We live in an age when software development is a big part of seemingly any industry in some shape or form. Organizations use websites, mobile apps, CRMs, and many other software solutions in order to reach their business goals, improve internal and external operations and ultimately increase their revenues. 

There are ready-made solutions that can cover your basic needs, however, if in your case customization is required, you will have to be aware of the basics of software development and risk management in software engineering at least at the high level. 

Grand View Research claims that the size of the software development market is getting close to the USD 500 billion mark, and it is expected to reach USD 525.1 million by 2030. The market is truly enormous, with 26.9 million software developers available worldwide. 

While the technological advancements and growth of the market will allow you to build almost everything you want, if you have an appropriate budget, of course, there are still no guarantees that a software product for your organization will end up being successful, or being built at all. 

1 in 5 startups fails in the first year of existence, and half of the startups fail within 5 years. Of course, the reasons for that can be very different, however, by being aware and adhering to the process of risk management in software engineering, you can improve your chances for success. 

In this article, we will share our expertise and experience in risk management in software development, and you will be able to use these tips in any kind of industry, from Healthcare to E-learning development. 

“The essence of risk management lies in maximizing the areas where we have some control over the outcome while minimizing the areas where we have absolutely no control over the outcome.”

— Peter L. Bernstein

What is the risk management process in software engineering?

To put it simply, this process consists of identifying, assessing, mitigating, and controlling any possible, existing, or potential threats that might harm your business. Types of risk management in software engineering can be divided into internal and external. 

An example of the risk involved in software development that can be considered external may come from the possible hurricane, while internal comes from people or processes inside your organization, like failing to meet a deadline on an important task. 

The project manager is widely regarded to be responsible for risk management, however, the responsibility for this should be shared among all members of your software development process. On a high level, even the stakeholders should know what is considered and not considered as a risk in project management.

Key steps of risk management in software engineering

Before diving deep into the types of risks in risk management, let’s review the stages it consists of. 

Risk management involves which type of risk: A list of the most common threats

You can look at risk analysis in project management from different perspectives because possible threats may come from both technical and business perspectives, and you should be ready for them. 

The lack of planning and understanding

With this problem, you might end up exceeding the previously planned budget and not meeting set timelines. In order to avoid it, you should put everyone on the same page, including executives. 

It is extremely important, that the product owner or a project manager will do the best they can to create a roadmap for the project, plan the scope, and conduct proper research and analysis for the project. 

The lack of management support

Speaking of executives, there is another threat that can negatively impact the development process. Let’s say the management provided you with permission to start working on a product, but then the plans change, and you will get the budget cut or an entire project canceled. How to avoid this unfortunate situation? You need to make sure that businesses understand the significance of a particular software development project and what business goals it set to achieve.  

Problems with communication

When you got your executives on board with your ideas, you may encounter another common problem. Your development teams may fail to understand the determined business goals and not feel motivated to do the job. Make sure to do everything you can to transfer that vision, including creating user stories and telling every small business detail that might matter while creating a product. 

Too high expectations

This one also may lead to budget cuts and project cancelation. You can solve this by putting additional effort into planning and making sure that everyone understands what you are trying to achieve with the solution. 

Not enough time for Research and Prototyping

This is an area where you can fall into the trap of doing too much or not enough. While you are building a product you need to have enough time for proper research, however, it requires valuable time that you often just don’t have. What to do here? It makes sense to get a consultation from experienced software developers for the right decision.  

Scope creep problem

It is important to leave some room for changes in the scope of your project while you are planning. If you take into consideration only current needs, you may end up exceeding the budget or timelines when something will change, and you will have to take an unplanned path. More often than not, plans change, so avoid scope creep! 

Inaccurate estimations

The root cause of this is poor planning. When you make estimations, you need to rely on facts and make informed decisions. Your management and actual developers should be connected on the subject of estimation, and help each other in the process of setting budget boundaries and realistic release dates. 

Legacy systems

Existing infrastructure is another important factor that should be taken into account. You can develop the most innovative and effective software in time, but fail to plan that the replacement or integration with an existing system may eat up a significant chunk of money and time. If you use outsourcing, your development teams should be fully aware of what systems you currently have, and how much effort the integration of the new solution will take. 

Setting a timeline

With all the abovementioned areas covered, it may be up to you to set up a proper deadline. Obviously, if external factors allow you to do that. It is very important to strike a balance here, in order to obtain great results.

If you push too hard with a deadline, the development team could simply fail to deliver the product as promised. However, if you provide too much time you may encounter a lack of motivation problems, which will result in a relaxed attitude among the development experts.   

Once again, experienced IT providers may help you to set realistic milestones according to your specific situation. 

Exceeding the budget

The most accurate calculation and detailed planning still don’t give you a 100% guarantee. More often than not, your project will require more money than initially planned. All you can do here is to keep in touch with the stakeholders and control that any changes to the development direction will go through a proper protocol and get additional financing if needed. 

Not enough testing

Even the greatest product may fail due to the lack of testing. Bugs and not properly functioning features of your software solution may ruin everything. Right from the very start, it makes sense to add to your budget expenses for proper testing. Both Manual QA Engineers and QA Automation Engineers are important in the quality assurance process and delivering software adhering to the highest industry standards. 

Not leveraging user feedback

Make sure to be able to make changes and adjustments in your product based on user feedback upon the release. No matter how big your project is, whether it is an MVP or a complete product, being flexible after release is super important to receive maximum value. It will be a good idea to have a significant amount of money and time planned beforehand, that you will spend on making changes based on user feedback post-launch. In some cases, this can make your break your product, so you need to pay enough attention to it.  

FAQ

What is a risk in software development?

You can consider a risk any factor that can potentially impact the software development process negatively. To deal with this, risk management is created, a discipline that focuses on preventing unfortunate situations while creating a product. Usually, the project manager is responsible for this, and there are risk management MCQs to test the skills of the particular expert. 

What are examples of software development risks?

First, we need to distinguish that there are two categories of potential threats. First, come from the business side, and second from actual technical implementation. Business risk example can be poor planning, while technical risk can be the usage of unsuitable technology. 

What are technical risks?

Technical threats can stop the progress of the development process. These may include poor code quality or a lack of testing. 

The post Introduction to risk management in software project management appeared first on AppGen 2022.

Penetration testing can help businesses identify and fix weaknesses in their systems before they can be exploited by attackers. In addition, penetration testing can help businesses assess their overall security posture and make improvements to their defenses.

What is Penetration Testing?

Penetration testers use a variety of tools and techniques to attempt to gain access to systems and data. They may try to exploit vulnerabilities in software, hardware, or network configurations. They may also try to social engineer employees into giving them access to sensitive information.

Once they have gained access to a system, penetration testers will attempt to escalate their privileges and gain further access. They may also try to exfiltrate data or plant malware.

Penetration testing can be used to assess the security of an organization’s systems and identify areas that need to be improved. It can also be used to test the effectiveness of security controls.

Penetration testing should be conducted by experienced professionals who understand the risks involved. The tests should be conducted in a controlled environment and all findings should be properly documented.

Organizations should consider conducting penetration tests on a regular basis as part of their overall security program.

Cyber attacks are becoming more sophisticated and widespread, making it imperative for organizations to have robust security measures in place. Penetration testing is one way to test the effectiveness of these measures and identify any weaknesses that could be exploited by attackers.

Penetration testing simulates real-world cyber attacks to identify vulnerabilities in an organization’s systems and infrastructure. These tests are conducted by ethical hackers, also known as white hat hackers, who use the same tools and techniques as malicious attackers.

Penetration testing can be used to assess the security of both internal and external systems. External tests focus on assessing the security of an organization’s Internet-facing systems, while internal tests focus on assessing the security of systems that are not connected to the Internet.

Why Is Penetration Testing Important?

Penetration testing is important because it can help identify vulnerabilities that could be exploited by attackers. Attackers are constantly trying to find new ways to exploit vulnerabilities in systems and infrastructure, so it’s important for organizations to keep their systems up-to-date and secure.

Penetration testing can also help assess the effectiveness of an organization’s security controls. Controls such as firewalls and intrusion detection systems (IDS) are designed to prevent or detect attacks, but they can’t be 100% effective. Penetration testing can help identify weaknesses in these controls so that they can be improved.

What Are the Steps Involved in Penetration Testing?

The steps involved in penetration testing will vary depending on the scope and objectives of the test. However, there are some common steps that are typically followed:

1. Reconnaissance: The first step is to gather information about the target system or organization. This can be done through public sources such as search engines, social media, and company websites. It can also be done through more covert means such as port scanning and footprinting.

2. Scanning: Once information has been gathered, the next step is to scan the target system for vulnerabilities. This can be done using automated tools or manual methods.

3. Exploitation: If vulnerabilities are found, the next step is to attempt to exploit them. This can be done in a number of ways, such as using automated tools or writing custom exploit code.

4. Post-Exploitation: Once a system has been successfully exploited, the attacker can then perform post-exploitation activities. This may include installing backdoors, uploading malware, or stealing data.

5. Cleanup: The final step is to clean up any evidence of the attack and cover their tracks. This includes removing any malicious files, deleting log files, and disabling any backdoors that were installed.

The main goal of an attacker is to gain access to a system or network without being detected. To do this, they will use a variety of techniques and tools at each stage of the attack. Some of the most common methods used in each stage are listed below.

Reconnaissance:

● Footprinting: This involves gathering information about the target system or network. This may include searching public records, social media, and job postings.

● Scanning: This involves using tools to scan for open ports and vulnerabilities on the target system. Common tools used for this include Nmap and Nessus.

● Enumeration: This is a process of gathering more detailed information about the target system. This may include identifying usernames, shares, and services running on the system.

Exploitation:

● Buffer overflows: This is a type of attack that exploits a vulnerability in a program by overflowing the memory buffer with data. This can allow an attacker to execute code on the target system.

● SQL injection: This is a type of attack that exploits a vulnerability in a website’s database. This can allow an attacker to access or modify data stored in the database.

● Cross-site scripting (XSS): This is a type of assault that uses a website’s flaw to attack users. An attacker may exploit this to insert harmful code into a web page, which will be executed by unsuspecting visitors.

Gaining Access:

● Social engineering: This is a type of attack that relies on human interaction to trick people into revealing information or performing actions that they would not normally do.

● Password cracking: This is a type of attack that tries to guess passwords. This can be done using methods such as brute force or dictionary attacks.

● Exploiting vulnerabilities: This is a type of attack that takes advantage of weaknesses in software or systems to gain access.

Once Access is Gained:

● Privilege escalation: This is a type of attack that allows an attacker to gain elevated privileges on a system. This can be done by exploiting vulnerabilities or by using social engineering techniques.

● Malware: This is a type of attack that involves malicious software, such as viruses, worms, and Trojan horses. This software can be used to damage systems or steal information.

The post The Importance of Penetration Testing for Your Corporate Cybersecurity appeared first on AppGen 2022.

What is Web 3?

Web 3 is a term used to describe the next generation of the internet, one that is more decentralized, open, and secure. While the internet has always been a decentralised network of computers, the way we use it today is very centralised. A small number of companies control most of our data and our attention.

Why is Web 3 important?

Web 3 is important because it represents a shift back to the original vision of the internet as a decentralised network. With Web 3, there is no need for centralised intermediaries like Google or Facebook. Instead, users can interact directly with each other and with applications in a secure and efficient way.

What are some of the technologies that make up Web 3?

Some of the key technologies that make up Web 3 include:

– Decentralised storage: This is a way of storing data that is not controlled by any single entity. Instead, it is distributed across a network of computers. This makes it more secure and efficient than traditional centralised storage methods.

– Decentralised computing: This is a way of running applications without the need for centralised servers. Instead, they are run on a network of computers. This makes them more secure and efficient than traditional centrally-run applications.

– Blockchain: This is a decentralised database that allows users to interact with each other directly, without the need for an intermediary.

– Smart contracts: These are agreements that are written in code and stored on the blockchain. They can be used to automatically enforce terms and conditions between parties.

– Cryptocurrencies: Cryptocurrencies are digital assets that use cryptography for security and to mint new units. Bitcoin is the most famous cryptocurrency.

What is a decentralised network?

A decentralised network is a computer network that is not controlled by any single entity. Instead, it is distributed across a network of computers. This makes it more secure and efficient than traditional centralised storage methods.

What are the characteristics of Web 3?

There are three main characteristics of Web 3:

1. Decentralisation: There is no central authority controlling the internet. Instead, it is a network of computers that anyone can access and use.

2. Openness: The code that runs the internet is open source, meaning anyone can contribute to its development.

3. Security: The data on the internet is encrypted, making it more secure from hackers and other malicious actors.

What are the benefits of Web 3?

There are many benefits to using Web 3:

1. It is more secure: The data on the internet is encrypted, making it more secure from hackers and other malicious actors.

2. It is more private: Since there is no central authority controlling the internet, your data is less likely to be collected and used without your consent.

3. It is more democratic: The open source nature of the internet means that anyone can contribute to its development, making it more inclusive and representative of the global population.

4. It is more efficient: The decentralised nature of the internet means that there is no need for central servers, which makes it more efficient and scalable.

5. It is more resilient: The distributed nature of the internet means that it is more resistant to outages and disruptions.

What are the disadvantages of the decentralised internet?

1. It is less secure: The lack of a central authority means that there is no one to take responsibility for security breaches. This makes the decentralised internet more vulnerable to attack.

2. It is less private: The lack of a central authority means that there is no one to enforce privacy laws. This makes the decentralised internet less private than the traditional internet.

3. It is less stable: The distributed nature of the internet means that it is more susceptible to outages and disruptions.

4. It is less efficient: The decentralised nature of the internet means that there is no central server, which can make it less efficient and scalable.

The post What Is Web 3 And Why Is Everyone Talking About It? appeared first on AppGen 2022.

Most likely than not, you choose between a sole proprietorship and a limited liability company. Which is a better option for programmers? Let’s help you pick the correct answer. 

What Is a Sole Proprietorship?

This form of private enterprise is a so-called disregarded or unregistered entity that requires no state filing. Once you start doing something for money and pay statutory charges and taxes, you become a sole proprietor. As the name suggests, you are the only enterprise owner. This business structure is widely favored by startuppers, freelancers, and those who work from home or online. At the same time, it’s a great match for newly formed small offline businesses too. 

Though an unregistered business structure and not a formal entity, a sole proprietorship still allows you to hire employees and make use of other services available to legal entities such as DBA filing or trademarking. 

Top Benefits of a Sole Proprietorship for Programmers

To help you understand if this form of the venture is good enough for your programming endeavors, here are the key advantages you will enjoy:

• No formalities to handle: Since a disregarded entity needs no filing, there is no serious paperwork to process and submit to state authorities. You might just need to register for a license to support your professional activity, with no other filing formalities to observe;
• You are the only one in control: You are the only enterprise owner, and you are in full control of your venture. You are the one to decide and do what you deem necessary, and you are the one to gain all profits; 
• Pass-through taxation: All business-related profits and losses should be reflected on your individual tax report, thus, saving you the need to file a corporate tax report and comply with any additional tax requirements;
• No annual state filings: While legal entities are to submit state reports on an annual basis to maintain their company info in the state registries up-to-date, disregarded entities don’t have to follow that rule and keep in mind yet another formal deadline.

Sole Proprietorship Tax Benefits and Options for Programmers

A taxation system is the biggest draw of this business form. On the one hand, you are considered self-employed and will have to pay a self-employment tax, which is not as low as you want it to be.

However, that pricy charge is more than justified by other tax benefits you’ll get. Thus, you’ll get an opportunity of reducing your taxable earnings by deducting certain enterprise expenses (for example, the use of your home or vehicle for business purposes). You’ll be also allowed to write off travel, entertainment, or marketing costs and get access to special retirement plans. 

Such taxation opportunities are welcoming for beginner programmers who seek to save on expenses and cut down the costs to the minimum. 

What Is an LLC?

Unlike a disregarded entity, an LLC is an incorporated form of business that calls for state filing. As a result, you’ll get a separate business entity with its own legal framework independent of the enterprise owners. Speaking of which, while a sole proprietorship belongs to a single owner, LLCs can be owned by a single person or multiple persons. 

To continue, the number of LLC co-owners is not limited which makes it a perfect structure for small and growing businesses alike. You might start your venture alone and engage more partners on the way. This way, you get some leeway as to how to expand your enterprise or bring in added capital when it’s necessary.
​​If you are interested in creating an LLC, we recommend reading the detailed guide “How to start an llc” from LLC.Services

Top Benefits of an LLC for Programmers

The bigger your venture becomes, the higher profit you get and the higher risks you’ll have to face. If you start your programming business as a freelancer and think about setting up an LLC when getting to a higher business level, this formal structure has more than one benefit to offer:

• Liability protection screen: LLCs exist as independent entities that are not legally associated with their owners. Hence, as an owner, you won’t be personally liable for any business debts, financial or property-related problems, and lawsuits. Likewise, your own funds and property won’t be used to settle company issues; 
• Pass-through taxation: With an LLC, you’ll still enjoy the pass-through taxation of a disregarded entity. By paying business taxes on your individual tax return, you won’t have to pay a corporate income tax and avoid double taxation;
• Better market credibility: Operating under an LLC umbrella, you’ll look more professional and trustworthy on the market and in the eyes of potential customers, which is an especially big plus for newcomers;  
• More financing opportunities: Banks, credit agencies, and other financial organizations are more eager to give funds to registered legal entities. The same is true for investors that consider legal entities more reliable than unincorporated entities. 

LLC Tax Benefits and Options for Programmers

As stated above, while getting a separate legal entity like a corporation, you can still reap the benefits of pass-through taxation and pay business taxes at your personal tax rates. Thus, you avoid your profit being taxed twice. 

At the same time, though, LLCs boast taxation flexibility and allow you to choose an optimal taxation scheme. You can elect an S-Corp tax status for your business. You’ll be exempt from a self-employment tax and will be able to optimize other taxes to match growing business needs and growing profits.

Why a Sole Proprietorship/LLC May Not Be the Best for You?

A sole proprietorship will leave it all to you. You’ll be the one to gain all profits and you’ll be the one to tackle all legal and enterprise-related problems too. And it’s not only about your personal involvement but also about your own assets that could be legally seized to offset your enterprise debts and liabilities. 

With an LLC, there will be more formalities to handle both at the formation and at post-formation stages. However, the liability shield and tax opportunities you’ll get are well worth the hassle. 

Consult With a Business Professional

Before you make a final decision on which enterprise structure is better for your programming business, we strongly recommend that you consult with an experienced advisor and a tax expert. They will explain all the legal and taxation nuances to you and help you choose the legal framework that will best work for your individual situation. 

Conclusion

All in all, both enterprise forms have their own pluses and minuses. However, until you start making a high profit and need some sort of side financing, a sole proprietorship will get your smaller venture covered. However, once your business appetite increases and your enterprise grows to a higher level of income and complexity, think about switching to an LLC.

The post Sole Proprietorship vs LLC: Which Is Better for Programmers? appeared first on AppGen 2022.

There are many metrics to evaluate the effectiveness of apps. Which ones? An overview of the metrics prepared by the experts of the company KITAPP will help you understand them.
efficiency metrics

Performance metrics of mobile apps related to users

Attracting users is one of the key tasks mobile app developers and customers have to accomplish. Naturally, when evaluating effectiveness, you should focus on metrics related to users. And there are quite a few of them. Let’s take a look at a few of the main ones.

Number of installations

Many people attach great importance to this metric. Yes, it is useful to know the number of installations. But this metric does not give a complete picture of success. After all, users immediately after installing an application can delete it, or install it “for the checkmark” and not use it. The number of installations is worth considering as a certain baseline needed to calculate other metrics.

Daily Active Users (DAU)

DAU (Daily Active Users) are the users that interact with an application on a daily basis (daily active). Agree, if a person regularly uses a program, spending their time on it, then we can talk about the usefulness, quality of the product, etc. For business applications this metric is usually considered as a measure of success of a software product.

No formulas are required to calculate DAU – this is the number of UNIQUE users per day. The uniqueness is determined by the ID or login. You can get this figure with the help of analytics systems (e.g. Google Analytics or AppMetrica).

Where there is DAU, there is WAU and MAU.

WAU and MAU show the number of active users per week and month, respectively. By manipulating these three metrics, you can extract useful information for your business. For example, by dividing the DAU by the MAU, you can calculate the weekly engagement rate (also called “stickiness” or loyalty). This is an important metric. The higher it is, the higher the engagement and regularity of using the app.

DAU, WAU and MAU are important metrics for attracting partners and investors. They are the first thing many people look at.

PCU and ACU for effective decision making

PCU (Peak Concurrent User) – The highest number of users (“peak”) who are in the application at the same time. Usually peaks are during the same periods of time. ACU (Average Concurrent User) shows the average number of users online.

This information is useful, for example, when managing advertising in the application. With the help of these indicators, it is possible to manage displays with a focus on the highest activity hours.

LTV, CPA and RPU

LTV (lifetime value). The mobile app performance metric shows how much can be earned on the average user for as long as he is a customer. It is calculated by multiplying the average conversion value, the average number of conversions over the time a customer was using the app, and the average number of conversion actions.

The metric is very popular and widespread among mobile app owners. It is advisable to use it in conjunction with another effective metric – CPA. CPA (cost per acquisition or price per user) shows the effectiveness of advertising and user acquisition campaigns.

The greater the difference between LTV and CPA (in favor of LTV), the more effective the app is and the more a business earns per user.

Another popular metric to help solve the problem of how to measure an app’s effectiveness is ARPU (Average Revenue Per User). This is the average revenue per user. It is calculated as the income from the application during a certain period divided by the number of installations (users) for this period. ARPU is also called Current LTV.

IMPORTANT. LTV and ARPU are averaged metrics after all. It’s necessary to take into account that statistically only 0.15% of users generate half of revenue from an application (depending on specificity). And if you just rely on these figures, the data can be far from ideal, it turns out “smeared”. Therefore, if you operate with LTV and ARPU, when analyzing them, pay attention to download and removal rates, the length of user session, traffic and other indicators. That is, the analysis must be comprehensive.

In order to understand what income a paying user brings on average, ARPPU is used. It is calculated by analogy with ARPU: the income from the application for a certain period is divided by the number of paying users.

The post How to measure the effectiveness of an application. Efficiency metrics appeared first on AppGen 2022.