B2B Ecommerce Benefits: Meet Your Customers Where They Are

Business-to-business players have been hesitant to embrace the benefits of B2B ecommerce, believing that their customers would never abandon the personal touch of traditional sales methods. However, for the second year in a row, B2B high-performers crown ecommerce as their most effective sales channel.

This once again proves that your customers have long been ready for your online presence. The question is — are you?

In this article, we’ll explore how a B2C-inspired approach can make your B2B company an outperformer in gaining the loyalty of current clients and attracting new ones. 

Find your growth equation with these 12 B2B ecommerce benefits

According to McKinsey, more than 30% of B2B customers prefer a digital self-service channel throughout various stages of the sales process. Induced by the pandemic, this consumer resettlement marked an inflection point for global sellers, catapulting digital commerce into a role of critical importance. Along with the $7 trillion value of digital selling, sellers can reap other B2B ecommerce benefits.

Breakdown of preferred communication forms for B2B buyers at different stages of buying journey

1. Making your mark

If you’re not online, you don’t exist — the harsh truth of the 21st century that can be easily transformed into leverage. So the first obvious benefit of B2B ecommerce is the opportunity to put your brand out there.

Setting up your business online increases your brand’s visibility, expands your horizons, and lets you claim a market niche ahead of your offline competitors. Online visibility, in turn, translates into new visitors that might otherwise go past your brick-and-mortar store.

2. Maximizing sales to their fullest potential

First and foremost, digital presence allows you to reach new customers, automatically boosting your market prospects. The potential for greater share gains can be maximized by the adoption of AI-enabled modules that serve personalized content and offers to your leads. In this case, you can target the customers most likely to purchase your goods or services — the advantage unobtainable for offline sales.

Moreover, B2B ecommerce advantages include always-on access to your digital storefront, making your e-platform a 24-hours-a-day sales team.

3. Increasing the order value and volume

As much as 6% of B2B decision-makers are now ready to spend over $10 million (!) for a new product or service through digital self-service or remote human interactions. An order value this high became easily attainable due to a bundle of engagement mechanisms online selling platforms offer.

The meaningful shopping experience, automated ordering process, and self-service capabilities clear the way for buying a larger volume of products at once. Supported by enhanced upselling and cross-selling, an ecommerce platform can spiral your sales volume to unprecedented heights.

4. Meeting customers’ ever-growing demand

Easy scalability is among core, game-changing B2B ecommerce features that promote seamless growth of your business. Unlike offline points of sale, an online platform can accommodate the evolving needs of your business, including seasonality, budget cycles, or new service lines.

Or better, a built-in analytics engine allows you to predict your scale-ups and rise to the challenge with no stockouts or staff shortages.

5. Reaching new markets

An online sales portal sets your business up to go global and reach fast-growing markets. Although cross-border commerce still implies legal hassle, it’s easier to enter overseas markets without having to set up a physical presence there.

An integrated payment gateway makes it a breeze to accept multiple currencies, while modern global delivery solutions help you reach your customers faster and easier.

6. Making calibrated sales and marketing decisions

Thanks to data centricity gained through the possibility of various integrations, your online store can magnify your marketing efforts and drive improved sales engagement. You can cast your nets as wide as social media, ad platforms, devices, and more to map an accurate customer journey and establish a customer 360° view.

Paired with advanced analytics, this trove of information translates into a wheel of data — a necessary prerequisite for winning customer experience and higher conversions.

7. Cutting down operational costs

Cost efficiency is among other transformative B2B ecommerce advantages. An ecommerce store can help you save money on inventory, slash transactional costs, and reduce other operational expenses while increasing your profit margins.

An ecommerce platform also adds automation to your entire fulfillment process, optimizing supply chain management and distribution. You don’t have to stock hard-to-find parts in the showroom, all orders can be shipped from the warehouse straight to the end consumer.

8. Streamlining business operations for maximum efficiency

Facilitated day-to-day business processes and better decision-making are among the other benefits of B2B integration. With enterprise software baked into your store, you can automate many of the time drains associated with accounting, inventory management, shipping, and reporting. 

In addition, the joined forces of marketing automation and CRM tools further improve the profitability of your venture and allow you to reel in and nurture qualified leads at scale. Product recommendations, retargeting, and personalized content can make your existing customers splurge on complimentary products — all that without manual effort.

9. Growing customer loyalty

These days, don’t count on buyer loyalty — regardless of their location or industry — unless you deliver a seamless omnichannel experience. With clients engaging across many (over 10!) touchpoints, achieving CX excellence across all of them is more critical than ever. Otherwise, you risk losing out. In fact, more than half of B2B buyers say they’re likely to look elsewhere if their experience across channels isn’t smooth.

Number of distinct channels B2B customers use during their decision journey

10. Personalizing your offers

Granular personalization is a significant benefit of B2B commerce that both reduces your customer acquisition costs and boosts your profits. Based on the collected customer data, your sales team can tailor advertising, offers, and communication efforts to fit the needs of each B2B customer.

Also, by embedding automation and personalization software into your store, you can dynamically show content based on individual visitor demographics, interests, history, and other unique parameters.

11. Strengthening offline sales efforts

To get the benefits of B2B ecommerce, you don’t have to commit to an online sales model only. You can use an online selling platform as an intermediary or supplementary channel for your offline business. Unlike your physical point of sale, a digital store can offer comprehensive information about your services and products at all times.

Supported by self-service functions, this purchasing autonomy saves time and effort for your new-gen, busy B2B buyers. Also, by balancing online and offline interactions, you make inroads into the hybrid selling model that drives up to 10% more revenue.

12. Removing friction both from buyers and sellers

Although B2B ecommerce benefits have always been skewed toward the buyer side, digital transformation also oils the wheel for your B2B sales representatives. Along with more informed selling, nurtured leads, and efficient service delivery, the digital model brings win-win automation to the table. 

While your sales team has an easier time managing their day-to-day minutiae, customers can self-serve and call the shots on their interactions with vendors.

Let’s shape your B2B ecommerce future together

Let’s talk

Still on the fence? These myths of B2B ecommerce might be to blame

Although the digitally-enabled mode of selling has rapidly made inroads since the pandemic, there is still some prejudice about it in the B2B world. Deemed the realm of digital natives, business-to-business trading remains uncharted territory for conventional sellers. But that stigma is about to shatter.

Ecommerce isn’t a viable match for the B2B product and service lineup

Not every seller can imagine themselves getting a slice of that ecommerce pie. Complicated products might make the benefits of an ecommerce website feel like a far-off dream. The complexity stems from a typically wide product range in B2B that can include both simple consumable products and highly configured items.

But the complexity of products or services is exactly what makes digital so convenient for corporate sellers. Advanced product attributes, specs, warranty information, and other product data are easily communicated and served through a digital-first channel.

And if the nature of your assets does make opportunities in B2B distribution impossible, this is typically not true for your full portfolio. You can think about offering complimentary products and support services via digital channels.

Ecommerce is ill-suited for the intricate B2B pricing and contracting model

Business-to-business suppliers have multi-tiered buyer-seller agreements. Company-level contracts, volume pricing, bulk buys, geographical factors, and government-preferred supplier arrangements demand the medley of B2B ecommerce pricing strategies.

Thanks to account-based personalization, the majority of ecommerce solutions allow you to construct an accurate algorithm that covers all those price variables. When your B2B customers log into the portal, they can see all buyer-specific pricing based on the negotiations, buying volume, and other factors. This makes even the most intricate buyer cycles easier to manage.

B2B customers cannot do without assistance to complete a purchase

Long gone are the days when corporate buyers preferred the sales representative to take the lead. In fact, last year, revenue generated from in-person sales dropped by 5%, with most of it flowing as you might guess — toward ecommerce. We’re likely to see this trend continue, as the new breed of B2B buyers flock to digital channels that make ordering as simple, fast, and straightforward as possible.

McKinsey’s recent B2B Pulse Survey highlights buyers’ growing comfort with remote and self-service spending:

  • 73% of buyers are ready to place orders worth more than $50,000,
  • 39% are ready to spend over $500,000,
  • 20% are willing to spend over $1 million online.
Maximum order value through digital self-service and remote human interactions for a new B2B product or service, % of respondents

Most B2B companies get by without an ecommerce platform

B2B might take it longer to reset than B2C, but don’t let this curve shadow the importance of digital ordering. As of 2025, 71% of B2B firms have already tapped into ecommerce, with online sales now representing more than a third of their revenue. Plus, ecommerce has been their top-performing channel for four years running.

Statistics showing the effectiveness of B2B ecommerce

To further solidify this point, it’s worth mentioning that the annual US B2B ecommerce sales soared to nearly $2 trillion. So if you’re not here, you cannot catch up to that value.

In-person interactions reign supreme for B2B buyers

There are still many traditional B2B buyers that would prefer picking up the phone and placing an order directly with a sales rep. However, two-thirds of corporate customers intentionally opt for digital engagement. It means that your in-person follow-up or a call might stay in the way of high-ticket purchases.

A basic ecommerce solution is enough for your B2B needs

While you might think that B2B ecommerce has stepped onto the scene only a few years ago, for the majority of B2B companies it has already dethroned in-person sales as the leading money-making channel. In turn, leaders are ramping up their ecommerce investments.

So, to fully embrace the benefits of an ecommerce website, you require a head-on approach to your build-out — bundling service, product, and experience excellence. 

Find your way to online B2B sales or get sidelined

With an estimated third of sales in question, e-commerce is a mainstay for successful B2B sellers. However, the ascent of digital selling won’t send in-person interaction into oblivion. Instead, a mix of selling channels will enable broader, deeper customer engagement and unlock unmatched market opportunities for the B2B sector.

To tap into that double value of hybrid selling, you need a future-proof B2B ecommerce platform that grows in step with your business. We, at *instinctools, help global B2B sellers adjust to the new market dynamics and cultivate tech capabilities that make ecommerce simple and profitable.

Ready to grab the benefits of B2B ecommerce?

Share your project details

FAQ

Why is B2B ecommerce so attractive?

Business-to-business ecommerce offers a number of benefits over traditional brick-and-mortar businesses, including 24/7 operation, global reach, and lower overhead costs. Not to mention, B2B ecommerce is more convenient for both buyers and sellers.

Among other benefits of ecommerce websites are their ability to deliver self-service options, excellent customer experience, and tailored pricing options.

What are the four stages of ecommerce development?

B2B ecommerce development typically includes the following stages:
– Discovery — business analysis, requirements identification, planning, and strategizing.
– Design — system architecture, wireframing, prototyping, design of branded visuals.
– Development — front- and back-end development, integrations, API development, testing.
– Delivery and maintenance — solution deployment, ongoing maintenance, feature updates, and support.

How do I create a B2B ecommerce?

As B2B solutions tend to be more complex compared with B2C, companies usually opt for custom solutions designed with their business needs in mind. To build a bespoke platform, you need to contact an experienced B2B ecommerce development company. Your vendor will analyze your requirements and suggest an optimal solution for your needs.

What is B2B ecommerce with an example?

It is the process of selling products and services between two businesses through a digital platform. Its key feature is that it enables corporate buyers to buy items or order services at scale.

Some platforms, such as Alibaba.com, focus on connecting buyers and suppliers from around the world. Others, such as Amazon Business, focus on providing businesses with a one-stop shop for all their procurement needs.

What are the key capabilities of B2B integration?

In B2B ecommerce, integration refers to a process whereby your ecommerce platform seamlessly exchanges data with other parts of your digital infrastructure. Typically, an ecommerce platform is integrated with inventory, sales, marketing, and accounting software. The key capabilities of such integration depend on the solution your ecommerce platform interfaces with.

The Perfect Match: Four Time-Tested Pro Tips on Finding a Remote Development Team

Building an in-house software development team is a challenging undertaking. From finding decent specialists to onboarding and managing them, you have to take on tons of things. The talent crunch in the tech industry does not make that any easier. There were only 65 potential candidates for every 100 vacancies in the US last year. 

All these and a number of other factors put remote teams in a favorable light in terms of software development quality, expenses, and time to market. If the idea of hiring a remote development team has crossed your mind, check yourself against our list of actions to pick a reliable technology partner.

What is a remote software development team?

Remote development is a business partnership model in software development. It involves using the services of a technology vendor located in another country. The vendor sets up a remote development team based on your budget and project requirements to solve your IT challenges. Team composition and seniority levels for different roles are determined by your project complexity and the scope of the tasks. 

Engagement model - Dedicated Teams

Work smarter not harder: why hire a remote development team?

Delving into new initiatives becomes easier when we understand the deliverables. When it comes to the remote software development process and remote workers, these are reduced costs, greater flexibility, and a faster time to market. 

Engagement model - Dedicated Teams

Whether you’re a CTO of a large corporation or a small business owner, outsourcing can become your way to kill two birds with one stone, saving your time, and project budget. 

If you hire a remote team, you don’t waste time setting up processes within the team as it’s self-managed. Just take advantage of ready-to-work, talented software engineers embedded into your IT department. 

For instance, tech giants like McKinsey and Deloitte locate their R&D centers in Poland, where the outsourcing framework is flexible, mature, and tax-friendly. You can also take advantage of local talent and hire specialists or an entire team to develop innovative products.

Looking for experienced software developers to meet your project needs?

Get a quote

Collaboration models to choose from

No project can be handled by following the same playbook. Successful remote development calls for flexible collaboration methods, calibrated for your business needs. For a company that wants to launch their own product and has no developers onboard, for an organization that craves extra hands to offload their tech backlog, or a corporation which needs a full-scale development center as its numerous project teams have spiraled out of control, there are different team extension options to benefit from. 

IT staff augmentation

Start scaling your business capacities on demand with staff augmentation. It’s the most affordable way to strengthen your IT department with high-qualified experts in software product development, business analysis, UX/UI design, quality assurance, etc., in a matter of days. However, consider that you’ll have to manage these employees by yourself and have the skills and project management tools to do so.

This model of cooperation may be suitable for different projects. For example, a company with its own IT department may lack a specific role for a project. However, it’s impractical to hire the needed domain specialist full-time, especially if no similar projects are planned any time soon. Or there might be the right specialists in place, but the project deadline is on fire, so the organization needs extra hands for a short time to cope with the workload. 

​​​​Another example is when startups seek maximum benefits at an affordable price and in a short timeframe. An IT staff augmentation model provides them with access to a wide range of skill sets and offers financial adaptability and cost-adequacy, which are critical for resource-constrained newcomers.

The advantage of IT staff augmentation is that you don’t just get industry or technology experts but proactive team members who communicate effectively and strive to find and offer the best solution. This is driven by high competition among technology vendors. Remote software engineers have to be proactive so that you want to hire them again for another project. This is why, you can choose the best of the best without compromising your project budget.

Dedicated team

With dedicated development, you hire a whole agile development remote team, so you won’t have to build it from scratch or worry about fitting new employees into the established squad. The dedicated team works as an independent unit whose activities are transparent. Remote dedicated software development teams can cover the whole software delivery process, including analysis, design, development, deployment, quality assurance, and support.

Such an approach is a good fit for long-term projects with frequently changing requirements. You get domain experts who take on IT tasks if you don’t have your own IT department. And if you have your own IT unit, but they are busy on another project, then you can enlist the help of a dedicated team. Moreover, if you fully entrust your vendor with software solution implementation and delivery, then you don’t even need to participate in technical interviews of candidates for the dedicated remote team.

Offshore development center

When the number of separate remote teams you’ve been hiring is growing, at some point, managing them becomes too big of a challenge, taking a toll on the overall project. 

Instead of dealing with multiple remote teams scattered across the globe, you can establish an offshore development center when an overseas business unit becomes an extension of your organization. This collaboration model suits companies with specific security requirements, the ones that handle sensitive data, and large projects that depend on hardware. 

Engagement model - Dedicated Teams

Still mulling over what collaboration model will be the best fit for your company?

Let’s discuss it

Four factors to consider when looking for a remote development team

Before hiring a development team, there are a number of things to take into account from a business and technical perspective. The more nuances you think through at the initial stage, the smoother the cooperation will be.

1. Identify limitations of your project and expectations from the remote team 

This information will help you find a highly professional remote development team that matches your budget, time-to-market, and security standards. 

  • Define your budget. Calculate the amount of money you are ready to spend on the project of product development before starting the negotiation process. It’s crucial to engage budget approval persons, and the CTO, who will help define the technical requirements that affect the development cost.
  • Spot the specific requirements for your project. For example, if your project necessitates particular security protocols, it may narrow down the number of software companies, from which you can request a team of remote developers. 
  • Decide on the collaboration and payment model type you need. Earlier, we mentioned collaboration models and use cases for each of them. But at this stage, you should also choose between a fixed price, and a time and material payment model.

Fixed price, with its strict costs, timeline limitations, and inflexibility, is a suitable option for well-specified projects with precise time to market. Ensuring that no new requirements or features will appear during development is a mandatory condition. Moreover, this payment model may include the absence of communication with the client.

But startups without complete specifications and complex long-term projects require a flexible time and material payment model, which implies adaptability to ever-changing requirements. 

  • Following coding standards. It’s not that hard to write code that will work for now. But will it be high-quality and consistent code that any developer can work with? 

When you hire remote software developers, especially at a Java development company, make sure they follow coding standards, such as PEP8 for Python, SEI CERT for Java, MISRA for C/C++, etc. It will save you from code refactoring and rewriting inconsistent or poorly written code in the future. Moreover, such an approach ensures easier code migration and integration with other systems.

Unlock the prospects of software development with a remote dedicated team

Get in touch!

2. Think twice before choosing a region where to hire a remote development team

Although the quality of services plays the first fiddle in choosing a team of remote developers, it’s important to think beyond that. The cost of software development, time zone differences, culture and work mentality of the country you’re hiring from, English proficiency level, can greatly impact the success of your project.

  • Quality of software development services. First things first, it makes no sense to hire a team of remote developers from a cheaper location if the software solutions they create cannot maintain acceptable performance levels consistently, show low average Mean Time Between Failure (MTBF) and Mean Time To Repair (MTTR), and have a high number of defects in the code. Quality shouldn’t be compromised, and solutions should be, first and foremost, holistic, reliable, correct, maintainable, and easy to use. 

Therefore, it’s worth choosing remote software developers in countries with a high level of education in IT disciplines. For instance, while only 41% of developers worldwide have a bachelor’s degree, in Poland the figure is almost twice higher,  reaching 73%.

  • Cost. Instead of hiring a remote development team in the USA, where you would pay $130K for each developer, seek the same services in Poland and pay $40K for a senior software engineer working remotely or $24K for a mid-level specialist. Meanwhile, Poland is one of the five countries with the highest level of tech skills. 

This reduces the project’s cost by three to five times without compromising the development quality — looks too attractive to leave it on read, right?

  • Time zone gaps. For example, the time zone difference between San Francisco and a country in Asia may reach up to 13-16 hours. With a time difference of more than ten hours, it will be challenging to sync with a team and ensure smooth communication and collaboration. 

That’s why, opting for a remote team whose time zone aligns with your work hours is the most beneficial solution. For instance, hiring software developers from Europe will be a lifesaver for US-based companies as the time gap between them is about only six hours. 

  • Mentality and work culture differences. The cultural distinctions between the client and contractor’s sides may lead to misunderstandings and misinterpretations, putting the whole software development undertaking at stake. 

In this respect, it is easier for organizations based in the United States and Western Europe to collaborate with developers from European countries with the same company culture, for instance, Poland, to avoid communication problems down the line and ensure both parties have the same expectations from the project. Statista indicates that Poland is one of the leading countries worldwide when it comes to offshore development services and remote work.

  • English language proficiency. Speaking the same language as your remote development team allows you to be on the same page regarding the project. Poland ranks 16 out of 112 as having a high English proficiency level. 

Experienced developers fly off the shelf in a day in your country?

Leverage our talents

3. Check the reliability of the companies that provide dedicated development team services

Are you sure about the trustworthiness of the companies you’re considering? Here are some steps to help you make a wise choice.

  • Check the reviews of the companies on business listings, such as Clutch, GoodFirms, Techbehemoths, SelectedFirms, etc. Read customer reviews to get an idea of what other clients think about the company and its remote workers. Also, look into their ratings and how long they’ve been in business. 
Expertise - Product Software Development
  • Investigate IT providers’ case studies. Check out their skills in a range of industries and their previous work to identify their area of expertise and see if it matches your needs. That way, you can cut the chaff in the initial stage. 

4. Clarify how companies secure the work of remote development teams

Verifying that your project is kept secure is another essential point to consider when you hire remote software developers. Therefore, ask potential vendors about the security protocols they follow and measures they take to protect the data, such as encryption and secure storage solutions. 

Additionally, inquire about their privacy and data access policies to confirm that they meet your company’s standards. With the right security protocols in place, you can rest assured that your data is safe with the remote development team. 

Your technical partner should take into account local legal regulations and security protocols. Moreover, your remote dedicated software development team needs to be certified and audited in line with your specifications to match your compliance requirements fully.

Speaking of Poland, it stands on par with EU- and US-based organizations and sticks closely to international regulations.

Is a remote development team your golden ticket?

Projects with restrictions related to budget, level of security, complexity, and time to market are the first in line to benefit from remote software development teams.

  • Large, long-term projects 

The challenge of large, long-term projects is that their requirements tend to change. In this case, a remote team of profile experts is your opportunity to quickly adjust the team’s skill set to permanently fluctuating requirements. 

The side benefit you get when augmenting your team with outside talents is knowledge transfer. For example, you have mid-level developers working on a project, and you expand the team with senior-level vendor developers. Working together, they will be able to enhance the expertise and skills of your employees.

  • Product development with limited time to market 

A fast start is key when you’re working on a project from scratch. When you come up with an idea that could influence your company’s position among competitors, it’s crucial not to miss the moment and implement it quickly. 

With an agile remote development team and efficient time management, you can get to the project in one to five days instead of investing up to three months to hire the in-house experts

Average time / Different types of development teamIn-house team*instinctools’ remote team
Recruit & hire talents56 days1 – 10 days
Start working on a project30 days1 – 5 days
Scale up the team40 days2 – 3 days
  • Projects with a limited budget

For startups and small companies, renting office space, recruiting and covering vacations, bonuses, and taxes for their IT department can become a significant part of the budget. Moreover, you’ll need to invest a great deal of time and energy into assembling your own team. 

Hiring a remote team of developers in different countries is an alternative to setting up and maintaining your own IT department and an easy way to obtain your goals while keeping development costs moderate. And if your organization is small or medium-sized and software development isn’t a core part of your competence, you may consider not creating an IT department at all and rely solely on the dedicated team.

Why freelance platforms, such as Upwork, Fiverr, etc., aren’t the best options even if you are short on budget? You can’t be confident in freelancers’ level of expertise. Hence, you run the risk of getting low-quality development.

Expertise - Product Software Development
  • Project with special data security requirements

When hiring remote developers in another country, you determine the desired level of security the team must meet. You state the conditions and choose the development unit that will provide built-in network security, private office space, authorized entry, and software access control. 

If security is the cornerstone of your project, you can send keys on flashcards to work with your architecture and even require your provider to have team members tested for substances — the team will follow these rules and ensure compliance.

Expertise - Product Software Development

Take your time choosing a remote software development team provider to find a reliable one you can trust to set up the team. An experienced partner will determine the needed roles and their seniority level to handle the task effectively. 

Instinctools experience in remote development team services

At *instinctools, we understand the challenges and opportunities of working with a remote development team. We capitalize on our 20+ years in software engineering and innovative consulting to build successful and sustainable agile software development remote teams for our clients. However, we don’t measure our experience solely in years. It’s also reflected in 650+ successful projects in more than ten industries. Besides ensuring the quality of development and providing you with proficient tech skills and industry knowledge, we develop our soft skills and adhere to a continuous learning culture.

Instinctools has extensive knowledge and expertise in all aspects of software development and remote work. Our skilled teams are ready to assist with any project at any stage, from ideation to development and ongoing support and maintenance, while ensuring our clients’ projects are completed on time and on budget.

Our core principle is bringing tangible value to your project, and that’s what our clients say after collaborating with us.

Time is now: access a skill set and expertise that you may not have had before

With the world becoming increasingly digital, businesses need to stay on top of technology. Therefore, they need reliable, professional, and experienced tech allies. And taking advantage of remote development teams is one of the ways to get the software development done faster, more efficiently, and, what’s important, cheaper. While searching for a tech partner might seem daunting, our tips will help you find a professional and affordable match for your project.  

Tap into remote software development and scale beyond borders

Get in touch

FAQ

What is a dedicated development team?

A dedicated remote development team is your autonomous tech squad in another country that either strengthens and scales up your in-house IT department or replaces it. It’s fully managed by your tech partner, which frees you from dealing with the paperwork. Just enjoy quick access to the expertise you need.

What is the role of a remote development team?

A remote development team takes on tasks to ease the workload and allow your employees to focus more closely on other undertakings. For example, you are just starting a project, and you need specialists who can manage the process and, at the same time, transfer their core knowledge to your team. Or a large company requires extra hands to sort out tasks in the backlog. Or you are entering a new market and want to hire a full-fledged team in a new location.

What is the advantage of hiring a remote developer?

When you hire a team of remote developers, you save time and money on hiring. You get a whole remote development team that is ready to start working on a project in a few days, while, in the case of in-house developers, you may need up to three months to set up the team and ensure they function in a coordinated way. Moreover, you can scale up your remote development team even by double in just 2-3 days if you need to speed up your time to market.

How to hire remote developers in 2023?

Start by identifying your requirements for a remote software development team. Then check business listings, such as Clutch and GoodFirms, to find companies that provide remote dedicated teams services and have relevant expertise. Dive deeper into their portfolios to narrow down the pool of potential technology partners and interview the remaining applicants.

How do you manage a remote software development team?

Negotiate this concern with your vendor before you start working with a remote development team. For example, you can use tracking tools like Jira and Microsoft Teams to ensure you stay up-to-date on the project’s progress and successful completion. However, working with a dedicated team is convenient precisely because you don’t have to engage in their coordination constantly, as they are self-managed.

The Ultimate Guide on Software Product Development Process 2025

The journey to a market-winning product rarely goes down a linear path. Unclear objectives, vague user persona, scarce documentation, and other snags haunt enthusiastic businesses. As a result, around 26% of projects make a nosedive, unable to weather the hectic development process.

However, there’s a way to simplify the lion’s share of your software product development process. A methodical approach combined with the right team structure will set up your project for success and increase the odds of high-grade deliverables.

What is software product development and how does it differ from software development?

While both processes revolve around software deliverables, they differ in goals, stages, and even team composition. The software product development strategy is anchored in customer needs. This often involves creating prototypes and running market analysis to determine the viability of the future product. Hence, along with traditional design and development steps, software product development stages also include product ideation, prototyping, and pilot production.

Software product development challenges that shackle your project

Building a consumable product is the ultimate challenge of the software product development process. The thing is, it implies a myriad of other significant roadblocks that might imperil your undertaking right from the get-go. 

a list of software product development roadblocks

No clear vision

A vague understanding of the end product is a typical pitfall for both startups and well-established businesses. To create a value-packed solution, a team should know the purpose of building a product and the problems it should solve. This long-term mission of the product should be clarified in a product development plan and supported by accurate deliverables and estimates.

Lack of proper documentation

Poorly made software documentation can end up being an expensive headache down the road. From budget overruns to stretched deadlines to irrelevant features, the lack of a unified process for each step directly results from documentation gaps. Also, document inconsistency makes it far more difficult to switch software vendors.

Wrong way of working

Although Agile is billed as a de-facto standard for project management, it can’t be successfully applied by following one-size-fits-all guidelines. And when textbook Agile planning goes awry, teams get frustrated. But the art of Agile adoption lies in understanding the core principles of this management approach and adjusting an Agile-based framework of your choice to fit your unique project needs.

Product inflexibility

New and innovative products usually come with evolving requirements. And if the system design is inflexible and monolithic, you won’t be able to add new features or modify the existing functionality. This also applies to your project management techniques, unless open to change, they won’t let you respond to changing project assumptions safely and effectively.

Poor prioritization

Requirement prioritization is critical for planning, budget control, and scheduling software projects. Therefore, the project backlog should clearly list tasks by priority for the development team. Otherwise, you’ll end up with wasted resources and increased costs of development.

Failure to ensure psychological safety

The central pillar of the agile approach is neither Scrum nor Kanban, but a healthy dialogic process for your development team. Unless fostered positively, intellectual friction will not drive innovation or collaboration. Instead, each team member will be afraid to speak up and suggest new solutions to the problem.

Talent pool shortage

As 1 in 4 organizations are having trouble finding tech talent, skill scarcity can adversely impact your project’s progress. This problem becomes even more critical in competitive domestic markets and is typical for niche skills, meaning that you may spend a large portion of time seeking mythical unicorn staff.

Struggling to find a quality balance

Failed attempts to strike the right quality-cost ratio can also lead to project flops. That’s why teams may struggle to allocate the right amount of resources to prevent product defects or, conversely, spend too many resources on polishing their product. The key here is to reach a compromise between the cost of quality and a usable product.

Supercharge your product development process

Book a call

The four constituents of a well-organized software product development process

Planning a consistent product development journey requires a holistic approach where all variables — from team to technology — operate for the benefit of your product. Here are the four elements that can energize your success potential in the product field. 

The four constituents of a well-organized software product development process

Engineering ingenuity

Developing an innovation-friendly culture calls for a collaboration-ready environment where self-managed teams are encouraged to generate out-of-the-box ideas. An engineering culture helps drive your product forward and creates a breeding ground for trailblazing solutions.

Agile approach

Adopting an Agile mindset is paramount for building from-scratch products with evolving requirements. This approach prioritizes value and achieves it through dynamic, customer-focused practices. But keep in mind that Agile cannot operate in silos, it thrives when viewed as a collective effort.

Digital platforms

Besides agile process management, your technology stack should also support changeability and give your team the freedom to make any alterations into production in a safe and sustainable manner. Microservices architecture, cloud, and open-source APIs are prominent examples of highly adaptable digital components.

Data-driven product management

Finally, your development team should be autonomous, yet KPI-driven and aligned. This includes tracking and visually representing software product development metrics that measure delivery performance (deployment frequency, lead time, and others).

Agile software product development lifecycle to build great products

Agile software product development cycle and user-centricity go together like bread and butter. An iterative sequence of development steps helps you meet user expectations by delivering products quickly, yet in a predictable way. Below, you will find the common software product development phases present in Agile. 

software product development steps in Agile

Product ideation

Everything starts with an idea, but a software product development roadmap kicks off with a crystal clear vision. Working closely with stakeholders, developers, and even future product users, the team first puts together a comprehensive overview of the project. 

From the long-term mission of your product to more detailed business analysis, the ideation process is used to provide clarity around the development of product software and nurture a business concept.

Discovery phase

The Discovery phase also focuses on research-based activities. But unlike ideation, this phase not only delivers hypotheses, but also takes them to the market for a reality check.  During the Discovery phase, you and your team determine business requirements, define the project scope, and suggest possible solutions to validate your product-market fit in the real world.

Below, you will find the milestones of the Discovery phase.

  • Proof of concept

All software product development ideas are worthy until proven otherwise. Therefore, a theoretical demo, or a proof of concept, is required to validate the feasibility of your solution. A PoC is an empirical exercise focused on demonstrating the viability of your solution — from market top-heaviness to risky features.

Once your idea is validated, your team identifies the development scope and proceeds with the design. 

  • Product UX/UI design

In collaboration with business analysts, UX/UI designers create a high-level product prototype, based on customer research. The prototype is then tested with the users, approved by a client, and refined if needed. After that, the final designs are distributed to production.

  • MVP development

A Minimum Viable Product (MVP) is the final destination of your idea verification. An MVP is an early version of your product with just enough features to make it usable for real customers. It helps the product team glean user feedback as quickly as possible to iterate the product. By leveraging MVP development services in USA, businesses can efficiently build, test, and refine their products based on real user feedback, ensuring a faster path to market success.

three milestones of a discovery phase in software product developpment

Development

The Development stage helps enhance your MVP with other, nice-to-have features empowering you to turn it into MMP later. In Agile, it’s an iterative, cyclical process that consists of smaller, more manageable increments. Iteration by iteration, your development team builds up the features. Testing happens continuously as new features are added. 

Maintenance and upgrades

Once your product is released into the wild, your development team monitors its health and performs troubleshooting and necessary upgrades. Perfective maintenance is also important at the post-production stage as it allows you to change existing product functionality by refining, deleting, or adding new features

Let’s build great products together

Contact us

The many faces of Agile software product development

The agile software development process is mostly an umbrella term that refers to applying Agile-driven frameworks during development. However, it’s all about matching the development methodology to the project, not fitting the project to the methodology. Below, we flesh out some of the most popular Agile frameworks and techniques to guide your software development lifecycle.

Well-defined system requirements are a luxury commodity for new software products. Frameworks based on the Agile methodology give project teams the platform, culture, and tools to manage changing requirements.

Scrum

According to the report, Scrum gets the highest marks in software development with 63% of teams leveraging it. This framework helps teams deliver value incrementally in short sprints which typically last 2-4 weeks during which the product is designed, coded, and tested. Scrum doesn’t stray from Agile philosophy, instead, it enriches it with rules, roles, events, and artifacts to facilitate the Agile way of development.

Scrum process in software product development

Scaled agile frameworks (SAFe)

Scaled Agile frameworks are Scrum for enterprises, based on 10 Lean-Agile principles. While Scrum is used to organize small teams, the SAFe framework applies to the whole organization or large, multi-geography teams. The basic construct of SAFe is the Agile Release Train.

Kanban method

Kanban is a popular workflow optimization method that adds more visualization to almost all software development processes — from feature prioritization to testing. Many Scrum teams also use select principles of Kanban as a visual process and project management tool. 

Extreme programming

Extreme programming is a software engineering paradigm that improves the quality and efficiency of your software development process. It is based on a set of values and principles that prioritize customer satisfaction, teamwork, and continuous improvement. 

extreme programming (XP) methodology for software product development

Lean

This Agile framework prioritizes addressing what must be worked on at the time, leavingno room for multitasking. With a linchpin idea of cutting waste in mind, product development teams book general meetings only if the issue can’t be resolved otherwise, set a straightforward approval process, and put features prioritization on the front burner to pack software with the most coveted functionality.

Crystal

Crystal is a highly adjustable framework that works for teams of 10 to 1000 people. It banks on osmotic communication, promoting background information sharing among team members. Fundamental rules of this approach imply using development cycles less than 4 months long and running reflection workshops to regulate the methodology with the project priorities.

Other Agile practices

Due to the emerging requirements, Agile teams often bake additional Agile practices into frameworks. Here are a few examples of curated techniques:

  • Test-driven development (TDD) — writing unit test cases for the software before writing the code itself.
  • Code review — involving one or more developers checking another developer’s work.
  • Pair programming — includes two developers teaming up together on one workstation. 
  • Prioritization techniques (MoSCoW) — a four-step technique that ranks project requirements by priority.

How to decide on a software product development team structure?

The right software product development team structure will determine how well your product is built. But although you need a cross-functional squad of software professionals, a mixed assembly of characters doesn’t automatically drive you to success. Here’s how to select your team members strategically.

Typical software product development team

To facilitate a dynamic development process, you’ll need to have the following professionals on board:

  • Product Owner — holds the voice of the customer and keeps the team backlog aligned with customer and stakeholder needs (usually on the client’s side).
  • Delivery Manager/Scrum Master — caretakers that ensure the project is delivered on time and within budget, while also enforcing the best Agile practices.
  • Development Team (Developers, QA, Designers, Solution Architect, DevOps specialist) — hands-on front players that turn requirements into a fully functional software product.

What does a product team structure depend on?

The set of roles in your development team does not fluctuate much from project to project. The only variable is the number of developers and QA engineers that can differ based on the volume of tasks and deadlines. 

Therefore, before you go into hiring, you have to define the scope of your project. So, if you’re in for a proof of concept, your development team will not be bigger than five specialists (PM, Product Owner, business analyst, software architect, UI/UX designer).  Conversely, full-blown product development requires up to nine specialists to complete as software engineers and testers step onto the scene.

Need a team of product development pros?

Reach out!

Key artifacts of efficient product management

To ship the right product successfully to users, your team has to be guided by lighthouses, or artifacts, that refer to project documents, outputs, and specific deliverables. Let’s see the core landmarks that indicate your product management is on the right track.

ArtifactMeaningDocument contents
Competitive analysisDescription of your business’s target market.– Direct/indirect competitors
– Market share and average revenues
– Industry benchmarks
– Monetization models, etc.
Product visionOutlines the long-term mission of your product. – Business goals
– Target audience and needs
– High-level product description
OKRs and KPIsIncludes performance measurement values.– KPI description and measures
– Objectives and Key Results 
Product roadmapDescribes a detailed vision and direction for a product. 

– Product features
– Release schedule
– Short- and long-term goals
– Product features and milestones
Customer Journey MapIllustrates the stages users go through when interacting with your product.– User persona
– User actions
– Touchpoints
– Pain points
Product Requirements DocumentDefines the necessary features and functionality of a product.– MVP features list
– Engineering implementation details
– Functional requirements
– Product development timeline
Product designs and prototyping documentsCovers all aspects of your product design.– User flow and design
– User stories
– Project specifics
Product release planProvides details of all the features of an upcoming product release.– Upcoming features and enhancements
– Timeline

Back in the day, product development firms managed the entire process from ideation to delivery onshore. But supporting the entire process from A to Z is becoming increasingly expensive and counter-productive. As a result, 79% of companies outsource their IT projects.

With offshore software product development, businesses access a global pool of talent at lower costs. Besides getting expertise that might not be available in your country, you can also tap into the latest technologies to ensure the best quality for your product. 

We at *instinctools take over end-to-end product development projects, allowing you to leverage leading-edge expertise, drive down development costs, and build a high-quality product hassle-free.

Mastering software product development process: from ideation to excellence

It takes a lot to create impactful products that win over customers. A properly structured software product development process is half the battle when it comes to success. An Agile-first, customer-centered, and client-oriented workflow, managed by a dedicated development team, grants you better control, improves project predictability, and saves your resources.

Deliver innovative products with ease

Get in touch!

FAQ

What is the product development process in software?

It’s a multi-step process designed to take a product from the initial concept to the final market launch.

What is Agile software product development?

It is an incremental approach to software development that focuses on shipping digital products in a timely and effective manner. The Agile-based process is characterized by short development cycles, or sprints, that allow for quick feedback and constant evolution of the product.

Is Agile only for product development?

This philosophy isn’t limited to building products. The Agile mentality and Agile-driven methods are also helpful in the development and management of services.

What are the 4 pillars of Agile?

This management approach is founded on four key principles:
1. Processes and tools are no replacement for individuals.
2. A functional product is more important than detailed documentation.
3. A collaborative solution is better than a rigid contract.
4. The team should welcome change.

What is the Agile software development life cycle?

The software product development process flow flow can be roughly divided into five phases, including conceptualization, inception, development, release, and maintenance. Each phase leads to the creation of numerous software iterations.

Revealing EdTech Trends That Shape the Future of Education

How will education evolve in 2025 and beyond, and where does that leave educational institutions and edtech companies? Discover the biggest EdTech trends to shape the industry.

Education is one of the few industries that inimitably resists change and ignores the needs of its stakeholders.

To illustrate this, it is enough to trace how school was adjusting to the ever-transforming world over the last hundred years. In short, it wasn’t. From the early 1900s up to pre-pandemic times — the same designated classrooms, the same teachers towering over the audience, and the same students performing the role of silent listeners.

schools from 1910s to 1950s to 2010s

The situation with higher and postgraduate education was not much better. However, 2020 made the industry develop at an overwhelming pace. On-site learning, the role of the teacher as the main expert and content provider, and one-fits-all approach — all these pillars that had supported education for centuries fell. So what are going to be the next ones to take their place? Here are some of the top trends in education technology to look out for in 2025.

What does the future hold? EdTech ideas

While the world outside classrooms is changing faster and faster, we aim to create a new model of education suited to the needs of the future that’s coming. Technology let the genie out of the bottle, allowing ideas that have been brewing for quite a while, evolve and be implemented at breakneck speed.

The total market for eLearning worldwide (in billion U.S. dollars)

1. Hybrid learning is here to stay

Although the idea of hybrid learning gained its momentum back during the first COVID-19 outbreak, it’s naive to think that it’ll go away any time soon. With so much money spent on the transition to eLearning (devices, infrastructure, etc.), educational institutions want to get more out of their investments. So rather than being a fleeting thing just for the pandemic, hybrid learning becomes a long-lasting movement that has provided a new setting for other education technology trends to occur. 

Shaping this new landscape for more groundbreaking ideas to be implemented and thrive, hybrid learning is not in a perfect shape itself. At the beginning of 2020, when the world was suddenly awoken to one of the dystopian scenarios of the future, the pain points of education that had remained unnoticed for so long, had to be dealt with immediately. With such a rapid and abrupt shift from in-person to remote learning, making a bunch of mistakes was unavoidable. Some teachers, for example, state that switching to a partially online format has doubled their workload. 

“With the amount of stuff we are juggling, it feels like it’s impossible to always kind of keep your head above water. The sort of administrative stuff really piles up. So even if we’re doing our best, we’re still dropping balls left and right,” says Kristine Harootunian, a math teacher at South Burlington High, Williston, Vermont.

Does it mean though that we need to give up on the idea of teaching children outside the classroom? Not at all. One of the possible solutions might be the use of refined learning management systems (LMS). They simplify lesson-building for educators, allow them to  consolidate administrative tasks in one place, automate routine, and offer access anywhere. Yet, so far, LMS have been more about management and less about learning, but the balance can be found.

Thanks to technology advancements, the LMS of tomorrow has every chance to turn into truly intelligent learning platforms. Whether we think about employees in a workplace setting, or kids in a classroom talking about a new lesson, people need both social interaction and some solitary work in order to successfully learn everything from a formal course. xAPI (Experience API) makes it possible to measure all types of learning experiences, and it can do so within an LMS. So it’s just a matter of time until xAPI becomes a standard for all learning management systems.

2. Creating life-long learning experience

With the ever-growing demand for new skills conditioned by rapid world changes, learners have been put under pressure of continuous acquisition of new skills. Those who are not agile enough to adjust will end up on the sidelines of their career opportunities.

The problem with the current state of things is that the education levels are absurdly detached from each other. What students are taught in high school barely correlates with what they do at college or university, just as getting a degree doesn’t guarantee that their knowledge will be applicable in the workplace.

But an EdTech company that’ll break these silos and find the way to navigate learners throughout their life-long educational process could become the next Netflix for educational systems. Sounds impossible? Until it’s done. 

Most breakthroughs once started with a ‘what if?’ question. So what if there was a system that would ‘meet’ a learner at a pre-school and help acquire the skills (alphabet, numbers, colors, etc.) appropriate for this developmental stage. Imagine that the system can link a kid’s school and home accounts so that the progress could be more easily tracked. The same model can work for K-12, and apart from supporting pupils in their studies, it will be able to track not only what is being learned but also how, and, thus, ensure smooth transition from school classes to assignments done at home. Thanks to predictive analytics, the system will also anticipate the student’s future needs and advise on the right college to apply to, and, when the time comes, all the data gathered in the system could be very helpful to match with employers. 

As the range of the user’s devices extends (a smart speaker, smart phone, laptop), all the apps track the learner’s progress collectively, delivering perfectly calibrated lessons via audio mini-lessons, or quizzes, or games.

Once a job has been landed, the person’s account can be connected to the employer’s LMS and ensure appropriate professional development. The best thing about the system is that it evolves along with the user, adjusting to their changing needs.

Machine learning (ML) technology makes it possible to build an educational system that will grow and mature with the user, using the data gathered from them for unprecedented customization. Throughout their whole lives people will be able to leverage a smart system’s assistance, which is especially beneficial for those, who suddenly find themselves needing to switch jobs or even industries.

EdTech companies can start moving in this direction by partnering with a vendor that already has expertise in building strategies for educational system development, data analytics, and experience design. 

3. Reversing the lecture-homework routine with flipped learning

A flipped classroom overturns conventional learning by focusing on practical content that is delivered online and often outside the classroom. It leads to more collaborative environments as students get an opportunity to interact with each other instead of being silent listeners to what their teachers say.

traditional teaching vs. flipped focus

By removing the one-size-fits-all lecture from the classroom and allowing students to have a self-paced lecture at home, they are encouraged to do the actual work in the classroom, interacting with their teacher and classmates. 

Technology is used to humanize the classroom.

Such an approach encourages experimentation, whereas the traditional model doesn’t have time for that. It overconcentrates on the result, missing though that the truly great result can’t be achieved without experimentation and failure.

The technology makes flipped learning not only possible but genuinely effective. Its concept is not limited to simply recording videos and letting students watch them as many times as they’d like. The whole idea is that learning should be based on well-thought-out software ideally bolstered with BI dashboards to help teachers track their students’ academic progress. You can convert the entire curriculum along with the data on students’ performance into the form of a dashboard.

Let’s take a look at how it’s done at Khan Academy.

an example of flipped learning

Every row is a student, every column is one of the concepts within a discipline. Green means that students are already proficient, blue means they are working on it, red indicates they are stuck. With this solution, teachers can easily decipher which kids need their active participation or, even better, which can be tutored by their “green-area” peers. Interestingly enough, it seamlessly flows into another education tech trend – peer-to-peer learning. The idea is not cutting-edge in itself, but with the help of technology it has reached a whole new level. Peer-to-peer learning goes beyond the classroom and becomes a global platform where students from different corners of the world can tutor each other, expanding their minds.

an example of peer-to-peer learning
A circular progress chart for a math exercise on dividing decimals, displaying completion stats and categories

Getting back to flipped learning, it’s worth mentioning that with so much data about students wrapped into comprehensible dashboards, educators can make the process as productive as possible. Teachers know exactly what students are up to: how long they’ve been spending watching videos, when they pause videos, when they stop watching, what exercises they do, the areas they focus on. The data is pretty granular so that the teacher can see where a student’s Achilles’ heel is.

As valuable as this model is at secondary schools, imagine what it does for adult learners who might be embarrassed to learn stuff they think they should have learned ages ago or to a kid from a disadvantaged community, who doesn’t have the opportunity to attend a brick-and-mortar school on a daily basis.  

Furthermore, in a traditional model, teachers spend most of their time doing lectures, grading, and whatnot, whereas in a flipped classroom, the student-to-valuable-human-time-with-the-teacher ratio increases.

4. Scaling up personalization with adaptive learning

The model of education we have now is a mass production model, a factory model. It doesn’t provide any individualized experience.

In a personalized school, each child defines their own learning path in a way that feels natural. Technologies play a foundational role here versus a superficial role in a traditional model. 

Adaptive learning software uses Artificial Intelligence to move students up and down through a grade’s level content based on their performance.

For example, in AltSchool, there are two main tools that enable personalization. The first one, called “portrait”, is a student’s profile. It is a representation of all things that are important about each child, with the data being constantly updated to curate the day-to-day education experience. The second tool – “playlist” – is kind of a basis for each child’s day. It contains a to-do list and a calendar, and allows each child to decide in what order they want to do things, and, as they get older they are allowed to choose what’s on that playlist. 

Apart from significant academic progress validated by national tests, kids advance in their ability to work with others and manage their time, set goals, and think critically so that they can successfully enter a working world that demands these characteristics from them.

Adaptive learning is a win-win both for teachers, who get the possibility to refocus their attention from simply giving instructions to curriculum design, motivation, mentoring, and students as they are given the chance to explore the subject through the prism of their personal interest and abilities.

The idea of eliminating the one-size-fits-all approach and ‘meeting students where they are’ can be applied to learners of different ages. But the earlier it’s integrated in the learning process, the better and faster results can be expected.

“We focus on the practical application of AI in tasks related to scientific work or tasks that students will later perform in their jobs. We can be flexible in the design and launch of programs, meaning that we can respond quickly to student needs for upskilling or reskilling and add to our portfolio of courses,” says Dr. Sven Schütt, CEO of the European university group IU Group (IUG), explaining how they leverage gen AI to fulfill the ‘education-for-all’ principle.

The recipe for a groundbreaking educational platform

The reason why a lot of outstanding education ideas fell on deaf ears was not so much in the reluctance to change something, but rather in the impossibility of realizing the change. After all, it is only a technological breakthrough that makes these ideas feasible.

Unleash the potential of cloud-based infrastructure

Cloud technology gained its momentum in education during the lockdown, as lots of schools didn’t have infrastructure built to support remote learning. Admittedly, cloud-based environments provide hassle-free solutions for deployment, management and safety administration, leaving more room for consistent learning experiences instead.

Speaking of safety, it wouldn’t be amiss to mention that back in the pre-pandemic times, many schools used to store their data in-house in file cabinets, and it was easy enough for someone to take a file and walk out with that data. Now, when adopting the cloud and partnering with reliable cloud vendors who adhere to the strictest security guidelines, school tech directors can be sure that school data is adequately protected.

The up-and-coming EdTech trend of cloud adoption is not likely to stop growing in popularity. On the contrary, it’ll maintain its foothold in education thanks to its ability to access work from any device and the ease of scaling deployed applications to meet students’ needs.

Ensure data privacy

Cybersecurity has been a hot topic in the education sector since the ‘record-breaking’ 2020. Cyberattacks have hit schools and colleges really hard and cost educational institutions millions of dollars.

Some of the most popular cybersecurity tools to surface in response to these cyberattacks are next-generation protections powered by AI and ML. These include endpoint security solutions and next-generation firewalls. Security orchestration, automation and response tools specifically use automation to detect and remediate possible cybersecurity breaches. 

The automated component in SOAR (Security Orchestration, Automation, and Response) helps make cybersecurity more manageable for understaffed IT teams in K–12 environments. Incorporating multifactor authentication is also strongly recommended.

Not only has the number of cyberthreats increased greatly, but the requirements to educational institutions in terms of data protection have become more rigid too. As schools and universities process many types of data, they need to comply with requirements that also apply to healthcare, financial, and government organizations. FEPRA, HEOA, PPRA, GDPR are just some of the regulations that educational organizations have to follow. And, yet, the authorities go even further to mitigate the risks of exposing personal data. In October, 2021, the US President Joe Biden signed the K-12 Cybersecurity Act, which is the first cybersecurity-focused law for secondary schools.

This type of regulatory compliance is becoming more challenging for educational institutions of all kinds, which makes it extremely important to choose a tech partner able to protect your software from breaches and data losses as well as develop solutions in strict compliance with the current data management regulations and major quality standards.

Add value to the learning process with Extended Reality (XR)

While more people have got access to knowledge, the current approach to education has two significant problems. First of all, teaching is still based on fact retention, whereas being informed is not the same as being educated. And, secondly, the old ways of providing information make it difficult for some students (especially those with ADHD, that is 10.5% of children in the US according to the latest data) to comprehend it. Struggling to process and memorize large amounts of information can become extremely disengaging. This applies to all types of learners, whether it’s in a school setting, on a workplace training course, or in lifelong learning.

The possibilities of XR, an umbrella term that covers Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR), empower students to stay inside their learning process with full control over their experience.

AR/VR technologies are a promising addition to the EdTech space due to their immersive nature, ability to share information in new and engaging ways, and potential to offer virtual experiences that can mitigate barriers from cost or distance.

The concept of the traditional educational classroom has gone stale and will eventually be swapped with the idea of a ‘global class’. Students will hardly opt against an opportunity to learn science on the International Space Station with their peers from all over the world, or shrinking to the size of a DNA strand to collaboratively manipulate molecules in a virtual hands-on way, or traveling back in time to explore ancient Rome and role-play out important historic events.

The role of XR in K-12 and higher education is going to grow exponentially but it won’t be limited to school or college environments alone. Workplace training will be enhanced due to this technology as well. For example, the Australian company FLAIM Systems has developed a VR learning solution for training firefighters in hazardous and emergency situations. The same works for lifelong learning. Whatever you want to learn in your everyday life, AR or VR could improve the experience. Take public speaking for example. Award-winning VR provider VirtualSpeech has created a VR tool to help people practice public speaking in a near-real way.

Understanding the impact these technologies have on the learning process, EdTech companies spare no expense in VR/AR solutions. According to Statista, the investments in augmented and virtual reality in the education segment will have more than doubled by 2025, and made 700 million dollars, compared to 300 million in 2020. And that’s not to mention, that only in the US, the number of residents who started using VR increased to 65.9 million people in 2023 and the number of AR users jumped to 110.1 million.

If that is not the reason to bolster your education solution with some form of XR, then what is?

Make the educational process easier & more efficient for both teachers and learners with generative Artificial Intelligence (AI)

AI-powered solutions have been among the top EdTech trends for quite a while. A plethora of opportunities, from task automation and smart content creation to personalized learning and 24/7 assistance, have become available for both students and teachers. Despite drastic shifts having already been done so far, Artificial Intelligence, NLP algorithms, and large language models (LLMs) show no signs of slowing down their rapid transformation of education, bringing even more promising developmental perspectives to the table.

  • Gen AI-assisted immersive classrooms

The combined power of Artificial Intelligence and the technology of extended reality allowed IBM Research and Rensselaer Polytechnic Institute to create a next generation teaching environment, providing a study-abroad-like experience with no travel required. The students learn Mandarin Chinese by conversing with AI avatars that can recognize not only what they say but their gestures and expressions, all against a computer-generated backdrop of Chinese street markets, restaurants and other scenes. 

“Students in the immersion lab mastered Mandarin about twice as fast as their counterparts in conventional classrooms,” assures Shirley Ann Jackson, the president of Rensselaer.

  • Proactive chatbots 

Designed to simplify the interaction between the participants of the educational process, chatbots provide a wide range of benefits, including spaced interval learning, immediate feedback, performance tracking, and, in the case of schoolchildren, communication with parents. AI assistants are also being used to watch for signs that students might be struggling, and to alert their academic advisers.

“If we could catch early signals, we could go to them much earlier and say, ‘Hey, you’re still in the window’ to pass,” says Donna Kidwell, CTO of the university’s digital teaching and learning lab, EdPlus.

Besides shaping a personalized learning experience for schoolchildren and students, tools like virtual assistants help facilities. For instance, data gathered from the gen AI-driven software empowers methodologists to clarify and enhance course materials. 

how AI-powered chatbots improve the learning process for teachers, students, and parents
  • AI grading 

NLP algorithms are powerful enough to assess students’ written responses and provide real-time feedback. It can be applied to online courses with thousands of students studying simultaneously.

Stanford researchers built a neural network that spent hours analyzing examples from old exams on computer programming, learning from a decade of possibilities. When given just a handful of extra examples from the new exam offered, it could quickly grasp the task. After the new exam had been taken, the system provided 16,000 pieces of feedback, and students agreed with the feedback 97.9 percent of the time. To compare, students agreed with the feedback from human instructors 96.7 percent of the time.

As you can see, coming up with ideas for leveling up studying and teaching experience with gen AI isn’t challenging. The tricky part is laying a safe, trustworthy, and ethical foundation for technology adoption, omitting AI-related risks. A UNESCO survey unveiled that only 13% of educational institutions worldwide established clear guidance regarding using gen AI applications.  

Having an AI-literate tech partner by your side will help you set up a transparent, explainable, and secure AI system and draw up robust policies.

Turn to gamification to engage young learners

Adults are often puzzled as to if children are able to store whole databases in their heads about a universe within a computer game, then why do they have so much trouble with the multiplication table? The trick is in constant practice and gamification, that makes the process truly engaging.

Education has long had, in a sense, elements of a game: good and bad grades for completing an assignment are like points in finishing a quest. And at the end of a school year, everyone has a Level Up, the transition to the next level of difficulty.

Speaking of gamification, as one of the trends in education technology, we no longer mean basic stuff that has existed for quite a while.

In online projects, gamification is much more complex. Originally structured programs, coupled, for example, with a detective story, make the learning process more engaging, children want to return to classes regularly and learn new things. For completing tasks, achieving goals, as in a computer game, they can receive points, additional rewards, and enter new levels.

The theoretical knowledge that students gain in class, can be immediately applied when they complete game challenges. This helps children look at knowledge and learning in general from an entirely different perspective.

The main benefit of gamified online learning is the motivation to learn. Students can see and self-evaluate their progress and achievement of the goals set. This helps nurture such qualities as independence, responsibility, and decision-making. For example, at the 

University of California, one study found that students who participated in an educational cybersports program showed much more impressive learning results than their peers, who are not involved in esports.

Drive the mission of learning with mobile technology

According to figures from the tech research company, Technavio, the education apps market is poised to grow by $6.08 billion and is estimated to grow at a CAGR of 14.5% between 2024 and 2029. All signs point to a permanent shift in how people access education.

For Generation Z, also known as generation digital, who learnt how to type before they learnt to write, using smartphones or tablets for their studies is as natural as breathing. They value the freedom that comes with mobile apps to study whenever and wherever, and willingly pay for it with a high level of engagement.

However, the education technology trend of mobile learning applies not only to Zoomers. For the past few years, mLearning has flipped the view of delivering quality content. You’ve probably heard of MasterClass, an online learning platform that allows taking classes from some of the biggest names in the business. It offers a multitude of options to consume their courses, you can watch it on a desktop, TV, phone, or tablet. Still, being more about “edutainment” rather than strictly education, MasterClass is something you’re not going to turn on your computer for (unless it’s already turned on), but are more likely to open on a smartphone or tablet sitting in a traffic jam, lining up in a coffee shop, or passing that quarter of an hour before falling asleep at night. A great-quality mobile application, Android and iOS users have rated the apps with great feedback (4.8 and 4.9 respectively for the platforms), is definitely one of the clues that contributes to the success of this costly platform.

Moreover, mobile learning complements the idea of bite-sized lessons that can seamlessly fit into your schedule, which in turn makes the subscription-based educational model more attractive. When students don’t have to wait for that perfect time (which may never come) to start or continue the course and can study “right here right now”, they won’t feel as if they are blowing their money. 

In addition, mobile technology not only makes learning more comfortable for those who can’t imagine their lives without a smartphone or tablet, but also makes it the only option for people who otherwise wouldn’t have access to educational resources.

Education is the mission and mobile is the means.

Smartphones are now available to a large part of the world’s population, in the future perhaps to the majority, even in the least developed countries. The spread and cheapening of technology, as UNESCO notes, “gives marginalized people and communities, people with disabilities, refugees, those out of school, and those living in isolated communities access to appropriate learning opportunities’’, making education global and crisis-resistant.

how EdTech solutions transform the use of smartphones and tablets from passive to active

Engaging, sophisticated, and, most importantly, effective education will always resonate with learners. But it’s not enough. A VUCA world (short for volatility, uncertainty, complexity, and ambiguity) gives us little faith that things will stay the way they are, which means the only correct strategy is to be flexible and agile. Education – at all levels – must evolve to teach people the skills they need to thrive in our changing world. 

Understand students’ needs and adapt to how, what, and where they learn

Let’s discuss

Offshore Development Center: Taking Offshoring to the Next Level

When economic turmoil takes a toll on the outlook of business innovation, an offshore development center appears to be the backbone of cost-efficient technological advancements. 

The already tough situation gets even more complicated due to huge IT skill gaps. Out of about four million job openings in the US tech market, 200.000 positions remain unfilled. The lack of talent goes hand in hand with the rising costs of technological innovation. To battle all-time high salaries and a talent crunch, organizations move technology production to other, more cost-efficient locations.

Outsourcing has been a well-established practice in pre-pandemic times and will continue its reign for years beyond. The rationale is simple: why would you pay $125K to get your software built in the US if you can hire a developer for $36K in Poland? After all, 2020 forced all of us to switch to remote collaboration mode.

But can an offshore development team suffice multiple long-term innovation imperatives? Unfortunately, the answer is probably no, so you might need another option.

What is an offshore development center?

An offshore development center (ODC) refers to an overseas development facility with a cross-functional team, the required office equipment and amenities, and fully managed processes — all tailored to the needs of a client. Opening an overseas development center allows you to save development budgets, accelerate time to market, and grow your market reach even if you face a lack of talent in your country.

Dedicated team as your first step to the offshore development center

Most companies don’t have the need to commit to full-grown centers in the early days of outsourcing. In this case, the dedicated team model can act as the middle ground between an IT staff augmentation and offshore software center. A dedicated team helps you counter the headwinds of talent shortages and skill scarcities, but with fewer resources compared to a full-scale offshore development branch.

offshore development center

A dedicated team carries the development process from ideation to completion as an autonomous agile squad allocated exclusively to your business needs and development tasks. This hiring model can cover both end-to-end development and specific processes such as design, testing, or business analysis.

Regardless of the area of competence, a dedicated development team brings to the table the following value:

  • Self-management and process setup;
  • Relevant expertise and domain knowledge;
  • Focused approach and transparent collaboration;
  • The flexibility and ease of hiring;
  • Bespoke hiring according to your unique job requirements;
  • Reduced cost of innovation as the vendor takes over overhead expenses, hiring costs, training, and employee benefits.

As you see from the impressive list of advantages, this collaboration option works best for long-term software projects with dynamic requirements. But what if you have specific security requirements or have to handle sensitive health or finance data? Or your project is hardware-dependent? In this case, you might find yourself grappling with a whole lot of security, equipment, and other overheads.

The bright prospects of dedicated development also dim when you need a whole software development hub to address your large-scale project needs. Managing a motley crew of 20 dedicated teams across different geographies and time zones becomes more trouble than it is worth. Outsourcing doesn’t seem like such a win-win solution anymore.

Make software dev outsourcing a breeze

Contact the right vendor

When is an offshore development center your best bet?

So how can you build up your outsourcing capabilities and take the hassle out of team management? Go one step further and switch a dedicated team for a dedicated offshore development center. Along with the ease of crewing, an ODC extends your production capacity without increasing the risks.

Here’s when offshore development services can help you reap the biggest benefits.

Your business has special data security requirements

An offshore development center is like a new offshoot of your company, except that it is premised overseas. Therefore, it has everything you’d need in a traditional office to meet the required level of security. A private office space, authorized entry, software access control, and built-in network security make your ODC space the guarded fortress of product development.

As you have a single development unit, you won’t have to hire multiple management security information officers or compliance officers to track compliance adherence and security.

You require bespoke tech expertise

Niche skills might be expensive to secure or nurture unless trained in a more affordable location. Offshore dev centers allow you to set up a training center without spending your resources on third-party upskilling programs. 

In this case, the training course contents are customized to meet company-specific goals and do not expose your organization to additional security risks. In-house training also guarantees the right level of knowledge and is a perfect match for existing technology gaps.

Your project is huge

One-time or minor projects are often better off with a dedicated development unit, while large-scope development initiatives require continuous support, updates, and limitless scaling. An offshore center allows you to establish a continuous loop of delivery and scale your development facilities for multiple projects — all in one place.

You want to achieve more by spending less

If software development is not the core competence of your company, an offshore development location becomes the best option to keep your development costs moderate. ODCs are not typically packed with the same overhead costs that internal offices are. This way you get to reduce expenses such as office space rent, infrastructure, electricity bills, office maintenance, and, most importantly, salaries and taxes.

Unbeatable triad: benefits of offshore development services

You know there’s something to it when A-list companies resort to offshore development offices. Google, Microsoft, Apple Inc, and other giants have their technology development sites located in other countries, far away from their head offices. So, why do forward-looking businesses flock to offshore teams? We have the answer.

Providing domain expertise and vetted specialists at a lower cost

Offshore development services allow you to tap into the global talent pool, whatever the niche or domain knowledge you need. While your in-house candidate base is limited by geography, an ODC vendor has access to an infinite supply of vetted candidates from a rich, local talent database.

As ODC offices are typically premised in low-cost economies, a vendor helps you secure a local team of professionals at the fraction of the price you’d pay in-house. You don’t also have to deal with the pain of hiring and onboarding a new team, leave, insurance, and other employee costs, which significantly lowers your bill.

Taking care of complex administrative functions

From a legal standpoint, establishing an offshore development center requires you to create a new legal entity. However, you don’t need a degree in Legal Studies to make that happen. Instead, your local ODC partner does the heavy lifting of legal regulations, taxes, HR-related issues, and other administrative burdens.

It also means that you don’t have to dispatch operational resources overseas to solve issues like office renovations and payroll taxes or wade through the jungle of local laws and business processes.

Ensuring full compliance with your requirements

An offshore software team operates in full compliance with your industry regulations following documented development processes. As the team augments your in-house unit, you have full control over its performance and every operation of your projects. Moreover, an offshore software development office gets certified and audited in line with your specifications.

Investing in your own offshore development center: is the game worth the candle?

Offshore development centers have got a lot in store for fast-growing companies. However, you must go a long way to create a development center in an overseas location, especially if you decide to go on your own.

offshore development center

Choose your ODC destination

You first need to decide on the optimal location of your offshore development center. There are a lot of factors to take into consideration — from the tax policy to the English language proficiency.

A professional consultant is needed to help you look into the legalities of a business entity and select the right legal structure.

Once you’ve decided on a legal form, you need to submit a package of documents to the territorial registration authority for state registration.

Find, rent, and renovate an office

After all the paperwork is done, you have to find a workspace for your offshore unit. In most cases, the office will need renovation, new equipment, and other office materials.

Grapple with the local tax system

Now it’s time to dive into the tax mystery and find out more about your tax liabilities.

Hire recruiters, administrative, and support staff

As it’s a full-fledged office, your center requires trained personnel to take care of the workspace and handle your business processes.

Run a brand-building campaign

When you’re all set, your new branch needs some exposure to establish its market presence and get a headstart in the unknown business landscape.

Recruit and retain developers

And now, if you’re persistent enough to complete this arc, you get the final prize — the never-ending dread of hiring local specialists from the uncharted local market.

By this time, you might think that initiating an overseas office is an overlong, expensive, and challenging endeavor. You’re right, it is. But it doesn’t have to be if you have a trusted ODC vendor onboard that has a decade-long experience in setting up offshore centers. In this case, your responsibility area (and expenses) shrinks down to choosing your ODC location and validating completed tasks.

offshore development center

Looking for an experienced ODC vendor?

You’ve got one

What location to choose for your offshore software development center?

When scaling beyond borders with an ODC, the location choice can either make or break your undertaking. An ideal destination should offer a sizable talent market not to limit the growth of your center. The price-value ratio is also important to gain from the new office and innovate at lower costs. Moreover, your ODC team must be on the same wavelength as you, which is impossible with cultural and language gaps.

Eastern and Central Europe is traditionally considered to be a cost-affordable offshoring mecca. This is why Bulgaria, Romania, and Poland are among the most favored offshoring locations where all criteria are aligned. So let’s have a closer look at one of the leaders — Poland.

Extensive developers’ skill sets

Poland is home to software developers with high proficiency in multidisciplinary fields. The expertise and knowledge of Polish software engineers have earned them third place among locations with top developers. Moreover, Poland hosts the largest IT talent pool in Europe with over 400,000 IT professionals on the market, which makes this location a key IT powerhouse.

offshore development center

Dynamically growing IT market

While being a mature outsourcing market, Poland continues to gain more steam in the IT sector. According to Statista, the revenue in both IT and IT outsourcing markets has followed the growth trajectory over the last few years.

offshore development center

The country’s IT services market increased to a projected $6.45 billion in 2022, with outsourcing being the largest segment, valued at $2.29 billion. The resilient economy of Poland contributes to the overall image of a breeding business ground.

Strategic location in Europe

Poland’s EU positioning translates into a convenient time zone. Warsaw has a six-hour time difference from New York, which allows software providers to deal with their clients’ requests without delay. To put it into perspective, India is up to 12 hours away from the USA. As for other countries, such as the UK and the rest of Europe, Poland’s prime location allows for frictionless communication with no time lags.

Low development costs

Unlike other Western European countries, Poland offers vetted talent at affordable rates. According to PayScale, the average yearly rate for Poland-based software engineers stands at over $21,000 per year, while the average US developer is paid x6 times more. 

However, lower rates do not come at the cost of lower quality. Instead, the quality of software development is on the same or higher level than in top-paid locations. 

Compliance with EU and US data protection standards

Due to its strategic location, Poland is subject to the same data protection regulations as other EU countries, such as Germany or the Netherlands. Hence, the data protection regime in Poland is mostly governed by the General Data Protection Regulation or GDPR, a well-known compliance standard for EU companies.

HIPAA certification is also commonplace in the country, validating the skills of Certified HIPAA Professionals (CHPs), Certified HIPAA Administrators (CHAs), and Certified HIPAA Security Specialists (CHSSs). This means that compliance-wise, Poland stands on par with EU- and US-based organizations, suggesting high compliance literacy of local developers.

No communication gaps

Poland is a part of European culture, so there’s no cultural gap between the team and the client. The influence of European culture in Poland is combined with the global mindset of operating businesses. Therefore, business operations aren’t compromised when local teams communicate with people from different backgrounds.

Moreover, the country is well-known for its outstanding English proficiency. According to the EF English Proficiency Index, Poland ranks 11th out of 100 counties in the world for the knowledge of the English language. So as long as you speak English, you’ll be fully aligned with your Poland-based ODC team.

Mature R&D hub

Global tech leaders, including Microsoft, Google, Oracle, and others have located their research and development centers (R&Ds) in Poland. It proves that this ODC location offers a mature, affordable, and tax-friendly outsourcing framework that encourages foreign investment for the development of innovative products.

However, even the best setting can be rendered ineffective with the wrong team onboard. Therefore, the choice of a reputable and experienced partner is yet the most important success factor for establishing your foreign presence.

Setting up an ODC in Poland?

Consult an expert

What to look for when choosing a vendor for offshore development services?

The stakes are high when it comes to confiding a fully functional business unit to a third party. It means that your ODC partner should act as an extension of your company, know the ins and outs of your domain, and keep your business bar high.

And the easiest way to forecast the reliability of your offshore development center vendor is to look at its track record. The more ODC projects they have under their belt, the more likely your initiative to pan out. Here are some other ways you can validate the credibility of your partner.

Evaluate IT expertise

Besides English, your team should speak the language of innovation to power your products with the latest technologies. Usually, the main reason for one business to resort to a third party is the lack of high costs of technical knowledge and domain expertise on site. For instance, a company wanting to drive digital transformation doesn’t have what it takes to build a BI and analytics system, so they farm out the function to the vendor.

On this front, you should consider the particular tech stack and the focused domains that you are interested in. For example, *instinctools is a great fit for cloud-based projects (with Google Cloud, Microsoft Azure, and OVHcloud partnerships under our belt), custom enterprise software development, and Business Intelligence powered by Power BI, Tableau, and Qlik. On top of our tech expertise, we also offer a wide array of consulting services crowned with an end-to-end technology-enabled business transformation.

Besides the broad and in-depth technical knowledge, your partner should know the ins and outs of your industry to align technology with business value. With domain expertise, developers can also contribute on a conceptual level and minimize development risks. We, at *instinctools, have accumulated extensive industry proficiency that spans virtually all domains — from manufacturing to healthcare to entertainment.

Investigate relevant experience

No matter how far and wide your vendor’s technology command spans, it’s feeble without real-world experience. Therefore, the best way to set up your initiative for success is to drill down into the vendor’s portfolio. 

Ideally, the portfolio should feature similar projects in the same or an adjacent domain. Make sure that your selected partner also boasts hands-on experience in establishing offshore development centers and associated processes.

You can also reach out to the partner directly if you cannot find relevant projects — not all projects end up in the Clients section due to confidentiality issues. Client testimonials on Clutch, GoodFirms, and other directories can also give you an idea of the vendor’s maturity.

Focus on cost-effectiveness, not cost

A fully managed operational center holds great promise in terms of lower development expenses and ease of management. However, only a few deals grow into worthwhile investments, and the ODC model is no exception. Low-cost labor is often a key element of price calculations, yet is not the only one to help assess the viability of the offshore development center idea.

In some cases, procurement, project management, travel, and other hidden costs may backfire and get your cost gains to zero. So, the key to landing the right development partner is to understand the value you expect to generate from the offshore center and to correlate this value with the involved effort and investment.

Going beyond cost borders with offshore software development center

The competitive market dynamic cripples any business that isn’t fast enough to adapt and accelerate growth. To maintain a competitive edge, companies accelerate their technological initiatives and supplement traditional services with digital-first experiences. 

However, digital transformation is a costly journey unless taken to a more affordable setting. Offshore development centers help companies innovate and scale their technological offers at lower costs and less administrative hassle.

But despite the outward glitter, an ODC idea has a specific application area and doesn’t cater to all needs. Large-scale projects, niche skills, high-security requirements, and clear economic gain in your particular situation should be the main precursors to setting up a fully operational center in another country.

Scale beyond borders

Contact an ODC partner

5 Challenges in Implementing Big Data Analytics Based on Our Client’s Experience

While well-informed decision-making makes all the difference, it comes with certain data analytics challenges which, if ignored, put your efforts at risk.

As data analytics has become increasingly more influential in the business world, organizations everywhere consider it the main objective. In turbulent times to come, it is vital to get a comprehensive image of how an enterprise works and how its resources are allocated. However, in order to make the most of your data, certain issues have to be addressed, or else the data analysis process can be impeded. 

This article will focus on the biggest challenges in data analytics. Here, our customer’s experience is used to illustrate the obstacles on the way to insights, with advice from our business intelligence consultants on how to handle them.

The scary five of big data analytics

Our client is a fashion retailer looking to get their data initiatives across the goal line. However, the company’s digital transformation was put on pause as it struggled to get hold of the right data management strategy and BI tools. 

Here are the challenges highlighted by our client and the pro tips to solve them suggested by our experts.

1. Inability to define user requirements properly

The company in question has been dabbling into the potential of BI tools and data visualizations for a long time. However, our client had no hands-on experience in business intelligence, and so, couldn’t accurately define BI requirements. 

With a requirement brief on hand, it would be easier to suggest a technological solution. But our BI specialists did an amazing job analyzing the business needs and making the most accurate technical adjustments in accordance with them. Essentially transforming their demands into clearly defined objectives. 

Pro tip: If you are new to the BI ecosystem, make sure to get professional advice from an experienced technology partner. In this case, your vendor will do the heavy lifting of requirement elicitation, while you can choose one of the suggested technical solutions.

Challenges in Implementing Big Data Analytics

As it turns out, our client also struggled to communicate the requirements because they did not have a focus area to start with. Instead, the company was trying to encompass each aspect of business performance, from revenue to inventory turnover, and squeeze all the KPIs into one all-in dashboard. While it is certainly possible, the miscellany of metrics makes your reports less digestible.

Pro tip: Start small by identifying a few core metrics to track and visualize. By going with one functional area at a time, you increase the odds of a more successful and consistent BI adoption process and eliminate the lion’s share of data analytics challenges.

Challenges in Implementing Big Data Analytics

2. Carrying out system changes without considering the impact on data of other departments

In most cases, it’s not enough to map out the KPIs for analysis and tracking. For cross-functional teams, it is also important to first clarify and define what these metrics mean. As departments may do calculations in different ways, a shared understanding of KPIs and their calculation prevents the discrepancy in the value of the metrics.

On this line, our client’s another data analytics challenge was the different perspectives on the same metrics across business departments. As such, offline sales managers viewed the sales revenue as everything earned from the sale of the clothing, including the VAT charge added on top. Conversely, the accounting and finance department uses the net revenue of both online and offline sales as the core metric. 

Our team has eliminated this knowledge-sharing gap by introducing a glossary of KPIs for decision-makers. This way, each department gets a fix on the metric in use, associated data sources, and the metric formula. Decision makers also set personal ownership of each performance measure and assign a dashboard owner within a department for a given metric. 

Pro tip: Make sure you have selected the right metrics to display and are fully aware of how KPIs end up in executive and operational dashboards. Consider using separate dashboards for each department to avoid metric ambiguity and overlapping.

Challenges in Implementing Big Data Analytics
Challenges in Implementing Big Data Analytics
Challenges in Implementing Big Data Analytics

3. Lack of a unified corporate picture

While each business unit should get a detailed view of internal metrics, CEOs need a more high-level overview of business performance. A high-level snapshot provides a bird’s eye view of company performance and its bottlenecks. This may be done by providing an executive summary of the top KPIs across business units or by providing high-level reporting dashboards for each department in the company.

The metrics included in an executive dashboard vary by industry and company. Retailers might want to keep tabs on profit and revenue per square foot, logistics costs, profitable marketing channels, top-grossing items, gross margin return on investment, and other vitals.

As for our client, the company needed a unified monitoring report that sources and consolidates predefined values on a company’s performance. The dashboard should offer a quick health check with the possibility of drilling down into a particular metric. As for variables, our client went with three separate screens for sales analysis, profit dynamics, and customer data that demonstrate the YoY (year-over-year) growth.

Challenges in Implementing Big Data Analytics
Challenges in Implementing Big Data Analytics
Challenges in Implementing Big Data Analytics

Pro tip: Bring metrics by a specific department to a common view needed for executives to act on. An executive dashboard should include core, high-level metrics that can be used for a unified business strategy language.

Achieve a unified view of your business

Consult our BI team

4. Collecting meaningful data to the agreed standard

Around 95% of our clients think that it’s enough to compile each piece of business data, send this hoard to the BI tool, and call it a day. While it would be a perfect scenario, in most cases, companies are inundated with scattered data sources that lack administering. This is a textbook example of data management gone wrong.

What are the challenges of data analytics in this case? In the absence of the right data architecture, modeling and administration, your data quality does not stand a chance of producing remotely accurate and meaningful insights for decision-making. As a result, 77% of companies struggle to derive high-quality data, which leads to distrust in the organization’s data and analytics.

Challenges in Implementing Big Data Analytics

Pro tip: According to our big data experts, the issue of data quality cannot be solved at the analytics level. It should be eliminated by introducing a unified data management strategy within the organization. A business intelligence tool can then be used as an acid test for your data quality.

Getting back to our client, the organization had the same problem of missing data values, incomplete input, duplicates, and other snags. Moreover, the company did not have the integration architecture to share information between various subsystems automatically. 

Our team advised the organization on the best practices of collecting, storing, and transforming their data as well as took over the technical aspects of seamless data sharing between the business systems. Our data engineers identified the source of master data within each business unit (CRM, ERP, and others), selected the right data model, and calibrated the sharing process between master sources and data warehouses. 

Whip your data management in shape

Get a free consultation now

5. Staff resistance to adopting a new system

A low adoption level of BI among your employees can also become a significant roadblock to your data analytics efforts. Currently, the ceiling on analytics adoption among its end users stands at an average of 25%, while others favor traditional spreadsheets or gut-based predictions. 

The root cause of this problem can stem from low-level skill training, the complexity of a BI tool, or the fear that automation can displace an employee. Each type of rationale should be approached individually, while the overall value of a reporting system should be clearly communicated and demonstrated to each employee. 

At first, our client struggled to get employee buy-in on having Power BI as an analytics standard. The main reason for the aversion among employees seemed to be people’s natural resistance to change.

Following the unique user needs of each business unit, our BI specialists have adjusted the interfaces to the specific department. The onboarding was followed by internal workshops for each department and facilitated by creating documents with guides on the tool.

Based on our tried-and-true experience, we know that any business transformation initiative, including big data analytics implementation, brings the most value only when process optimization, the deployment of cutting-edge technologies, and cultural shifts in people’s minds move towards each other, not further apart.

Pro tip: Low business intelligence adoption is inevitable if you neglect the role of the people involved in your processes. Build a BI interface with the end user in mind and ensure a smooth take-off by setting up single onboarding training.

Navigating your company through data analytics challenges: the easy way

Just like every house is built on solid ground, insight generation is built on a data foundation. Ironically, data itself is one of the biggest challenges in data analytics that can cripple your BI management and lead you to the wrong decision.

We helped our client to realize the full potential of data analytics and use it to their advantage. By having a unified data architecture and the right technology footing, the company can now get a real-time view of core business operations and act on the data to grow, innovate, and adapt to the fast-past retail market ahead of the competitors. 

Get your data analytics right

Contact our data experts

Automated Data Lineage: Remove Chaos From Your Data

Impeccable data quality and accuracy are deemed vital precursors in the quest for data-driven decisions. This strategic reliance on information leaves no room for error and places input transparency at the heart of the data management process. Automated data lineage is what gives you confidence in your assets and helps eliminate any errors throughout your data flows.

Data lineage tools allow companies to look into the “what”, “when”, and “where” of their data. They give the full context to the final insights, be it the input source or the evolution cycle. Let’s see what else this data-related practice can bring to the table.

What is automated data lineage?

Data lineage refers to the process of tracking and visualizing data flows throughout the organization – from the source to the ultimate destination. Lineage graphs tell the story of your company’s data and demonstrate how it took its current shape, whether it’s by merging, transforming, or integrating.

Origin tracing goes hand in hand with metadata. The latter summarizes information about the data itself, including its type, format, author, date created and updated, etc.

Because of this, data lineage produces a data mapping framework by gathering metadata from each step of the pipeline. Lineage tools then store these insights in a metadata repository and demonstrate over-time changes via metadata through simple visual flows.

Automated data lineage

How can data lineage bolster your analytics?

Over 80% of companies report revenue growth after adopting real-time analytics systems and processes. But how can you get your analytics right against the odds of multiple business systems and applications? Data lineage (and not just some lineage, but an automated one) can save you a lot of effort when it comes to business analysis.

Simplify root cause analysis

It’s common for different business units to act on the same metric. However, when it comes to quarterly planning meetings, each department head suddenly reports a different number on the same KPI. Let’s take ‘sales per quarter,’ as an example. The sales department might claim that they’ve made $1m, while the finance department says it’s $0.75m, as that’s the amount of money that has been deposited into the account As a result, the persistence of erroneous data throughout the enterprise’s systems and robs decision-makers of time and productivity, as they must continuously vet data to ensure it remains accurate.

By automating data lineage, business leaders can easily trace the origin of reporting errors. The stepwise record of data assets sheds light on the black box of insight generation and builds trust in the data estate of the given organization.

In particular, up-to-date data lineage helps you locate the most upstream nodes of your system that experience the issue. Most likely, this would be ground zero for your problem. The following lineage graph visualizes the hierarchy of data within the organization.

Automated data lineage

Also, if your data and BI management are in good shape, you won’t even need the help of a BI team to trace it back. Meanwhile, mature data architectures that saw little maintenance might need a dedicated BI unit to restore the origins.

Achieve and maintain compliance

The complex data landscape makes adherence to regulations an uphill struggle for compliance-heavy organizations. Companies just cannot provide the required level of transparency needed to meet HIPAA, GDPR, and other guidelines.

Data-lineage documents help organizations map data flow pathways with Personally Identifiable Information to store and transmit it according to applicable regulations. In this case, companies can capture the entire end-to-end data lineage (including depth and granularity) for critical data elements.

Get answers as questions arise

Although pipeline mapping alone cannot ensure data accuracy, automated data lineages can at least deliver a full view of the metadata so that you can see why exactly you have this number in your report. Put simply; you can locate a given business term and trace it to multiple applications, data sources, models, analytics, and other elements of your digital estate.

Unlike manual data tracing, automated data lineage tools minimize errors and return the result in seconds with each manipulation logged.

Simplify data migration

Data integrity and quality issues tend to haunt the majority of migration projects. According to the study, 44% of U.S. organizations admit that poor data quality slows down the migration process. Moreover, unless eliminated, these issues can affect downstream systems and manifest themselves when it comes to the end user. Also, these are tricky to spot during data testing.

To tackle migration challenges, data engineers need to identify the location and lifecycle of data sources. By using automated data lineage, your data migration team can obtain this information flat out, minimizing migration risks. Your engineers can leave all duplicate, outdated, and redundant data behind and identify the structure of a data asset slated for migration.

Instant impact analysis

To estimate the scale of data change, tech specialists resort to impact analysis that demonstrates which downstream systems will be affected in the process. Automated lineage helps pinpoint dependencies and identify the exact stages under impact – with little to no manual effort. Those stages can then be revised to accommodate the changes and promote data consistency across systems.

The following data lineage diagram example demonstrates how data flows through four different applications:

Automated data lineage

This is why if you introduce changes to your data warehouse, you can easily see which dashboards the alterations will impact.

Leverage the power of data lineage for analytics

Contact our data analytics team

Manual vs. automated data lineage: which does it better?

When it comes to origin tracing, companies and their IT departments have two options. They can either delegate this task to automated data lineage tools or rely on manual, also known as descriptive, data lineage.

Descriptive data lineage

A descriptive data lineage is one documented manually. In this case, data analysts dedicate effort to recording the information about how the data element is updated over time and how it ends up in a warehouse. This type of lineage is extremely time-consuming and prone to errors stemming from manual input.

Automated data lineage

By delegating lineage to a tool, you automatically handle the metadata recording process. Automated tools trace the asset changes and transformations throughout its lifecycle and make that information readily available via visualizations. From a tech standpoint, you provide meta-integration components to the tool and can then access the visualizations even with no prior knowledge of ETL processes.

However, data lineage automation calls for careful scope selection as this initiative can turn out quite expensive with the wrong choices. Also, the more legacy systems you have, the more data lineage challenges you will face, as aging ecosystems cannot provide metadata sources.

Tracing automation allows you to reduce the expense and effort required to document data lineage. Tools offer autodiscovery and integrations based on machine-learning techniques for creating metadata and building interactive data-lineage flows. Conversely, manual tracing has its inherent challenges linked with resource intensity and isolated workflows as it sits within the remit of the data governance team.

Сommercial or open source data lineage tools: which one to choose?

Data is a man of a thousand faces. And it’s either canned solutions or open-source data lineage tools that can reveal the true face of your assets. Let’s have a closer look at the dichotomy between the two.

Costs

Although it’s impossible to put an accurate price tag on both, making your data lineage open source appears to have more cost-saving potential, at least at first sight. However, free lineage tools typically cannot suffice your unique business needs, thus requiring pricey customizations to an indefinite extent. Commercial tools have all pricing options laid out for you.

Ease of use

Open-source data lineage tools usually require more time and effort from users to navigate due to complex user interfaces and little onboarding guidance. Contrarily, commercial tools tend to walk the user through the interface with more intuitive flows, solid documentation support, and managed pathways.

Alignment with your architecture

If your tech ecosystem already revolves around a particular provider, such as Microsoft Azure, it’s only logical to choose a lineage tool from the same supplier. In this case, the tool will integrate natively into your ecosystem and have no compatibility issues. However, if your stack isn’t centered around a specific offering or you don’t want to go big with your lineage efforts, you can opt for open-source tracing.

For example, one of our clients has a well-calibrated data management process where the team has almost complete visibility into how the data circulates between the systems. The client’s team injects lineage graphs only when they need to dig deep into the data. In this case, open-source tools will be enough.

Integrations and scope of visualizations

As lineage involves tracing the data footprint throughout its entire journey, data lineage tools should be able to integrate easily with your current stack. This includes everything from storage, injection, and visualization and all other stages where your data is originated, stored, or transformed.

Commercial software usually takes over the whole data lifecycle, thus having access to all processing stages via proprietary APIs. As a result, canned software visualizes detailed, all-encompassing insights about your data lineage.

For example, data lineage in Power BI integrates natively with the entire Azure ecosystem, while open-source software requires you to build custom APIs to access metadata.

Struggling to choose the right lineage tool?

Ask our experts

Adopting data lineage: best practices

The main rule of thumb in implementing lineage is to balance this practice against your unique needs and existing capacities. For example, in some cases, the project agenda of our clients requires our data engineers to resort to dedicated lineage tools such as Monte Carlo. In other cases, we build and connect this feature on top of other tools like Apache Airflow.

While lineage experience varies by company, we still have some universal advice on how to track your data origins in the most holistic and comprehensive way.

Keep it omnipresent

To remain authoritative, data lineage should permeate each stage of your data journey, including the phases of sourcing, ingesting, storing, analyzing, and visualizing. However, its presence at each stage should be meaningful and insight-rich, contributing unique nuggets of information to the knowledge body. So when deciding on the integrations, make sure you map data elements at every stage.

Prioritize quality over quantity

Over the last few years, there has been a dramatic shift from vast reams of data to knowledge centered around individual data components. The same trend applies to lineage automation. Instead of embracing the entire data landscape, it’s better to look into relevant metadata details, such as the asset owner and the presence of the asset in downstream sources. This way, you can define the value of each asset for your analysis.

Have the lineage view at the field level

Field-level lineage is key to understanding the relationship between the fields in the data set, thus facilitating root cause analysis. When your pipeline cracks, field-level lineage automation allows your data teams to see exactly how each field of your data circulates in your system and which transformation it has been subject to.

Automated data lineage

Keeping it at the field level helps to ensure the accuracy and quality of insights, point out errors in a revenue report, and trace columns with sensitive information to downstream dashboards.

Decide on the unified data lineage language

Just like any business communication, data lineage should be based on the common dictionary of terms to spread knowledge within the company. To establish a common understanding, your data lineage should rely on clear naming, which represents the data it’s describing. Naming conventions and style guides help people analyze data consistently, making data lineage diagrams easily digestible for all team members.

You can also streamline communication about data lineage between multiple stakeholders to maintain a shared understanding and get feedback on your graphs. To do that, your lineage tools should include built-in collaboration capabilities and notify asset owners about data changes.

Collect, store and prioritize metadata

While troves of high-level data hardly translate into accurate data lineage graphs, substantial amounts of metadata are beneficial to your tracing efforts. Therefore, having a rich metadata repository leads to a more comprehensive snapshot of all report components and faster troubleshooting. Also, including the relevant metadata for a given data asset makes your lineage graph exhaustive and helps you fully realize how potential changes will turn out in reports.

Let data lineage grow with your business

As your business expands, the data footprint of your business processes also builds up. To maintain data tracing complete and full coverage, your lineage architecture should be scalable and include an ever-evolving input stretch. This is why, no matter the analysis area, your lineage tool should look into every pipeline, report, and stack layer at the field level, joined by ample metadata.

Solving the mystery of data discrepancies

Knowing what goes into your report gives you confidence in your data and guarantees the right course of action afterward. Automated data lineage helps you develop a full view of your data evolution and track an individual number to its place of origin, preventing errors in decision-making. However, getting an accurate lineage graph requires a well-balanced data architecture to let the lineage tool mine metadata throughout the entire data lifecycle.

On the journey to better data quality?

Contact our data experts

Big Data Security Concerns for 2025 and Beyond

Nearly 97,2% of firms invest in Big Data initiatives, confident that data will give them a serious leg up. In reality, only 1 in 4 business executives see profitability in their efforts. Among the biggest hurdles blocking payoffs — cited by 36% of surveyed leaders — are Big Data security concerns.

This article outlines the common security concerns related to Big Data and provides you with results-oriented methods to protect your sensitive data.

Big Data complexity and collateral security issues

Because of the Big Data diversity, its security can be viewed from two sides — corporate data and customer data. Organizations should be aware of business data security as the data loss of proprietary information is equivalent to exposing your weak points to your competitors and handing them a competitive advantage on a silver platter. 

Imagine a logistics provider that has prepared a special transportation offer for its clients over the Christmas period. What if information about it leaks out right before the holiday season? Knowing the targeted audience and specifics of the promotional offer, your competitors will have the opportunity to improve their advertising campaigns and make them more attractive than yours. 

Though business data leakage is one of the large-scale issues of data security, it affects only the organization itself. But along with corporate data, companies also keep sensitive data about their customers. In case this information falls into unreliable hands, the severity of the problem skyrockets as more than 90% of people state they want to control who can get information about them.

Leakage of customer data might have major repercussions for the company in terms of the compensation fee it’ll be liable for and losing the clientele to competitors that offer the same services but with higher security levels. The largest recorded U.S. data breach in the healthcare sector was in 2015 at Anthem Inc., a health insurance provider in the United States when criminal hackers stole sensitive data affecting 80 million individuals. After two years of litigation, Anthem paid $150 million to settle lawsuits over the incident. 

The recent breach involving National Public Data, one of the biggest background check companies, exposed 2,9 billion records of sensitive personal information — names, social security numbers, and addresses. Much of the data was put up for sale on the dark web for $3,5 million. As of January 2025, the company has yet to fully resolve the damage, although it has acknowledged the breach and is cooperating with law enforcement. They’ve even filed for bankruptcy, citing the financial blow from the incident as a key factor.

Cost of a data breach by industry, 2023-2024


What security best practices can you leverage to protect your business and customers’ data considering the diversity of data structure and format, storage location, origin source, device type, etc.? We’ve listed seven common data security problems and their solutions.

1. Network perimeter insecurity

When information enters a company’s network, it goes through various security checks. But if your system fails to separate potentially destructive data among incoming data, it can get into the infrastructure and cause a lot of damage.

Cyber-attacks are continuously evolving and becoming more sophisticated, so organizations should rethink their Big Data security management and adopt zero trust architecture solutions. These assume a dynamic digital identity-based perimeter and approach where any user or device, application or system, outside and inside the network, is classed as untrusted by default. In this case, organizations’ resources are secured regardless of their location because access control moves from the perimeter to each device and user, and the network is divided into micro-segments to make it harder for hackers to attack.

Zero trust architecture: key capabilities

2. Social engineering attacks

A classic example of this type of attack is known as phishing. This is when attackers send you messages that seem to be from a known, trusted source but, in reality, are malicious. If your employee unknowingly clicks on an untrustworthy link, hackers can access the corporate network.

Implement gateways to prevent scam emails that may contain spam, malware, or phishing attempts. Gateways are useful for identifying bad emails thanks to their antivirus, anti-spam, and anti-phishing functions.

But what if the malicious link isn’t in the email but in an attached PDF file? That way, gateways won’t identify the suspicious email and quarantine it. To confront the current data security problems and threats, take advantage of the additional features the gateways can provide you with, such as a sandbox. It’s a safe isolated replica of your real environment where you can open potentially malicious letters without impacting a system or platform on which they run. 

Email sandboxing architecture

3. Data cleansing problems

Big Data is known for promising benefits such as improved decision-making, but to get valuable data, you should first separate the wheat from the chaff and deal with the dirty and messy data. Otherwise, you’ll get stuck in a vicious cycle of poor data and a garbage-in-garbage-out trap. 

Here’s where an automated data cleansing process enters the battlefield to provide you with correct, complete, and properly formatted data from your warehouse stores. But if those tools are not configured correctly, data cleaning will result in inconsistent data and Big Data analytics security concerns won’t go anywhere. An algorithm can fail at the data classification stage — it may define sensitive data as normal and share it with a wide range of people. 

4. Flawed data masking measures

Organizations adopt data masking policies to distinguish data that identifies customers (characteristics by which one person differs from another, such as date of birth, name, and age) from confidential information about them (data that also is connected to a customer persona, but is changeable, like home address, driver’s license number, bank account number).

The purpose of data masking is to prevent big data security risks by stopping cybercriminals from matching customers and their sensitive information. If data masking is done incorrectly, it can be reversed by hackers.

A key solution for securing big data is data encryption. But it takes time to implement effectively, so how to keep the data processing speed up (since velocity is one of the five core Vs of Big Data along with variety, volume, value, and veracity)? Use these techniques of data encryption at the last stage of data processing to ensure big data security.

  • Data scrambling. Input data characters are randomly reorganized and replaced in data storage.
  • Data substitution. Fake data replaces real information, you can use random names from a phone book instead of real customer names. 

In both cases, original data is still available at your warehouse or data lake. You use substituted or scrambled information to make decisions as you can’t use sensitive data for those purposes according to data protection regulations including GDPR.

In addition, so that your security efforts don’t go down the drain, make sure to set access controls so that specific data masking algorithm settings were available only for data owners in the relevant departments and no one else.

5. Fake data generation 

Cybercrime attacks can result in fake numbers that your dashboards will show as it happened with Amazon when the site’s algorithms (Amazon’s Choice, top sellers, products ratings) were manipulated with fake products’ reviews that overrated certain products and sellers artificially. If you can’t see the real picture you’ll end up getting the wrong insights and making flawed decisions that can also result in big data security issues. 

Data that has gone past its sell-by date also becomes a fake that can badly affect your decision-making process and, thus, business operations. Which fake results can it show? Learn from the story of United Airlines. They lost $1 billion a year because of an inaccurate pricing model that was based on the passengers’ seating preferences that used to be relevant 10 years before. 

Your ability to secure data and protect client and company data is diminished if you can’t identify fake or outdated data in your central repository. Take advantage of BI consulting to analyze the current state of your data systems, use Machine Learning (ML) models to find anomalies in your data, and apply a fraud detection approach. Studies show an accuracy rate of 97,9% for detecting fraudulent transactions with ML. ML-powered fraud detection also helps to reduce fraud investigation time by up to 70%.

6. Unauthorized changes in metadata

Bearing in mind the gargantuan volume of Big Data, unauthorized metadata modifications make it challenging to manage changes in ‘data about other data’ and identify the relevant information afterward as you don’t know for sure which changes are trustworthy. 

To exclude unauthorized access and its displeasing consequences, such as wrong data sets and untraceable data sources: 

  • implement user access control and obligatory authorization processes for employees
  • use nulling out when data is replaced with NULL for an unauthorized user 

Since even basic sensitive information such as a document author’s name, revision history, type of software, in the wrong hands may lead to a potential data breach, you’d better use one more measure to secure your metadata — sanitization. This is the process of removing sensitive data from the document. After sanitization, the file may be distributed to a broader audience. 

Unauthorized changes in metadata can also jeopardize data security and make things awkward if you prepare an offer for the customer by copying a previous file. If the document doesn’t go through the sanitization, your hypothetical client will have access to the history of changes and find the corrections of the original budgets or the scope of work for your previous customer.

Therefore, don’t underestimate the importance of this activity. Use automated data sanitization tools to ensure that only the intended information can be accessed. 

7. Employees’ carelessness

Have you heard about the Equifax breach that was caused by an employee’s error? An individual in the technology department had ignored security alerts, which led to exposing the sensitive data of nearly 146 million Americans. 

A Verizon’s report states 74% of data-related incidents involved human error. The level of accidental staff negligence rises alongside the growing number of devices accessing the company’s and customers’ sensitive data — not to mention the risk of employees exposing it to popular gen AI chatbots. With staff accessing data from personal and over unsecured networks, sharing a file with unauthorized parties — whether accidentally or maliciously — can be as easy as snapping your fingers.

The technical aspects of the solution that will help you detect security breaches in time and ensure big data security include the implementation of multi-layer authentication and an inside threat detection approach to get notifications about security threats by your staff. As for the ‘people’ part, create an atmosphere where employees feel safe to report on a lost or stolen device and do it immediately.

Security audits and actualization of your Big Data strategy are initial, yet critical steps in resolving Big Data and security concerns

Big Data technology is a world of opportunities. It helps you better grasp your customers’ needs, create detailed hypotheses for market testing, and find ways to improve the product. And yet, Big Data technology is only worth using if the solutions you have are properly secured. Start with a security audit to identify the areas of concern, for example, those referred to data storage or data cleaning, and don’t ignore them when developing your Big Data strategy. Not sure you can deal with all the Big Data security challenges by yourself? Our BI experts have you covered, get in touch to find out how.

FAQ

What are major security concerns of Big Data?

The complexity of data in terms of its structure, source, storage location, format, device type, etc. is one of the key security concerns related to Big Data. Coupled with the diversity of processes that occur with Big Data — storing, cleaning, masking, etc. — controlling various data transformations is challenging.

What are various security and privacy challenges of Big Data?

Ensuring security and confidentiality of business data and customers’ sensitive information are the main security issues in Big Data. You have to improve your system’s cyberattack resilience level, configure automated data cleaning, data masking, and document sanitization tools, establish mandatory authorization for employees, and adjust continuous monitoring of the system’s state.

RPA in Healthcare: How To Save Up to 35% Of Your Clinic Operating Costs

RPA in healthcare refers to process automation via computer-aided services for hospitals, medical laboratories, and clinics of various types, from physical therapy to plastic surgery or dental clinics. 

Collecting and integrating data from multiple external and internal sources is an essential part of the day-to-day routine of healthcare organizations. It eats up tons of time, slows down processes, and increases operational costs if done manually. 

If you are a healthcare provider, efficient automation of your activities is one of the ways to gain new customers and retain them with high-quality services. Moreover, RPA can become your primary step toward digital transformation.

Automation of countless rote activities accelerates processes and helps you reap fast rewards such as devoting more time to patients and providing them with an enhanced service. And the better it is, the higher is your healthcare provider’s rating. Not to mention that by removing a manual component of daily mundane tasks, you can patch up the holes in your operating budget. In this article, we evaluate options on how your organization can reap significant benefits from the automation of routine tasks by implementing RPA.

RPA will become a game changer for your clinic

RPA works for mechanical, logical tasks that operate structured data. The information from the different systems is matched appropriately, and the bots perform a wide array of activities on a pre-thought algorithm without employees’ involvement. 

How does RPA handle challenges in the healthcare industry? Its implementation allows you to:

  • Speed up data-related operations. Healthcare is one of the industries with an extensive document turnover. Performing operations that involve extracting, entering, updating, and transferring data manually is a waste of time and budget. RPA bots will take on routine tasks and perform them 15 times faster than a human. Couple that with the reduction of human error and increased data accessibility for doctors and patients. If you have a private practice, decreasing the possibility of human-caused mistakes may also be a reason to invest in RPA. However, make sure it’s really worth it, considering development costs and the workload in clinics of this size. 
  • Reduce the cost of processing and human labor. According to a Deloitte survey about RPA in MedTech, the application of RPA in healthcare can lower these kinds of costs by up to 80%. 
  • Improve security and compliance. Apart from ensuring compliance with protocols such as GDPR, HIPAA, you have to regulate data access levels for different employees since back-office workers, administrators, and doctors require different rights in sensitive data usage. This problem can be solved thanks to the role-based access implemented with the help of RPA bots. A Protiviti global survey proves that 74% of respondents improved compliance with security regulations thanks to automation.

RPA plays a significant part in enhancing healthcare quality and creating a better patient experience. As you free your employees from paperwork and monotonous, repetitive operations, they can devote more time and attention to patients who get qualified help faster.

RPA in healthcare

Let’s investigate some examples of RPA use cases in healthcare from the perspective of the patient’s pre-visit, visit, and post-visit activities.

Pre-visit activities

Pre-visit activities are all the operations that set the person up for the appointment. How do digitization and automation reinforce this process?

Patients’ scheduling

Now that we are living in a new reality shaped by the pandemic, it’s hard to imagine that two years ago, 88% of appointments used to be booked manually. If you still have assigned staff to collect data on patients’ appointments, probably such an approach requires extra time and effort from both your employees and visitors and results in insufficient and slow processing of requests, and human errors. 

We’ve described the scheduling example in detail in our previous article on the benefits of RPA in different industries. Now let’s focus on the other side of this process. The gap between scheduling an appointment and the actual visit to the doctor could reach up to months or even more than a year. It’s easy to forget about the visit without prior notification. The no-show rates among US healthcare providers reach up to 39% depriving them of $150 billion annually, partially because patients simply forget about their appointments. Therefore, adopting RPA in the healthcare industry to automatically send appointment reminders is primarily about saving your money.

RPA in healthcare

Insurance verification and validation

Does the patient’s insurance cover the appointment and treatment? If this information is still checked manually, it slows down the process and takes a lot of time from employees.

Also, consider that changes in the patient’s insurance policy, such as plan coverage or home address require billing offices to re-start insurance verification. Meanwhile, RPA bots can track if the patient visited the doctor or canceled the appointment and then generate the information on cost and insurance deductibles. The technology runs quickly and consistently according to a well-defined algorithm. You get the up-front process visibility and can check at what stage what actions the bot did. For example, if it’s not clear why the bot billed for a certain cost, you can review a record of its actions.

Visit activities

The main part of the patient’s journey is the appointment itself. People interact live with the clinic or hospital staff at this stage, and their experience influences their perception of the services of your healthcare facility. That’s why making use of RPA to meet your patients’ expectations of convenient service and personal data security is vital.

Security & compliance checks

Collecting and storing information electronically allows laboratories, clinics, and hospitals to greatly fasten and simplify the health information exchange (HIE). The goal of sharing medical records among disparate healthcare systems is all about creating timely and high-quality patient-centered care. But how to ensure data security when it’s moved between different systems? Leverage RPA for security and compliance needs — create bots that automatically:

  • Detect personally identifiable information (PII) and encrypt it to protect patients’ data from cybercriminals. You can add additional functions and make the bot capable of sending an alert if PII doesn’t meet an established policy.
  • Delete personal data after a certain period, as required, for example, by GDPR.

Remote patient monitoring (RPM)

Since most healthcare staff already have a lot on their plate, overloading them with patient monitoring on top of everything else seems like a bad idea. RPA technology can solve the problem with simple, repeatable tasks such as collecting and monitoring the information on the patient’s test results and self-reported adherence. 

For example, if the patient’s blood pressure rose during the clinic visit, the RPA solution can help monitor their condition during the next hours or days. How does it work? The bot sends notifications to measure blood pressure to the patient’s profile in a special application. If it registers a high reading, it will additionally send the person a health questionnaire — what are other symptoms, has the patient used medication, etc. — and will set a reminder to additionally measure the resting pressure. If it’s normal, the application will notify the person that there’s no reason to worry. But if the reading is still high, the system will inform the nurse that this patient needs an extra appointment. In the example described, the patient’s health data is recorded in real-time, and the involvement of doctors and nurses is required only in some cases, while in a system without an RPA, all these activities would be performed by the medical staff and would be recorded asynchronously. Digital technologies free up highly qualified specialists for things that can’t be done without them and still ensure full-fledged care for patients. 

Discharge instructions

How can doctors make sure their patients are taking medications? They can’t. Unless there are specially programmed RPA bots, that send reminders to the patient and, if need be, notify the doctor if the patient doesn’t go to the pharmacy to get the prescribed meds. 

The role of automated discharge instructions is even more important for hospitals and patients after surgery or other serious treatment. Let’s find out what tasks can be left to RPA based on the example of a patient who’s undergoing chemotherapy.

  • Notifying the patient about scheduled appointments
  • Sending prescription pick-up reminders 
  • Reminding to take medical tests
  • Registering the patient’s health state after the session
  • Alerting the doctor if the treatment doesn’t go according to the plan

In case the patient experiences any atypical symptoms, he/she notes them in a special application. The RPA bot receives this information, transfers it to the clinic, and offers to set an appointment with the required doctor. 

Post-visit activities

The payment process is one of the low-hanging fruits that are easy to automate because of a large number of repetitive steps. At this stage, RPA not only streamlines the procedure but also eliminates the probability of a human error. 

Billing

In order to charge for medical services correctly, the clinic’s billing office needs to merge information, such as patient records, disease codes, medications, etc. Baylor Scott & White Health (BSWH), a system with 52 hospitals across the United States, calculated that manual billing takes 5-7 minutes, and its accuracy isn’t 100%. After RPA implementation, hospitals can cope with 70% of estimates without employee involvement and human error.  

Claims processing

McKinsey’s survey among healthcare facilities shows that 72% of respondents believe RPA greatly impacts claims processing. 

What operations can be automated? 

  • Opening and copying data from emails and entering the information into your core system. 
  • Reconciling and verifying claims data.

Such an approach speeds up the back-office services and enables you to provide visitors with a better experience. Implementing automated solutions also impacts employee costs. Avera Health saved $260,000 in staff costs by creating bots to review user account status and alert managers about pending and incomplete claims.

RPA technology is known for being of much use for patient care. RPA bots can send reminders about procedures and tests to the patients as well as automatically create reports for the physicians, keeping them up-to-date on the health state of those they treat. At the same time, COVID-19 uncovered new areas where RPA can be helpful:

  • Bots help monitor employee health in real-time. They track nursing staff’s and doctors’ health status and alert every case of a high body temperature. Such an approach allows hospitals to take appropriate care of their employees.
  • The technology streamlines staff onboarding by 10 times. Bots automate operations such as checking job seekers’ police vetting and their employment status background. 
  • RPA solutions speed up COVID-19 testing by more than 90%. Bots make the initial diagnosis and then collate this information with the patients’ COVID test results and their medical records in the hospital’s EMR. 

Even if it seems like the worst of the coronavirus is over, refusing to equip your hospital with electronic assistants is shortsighted. This pandemic will subside over time, but there is no guarantee that a similar threat won’t arise in the future. The technical readiness of healthcare providers to cope with the hardest challenges is the cornerstone of efficient patient care. Start with RPA implementation to have your hands and minds free for activities that require human involvement. 

Save money and free up time for humans to focus on higher-value tasks

RPA is an easy-to-implement opportunity for healthcare organizations to cut costs and speed up operations across the company. Just imagine the labor time that could be eliminated or minimized with automation. At the same time, you improve care quality and, as a result, increase patient satisfaction. Therefore, the processes in your clinic, hospital, or lab that can be broken down to a set of ‘if/then’ decisions, should be streamlined with the help of RPA.

Reach out to our specialists to discuss which of these examples of RPA in healthcare can be applied to your organization’s practice.

Whenever, Wherever: Keep On Top of Your Data With Mobile BI

From tech-heavy reporting projects to dedicated analytics tools, business intelligence has come a long way to becoming an industry standard among companies. However, despite the present proliferation of BI, businesses still struggle to seek out analytics excellence. The isolation of traditional BI tools continues to pose challenges, resulting in a mere 24% of data-driven organizations.

But why limit business intelligence to a desktop version, when your employees can leverage advanced analytics literally in the palm of their hand? Just like fitness or financial trackers, mobile business intelligence can seamlessly support existing data pathways and produce actionable insights on the go.

What is mobile business intelligence?

Mobile BI is software that extends desktop business intelligence applications and makes analytics accessible on a mobile device. Mobile BI software allows users to access and evaluate business metrics, and reports from smartphones and tablets.

Stepping into the age of action: ultimate benefits of mobile BI

Driven by increasing Bring-Your-Own-Device workplace practices and mobile computing, mobile business intelligence has experienced unbelievable growth over the last few years. In 2021, the mobile BI market size stood at over $11 billion. By 2030, it is expected to rack up over $38 billion. Let’s see which advantages of mobile business intelligence have secured their pride of place among adopters.

Real-time data access on the go

Traditional business intelligence solutions tie BI users to tools that are specifically allocated to corporate environments. When away, decision-makers cannot access valuable data, which hampers proactive response. Conversely, mobile BI provides the ability to make fast, well-informed decisions even when you are away from your desk, which is especially vital in industries such as finance and healthcare.

Offline access to data is among other differentiating mobile business intelligence benefits. Since mobile devices have wide in-memory caching capabilities, all data visualizations can be explored with no internet connection provided it’s a native mobile app.

Increased team collaboration

Since mobile BI directly reaches the hands of BI users, it ensures easier knowledge-sharing. On-the-go data analytics also matches well with growing remote practices, making sure each employee is in sync with other remote team members. 

Mobile BI also allows for permanent, intermediary, or temporary access, which keeps your controls on par with desktop enterprise software.

Rich user experience

Supreme user experience is among other core benefits of mobile business intelligence. While smartphones come with inherent constraints such as small screens, tablets can pick up the slack as user-friendly mobile business intelligence solutions. Tablets make the best of both mobile design and desktop design, offering portable, always-on, and touch-capable analytics.

Compared to static desktop reports, portable BI solutions also usher in more interactivity, allowing the user to zoom, pinch, and swipe their way through insights. Moreover, native mobile applications can tap into device-specific features such as GPS, calendar integration, and QR-code scanning to expand analytical capabilities.

Maximized value of BI adoption

According to mobile business intelligence trends, CEOs that make data-driven decisions are 77% more likely to cultivate a company’s success. Cloud and big data mobile business intelligence confers accurate governing capabilities to other levels of the business hierarchy.

It means that a larger number of employees can have access to high-quality data, which facilitates the digital transformation of the company, gives the whole organization a vantage point, and increases operational efficiency.

Don't miss out on the benefits of mobile BI

Reach out

Who can benefit from mobile BI the most?

Businesses of all types and sizes can benefit from mobile business intelligence applications. However, according to the Mordor Intelligence report, the telecommunications and the software tech industries stand to gain the most benefits due to the presence of large corporations like Apple, Facebook, IBM, and Google.

Beyond the software market, retail, healthcare, and manufacturing are among other major players in the world of portable BI. Around 47% of retail respondents attest to the growing importance of mobile BI applications with 38% of healthcare providers sharing the enthusiasm. High adoption rates of mobile BI apps in these industries stem from increased demand for rapid data processing and high volumes of operational data.

 Statistics that shows importance of mobile business intelligence by industry

For example, retailers can use mobile augmented data analytics for on-the-move warehouse management, customer profiling, or store layout optimization. Healthcare providers use data analytics to support clinical decision-making, provide more personalized treatments, and increase healthcare accessibility for rural areas. Ultimately, a mobile BI strategy can both support the bottom line and boost customer satisfaction.

On a broader level, mobile analytics can support the following application matrix:

  • Fraud and security management;
  • Sales and marketing optimization;
  • Predictive asset maintenance;
  • Risk and compliance management;
  • Customer relationship management;
  • Supply chain analytics, and others. 

Which roles are among those likely to be adopters of mobile BI solutions?

As for corporate levels, each employee — from decision makers to employees — can leverage all the necessary data without the hassle of corporate back and forth.

  • Executives

Executives and senior-level managers spend a lot of time either in meetings or traveling for business, away from their desks and enterprise software. Having mission-critical information always on hand helps upper management explore data on business performance from any part of the world and make data-driven decisions, be it high-level forecasts or current business operations.

  • Field workers

Field engineers and technicians have lots of projects on their plates — from company infrastructures such as railways and utility stations to customer sites. On-demand and on-the-go access to unified data analytics from all facilities helps field workers better prioritize tasks and keep an eye on prospective and current customers. Moreover, mobile analytics can be amplified with sensor and GPS data to schedule predictive maintenance activities or optimize routes.

  • Line managers

Supervisors and team leaders can benefit from mobile data visualizations to get handy insights about staff, production lines, and ongoing operational activities. Lightweight visibility also helps first-line managers to respond proactively to any emergency and make important decisions faster and smarter.

  • Sales representatives

Equipped with decision management and predictive analytics capabilities, a mobile BI tool can provide the latest sales information such as deal status or prospects to help salespeople prepare for the meeting or run analyses in any setting. All-in-one business intelligence mobile can also give salespeople a head start in customer data before any sales call. 

Sales representatives in the retail sector, for example, can rely on a portable BI solution to predict the profitability of a new store without close supervision from the head management. In this case, the salesperson can calculate and select the correct location for new stores on the go, based on various parameters, including geography, demand, and others. If the input parameters meet the predefined benchmark, the BI solution greenlights the new location. Otherwise, the solution notifies the salesperson of the low profitability of the new sales point.

Executives, field workers, line managers, and sales representative using mobile BI to make well-informed decisions on the go

Any flies in the ointment? Yes, several. But they can be extracted.

Just like any technology, mobile business intelligence has a flip side. In this case, the core challenges of deploying portable analytics resonate with desktop BI. This is why accurate forecasting, data governance, and reporting need to be balanced against data security and quality followed by end-user training and cultural shifts.

However, mobile business intelligence software also poses some specific challenges that arise from the portable nature of analytics and mobile devices. With the right tech expertise though, you can make mobile work to your advantage and overcome general BI constraints.

Security issues

The smaller your device is, the easier it gets to misplace or forget it. Mobile devices also tend to get stolen or hacked, which increases the risk of a data breach. On average, hackers get their hands on 6.85 million accounts every day.

When away, mobile users can also expose their devices to data leaks through non-secure channels such as public Wi-Fi.

To keep hackers at bay, companies should embed robust data encryption, two-factor authentication, and biometrics-based access into portable enterprise devices. Mobile hardware should also meet both industry and internal security standards to ensure a consistent security policy on all company-owned devices.

Poor design

Although mobile BI is a natural extension of your desktop analytics software, a mobile version shouldn’t blindly replicate the desktop experience. You can keep the user experience consistent on both platforms, but wrap your solution into a mobile-focused experience.

Example of good mobile dashboard design with single-value metrics and contrasting colors

To recreate a typical mobile user flow, we recommend:

  • Including app notifications and alerts;
  • Employing voice recognition to access certain options hands-free;
  • Equipping your applications with in-app guidance prompts;
  • Tapping into native touch controls, including swiping, pinching, zooming, and others.
  • Integrating the application with other communication channels to boost team collaboration;
  • Embedding in-app analytics for further enhancements.

It might seem that achieving this kind of native-like user experience is a costly undertaking. However, a mobile BI version for a specific platform doesn’t require many resources compared to a standalone solution with multi-platform compatibility.

Neglecting the needs of your audience

By default, hand-held devices and desktop applications cannot deliver the same level of functionality. Therefore, you should adjust your mobile application according to the screen size and mobile constraints. While the main BI solution can provide visibility into data-rich charts and detailed reports, the portable solution should be optimized to display key metrics and alerts as well as share data via messages and emails.

Mobile BI apps: the power of BI, as and when it’s needed

As the world is quickly moving towards mobile, enterprise software also steps in to deliver better access and data visibility through mobile business intelligence. Mobile BI applications combine the analytical capabilities of desktop data processing and portability of mobile devices to equip companies with on-the-go data usage, risk management, and forecasting.

Although mobile business intelligence brings unique advantages to the table, its flexibility can play against you if handled irresponsibly. You should pay due diligence to necessary safeguards and user interfaces to eliminate risks and maximize mobile benefits.

Want us to take care of your mobile BI application? Get in touch.

Anna Vasilevskaya
AI modified real photo
Anna Vasilevskaya
Account Executive

Get in touch

Drop us a line about your project at
[email protected] or via the contact
form below, and we will contact you soon.