Skip to main content

Unlocking Business Value: Moving Beyond Low-Level Programming


Open source has undeniably revolutionized the world of software engineering. Instead of constantly reinventing the wheel, software teams now rely on reusable open-source components for low-level tasks. This shift allows developers to focus on programming that creates more business value, using tools like Docker, Kubernetes, Tomcat, MySQL, React, and Vue.js, which have become the backbone of modern software solutions worldwide.

At first glance, it may seem that with such robust open-source ecosystems, developers can concentrate exclusively on coding business logic. After all, business logic is what differentiates one company from another—it is specific, continuously evolving, and typically requires close collaboration between developers and business experts, who are often less inclined to contribute to open-source projects.

However, the reality is that a large portion of development time is still spent on non-business-oriented programming (such as installing components, setting up CI/CD pipelines, and developing non-business-related modules).

From my experience, several factors contribute to this situation, keeping software engineers involved in lower-level tasks:

  • Overwhelming Variety of Open-Source Components: The sheer number of available open-source tools can be a double-edged sword. While there are countless options for nearly every task, this abundance can make it difficult for developers to choose the right component. What’s popular today may become obsolete tomorrow, leading to constant re-evaluation and refactoring. It’s hard to settle on long-term solutions without risking disruption.

  • Configuration and Tuning: Open-source components, while powerful, often don’t work right out of the box. They require extensive configuration and customization to meet specific business needs. Developers spend considerable time reading documentation and fine-tuning these tools.

  • Limitations of Open-Source Components: Open-source tools come with inherent limitations due to assumptions made during their development. When developers encounter these limitations, they often have to create workarounds or contribute changes back to the open-source community — a process that can take months and may never be fully accepted by the broader community.

  • Stitching Components Together: Software solutions typically involve integrating multiple open-source components. Writing the “glue code” to ensure these components work together is often more complex than the actual business logic. Ensuring seamless functionality while meeting non-functional requirements (e.g. performance, security, scalability, observability…​) is a significant challenge for engineering teams.

  • Footprint and Bloat: Many open-source components have a large footprint, with features that teams may never use. Adding multiple components can lead to performance bottlenecks and an unnecessarily heavy system. As a result, developers may opt to build solutions from scratch when only part of a component is needed.

  • The Missing Middle Layer: While low-level open-source components are abundant, there is a gap in the middle layer between these base components and the business logic. Components in this middle layer are business-agnostic but lack a universally accepted open-source standard. Consequently, engineering teams often build these components from scratch or heavily customize existing ones. If there were a stronger open-source consensus on these middle-layer components, engineers could focus more on adding unique business value.
    Some examples of these frequently rewritten middle-layer components include:

    • Notification Manager: A rule engine that determines when to trigger notifications, their content, and how they are delivered (cfr. my blog "Notification management - Don’t underestimate its importance and complexity - https://bankloch.blogspot.com/2020/03/notification-management-dont.html")

    • Authentication & Authorization: Despite the existence of many libraries, companies often develop their own variations of authentication and access control systems (RBAC/ABAC), as existing tools (e.g. KeyCloak, Zitadel, Apereo CAS) don’t meet all requirements or are too complex to integrate. are not meeting all requirements, are complex to integrate or are too complex.

    • Integration Logic: Connectors for protocols and formats like MQ, Kafka, or file-based integrations are frequently custom-built, as open-source libraries (e.g., Apache Camel, Zato, or Spring Integration) don’t always meet specific needs. Advanced integration tools exist (like IBM App Connect Enterprise, Informatica, TIBCO ESB, MuleSoft Anypoint Platform…​), but are typically expensive and not open source (or their open source version is too restrictive for most companies).

    • Report and Document Generation: Tools to automatically generate reports or documents based on business data and templates.

    • Workflow Manager: Systems to model and manage business workflows with the necessary audit trails and controls.

    • Task Manager: Systems to manage manual tasks, including assignment and follow-up.

    • Rule Manager: Components that define and evaluate simple rules using a UI, configurable by business users without the need for code.

    • Simple CRUD Operations: Standard interfaces for creating, reading, updating, and deleting records, often with administrative panels.

    • Search and Filtering: Custom search screens with pagination, filtering, and export functionalities, common in business applications.

    • …​

With the rise of AI, some of these issues could potentially be addressed. AI may help automate the creation and optimization of certain components, reducing manual configuration and integration efforts. AI-driven solutions could also offer smart orchestration between open-source components, making integration more seamless.
However, it remains to be seen if AI will deliver fully integrated solutions that meet the highest non-functional requirements.

Let’s hope that in the coming years, developers will be able to shift their focus entirely to creating value through business logic, rather than building and stitching together underlying components. The next frontier for open-source may lie in creating a consensus around higher-level components, freeing developers to concentrate on building innovative solutions that solve real-world problems.

For more insights, visit my blog at https://bankloch.blogspot.com

Comments

Popular posts from this blog

Transforming the insurance sector to an Open API Ecosystem

1. Introduction "Open" has recently become a new buzzword in the financial services industry, i.e.   open data, open APIs, Open Banking, Open Insurance …​, but what does this new buzzword really mean? "Open" refers to the capability of companies to expose their services to the outside world, so that   external partners or even competitors   can use these services to bring added value to their customers. This trend is made possible by the technological evolution of   open APIs (Application Programming Interfaces), which are the   digital ports making this communication possible. Together companies, interconnected through open APIs, form a true   API ecosystem , offering best-of-breed customer experience, by combining the digital services offered by multiple companies. In the   technology sector   this evolution has been ongoing for multiple years (think about the travelling sector, allowing you to book any hotel online). An excelle...

Are product silos in a bank inevitable?

Silo thinking   is often frowned upon in the industry. It is often a synonym for bureaucratic processes and politics and in almost every article describing the threats of new innovative Fintech players on the banking industry, the strong bank product silos are put forward as one of the main blockages why incumbent banks are not able to (quickly) react to the changing customer expectations. Customers want solutions to their problems   and do not want to be bothered about the internal organisation of their bank. Most banks are however organized by product domain (daily banking, investments and lending) and by customer segmentation (retail banking, private banking, SMEs and corporates). This division is reflected both at business and IT side and almost automatically leads to the creation of silos. It is however difficult to reorganize a bank without creating new silos or introducing other types of issues and inefficiencies. An organization is never ideal and needs to take a numbe...

RPA - The miracle solution for incumbent banks to bridge the automation gap with neo-banks?

Hypes and marketing buzz words are strongly present in the IT landscape. Often these are existing concepts, which have evolved technologically and are then renamed to a new term, as if it were a brand new technology or concept. If you want to understand and assess these new trends, it is important to   reduce the concepts to their essence and compare them with existing technologies , e.g. Integration (middleware) software   ensures that 2 separate applications or components can be integrated in an easy way. Of course, there is a huge evolution in the protocols, volumes of exchanged data, scalability, performance…​, but in essence the problem remains the same. Nonetheless, there have been multiple terms for integration software such as ETL, ESB, EAI, SOA, Service Mesh…​ Data storage software   ensures that data is stored in such a way that data is not lost and that there is some kind guaranteed consistency, maximum availability and scalability, easy retrieval...

IoT - Revolution or Evolution in the Financial Services Industry

1. The IoT hype We have all heard about the   "Internet of Things" (IoT)   as this revolutionary new technology, which will radically change our lives. But is it really such a revolution and will it really have an impact on the Financial Services Industry? To refresh our memory, the Internet of Things (IoT) refers to any   object , which is able to   collect data and communicate and share this information (like condition, geolocation…​)   over the internet . This communication will often occur between 2 objects (i.e. not involving any human), which is often referred to as Machine-to-Machine (M2M) communication. Well known examples are home thermostats, home security systems, fitness and health monitors, wearables…​ This all seems futuristic, but   smartphones, tablets and smartwatches   can also be considered as IoT devices. More importantly, beside these futuristic visions of IoT, the smartphone will most likely continue to be the cent...

PSD3: The Next Phase in Europe’s Payment Services Regulation

With the successful rollout of PSD2, the European Union (EU) continues to advance innovation in the payments domain through the anticipated introduction of the   Payment Services Directive 3 (PSD3) . On June 28, 2023, the European Commission published a draft proposal for PSD3 and the   Payment Services Regulation (PSR) . The finalized versions of this directive and associated regulation are expected to be available by late 2024, although some predictions suggest a more likely timeline of Q2 or Q3 2025. Given that member states are typically granted an 18-month transition period, PSD3 is expected to come into effect sometime in 2026. Notably, the Commission has introduced a regulation (PSR) alongside the PSD3 directive, ensuring more harmonization across member states as regulations are immediately effective and do not require national implementation, unlike directives. PSD3 shares the same objectives as PSD2, i.e.   increasing competition in the payments landscape and en...

Trade-offs Are Inevitable in Software Delivery - Remember the CAP Theorem

In the world of financial services, the integrity of data systems is fundamentally reliant on   non-functional requirements (NFRs)   such as reliability and security. Despite their importance, NFRs often receive secondary consideration during project scoping, typically being reduced to a generic checklist aimed more at compliance than at genuine functionality. Regrettably, these initial NFRs are seldom met after delivery, which does not usually prevent deployment to production due to the vague and unrealistic nature of the original specifications. This common scenario results in significant end-user frustration as the system does not perform as expected, often being less stable or slower than anticipated. This situation underscores the need for   better education on how to articulate and define NFRs , i.e. demanding only what is truly necessary and feasible within the given budget. Early and transparent discussions can lead to system architecture being tailored more close...

Low- and No-code platforms - Will IT developers soon be out of a job?

“ The future of coding is no coding at all ” - Chris Wanstrath (CEO at GitHub). Mid May I posted a blog on RPA (Robotic Process Automation -   https://bankloch.blogspot.com/2020/05/rpa-miracle-solution-for-incumbent.html ) on how this technology, promises the world to companies. A very similar story is found with low- and no-code platforms, which also promise that business people, with limited to no knowledge of IT, can create complex business applications. These   platforms originate , just as RPA tools,   from the growing demand for IT developments , while IT cannot keep up with the available capacity. As a result, an enormous gap between IT teams and business demands is created, which is often filled by shadow-IT departments, which extend the IT workforce and create business tools in Excel, Access, WordPress…​ Unfortunately these tools built in shadow-IT departments arrive very soon at their limits, as they don’t support the required non-functional requirements (like h...

An overview of 1-year blogging

Last week I published my   60th post   on my blog called   Bankloch   (a reference to "Banking" and my family name). The past year, I have published a blog on a weekly basis, providing my humble personal vision on the topics of Fintech, IT software delivery and mobility. This blogging has mainly been a   personal enrichment , as it forced me to dive deep into a number of different topics, not only in researching for content, but also in trying to identify trends, innovations and patterns into these topics. Furthermore it allowed me to have several very interesting conversations and discussions with passionate colleagues in the financial industry and to get more insights into the wonderful world of blogging and more general of digital marketing, exploring subjects and tools like: Search Engine Optimization (SEO) LinkedIn post optimization Google Search Console Google AdWorks Google Blogger Thinker360 Finextra …​ Clearly it is   not easy to get the necessary ...

The UPI Phenomenon: From Zero to 10 Billion

If there is one Indian innovation that has grabbed   global headlines , it is undoubtedly the instant payment system   UPI (Unified Payments Interface) . In August 2023, monthly UPI transactions exceeded an astounding 10 billion, marking a remarkable milestone for India’s payments ecosystem. No wonder that UPI has not only revolutionized transactions in India but has also gained international recognition for its remarkable growth. Launched in 2016 by the   National Payments Corporation of India (NPCI)   in collaboration with 21 member banks, UPI quickly became popular among consumers and businesses. In just a few years, it achieved   remarkable milestones : By August 2023, UPI recorded an unprecedented   10.58 billion transactions , with an impressive 50% year-on-year growth. This volume represented approximately   190 billion euros . In July 2023, the UPI network connected   473 different banks . UPI is projected to achieve a staggering   1 ...

AI in Financial Services - A buzzword that is here to stay!

In a few of my most recent blogs I tried to   demystify some of the buzzwords   (like blockchain, Low- and No-Code platforms, RPA…​), which are commonly used in the financial services industry. These buzzwords often entail interesting innovations, but contrary to their promise, they are not silver bullets solving any problem. Another such buzzword is   AI   (or also referred to as Machine Learning, Deep Learning, Enforced Learning…​ - the difference between those terms put aside). Again this term is also seriously hyped, creating unrealistic expectations, but contrary to many other buzzwords, this is something I truly believe will have a much larger impact on the financial services industry than many other buzzwords. This opinion is backed by a study of McKinsey and PWC indicating that 72% of company leaders consider that AI will be the most competitive advantage of the future and that this technology will be the most disruptive force in the decades to come. Deep Lea...