Contemporary fintech organizations are searching for opportunities to build tech-savvy and cost-effective software applications. The first task is to find a development team, while the second is choosing the right methodology that would guide the overall development process. The article discusses the differences between SDLC and Agile frameworks, analyzes their differences, and uses cases.
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The Agile methodology is a constituent of the SDLC framework, but they do not overlap. The software development life cycle prioritizes straightforward instruction with less anticipated change, while Agilie is responsive to alterations.
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It’s challenging to implement changes in SDLC due to its linear time frame. Agile evolves by allowing modifications during sprints.
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In SDLC, developers can deliver the product at the end of the phase; in Agilie, they can deliver it after every sprint.
Agile Development
Agile methodology is based on iterative and incremental processes of product development repeating them till it ends. This methodology is unique as it refrains from top-down management and brings flexibility and adaptability in response to alterations within the project.
The business representative should consider the principles of the Agile Manifesto when making decisions about using Agile development for their software. Moving further, the Agile Manifesto is a document that underlines the philosophy behind the Agile frameworks (Scrum, Kanban, Extreme Programming, Feature-Driven Development (FDD)).
The four fundamentals of Agile methodology are:
1. Individuals & interactions versus processes and tools
The first principle indicates that Agile software development focuses on clarifying common goals, supporting a decent level of transparency in communication and interaction between the team members. Retrospective meetings represent an example of the identified communication as they improve the workplace environment where the workers can share their progress, challenges, and feelings. As an outcome, transparent communication and a supportive workplace environment boost productivity and enhance employee satisfaction.
2. Working software over detailed documentation
Agile does not prioritize detailed documentation on every minor aspect of software development. Instead, this principle indicates that the Agile methodology focuses on the practical crafting of the product to boost the speed of production. Flexibility in change implementation enables developers to develop the working product during different stages of development.
3. Active interaction with clients versus contract-based negotiation
Agilie is open to the client’s integration into the development process. The active communication with product owners can help clarify additional alterations for further product updates. The developers will obtain continuous feedback on the elements that need optimization. Consequently, the dynamic collaboration between the client and developers brings transparency to the alteration elements, leading to the in-time delivery of the developed product per the sprint.
4. Emphasis on responding to change rather than following a plan
Agile divides product development by iterations and short-time intervals. Instead of following the structured plan, sprints help integrate the required alterations including all the elements of the Agile product development. The iterations last 1-4 weeks, after which the client can see the actual progress of the developed version of the software.
We’re going to discuss the following Agile methodologies:
Scrum
Scrum focuses on inter-team collaborations, where the employees organize their individual activities to reach a common goal. The identified framework uses a 3-5-3 model to approach the work. There are three roles: product owner, scrum master, and developer. These roles circulate over the five events, including sprint, planning, daily scrum, sprint review, and sprint retrospective. The purpose behind this is to produce three artifacts: a product backlog, a sprint backlog, and a product increment.
Scrum framework can operate within two-week sprints, which represent a special mechanics for the employees to deliver solutions in a fast manner and adjusting them with initial plans, making sure they align with the required changes.
Extreme Programming
When it comes to SDLC vs. Agile analysis, Extreme programming (XP) is Agilie’s framework, which prioritizes speed in crafting the project’s elements, focusing on shorter development cycles with less documentation. XP’s iterations usually are around one to two weeks long. Extreme programming enables alterations within the iterations. As long as the team hasn’t started to work on the specified feature, it can be swapped with another one. XP works in a priority mode, meaning that when the product owner detects what features should be developed first, the developers will work on them in the determined order.
Feature-Driven Development (FDD)
FDD is an Agile framework that prioritizes developing software with features that would satisfy the product owner’s needs. This framework focuses on on-time delivery and iterative development process. Workers divide the projects into small increments for simplified management. Additionally, FDD ensures documentation and inspections to make sure quality standards are met.
Kanban
Kanban is an Agile framework that serves as a visualization system for working progress. When the developer observes the visually presented items, they can trace the progress and determine the project’s current stage of development. The Kanban board usually comprises four stages: “To Do,” “In Progress,” “Testing,” and “Done.” Kanban prioritizes uninterrupted workflow.
Dive into the essence, principles, and frameworks of the Agile approach.
Advantages of the Agile Approach
Now, it’s time to discuss the top-3 advantages Agile methodology presents.
1. Accuracy in Prediction
The iteration has a limited time duration, which allows developers to identify the scope of work, required timeframe, and costs. This approach can benefit product owners, especially FDD, as they can calculate the price of each feature they would like to be developed.
2. Flexibility, Especially for Late Alterations
The Agile approach accepts alterations by motivating developers to embrace and learn from them, allowing the business owners to keep their competitive advantage. This benefit reflects mostly the XP framework, which accepts changes within iterations by providing a prompt response that aligns with the owner’s needs.
3. Top-Quality Software
Although circulating over the idea of the working software, the Agile approach involves extensive QA testing tools that ensure the final product is of top quality. Additionally, as the Agile approach is flexible, the software can be upgraded and scaled with the least effort.
Disadvantages of the Agile Approach
Regardless of the presented benefits, Agile has a few disadvantages worth considering:
1. Dependency on Communication
Although communication matters, constant interactions might be time and energy-consuming for the involved parties. This relates specifically to Scrum. Thus, daily communication is essential to update the members on progress, obstacles, and plans. It might take time that could be spent on project development.
2. Lack of the Required Documentation
One of the key limitations of the Agile approach is the lack of thorough documentation. As the projects are completed and delivered on time, the employees might prepare documentation on the most substantial elements of development, which can lead to the product owner’s misunderstanding of the minor elements of the development involved.
3. Limited Predictability
Flexibility is a core element of the Agile approach, which, in some cases, can work against the developers. Continuous adaptability to alterations might complicate the accuracy in time estimation and resource allocation for effective project development, leading to inter-team frustration.
SDLC
Let’s start by answering what is SDLC? The software development lifecycle (SDLC) is the framework, that helps developers craft high-quality software focusing on detailed planning and a structured approach to task completion to provide the client with the product of best quality.
7 Stages of SDLC Software Development
The software development lifecycle comprises seven phases of product development such as planning, requirements gathering & analysis, design, development, testing, deployment, and maintenance. Let’s find out their functionality.
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Planning
Developers define the overall scope of the project and its objectives during the planning phase.
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Requirements Gathering & Analysis
During the “requirement gathering & analysis” phase, the developers clarify functional and non-functional project requirements.
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Design
Crafting system architecture and aligning it with the design details is one of the key tasks of the design phase.
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Development
The key tasks of the “development” phase include writing code and implementing it per the preliminary defined design details.
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Testing
The developers check whether the software meets all the client’s requirements, has all the required features, and functions in a proper manner.
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Deployment
The “deployment” phase is the time of product launch in the product-relevant environments.
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Maintenance
During the “maintenance” phase, the developers provide the software with ongoing support, create updates, etc.
Learn more about the SDLC methodologies: Waterfall, Agile, DevOps, and Iterative.
Advantages of SDLC
Speaking about SDLC vs. Agile, the first framework offers a range of benefits for product development, including risk management, effective communication & collaboration, and cost-effectiveness. Let’s clarify each:
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Risk Management
SDLC divides the development process into small phases that enable early detection of potential issues, their prevention, and their mitigation.
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Effective Communication & Collaboration
SDLC framework brings to the table developers and product owners at the beginning of the development process. The purpose of communication is to analyze a step-by-step process of software development and the parties’ expectations.
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Cost-Effectiveness
By applying tools like Figma, developers can save costs for problem identification, enabling the professionals to respond to the problem during the initial stages of software development.
Disadvantages of SDLC
When the business owner ponders over the appropriate software development approach, they should consider its shortcomings. It is possible to identify the following disadvantages of SDLC:
1. Set Framework
Let’s refrain from the SDLC methodologies while discussing its shortcomings. SDLC is rigid and structured in planning, which complicates the implementation of changes, especially for mid-development project requirements.
2. Extreme Emphasis on the Process
Overall, the SDLC’s focus on the progress is beneficial for issue identification and mitigation, it is essential to keep in mind that the overfocus on the development can shift from the final product, especially when it comes to creative and innovative touch for its representation.
3. No Space for Errors
This drawback relates to the final stage of software development as it cannot be altered, so the developers have to be precise in their tech decisions to avoid errors. Hence, a thorough investigation will be a must.
Software Development Life Cycle vs. Agile: Differences
Now it's time to discuss how SDLC and Agile differ.
Flexibility and Adaptability
SDLC adheres to the rigid process of product development, which is reflected in the predefined sequence of phases. The abidance by the order of phases leads to complications in software alteration as it requires revisiting the stages completed before and can lead to deadline delays and additional costs. SDLC struggles with adaptation to changes, especially after the finalization of the requirements phase. Mid-project intervention is limited as the developers deliver the final version of the product to the client after the development cycle is complete.
The key difference between Agile and SDLC is that the latter methodology is flexible due to the sprints (iterative cycles) that support promoting adjustments in the development process. Changes are welcome even in the late phases of product development. Agile delivers the working software during the short and iterative cycles, enabling further course corrections based on the feedback.
Documentation and Planning
The focus on documentation and planning differs in SDLC and Agile methodology. SDLC is structured in a developmental process, which requires comprehensive and in-depth documentation at every development phase.
On the other hand, Agile minimizes documentation by keeping the record of the core product development elements or updates.
Cooperation and Feedback
There is a significant difference between the SDLC and Agile in terms of communication and feedback. SDLC is about the minimal communication involved. Mainly the in-between phase communication between developers, testers, etc. The product owners are involved during the planning phase and product delivery. The feedback is collected during specific stages, like testing. Communication is formal and document-dependent. The interaction is based on official emails and meetings.
In the Agile approach, communication is daily and continuous. Stakeholders are active participants during the overall development process and provide feedback at regular intervals. Communication is less formal and is managed through daily stand-ups. The developers use the feedback in their next sprint, which prevents development disruptions.
Project Management
SDLC focuses on predictability and works on a detailed planning of the overall project to define its scope, budget, and timeframe. If the developer wants to implement a change, then they must make a formal request to the product owner. The project timeline is linear, which means a step-by-step product developement excluding disruptions between the phases.
Agile project management is adaptive to the adjustments. The planning process covers the development aims of the short-term intervals. The timeline is flexible, enabling the developers to integrate changes and overlap the activities.
When to Use SDLC and Agile Methodology
It’s time to clarify the cases when to use Agile vs. SDLC.
SDLC
Based on the prior discussion, you can implement SDLC into products with rigid requirements and a linear timeline.
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Clear Requirements
SDLC is suitable for projects that require minimal alterations. For instance, a neobank application.
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Predictability
You should implement SDLC in the projects, which determines the scope and tools at the very beginning of the development process.
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Durable Projects with Set Requirements
You can apply SDLC for projects with rigid requirements that might take a long time for the efficient development. For instance, infrastructure systems (ERP solutions).
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Documentation
You can consider implementing SDLC for projects that will be highly reliant on documentation for further regular compliance and audits. For instance, aerospace software.
Agile
Agilie is one of SDLC’s methodologies, which has a different approach to alterations, delivery, and product improvement.
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Dynamic Changes
You can apply Agile if you understand the necessity of integrating alterations at any step of the project development. For instance, MVP.
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Fast Delivery
You can consider integrating Agile to get control over the development process, as during each sprint, you will get a working aspect of the product.
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Continuous Improvement
Apply Agile to the products that require continuous improvement, like in the case of e-commerce platforms.
How Agilie Can Assist You in Launching Your Fintech Product
The overall product development is an expensive process. That’s the reason why business representatives search for cost-effective opportunities to build their software. One such opportunity is to hire outsourcing teams.
But how to choose a reliable partner? Just read this guide, and you’ll get the answer.
Agilie is a European IT outsourcing organization that crafts its result-driven digital solutions for over 14 years. Our expertise domains include fintech, payment solutions, and blockchain systems. Trusted by 10+ companies, like Lolypto and Givingly, our projects improve operations in the real estate, logistics, fintech, marketing, and healthcare industries.
Agilie’s SDLC: Level01
Agilie was honored to work on Level01 by implementing the SDLC framework of product development. Level01 is a peer-to-peer (P2P) decentralized platform that offers clients a fair crypto trading experience in a secure environment.
We applied SDLC to keep the projects adjusted to changes. The original plan for the project was to create a platform that would remain solely for Android users. During the discovery phase, our dedicated developers followed SDLC principles that helped define the core goals and challenges and created a robust roadmap. Thus, we were able to find an optimal solution to adapt the software for iOS too. This led us to develop a cross-platform front-end that would support both platforms.
Conclusion
The article explains how the SDLC framework differs from the Agile methodology. As a part of SDLC, Agile methodology is different in flexibility and adaptability to changes. By contrast, SDLC adheres to rigid instructions and step-by-step product development (except for its methodologies). So, if you want to apply one, think about the project needs, deadlines, and alterations.
