvantages and the key differences between the two frameworks. Hopefully, you will be able to choose which one works best for you and your future project.

If you want to build a full-stack website or an app with a ton of features, choose Django.

Flask would be a perfect fit for you if you want to quickly prototype a very simple web app or a very huge and unique app. It’s a kind of “on-the-edges” framework.

Finally, FastAPI is a great fit for someone who wants to experiment and be among the first companies on the market using this amazing framework.

Whatever you choose, make sure that your choice is based on what you will use the framework for, and it will help you save your time, and money, and receive the product you were hoping for.

If you are looking for a team to develop your app or need a consultation to help you choose between the frameworks, feel free to contact us.