Master - Thesis - Influence of Big Data On Software Development and Business Innovation

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Abstract
To be written towards the end of thesis

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iii
List of Acronyms and Abbreviations
AI Artificial Intelligence
AWS Amayon Web-Services
BMI Business Model Innovation
CGI Computer-Generated Imagery
CI/CD Continuous Integration / Continuous Delivery
IT Information Technology
IoT Internet of Things
ML Machine Learning
PLC Programming Logic Controller
SDLC Software Development Life-cycle
XP Extreme Programming
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Contents
1 Introduction 1
1.1 Motivation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.1.1 Challenges in Big Data adoption . . . . . . . . . . . . . . . . . . . 4
1.1.2 Challenges in Big Data innovations . . . . . . . . . . . . . . . . . . 5
1.2 Objective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
1.3 Thesis Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2 Literature Review 8
2.1 Software Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
2.2 Common Software Development Life-Cycle . . . . . . . . . . . . . . . . . 9
2.2.1 Software development life-cycle examples . . . . . . . . . . . . . . . 11
2.3 Big Data Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.3.1 Significance of Big Data Analytics in the Modern Technological
Landscape . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
2.3.2 Rationale for Integrating Big Data Analytics in Software Product
Life-cycle Management . . . . . . . . . . . . . . . . . . . . . . . . . 24
2.4 Business Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.4.1 Business Innovation . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2.4.2 Business Model Innovation . . . . . . . . . . . . . . . . . . . . . . . 27
2.4.3 Business Model Canvas . . . . . . . . . . . . . . . . . . . . . . . . . 29
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vi CONTENTS
2.4.4 Business Model Innovation Process . . . . . . . . . . . . . . . . . . 30

2.4.5 Business Model Innovation drivers . . . . . . . . . . . . . . . . . . . 31
2.5 Influence of Big Data on Software Development and Business Innovation . 33
2.5.1 Impact on Software Development . . . . . . . . . . . . . . . . . . . 33
2.5.2 Impact on Business Innovation . . . . . . . . . . . . . . . . . . . . 35
3 Methodologies 36
3.1 CRISP-DM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
List of Figures 37
List of Tables 38
Bibliography 39
Chapter 1
Introduction
In the digital-data era we cannot run the world without software. Today the national
infrastructure and their utilities are controlled by the computer-based systems. For instance,
taking into consideration of a car production industry, the process of designing to deployment
is carried out by the computer-based systems. There are multiple Programming Logic
Controlled (PLC) muti-functional robotic arms working together to assemble the car parts
together on the running conveyor belt. Similarly, in the entertainment sector, the film
and television industry largely use computer-generated imagery (CGI) to recreate the
3-dimensional graphics which cannot be performed really. Therefore, the field of software
engineering and development is not only crucial but essential for the functionality of national
and international societies. [Som11]
Software development is a constantly changing field that is influenced by new devel-
opments in technology, shifting approaches, and shifting user expectations. For software
developers, companies, and stakeholders to remain competitive and successfully navigate
the opportunities and challenges offered by the digital era, they must have a thorough
understanding of the dynamics of this landscape. Agile development techniques have signif-
icantly replaced traditional Waterfall development methodologies in recent years. Iterative
development, teamwork, and adaptability are prioritised in agile approaches like Scrum and
Kanban. With this change, development teams can now deliver incremental updates, adapt
more quickly to changing requirements, and promote a more flexible and collaborative
approach to software development [Con02]. The software development industry is constantly
changing, and one of the mainstays is the integration of operations and development, or
DevOps. In order to expedite the entire software delivery process, DevOps places a strong
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2 CHAPTER 1. INTRODUCTION
emphasis on cooperation and communication between the IT operations and development

teams. DevOps techniques for automation, continuous integration, and continuous delivery
(CI/CD) boost productivity, shorten time to market, and raise the calibre of software as a
whole [Kud22].
The development, deployment, and maintenance of software have undergone radical
changes since the emergence of cloud computing. With scalable infrastructure offered by
cloud platforms like AWS, Azure, and Google Cloud, developers can create and implement
apps without having to make significant hardware investments. Trends that have arisen from
the adoption of cloud technologies include serverless computing, micro-services architecture,
and cloud-native development [Con02]. The architectural style known as micro-services
architecture, which organises an application as a group of discrete, standalone services, has
grown in popularity. Every service can be developed, implemented, and scaled independently
and is intended to carry out a particular business function. This modular strategy facilitates
easier maintenance and updates while improving scalability and agility [Kud22]. Software
development is changing as a result of the convergence of machine learning (ML) and
artificial intelligence (AI) technologies.
Large-scale dataset analysis, process automation, and data-driven prediction are all
accomplished with AI and ML. AI and ML are increasingly important components in
the creation of intelligent and adaptive software solutions, with applications ranging from
improving user experiences to streamlining decision-making procedures [Con02]. User-
centric design and experience are becoming increasingly important in the ever-changing
field of software development. Because of the increased expectations of users, developers
are now concentrating on producing aesthetically pleasing, and seamless user interfaces.
Usability testing, feedback-driven development, and human-centered design thinking are
essential techniques for making sure software satisfies end users’ changing expectations
[Kud22].
As cyber threats become more frequent and sophisticated, security has taken centre stage
in software development. Integrating security measures throughout the whole development
life-cycle is known as security-first development. To reduce vulnerabilities and defend against
potential cyber threats, this involves conducting routine security audits, code reviews, and
the implementation of secure coding practices [Con02]. Software development now faces
both new possibilities and challenges as a result of the widespread use of IoT devices. The
modern challenge for developers is to create apps that support and interact with a wide
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Figure 1.1: Illustration data generated, copied and consumed worldwide. [Tay23]
range of connected devices in a seamless manner. Integration of IoT necessitates taking

real-time, scalability, and data security into account [Kud22].
In the rapidly evolving landscape of technology, the amalgamation of big data and
software development has become a driving force behind innovation and progress. Since
2011, due to technological advancement there has been the ease of data creation, collection,
and storage. As represented in the Figure 1.1, the total amount of data created, captured,
copied, and consumed globally is reaching 120 zettabytes towards the end of 2023 [Tay23].
Parallelly, the data storage capacity is also compounding annually. Due to the availability
of such enormous data, there is a growing number of big data technology providing efficient
solutions to the underlying business statements. For example, the retail market, which
were largely shop based, are now online. Due to the availability of data, market resources,
and developing software technologies, we can see the paradigm shift in the business. To
increase the customer reach, the stores are selling their product online by implementing new
business innovations. Today, we can see innovation in the business methodologies which are
completely governed by the data generated from the behavioral analysis of the customer’s
likes and dislikes.
1.1 Motivation
Though the software is a product of various industries, still it cannot be ordered like a
commodity. Articulating a description of the needed software and expecting its development
within a predetermined schedule and cost is an impractical method that has consistently
resulted in failure. Such attempts often culminate in noteworthy setbacks. While it might be
tempting for a company to outline their requirements to the development team and anticipate
a system that meets those needs after a given period, this approach consistently results in
lower quality and project failure. The emergence of data has transformed how businesses
function and how software is developed. The substantial volume of data originating from
diverse sources like social media, IoT devices, and web traffic offers valuable untouched
insights, enabling innovation and improved decision-making. Despite the potential to
transform the picture, several challenges impede the full realization of big data in both
software development and business innovation.
1.1.1 Challenges in Big Data adoption
The vast volume and intricacy of data present substantial hurdles for seamless integration and
effective management. Businesses often wrestle with collecting, organizing, and analyzing
data from various sources, leading to data silos and fragmented understandings. This lack of
integration hampers obtaining a comprehensive view of customer behaviour, market trends,
and operational performance, restricting the efficacy of data-driven software development
and decision-making. Traditional software-driven methodologies are often designed for
smaller, structured datasets and the organization struggles to cope with the fast-trending
technological development. Secondly, undefined data methodologies create data chaos.
Based on the need of the type of data the databases can either be integrated or distributed.
The degree to which the data should be complete, accurate and consistent for meaningful
decision-making completely depends on the software development methodologies.
Managing the massive amount of data with precision and consistency demands for
proficient professionals in handling big data analytics. However, organizations face difficulties
in providing clear systematic operating procedures (SOP) to the data scientists, engineers,
and analysts meant to extract meaningful insights from large datasets. This skills gap
obstructs the effective implementation of big data initiatives and the maximization of its
potential for innovation.
1.1. MOTIVATION 5
Despite the potency of big data analytics, human intuition and expertise remain
invaluable in interpreting data, identifying patterns, and making informed decisions. Big
data algorithms may inadvertently impose biases based on in the underlying data, leading
to discriminatory and unfair results. Therefore, organizations must implement rigorous
data quality checks, employ diverse and balanced data, and incorporate fairness measures
into their algorithms to ensure equitable outcomes. Big data should complement human
judgment, providing a data-driven foundation for informed decision-making.
Finally, determining the specific impact of big data initiatives on business outcomes
poses a significant challenge. The intangible value of data-driven insights and improved
decision-making can be challenging to quantify and isolate from other influencing factors.
Developing effective metrics for measuring Return on Investment (ROI) is essential for
justifying big data investments and showcasing their value.
1.1.2 Challenges in Big Data innovations
Not fully capitalizing on the potential value of big data through the creation of new
products, services, or partnerships limits the innovative ability of software development. To
unleash the full potential, organizations must devise innovative strategies for extracting
value from their data assets and establishing fresh revenue streams. The lack of cooperation
among teams in various departments, such as marketing, sales, and operations, impedes
the integration of big data insights into business processes and decision-making. Nurturing
cross-functional collaboration is imperative to derive comprehensive insights and facilitate
transformative changes in the business.
Furthermore, effectively addressing ethical concerns related to data privacy, security,
and discrimination is essential for establishing trust and ensuring responsible use of big
data. Organizations must implement robust data governance practices and adhere to data
protection regulations to safeguard sensitive information. Another reason can be that
organizations concentrating solely on short-term gains from big data initiatives may lead to
overlook the long-term advantages of cultivating a data-driven culture and promoting data
literacy throughout the organization. Striking a balance between short-term and long-term
objectives is crucial for achieving sustainable data-driven innovation.
Addressing these challenges necessitates a multi-layered approach involving technological
advancements, organizational transformations, and a commitment to ethical practices. By
overcoming these challenges, businesses can unlock the full potential of big data to drive
innovation, enhance decision-making, and gain a competitive edge in the digital age.
1.2 Objective
The central objective of this study is to investigate how Big Data can provide a better
understanding and support efficient software development. Parallelly, this study aims to
determine the transformation potential of big data towards business innovation. As Big
Data is a promising technology that has emerged in recent times, the study can help to
uncover how the technology can be leveraged for the purpose of streamlining the software
product lifecycle management process. The underlying study focuses on the following
chunks that have been framed for achieving the aims of the research:
• To investigate the role of analysis of Big Data in software development
• To determine the benefits of using Big Data in the process of software product lifecycle
management
• To explore the challenges that arise while integrating Big Data with software develop-
ment methodologies and business methodologies.
1.3 Thesis Structure
In the initial part of the thesis, the introduction chapter has been presented which presents
the basic information on the topic along with other details such as the motives for choosing
the topic and the aims and objectives of the study. The next section of the thesis is the
literature review section which serves as the theoretical foundation of the research study. A
diverse range of secondary sources have been incorporated in order to provide a detailed
insight into software development, Big Data Analytics and other relevant concepts. It is
followed by the methodology section, where thematic analysis has been identified as the
suitable analytical technique to capture underlying themes and patterns relating to the
research topic. Here an in-depth discussion along with quantitative and qualitative analysis
is performed. The next section contains the findings and a discussion of where the research
aims and objectives have been met. In the final section of the thesis, the concluding section
1.3. THESIS STRUCTURE 7
has been presented along with appropriate recommendations and suggestions relating to
the research topic.
Chapter 2
Literature Review
In this section, we present the latest developments implemented by various organizations

to as a software development standard. We analyze recent changes in processes involving
the gathering, storage, and processing of various methodologies. A thorough review on
a few standard approaches related to big data technology and their influence on global
software development process. Here we will discuss the decision-making process with
an organizational viewpoint and present an abstract review on them. Furthermore, in
this section we offer our insights drawn from existing literature on topics such as data
categorization and the advantages of data in the realm of decision-making. The conversation
also covers recognized consequences, addressing both challenges and opportunities associated
with data-driven development.
2.1 Software Development
Software is changing how things are done in many different industries. It’s making it
possible to design and build things better, to serve customers better, and to run businesses
more efficiently. Even industries that have been slow to change are starting to adopt
software-based solutions. For example, construction companies are using digital design tools
and virtual reality to plan projects and check for problems before construction even begins.
Medical device manufacturers are using software to control and monitor their machines,
which helps to ensure that they are making safe and reliable products. In shipping, ships
are now being loaded and unloaded by robots, which is making the process much faster
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2.2. COMMON SOFTWARE DEVELOPMENT LIFE-CYCLE 9
and more efficient. And software is also being used to improve customer service in many
industries, such as telecommunications and media. Then what is software and how is it
developed?
The software development is the process in which the software is developed encompassing
a wide range of activities from gathering and understanding the requirements to designing
and deploying of the final product. Software development is a dynamic process and involves
steps like – ideating, designing, and creating draft copies, implementing and testing the
software architecture and finally deploying the program (Stark, 2022). Each of these steps
adopts a systematic and methodical approach while developing a product. In the case of
software, the adoption of a software development life-cycle (SDLC) approach is instrumental
in ensuring a well-planned approach. The software development life-cycle offers a controlled
sequence of activities for software development and ensures that the developed software
follows an efficient and reliable process to meet the required quality and standard.
Software development is a complex process in itself and involves multiple steps and
stages. To create an efficient error-free software product it is important that the right steps
are followed. Many standard software development organizations agree in choosing in right
development process as the first step. The software development models include waterfall,
V-shape, rapid-prototyping, and lean and agile processes that have been used for different
software projects [Som11]. These processes act as guidance and improve the development
activities. For example, for less complex software projects a V-shape model can suffice, and
an agile methodology can be used for a more complex project. Therefore, to understand
the software engineering practices let us understand more about the SDLC.
2.2 Common Software Development Life-Cycle
Software Development Life-Cycle (SDLC) is a framework that dictates the whole software
development process and is broken down into multiple stages [Mis13] as shown in Figure 2.1.
The software development lifecycle includes basic 6 development processes. The first step
includes the planning phase. It is the process of creating, developing and communicating
a theoretical or visual idea. This is an important phase where the idea is conceptualized,
and the roadmap is designed. Requirement analysis the second step defines the process of
detailed examination and gathering of requirements provided by the clients or stakeholders.
Here the requirements are necessary to be translated into the software development form.
10 CHAPTER 2. LITERATURE REVIEW
Figure 2.1: Image representing the core software development life-cycle. [Mis13]
For example, PTC Integrity1 is the app which is used by Leoni AG and Teamcenter PLM
by Siemens AG2 to gather the conceptualize and standardize the requirements. After the
analysis is performed on the requirements, the developer creates a suitable and efficient
architecture. The efficiency of the architecture naturally depends on the requirements and
the deployment nature of the product. The chosen architecture then becomes the backbone
of all the future development stages. After the preparation of basic software development
steps, the product architecture is simulated and tested. Though testing is another crucial
step, it an important part of the SDLC. This step allows the software developer to fix the
critical problems and retest with all the possible parameters. Finally, in the deployment
stage, the product is release ready. During the deployment phase the product is rolled out
along with its documents [For02], which acts as a guiding media to operate the defined
software in the most efficient way.
1
https://www.ptc.com/en/technologies/plm/requirements-management
2
Teamcenter by Siemens
Figure 2.2: Image representing Waterfall SDLC [Ade13]
2.2.1 Software development life-cycle examples
Various SDLC models guide the development process, each offering a structured approach
to software development. This section explores some prominent examples of SDLC models.
Waterfall
A linear sequential SDLC model proposed by Royce in 1970 [Som96] was named Waterfall.
Because of the hierarchical steps, the process was named the waterfall software development
process (Figure 2.2). However, the process was not dynamic and once the phase was over,
it was not repeated again [Ade13]. Due to the other pitfalls like the next stage not starting
unless the current phase is completed, the model was not used largely [Gha19]. However, it
provided a kick-start to the standardization process of the software lifecycle development.
Spiral Model
To address the weakness of the waterfall SDLC model, the spiral model was developed by
Boehm in 1988 [Boe88]. The process included four steps where the development initially
starts with a small requirement and goes through each step till the software is deployed. This
repeated reiteration through all four stages gives rise to the spiral structure as represented
in Figure 2.3
Figure 2.3: Image representing Spiral SDLC [Boe88]
RAD Model
The Rapid Application Development (RAD) model was a revolutionary and adaptive
software architecture introduced in 1990. The singular flow of the Waterfall is being
eliminated and promotes the continuous evolution of the development of user design [Hir98].
RAD became quickly famous because of the adaptability of its architecture. This is the
approach used to quickly develop software functionalities. With the changing time, and
maintaining the core architecture, multiple businesses have modified it into different types
of Rapid Application Development tools. As represented in Figure 2.4, the RAD iterative
software development process emphasizes user involvement and refining the software through
feedback gathering. The key characteristics of RAD include:
• User involvement – Active involvement of users with continuous feedback
• Prototyping – To create a quick blueprint of the software architecture.
• Iterations – The development process is iterative aimed to refine the software.
• Collaboration – A collaboration between developers, users and stakeholders in the

software development process.
Figure 2.4: Image representing the Rapid Application Development (RAD) SDLC [Hir98].
Figure 2.5: Diagram depicting the Incremental model flow. [Kus13]
Incremental model
As the name suggests, the Incremental model divides the project into smaller parts and
completes them one at a time [Kus13]. For example, Instead of trying to build the entire
car at once, you start with the frame, making sure it’s sturdy and well-structured. Then,
you add the wheels, the engine, and other components one by one, ensuring they fit and
work together seamlessly. This piece-by-piece approach is how the incremental model works.
It breaks down a large project into smaller, manageable modules, developing each one and
testing it before moving on to the next. Each module goes through the same development
stages: requirements gathering, design, implementation, and testing. Once the first module
is complete, you have a functional version of the software, even if it’s just a basic one. Then,
you add more modules to the existing framework, gradually enhancing the features and
functionality until the entire system is fully developed. This process is like building the car
step by step, adding parts and components that connect with the previous ones until you
have a fully functioning automobile.
The incremental model is a great way to manage large and complex projects, as it
allows you to get early feedback [Kus13] from users and incorporate their suggestions into
the development process. It also helps to avoid major problems down the line, as you’re
constantly testing and refining the software before adding new features.
V-shaped SDLC model
V-model is also referred to as software development and testing methodology. The simple
waterfall lifecycle methodology is mirrored and cascaded sequentially to form a V-type
structure as shown in Figure 2.6, whereas The vertical process in the V-model represents
the multiple phases. To explain the process with an example, Imagine building a car. The
V-model is like constructing the car one part at a time, ensuring each part is built correctly
before adding the next one. This way, you can catch any mistakes early on and avoid major
problems later. The V-model is like a building plan that has three main stages: Firstly the
Design stage which is like drawing up the blueprints for the car. We need to clearly define
what we want the software to do and how it will work. This is done through requirements
gathering and system design. Secondly, in the Implementation phase is like constructing
the car doors and other parts of the car. We take the design plans and start building the
actual software code. Finally, we test the product. This is like ensuring that our car is
sturdy and well-built. We test the software to make sure it meets all the requirements and
works as expected.
The V-model is especially useful for large and complex projects, as it helps to identify
and fix bugs early on, which saves time and money in the long run. It’s also a good fit for
companies that use continuous integration and continuous deployment (CI/CD) practices.
A more detailed explanation of the V-model is as follows:
• System Requirements: Gather business and system requirements from stakeholders.

Clearly define the desired outcomes of the software.
• System Design: Use a model-based development environment to design the software’s

functionality. Perform model-in-the-loop testing to identify bugs early on.
• Software Requirements: Define the software’s objectives based on system requirements

and system design.
• Software Implementation: Develop and compile the software code. Perform verification
testing to confirm that requirements are met. Perform validation testing to ensure
that the software is robust and meets real-world needs.
• Software Integration and Qualification Testing: Integrate smaller software implemen-

tations into a unified whole. Test the integrated software to ensure that it works as a
complete system.
• System Integration and Qualification Testing: Bring together all software and hardware
elements into a complete system. Perform thorough testing using methods like
software-in-the-loop, hardware-in-the-loop, and vehicle-in-the-loop.
Agile methodologies
Based on the waterfall SDLC process the Agile methodology was created to update the
development process by involving the users with required software development updates. The
Agile process captures the interactive and crucial phases of the rapid application development
model and V-software development model. As represented in the figure, the core explanation
of the model is similar to the Software development lifecycle. The additional two phases
like Inception and Retirement provide the overall picture of the developed product. The
inception stage provides the financial foundation and work assignment methods, whereas
the final retirement phase dictates the point where the product should be taken out and
further services. Furthermore, along with the defined stages (Figure 2.7), there are a few
basic principles that shape the agile model[Mar03]:
• Through Agile methodology customer satisfaction is identified and is set as an initial

benchmark
• Being agile, the changes and updates are welcomed. The incoming updates of course
do not change the core architecture but intelligently integrate it.
• The Agile methodology is known for its quick update and release due to its flexibility.
• This methodology provides continuous integration between the business team and
the development team. This approach helps to keep everyone updated about the
development of the process.
• The advantage of dividing the big process into multiple smaller processes allows the
method the integrate all the types of skilled developers. This process is built in
consideration with the teams quantitative and qualitative parameters.
• The measure of team’s performance is not based on the number of working hours but
rather it is based on the working software releases
• The continuous integration and continuous development (CI/CD) provide a new and
efficient way of software development
Fea-
Kanban Scrum XP Lean FDD
ture
Over-
all Continu- Iterative and Incre- Agile and Itera- Process Improve- Structured and
Ap- ous Flow mental tive ment Iterative
proach
Work-in- Daily Stand-ups,
Identifying and Identifying and
Progress Time-boxed Pair Program-
Work- Eliminating Prioritizing
(WIP) Sprints ming, Continuous
flow Waste Features
Limits Integration
No Ex- Continuous
Plan- 30-90 Day Release 30-90 Day Re- 12-24 Week
plicit Improvement
ning Plan lease Plan Feature Plan
Planning Events
Project Man-
Scrum Master,
No Ded- Coach, Team ager, Domain
Product Owner, No Dedicated
icated Leader, Team Expert, Archi-
Roles Development Roles
Roles Members tect, Analyst,
Team
Developer
Delivering Work-
Flow, Quality, Pair Pro- Waste Elimina-
ing Software, Feature Deliv-
Flexi- gramming, Test- tion, Continuous
Fo- Prioritizing Fea- ery, User Sto-
bility, Driven Develop- Improvement,
cus tures, Sprint ries, Use Case
Adapt- ment, Continuous Value Stream
Planning, Retro- Modeling
ability Integration Mapping, Flow
spectives
Flexible,
Delivers working Emphasizes qual- Eliminates waste Structured and
Pros adapt-
software quickly ity and teamwork and creates value iterative
able
Can be
Can be difficult to
difficult Can be difficult to Requires a cul- Can be time-
Cons adapt to changing
to priori- scale tural shift consuming
requirements
tize work
Table 2.1: Comparison between different Agile Methodologies used by the business organi-
sations.
• Agile methodology uses Pareto principle, known as 80/20 rule [Kum20]. The Pareto
principle says that “80 percent of the result comes from 20 percent effort”. This
is possible when the focus is more on the most essential parts that can bring real
changes.
The business organization does not rely on the specific Agile SDLC model. They use
Characteristics Suitability Strengths Weaknesses

Model
Linear and sequential Large, complex
Wa- Predictable Difficult to accommo-
process, with each projects with
ter- schedule, clear date change, may not
phase completed before well-defined require-
fall responsibilities meet user needs
moving to the next ments
Projects with high- Can be rigid and
Similar to Waterfall, Strong empha-
risk components, inflexible, may not be
V but with additional em- sis on testing,
where early detec- suitable for projects
Model phasis on testing and early error de-
tion of errors is with changing re-
validation tection
critical quirements
Adaptable Can be slower than
Development cycles re- Projects with chang-
to changing a waterfall, and may
peated multiple times, ing requirements or
RAD requirements, not be suitable for
with feedback used to where user involve-
user involve- projects with strict
refine the product ment is important
ment deadlines
Project broken down Can be more com-
Projects with tight
into smaller, manage- Deliverable plex to manage, may
Incre- deadlines or where
able increments, with increments, not be suitable for
men- rapid development
each increment deliv- rapid progress projects with high-
tal is required
ered and deployed risk components
Projects with
Highly flexible and Frequent feed- Can be chaotic and
unpredictable
adaptable, with fre- back, rapid disorganized, may
requirements or
Agile quent collaboration adaptation, not be suitable for
where continuous
and feedback among continuous projects with tight
improvement is
team members improvement budgets
desired
Table 2.2: Comparision between different Software Development Life-cycle models.
several frameworks like – Kanban, Scrum, Extreme Programming (XP), Lean and Feature-
driven development (FDD). The table (Table 2.1) provides the differentiating factors within
these frameworks [Mar03].
Depending on the type and need of the software there are many different software
development models, each with its own strengths and weaknesses. The best model for a
project depends on the specific needs of the project. For example, the waterfall model is
good for projects with clearly defined requirements and where meticulous control is needed.
Whereas the incremental model is good for projects that need to be delivered in stages.
Similarly, The RAD (Rapid Application Development) model is good for projects that need
to be delivered quickly and where user feedback is important. Whereas, the agile SDLC
2.3. BIG DATA TECHNOLOGY 19
method is good for large, mission-critical projects that require extensive risk analysis and
continuous updates. The table (Table 2.2) compares the different models:
2.3 Big Data Technology
A Sheffield mathematician and data scientist, Clive Humby once stated - “Data is the new
oil” helped Tesco in 2006 to make 90million pounds3 . Of all the data recorded in human
history, 90 percent of the data has been created in the last two years [VR14]. In 2005,
Roger Mougalas of O’Reilly Media published the term “Big Data” and used it to refer to
the large set of data which was almost impossible to manage for the traditional business
intelligence tool [Mar16]. The term ‘big data’ can be defined as the data that contains a
humongous volume of data which is diverse in variety. In the digitalized era, when data
is available in digital form, the role of big data is instrumental in handling complex and
large volumes of data that cannot be managed using conventional means and techniques. In
the contemporary business landscape, big data technology has gained immense popularity
as it has the potential to extract, process and analyze information from diverse data sets.
Currently, big data is considered to be one of the most critical technologies that enables
business entities, across diverse industries and sectors to make informed decisions while
operating in the market.
Referring to Figure 2.8, the big data allows us to derive more value from real-time trends.
The seven V’s characteristics are the key aspects of big data and provide the framework to
understand the key challenges and opportunities [VR14].
• Volume: Big data deals with vast amounts of data, potentially exceeding the capacity
of traditional databases or storage systems
• Velocity: Big data applications often handle real-time or near-real-time data streams,
requiring systems to process and analyze information quickly
• Variety: Big data includes a variety of data types, from structured data to unstructured
data like text, images, videos, and social media posts. This diversity poses a challenge
for traditional data processing methods.
3
https://www.theguardian.com/technology/2013/aug/23/tech-giants-data
Figure 2.8: The 7V’s represent the overall characteristics of the big data. [MS13]
• Veracity: Ensuring the quality and reliability of big data is crucial, as sources may
contain inaccuracies or errors.
• Variability: Data flows can be unpredictable, with fluctuations in volume and structure.
Systems must adapt to handle this variability effectively.
• Value: The goal of big data analytics is to extract meaningful insights from data. These
insights can be used to make informed decisions, innovate, and gain a competitive
advantage.
• Visualization: Effective visualization techniques, such as charts, graphs, and dash-

boards, are essential for presenting complex data in a simplified and actionable manner.
Visualization helps identify patterns, trends, and outliers in the data.
By understanding and addressing these seven Vs, organizations can effectively harness
the power of big data and reap the benefits of data-driven decision-making [VR14].
The emergence of new kinds of technologies such as Big Data, Machine Learning,
Artificial Intelligence and the Internet of Things has brought about transformational
change in the software development process. By incorporating modern technologies, new
possibilities have emerged that can simplify the workflow within software development
and drive business innovation. Big Data has been identified as one of the most promising
technologies that can add value to the software development process. The strategic use of
Big Data analytics can aid by uncovering hidden knowledge and other vital information
that can help to work on a new solution or application [Ren19].
Some of the main benefits that are associated with the application of big data technology
include expanded knowledge, improved decision-making capabilities, better efficiency and
better use of data. However, it has been argued that the use of big data technology can
give rise to benefits as well as challenges that need to be taken into consideration so that
the technology can be deployed in an effective and efficient manner [Kau21]. Some of
the common types of concerns that organizations face while using big data technology
include handling the security and privacy aspects, integration of data from diverse sources,
and concerns relating to the quality of data [Pas19]. Although both advantages and
disadvantages are associated with big data technology, it is regarded to be a highly potential
and promising technology of the current era that can revolutionize the use of data.
In recent years, business entities have been integrating big data analytics into diverse
processes, including the software development process. The technology gives rise to new
possibilities that were not possible before. For example, by capitalizing on a large volume
of data, business entities are in a better position to make well-informed decisions about
the software applications that they need to develop in order to meet the needs of the end
users in the contemporary era. Although Big Data is in its growing stage, a broad range of
research studies have been carried out over the last few years to investigate and examine
the potential of the technological concept in diverse areas.
The big data technology has the potential to act as a major enabler in the software
development process. The development of software applications relies on the use of data and
Big Data makes sure that a humongous volume of raw data is made available to the project
management team while working on a new software solution. By strategically deploying big
data analytics, it is possible to revolutionize the approach that is adopted to design, develop,
and deliver software applications to the end users. The potential of big data technology
has been identified in recent years which has led to numerous research studies to capture
the potential of the innovative technological concept in the software development realm.
According to Mikale et al. [Mik19], the three key attributes of big data that magnify the
value in the context of the software development process are volume, velocity, and variety.
The big data technology is capable of handling a large volume of data. The technology has
the potential to generate as well as process data with immense speed. Similarly, big data
can make use of a multitude of sources and formats that may be included in the raw data,
thereby increasing its overall richness. These features of big data assist project management
teams in making sure that they are able to leverage the technology and the rich insights
that are extracted from raw data [Mik21].
Davoudian and Liu in 2020 [Dav20] have identified big data analytics technology as an
emerging class of scalable technology that has been revolutionizing the software development
process. The fundamental aim of the data processing pipeline in big data analytics is to
extract meaningful insights that can be of value in the software creation process. A diverse
range of characteristics and attributes of the innovative and promising technology work
in its favour and make it an indispensable and innovative tool in a successful software
development life cycle process in diverse contexts, such as the creation of mobile applications
[Rah]. One of the key features is the ability to handle a large volume of raw data which
may not be possible in any kind of conventional means. In the digitalized times when
a large amount of data is available online, big data analytics acts as the ideal tool that
empowers organizations and project management teams to capitalize on the capabilities
of the technology and thus drive business innovation. Moreover, the ability to handle a
large variety of data, including structured and unstructured data, adds to the strength of
big data analytics. The analytical capabilities are what give it immense power to work
with data sets in an efficient and effective manner while delivering value for end users. It
assists in simplifying the captured raw and unfiltered data so that the intended users can
make sense of it, and it can be used for the intended purposes. These attributes of big data
analytics technology magnify its relevance in the software development process.
2.3.1 Significance of Big Data Analytics in the Modern Techno-

logical Landscape
The sheer amount and complexity of data produced by people, organizations, and gadgets in
the digital age have led to a paradigm shift in the way we view information and its value. Big
Data analytics has become a key component of today’s technological environment, converting
unprocessed data into meaningful insights. This research investigates the relevance of big
data analytics within the framework of today’s technology environment, focusing on how it
affects businesses, their innovation trajectory, how decisions are made, and how innovation
occurs. The emergence of digital technologies such as social media, IoT devices, and the
internet has resulted in an unparalleled surge in data generation. Large datasets are enriched
by each click, purchase, social media exchange, and sensor reading. Big Data analytics
provides invaluable intelligence that businesses can use for a variety of objectives. It tackles
the problem of gleaning meaningful patterns and insights from this flood of data [Has20].
The potential of big data analytics to foster innovation and business intelligence is one of
the main factors contributing to its significance. Businesses can obtain deep insights into
consumer behaviour, market trends, and operational efficiency by analysing large datasets.
As a result, this intelligence becomes a strategic asset that helps businesses stay competitive,
find new opportunities, and make well-informed decisions. Businesses that use data-driven
insights to discover new ways to enhance their processes, services, and products are spurring
innovation [Ver17].
The complexity of decision-making in the modern era is growing, necessitating a nuanced
comprehension of many variables. Decision-makers are empowered by big data analytics
because it offers them thorough and up-to-date insights. Decision-makers can use data
analytics to evaluate risks, spot opportunities, and make strategic decisions that support
organizational objectives in a variety of industries, including marketing, finance, healthcare,
and supply chain management [Ver17]. The integration of big data analytics has resulted
in significant transformations across a number of industries. Analytics on patient data,
for instance, have improved patient outcomes, early disease detection, and customised
treatment plans in the healthcare industry. Predictive analytics has also transformed risk
management and fraud detection in the financial sector. Big Data analytics is optimising
supply chains, improving customer experiences, and streamlining operations in a variety of
industries, including manufacturing, retail, and logistics [Has20]. Customising goods and
services is one of the observable effects of big data analytics. Businesses can customise their
offerings to meet specific needs by examining customer preferences, behaviour, and feedback.
This level of personalisation is also present in marketing strategies, which result in increased
engagement and conversion rates through targeted campaigns based on customer profiles.
An improved customer experience that promotes satisfaction and loyalty is the end result
[Ver17].
Big Data analytics is taking on a critical role in addressing societal challenges outside
of the corporate world. It supports disease prediction, epidemiological research, and
public health management in the medical field. Analytical tracking of climate patterns and
ecological concerns are made possible by environmental monitoring. Analytics is also utilised
in education to enhance learning outcomes via customised lesson plans and early intervention
strategies. Big Data analytics is undoubtedly important, but there are drawbacks and
moral dilemmas as well. Data security, privacy, and responsible analytics use are important
issues that need to be carefully considered. Finding a middle ground between gathering
insights and safeguarding personal information is essential to making sure big data analytics
is applied sustainably and morally (hasan2020current). It is impossible to overestimate the
importance of big data analytics in today’s technological environment. It is now a crucial
component of innovation strategies, operational efficiency, and decision-making processes in
a variety of industries. Utilising the power of big data analytics is not only a competitive
advantage but also a must for businesses looking to prosper in the digital era as we navigate
an era of unprecedented data generation.
2.3.2 Rationale for Integrating Big Data Analytics in Software

Product Life-cycle Management
The dynamic nature of the modern software development landscape serves as a strong justi-
fication for the integration of big data analytics into software product lifecycle management,
or SPLM. In order to remain competitive and guarantee the best results throughout the
product lifecycle, companies must strategically leverage the power of Big Data Analytics
as they struggle with the challenges of creating and managing software products. A key
justification for incorporating Big Data Analytics into SPLM is the increasing emphasis
on making decisions based on data. The conventional method frequently depended on
gut feeling and prior knowledge, but in the current digital age, choices based on useful
information extracted from enormous datasets are shown to be more successful. Big Data
analytics gives stakeholders the ability to make knowledgeable decisions at all phases of
the product lifecycle, from development and deployment to upkeep and conception (Li et
al., 2015). A strong framework for examining enormous datasets pertaining to bug reports,
system performance, and user feedback is offered by big data analytics. Organisations can
find patterns and trends through data mining that have a direct bearing on the functionality
and calibre of software products. Analytics-derived insights allow for proactive approaches
to problem-solving, code optimisation, and overall product reliability enhancement, which
leads to an improved end-user experience [Kir03].
Agile development emphasises frequent feedback loops and quick iterations. Agile
approaches are enhanced by Big Data Analytics, which offers real-time insights into user
behaviour, market trends, and the impact of new features. Development teams are able
to quickly adjust, prioritise features according to user needs, and match their efforts
with the changing demands of the market thanks to this data-driven approach (Li et al.,
2015). Users of modern software demand tailored experiences, and big data analytics
makes it easier to provide them. Organisations can obtain a comprehensive understanding
of individual preferences, usage patterns, and pain points by analysing user data. This
understanding guides the creation of features and functionalities that are customised to the
unique requirements of the user, increasing user satisfaction and product adoption in the
process [Kir03, Li15]. Taking proactive measures to resolve problems and reduce downtime
are essential components of SPLM. Through the analysis of past data on bugs, system
failures, and performance issues, big data analytics makes predictive maintenance possible.
Organisations can reduce the frequency of problems and expedite the resolution process by
identifying patterns that precede critical failures. In SPLM, resource allocation is a crucial
factor. Big Data analytics offers insights into how development, testing, and deployment
resources are used, which helps organisations allocate resources as efficiently as possible. By
ensuring that resources are allocated effectively, bottlenecks are reduced and the software
development process is run more efficiently overall [Kir03].
Success requires staying one step ahead of the competition and comprehending the
market environment. By examining user reviews, rival products, and industry trends,
big data analytics provides businesses with market intelligence. Strategic decision-making
benefits greatly from this information, which enables businesses to successfully position their
products, gain a competitive edge, and identify untapped market opportunities [Li15]. The
integration of Big Data Analytics into Software Product Lifecycle Management is justified
by its transformative potential to optimise workflows, enhance decision-making, and improve
software product quality overall. In an environment where flexibility, user-centred design,
and market responsiveness are critical, using the insights from big data becomes not only
advantageous but also imperative. The increasing complexity of software development is
forcing organisations to embrace big data analytics in software product lifecycle management
(SPLM). This is a strategic necessity for sustained success, competitiveness, and innovation
in the rapidly changing digital landscape.
2.4 Business Model
The buzzword “Business Model” has gained significant influence in the last decade, especially
in business professionals and business media.[Fos15] Almost all enterprises have realized the
importance of business model innovation in recent years. On the one hand, the harmony in
business models is becoming more important and obvious [Has20, Mar03, Ami12], which
leads to a loss in traditional competitive advantages of enterprises, and thus forces enterprises
to constantly innovate business models. Whereas, on the other hand, the rapid growth of
consumers’ personalized demand makes it difficult for enterprises to obtain customer orders.
The Concept of the business model is not new, with the rapid growth of the Internet
economy since 1990, interest in the business model has increased. As per Trimmers(1998)A
business Model is the fundamental logic behind how a company generates profits by creating
value and providing products and services in a specific value chain or a network. Peter
Drucker, the father of modern management, believes that today’s competition among
enterprises is not between products, but between business models. As per Abdelkafi and
Täuscher in the year 2016 [Tee16], the Business Model operates as a continuous feedback
loop, generating value for customers, capturing these values and returning to nature.
However, there are enormous definitions of Business Model [Che12]. Quotes “A business
model is an important tool for manufacturing enterprises to derive economic benefits from
sustainable competitive advantage in the context of digitalization technologies, such as IoT,
big data, and cloud computing” [Ami12].
2.4.1 Business Innovation
Many businesses invest heavily in improving their processes and developing new products
to grow revenue and maintain profits. However, these innovations often involve significant
upfront costs and time commitments, including research and development, specialized
resources, new infrastructure, and sometimes even creating new business units. Despite
these investments, the potential returns from these initiatives are not always guaranteed.
Recognizing the risks and uncertainties associated with major investments, a growing number
of companies are turning to business model innovation as an alternative or complementary
strategy to traditional product and process innovation. Figure 2.9 summarises the rest of
the business innovation dependencies.
The innovation process can be characterised based on the criteria of the area of innova-
2.4. BUSINESS MODEL 27
tions:
• Product innovation: This involves the creation of a new product and, the innovation
of the physically tangible product.it is often dependent on market demands and
customer needs. Also, achieved by the advancement of technology and design.
• Service Innovation: Innovation of intangible services. This involves the enhancement

of already existing services or the introduction of new services [Ami12]. Customer
experience and satisfaction are the main factors to drive service innovation
• Process Innovation: It revolves around optimizing internal processes within an organi-

zation. This aims to improve efficiency, reduce costs, and enhance productivity [Che12].
This type of innovation often involves adopting new technologies, re-engineering work-
flows, or implementing best practices.
• Organizational innovation: Pertains to changes in the structure, culture, and practices

of an organization. This includes innovations in management processes, human
resources, and organizational design. The goal is to create a more flexible, adaptive,
and collaborative work environment.
• Business model innovation: Involves rethinking the fundamental structure of how

a business creates, delivers, and captures value. It goes beyond product or service
improvements and encompasses changes in revenue streams, customer segments,
distribution channels, and partnerships[Ami12]. Business model innovation is strategic
and can significantly impact a company’s long-term competitiveness.
2.4.2 Business Model Innovation
Business model innovation involves rethinking and redesigning the way a company operates
to generate better value for customers and stakeholders. It can be a complex and challenging
task, but it can also lead to long-lasting competitive advantages. Different scholars have
proposed different definitions and categorizations of business model innovation. While there
is still some conceptual ambiguity, business model innovation is increasingly recognized
as an important strategic tool for businesses in today’s dynamic and disruptive business
environment. Allan Afuah [Afu14] proposed that business model innovation serves as a
method to modify and enhance the capability of firms to operate effectively and efficiently,
Figure 2.9: Image representing the maturity curves for each category. [Ami12]
akin to any form of innovation. In the past few years, scholars have focused on sustainability,
Artificial Intelligence, Deep Learning, and Big Data with business model innovation.
Business model innovation is the practice that enables business entities across diverse
industries to strengthen their value-creation process by bringing about suitable changes to
their existing operating models. In the highly dynamic, competitive, and unpredictable
business climate, the role and relevance of business model innovation cannot be negated.
It allows business organizations to capitalize on the evolving needs and preferences of the
target audience in the market setting [Tri23]. In the technology-driven business environment,
it is imperative for companies to adjust to the ever-changing digital climate so that they
can make the optimum use of digital technologies to sustain and thrive in the market. The
advancement in Big Data Analytics that has taken place in recent years has opened up new
avenues for business entities to strategically deploy the technology to optimally integrate
intelligent data while carrying out business processes.
The research study is of high relevance since it focuses on a particular technology, i.e.,
Big Data Analytics, and further showcases how the technology can play a key role in
impacting software development process along with business model innovation. In other
words, the research study will not only help to explore the role of Big Data Analytics in
the creation of software solutions, but it will also throw light on how innovation at a wider
Figure 2.10: Business Model Canvas representing the business strategy for Netflix. [PER23]
level (i.e., business model innovation) can be facilitated through the application of the
innovative technological concept. In the current business environment, where technology
plays a cardinal role, the relevance of the research study is of immense value. The findings
can give rise to several implications in the real-world business domain.
2.4.3 Business Model Canvas
Developed by Osterwalder and Pigneur in 2010 aids to visualise the business model of the
company. For example, consider the business model of Netflix [PER23] as shown in Figure
2.10. Netflix’s business model is designed to provide a wide range of entertainment options
to its users. It offers a vast library of movies, TV shows, documentaries, and other content,
and it allows users to watch on-demand without any ads. Netflix also has a personalized
recommendation system to help users discover new content they might enjoy. Netflix’s main
channels for reaching its customers are its website and app, but it also invests in online and
offline advertising, social media, and word-of-mouth marketing. It builds strong relationships
with its customers by providing a user-friendly platform, personalized recommendations,
and responsive customer support. The business canvas represents that Netflix generates
revenue from subscriptions, with users paying a monthly fee to access its content. It also
earns revenue from DVD rentals and sales. However, its key resources include its content
Figure 2.11: Business Model Innovation process implemented by Goodyear successfully

[Euc14]
library, recommendation algorithm, technology infrastructure, and its brand. To meet

the current demand, Netflix acquires, produces, and licenses content by maintaining and
expanding its platform and building relationships with content partners. We can see that
the Netflix business model is driven by technological advancement. Therefore, it is clear
that technical advances empower revenue growth.
2.4.4 Business Model Innovation Process
To answer the question of innovation and growth, the organisation should seek and follow
some process. One of such process proposed in the paper [Euc14] was implemented in
Goodyear successfully. As depicted in Figure 2.11 the model has a total 6 phases which are
explained as below:
• Demonstrate value creation: Identify customer needs and align value propositions.
Clearly understand the needs and expectations of your customers. Create new value
propositions that address these needs effectively by utilizing data-driven insights.
• Generate business model options: Explore different business model options and
consider various business models that can capture value from your new market
proposition and create a competitive advantage. Evaluate each model’s effectiveness
in leveraging business assets for maximum value creation and commercialization. A
successful business model should be coherent, offer a competitive edge, and generate
economic leverage.
• Identify the risks for each option generated: Evaluate potential risks associated with
each business model option. These risks can be categorized into three main types:
business execution or initiative risks, co-innovation or interdependence risks, and
adoption or integration risks. Utilize a financial model and involve a diverse group of
stakeholders in a stochastic analysis session to identify risks and develop mitigation
strategies.
• Prioritise the risks: Assign weights to identified risks and other parameters based on
their potential impact on the business model’s success or failure. Prioritize the risks
that pose the greatest threat to the overall success of the business model.
• Reduce risk through experiments: Employ experiments to validate the effectiveness

of new business model updates. Conduct real-world experiments involving customers
and transactions to gather valuable data for evaluation. Focus on quick, low-cost
experiments to minimize resource investment and gather insights efficiently. Recognize
that failures are an inherent part of the innovation process and should be considered
learning opportunities. Middle managers, rather than senior executives, may be better
suited for managing these experiments due to their agility and relative detachment
from the existing business model.
• Prepare for incubation: The ultimate goal of business model innovation is to gradually
introduce the new market proposition as profitability is demonstrated and the new
business model is refined. This involves carefully managing the transition process and
ensuring that the new model is fully integrated into the organization’s operations.
2.4.5 Business Model Innovation drivers
Business Model Innovation (BMI) drivers are factors or elements that motivate and propel
organizations to innovate and evolve their business models. These drivers vary across
industries and sectors, but some common ones include:
• Market Changes: Shifts in customer needs, preferences, and behaviours, as well as

changes in the competitive landscape, can drive organizations to adapt their business
models to stay relevant and competitive.
• Technological Advances: Rapid advancements in technology, such as the development

of new digital tools, data analytics, artificial intelligence, and automation, can create
opportunities for innovative business models or necessitate changes to existing ones.
• Process Innovation: It revolves around optimizing internal processes within an organi-

zation. This aims to improve efficiency, reduce costs, and enhance productivity. This
type of innovation often involves adopting new technologies, re-engineering workflows,
or implementing best practices.
• Regulatory Changes: Alterations in industry regulations or the introduction of new

laws can prompt organizations to reevaluate and modify their business models to
ensure compliance and mitigate risks.
• Globalization: Expanding into new markets or facing increased global competition

may lead organizations to rethink their business models to better suit diverse customer
bases, navigate cultural nuances, and optimize operations.
• Economic Factors: Economic fluctuations, market downturns, or periods of growth

can influence organizations to reassess their business models to enhance efficiency,
reduce costs, or explore new revenue streams.
• Customer Feedback and Insights: Direct feedback from customers and insights derived
from customer behaviour data can provide valuable information about what is working
well and what needs improvement in the current business model.
• Disruptive Innovations: The emergence of disruptive technologies or business models

in the market can serve as a catalyst for organizations to innovate and transform
their own models to maintain competitiveness.
• Strategic Goals and Vision: Organizations may initiate business model innovation
as part of a broader strategic initiative to achieve specific goals, capitalize on new
opportunities, or position themselves for future success.
2.5. INFLUENCE OF BIG DATA ON SOFTWARE DEVELOPMENT AND BUSINESS INNOVATION33
• Internal Efficiency and Effectiveness: Internal factors, such as a desire to stream-

line operations, reduce costs, or improve overall organizational efficiency, can drive
businesses to innovate their business models.
• Environmental and Social Responsibility: A growing emphasis on sustainability,

environmental responsibility, and social impact can lead organizations to explore
new business models that align with these values and contribute to positive societal
outcomes.
• Competitive Pressures: The need to stay ahead of competitors or respond to competi-

tive threats can push organizations to innovate their business models to differentiate
themselves and capture new market segments.
• Crisis or Challenges: Adverse events, crises, or challenges faced by organizations may

necessitate a reevaluation of their business models to adapt to changing circumstances
and ensure resilience.
Successful business model innovation often involves a combination of these drivers, with
organizations strategically aligning their efforts to capitalize on opportunities and overcome
challenges in the dynamic business environment.
2.5 Influence of Big Data on Software Development

and Business Innovation
Big data is a massive volume of data that is too complex and voluminous to process using
traditional data processing techniques. It is characterized by its volume, variety, velocity,
and veracity[Nam17]. Big data has a significant impact on both software development and
business innovation.
2.5.1 Impact on Software Development
Big data is transforming the way software is developed. Software developers can leverage
big data to design user-friendly interfaces, optimise features and enable real-time processing
[Che12, Nam17]. Big data provides insights into user behaviour and preferences, which can
be used to design more user-friendly interfaces [Nam17]. It also helps the organisation to
produce a product which has optimised features and improved performance[Cui22]. For
example, Netflix uses big data to recommend movies and TV shows that users are likely to
enjoy. Similarly, we can see that after each update, the Netflix application provides new
features where the user can get personalised recommendations based on the movie/series
they have watched. With the recent update, now it is possible to adjust your data usage
and the quality of the video. Furthermore, to provide the best streaming quality to the
247.2 million paid subscribers4 Netflix used the state-of-the-art scalable video compression
technique. Based on the user’s internet connectivity the compression rate for 4k video
changes from 2MBps to 4MBps5 . It utilises the efficient storing and retrieval techniques
provided by big data technology. This enables the software application to connect the
customer under minimum requirements.
Furthermore, big data provides seamless integration to machine learning technology[Cui22,
Ama88]. Big data and machine learning often go hand in hand. Software developers can
integrate machine learning algorithms into applications to enable predictive analytics, auto-
mated decision-making, and personalized user experiences[Col19]. Due to personal data
being utilised, big data technology simultaneously provides the solution to encrypt sensitive
data, implement access controls, and ensure compliance with data protection regulations.
This is essential for protecting user privacy and preventing data breaches[Wan22]. For
example, e-commerce platforms use machine learning to recommend products to users based
on their past purchase history and browsing behaviour as well as it can track malicious
activity and can intelligently block access.
On the other hand, big data provides real-time feedback and insights that can be
used to support agile development practices. Continuous integration and continuous
deployment (CI/CD) pipelines can be enhanced with big data analytics to streamline the
software development lifecycle. It aligns with DevOps principles, promoting collaboration
between development and operations teams. This integration ensures smooth deployment,
monitoring, and maintenance of software applications, with data-driven insights guiding
improvements.
4
https://www.statista.com/statistics/250934/quarterly-number-of-netflix-streaming-subscribers-
worldwide/
5
https://www.linkedin.com/pulse/video-encoding-scale-netflix-ashutosh-maheshwari/
2.5. INFLUENCE OF BIG DATA ON SOFTWARE DEVELOPMENT AND BUSINESS INNOVATION35
2.5.2 Impact on Business Innovation
Big data is also having a major impact on business innovation. Businesses are using big
data to gain customer insights and enable personalization, analyse trends and optimise
supply chain management[Che12, Cla04, Col19]. Big data analytics provides businesses
with deep insights into customer behaviour, preferences, and trends. This information
can be used to develop personalized products, services, and marketing strategies[Tee16].
Businesses can leverage big data to analyse market trends, identify emerging opportunities,
and stay ahead of competitors. Organisations can implement predictive modelling to
know the current inventory and simultaneously track the logistic process [Cui22, Tee16].
This enables businesses to improve efficiency, reduce costs, and deliver better customer
service[Cla04]. For example, Walmart uses big data to optimize its inventory levels and
ensure that products are available in the right stores at the right time.
Furthermore, the use of big data techniques can be used to explore new revenue streams,
improve risk management and enhance operational efficiency, and reduce cost [Sar19]. Big
data opens avenues for businesses to explore new revenue streams. By analysing customer
data, businesses can identify opportunities for upselling, cross-selling, and introducing
innovative products or services [Cui22, Che12]. These innovative products can also be
implemented in the field of banking and transaction sectors. The analytical skills provide
higher risk management and ensure smoother, secure and trustworthy business operations.
For example, banks use big data to detect fraudulent transactions and protect their customers
from financial losses. The anomaly detection techniques give a red flag and predict the
behaviours of the fraudulent activity [Sco94]. Due to these advantages, businesses can
operate efficiently and can reduce unwanted costs.
Big data is a transformative force in both software development and business innovation.
Its impact is evident in the way software is designed, developed, and maintained, as well as
in how businesses innovate, make strategic decisions, and create value for their customers
[Nam17]. The businesses like retail, healthcare, entertainment, and even real estate can
benefit from the advantages of big data.
Chapter 3
Methodologies
3.1 CRISP-DM
36
List of Figures
1.1 Illustration data generated, copied and consumed worldwide. [Tay23] . . . 3
2.1 Image representing the core software development life-cycle. [Mis13] . . . . 10

2.2 Image representing Waterfall SDLC [Ade13] . . . . . . . . . . . . . . . . . 11
2.3 Image representing Spiral SDLC [Boe88] . . . . . . . . . . . . . . . . . . . 12
2.4 Image representing the Rapid Application Development (RAD) SDLC [Hir98]. 13
2.5 Diagram depicting the Incremental model flow. [Kus13] . . . . . . . . . . . 13
2.8 The 7V’s represent the overall characteristics of the big data. [MS13] . . . 20
2.9 Image representing the maturity curves for each category. [Ami12] . . . . . 28
2.10 Business Model Canvas representing the business strategy for Netflix. [PER23] 29
2.11 Business Model Innovation process implemented by Goodyear successfully
[Euc14] . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
37
List of Tables
2.1 Comparison between different Agile Methodologies used by the business

organisations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.2 Comparision between different Software Development Life-cycle models. . . 18
38
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To be written towards the end of thesis

List of Acronyms and Abbreviations

2.4.4 Business Model Innovation Process . . . . . . . . . . . . . . . . . . 30

emphasis on cooperation and communication between the IT operations and development

range of connected devices in a seamless manner. Integration of IoT necessitates taking

1.1.1 Challenges in Big Data adoption

1.1.2 Challenges in Big Data innovations

• To investigate the role of analysis of Big Data in software development

1.3 Thesis Structure

In this section, we present the latest developments implemented by various organizations

2.1 Software Development

2.2 Common Software Development Life-Cycle

Figure 2.2: Image representing Waterfall SDLC [Ade13]

2.2.1 Software development life-cycle examples

Figure 2.3: Image representing Spiral SDLC [Boe88]

• User involvement – Active involvement of users with continuous feedback

• Prototyping – To create a quick blueprint of the software architecture.

• Iterations – The development process is iterative aimed to refine the software.

• Collaboration – A collaboration between developers, users and stakeholders in the

Figure 2.5: Diagram depicting the Incremental model flow. [Kus13]

V-shaped SDLC model

• System Requirements: Gather business and system requirements from stakeholders.

• System Design: Use a model-based development environment to design the software’s

• Software Requirements: Define the software’s objectives based on system requirements

• Software Integration and Qualification Testing: Integrate smaller software implemen-

• Through Agile methodology customer satisfaction is identified and is set as an initial

Characteristics Suitability Strengths Weaknesses

Table 2.2: Comparision between different Software Development Life-cycle models.

2.3 Big Data Technology

• Visualization: Effective visualization techniques, such as charts, graphs, and dash-

2.3.1 Significance of Big Data Analytics in the Modern Techno-

2.3.2 Rationale for Integrating Big Data Analytics in Software

2.4 Business Model

2.4.1 Business Innovation

• Service Innovation: Innovation of intangible services. This involves the enhancement

• Process Innovation: It revolves around optimizing internal processes within an organi-

• Organizational innovation: Pertains to changes in the structure, culture, and practices

• Business model innovation: Involves rethinking the fundamental structure of how

2.4.2 Business Model Innovation

2.4.3 Business Model Canvas

Figure 2.11: Business Model Innovation process implemented by Goodyear successfully

library, recommendation algorithm, technology infrastructure, and its brand. To meet

2.4.4 Business Model Innovation Process

• Reduce risk through experiments: Employ experiments to validate the effectiveness

2.4.5 Business Model Innovation drivers

• Market Changes: Shifts in customer needs, preferences, and behaviours, as well as

• Technological Advances: Rapid advancements in technology, such as the development

• Process Innovation: It revolves around optimizing internal processes within an organi-

• Regulatory Changes: Alterations in industry regulations or the introduction of new

• Globalization: Expanding into new markets or facing increased global competition

• Economic Factors: Economic fluctuations, market downturns, or periods of growth

• Disruptive Innovations: The emergence of disruptive technologies or business models

• Internal Efficiency and Effectiveness: Internal factors, such as a desire to stream-

• Environmental and Social Responsibility: A growing emphasis on sustainability,

• Competitive Pressures: The need to stay ahead of competitors or respond to competi-

• Crisis or Challenges: Adverse events, crises, or challenges faced by organizations may