The Importance of ESG in Software Development

ESG is a massive movement in the global market that’s forcing businesses to adjust their approach to sustainability and corporate practices. ESG (environmental, social, and governance) practices are measured in scores that are beginning to dictate whether people invest in the company or not. 

The scores generally go from 0-100; anything below 50 is bad and will impact the company's reputation, bottom line, and long-term potential. Anything above 70 is great and consumers will look at the company as though supporting them is supporting the good of people and the planet.  

This recent commercial from Apple will give you a good idea of how that looks:

When it comes to software and technology, companies are under a ton of pressure to minimize their carbon footprint, reduce energy consumption, and implement eco-friendly practices throughout the software development lifecycle. 

The “S” or the social component is measured based on the work environment (diversity and inclusivity). This is going to be crucial for attracting and retaining talent. 

And lastly, when it comes to the governance of technology - the focus is on using data ethically and being transparent when making decisions. Data privacy is a focal point, especially now with six million data records being exposed in the first quarter of 2023.

Finding Your Solution

Sustainable IT isn’t an easy or replicable task but it’s absolutely necessary for companies to prioritize as we go forward with heightened environmental and ethical awareness. Custom software is a massive influence in this sense as it’s the focus of sustainable technology and can completely change the image of a company looking to improve its ESG.

These are some ways custom software enhances this process:

ESG practices for custom software development are like an umbrella that encompasses the process of tracking, managing, improving, and repeat. Microsoft is one of the best examples of this, and they check each box adequately:

Environmental sustainability: Microsoft wants to become carbon-negative by 2030 and to remove all the carbon it has emitted since it was founded by 2050. The company also invested in renewable energy and has implemented sustainable practices in its offices and data centers.

Social responsibility: Microsoft has implemented a handful of social responsibility initiatives, like giving $3.2 billion in donated and discounted technology to over 300,000 nonprofits serving over 1.2 billion people globally.

Governance practices: In the ESG report from Microsoft, they talk about prioritizing transparency, accountability, and ethical decision-making (As you would hope). In addition, the company has also set goals to improve its cybersecurity and data privacy practices. 

Managing and tracking this entire process in addition to the logistics aspect of technical adjustments are made possible through custom software. KPI monitoring, automating workflows, IoT tracking of energy usage, scalable metrics, and accessible data storage systems, all fall under the IT umbrella. 

Not Investing in Technology 

One way or another, the market is headed in this direction - companies who don’t pivot can expect the following: 

Missed Opportunities: Stakeholders are looking at ESG as a benchmark of a company's longevity. Without it, companies are going to struggle to attract environmentally and socially conscious customers as well as investors.

Increased Risk: Without adequate technology investments in data security and privacy, companies run the risk of data breaches and cyberattacks. These incidents can not only damage the company's reputation but also lead to financial losses and legal liabilities.

Competition: Imagine your competitor not investing in ESG practices, but you do. Would you say you have a leg up when it comes to marketability? If your answer is yes - why are you still in the reversed role?

ESG Going Forward

The futures for both ESG and technology are promising, and their relevance in the marketplace is only expected to grow. How will the two merge? Will AI embody quality assurance managers for companies' ESG practices? How will your company leverage each component?

Most companies don’t know where to begin, which is why we created this free tool to get you started on the right foot. While it won’t create an ESG plan for you, it can help you make informed decisions and navigate the dynamic landscape of sustainability and technology.

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

How to Use AI-Powered Coding

Programmers are going to have some fun with this one. Picture the start of a typical day as a developer, all the priorities you need to set, preparation for any briefs you’ll get, and then the contingency planning on top of it all. Of course, nowadays with tools like Chat GPT, Visual Studio IntelliCode, and CodeSpace among other resources, the programming process has improved lightyears from what we had 10 years ago. 

With that in mind, let me ask you this (if you are a programmer); how much easier is it to approach a day on the job now compared to when you started programming? Better yet, how much easier would it have been for you to learn to code with the tools available today?

Answers to these questions will vary. A lot of software developers will argue that you need to learn the principles of programming without the “shortcuts” first and then introduce them as you get better. Others will argue that modern programming tools have made it much easier when learning to code and made the process more enjoyable. There really is no right or wrong answer to these questions because it comes down to one thing; these tools are the future. 

The Basics of AI-Powered Coding

AI advancements in the software development space will only get better and make the process more streamlined. Among the many tools programmers are leveraging in 2023, AI-powered code is a top choice to enhance the efficiency and effectiveness of their coding process. 

For the first example, we’re going to be looking at OpenAI’s Codex. Codex is an AI code assembler that uses machine learning to translate natural language into code. Here are 3 examples of using it: 

1. You’re creating a feature that tracks sample inventory in a LIMS system:

You could say to Codex: “Develop a functionality that can record and track the inventory of samples in the laboratory”

Codex will then: 

• Design a plan for a database that will store the following information: sample ID, sample type, quantity, and location.

• Implement CRUD (Create, Read, Update, Delete) operations for managing the sample inventory.

• Develop a user interface that allows users to see and update sample inventory records as they go.

2. You’re creating a feature for insurance software that calculates premiums based on risk factors: 

You could say: “Build a component that calculates insurance premiums for different insurance policies based on factors such as age, location, and coverage type.”

Codex will then:

• Design a data model that can store policy details, consisting of customer information and risk factors.

• Develop algorithms that calculate insurance premiums based on the risk factors provided and the parameters of the given policy.

• Lastly, implement validation checks to ensure the premium calculations are appropriate.

3. Now you want a feature that automatically tracks budgeting and expenses for a FinTech platform:

You could say: “Create an interface that users can use to set budgets, track expenses, and generate reports on overall spending”

Codex will then: 

• Create the design for the interface where users can input budget categories, set spending limits, and track expenses.

• Develop algorithms that will categorize expenses based on predefined rules and transaction data automatically.

• Generate visual reports that users can use to understand their spending habits, see how well they adhered to their budget, and recognize trends in their expenses.

Codex is a great platform, but it’s not the only one. Platforms like Tabnine, Snyk, and IntelliCode all perform unique roles that help software developers perform at the next level— but the key is knowing how and when to utilize them.

What Tools to Use and When

As a software developer, your time down to the second is highly valuable, so anything that can streamline repetitive processes or reduce manual effort is a go. Software depends on context which means that the tools a developer uses will depend on the specific requirements of the project and the developer's preferences.

With that in mind, here are some ways the AI-powered coding tools we’ve mentioned can be used in different situations:

1. Project: You’re building a mobile app for a transportation company

Tabnine will be a great resource in this case to handle the following: 

• The coding process for the mobile app will be shortened thanks to Tabnine’s code completion ability.

• The system can give suggestions for implementing features such as map integration, user location tracking, and in-app notifications. 

• It will get the right APIs involved so that third-party transportation services can be integrated.

  2. Project: You need to design and build a Web App for an E-Commerce store

The Web App development process can become a lot more satisfying using IntelliCode because of the following: 

• Whether it’s HTML, JavaScript, CSS, Angular, React, Vue.js, or you name the web app development language or framework - IntelliCode can suggest relevant code completions based on the context using Deep Learning algorithms.

• Because IntelliCode is so great at detecting what is necessary to complete a code, its error-prevention ability is significant

  3. Project: Develop a Node.js-based REST API

Snyk will be great for the security aspect of your REST API. 

• It identifies any known vulnerabilities in the open-source libraries you're using with your API and then provides insights and actionable recommendations to mitigate these vulnerabilities.

• The good news is that this is not a one-and-done tool. Snyk can continue to monitor the system over time and keep identifying gaps to fill.

Why AI-Powered Code?

The advantages that come with properly utilizing AI coding tools are immeasurable. Software developers are performing at a new level in today’s world thanks to these advancements. This means that now is the time for a business to get on before you start getting dramatically outperformed. 

AI-Powered code relies on 5 key components which include; the data source, Natural Language Processing (NLP), code parsing, Machine Learning, and most importantly feedback and iteration from the software developer. The interaction aspect is what allows the AI models to refine their predictions and generate accurate, or more contextually appropriate coding suggestions. 

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to Fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.

What Software Engineering in Finance is Like in 2023

We talk a lot about software development in the financial world, and for good reason— this is a hot-button topic that needs attention. Financial services are data intensive and heavily rely on the analysis and interpretation of that data. This can include (but is not limited to) interest rates, stocks, income/cash flow statements, and balance sheets. 

It can be a lot to take in when looking at how IT brings innovation to an organization; in this article, we’re going to break it down simply. We will look at why software engineering is so important in the financial industry and some examples of what businesses should look out for to ensure they have the best possible team leading their digital transformation journey.

Every financial firm will have its unique requirements, the software is just there to help keep everything functioning seamlessly. Development teams working for financial service providers need to be aware of this, by recognizing the unique requirements of the industry and remembering they are there to provide solutions…

Why would we say that? Software developers know what to do for FinTech companies right? 

Software development for financial firms is high pressure since the business is naturally extremely high pressure, which means that there’s just about no room for error in any utilized IT systems. 

When errors do arise it can be extremely detrimental, in the United States alone, faults from IT systems take out $150 billion from the economy annually. 

This is intimidating for both software developers and the companies who invest in their services, but it is why reliability, credibility, and transparency are such important aspects when it comes to choosing a software development team.

The Best Software Engineering in Finance Looks Like…

Finance and banking are among the top 5 industries demanding software engineers according to industry reports, with entry-level salaries starting at over $110,000. In addition, more than 95% of financial companies deem it “critical” to have solid software engineers in order to sustain the company long-term.

The job of a software engineer is strictly to examine, make predictions, and come up with comprehensive software solutions based on the variables they’ve examined. As a software engineer working for a financial service provider, the projects in scope may include:

• Process automation

• Mobile app development

• Technology integration (Such as Blockchain or Crypto)

• Verification software

• Cybersecurity

• Embedded finance

**If you don’t recognize some of the topics, check out our previous blogs on them**

When a financial service provider hires a software development team, they’re not looking for someone to put a bandaid on their current processes, they want innovative solutions and digital transformation to make their services stand out in the most competitive market in the world. 

Digital transformation, like anything else in running a business, will look different for everyone. 

However, with experienced software engineers, you can find the future that looks exactly like the vision of success you’ve always wanted. This may include (but again, is certainly not limited to):

1. Cloud computing: This is one of the most prevalent trends in software development as a whole for its ability to store and access data. For a banking/finance company, this is everything to their users and it leads us to the next point.

2. Mobile Banking Services: Let’s not forget, two-thirds of the American population alone use mobile banking for their day-to-day needs. In 2023, mobile banking is a nonnegotiable for young consumers especially, which tells you everything you need to know about where the industry is headed. 

3. AI: By now, Artificial Intelligence has entered normal dialogue though it’s caught some people by surprise. For the financial industry, it’s brought many great benefits when it comes to:

   • Repetitive task automation

   • Minimizing errors

   • Aiding in the decision-making process

4. Cybersecurity: The major threats financial firms have to consider when implementing software systems in 2023 include: 

2,200 - The estimated number of attempted cyberattacks each day.

$9.4 million - The average loss financial firms saw from ransomware attacks in 2022. 

Cybersecurity is a necessity in an age where FinTech service providers are at the pinnacle of banking. Companies need to protect their assets and data which is why when software programmers today build systems to protect service providers, they must remember they can mitigate a breach before it is attempted. 

Each of these aspects leads to a well-rounded platform that users will feel comfortable relying on. More than that, it’s something that can be sustained long-term which makes it better for companies who want to scale their operation. 

Where Custom Software Makes Scaling Easy

When you invest in custom software, it’s not a temporary fix— rather, it’s a foundation being implemented that when it continuously undergoes innovation can take a company from a startup to a large-scale enterprise. 

For instance, a custom mobile app could help a FinTech startup grow its user base by reaching new users, while customized cybersecurity measures can protect against potential threats as the company scales. It’s the little things like this that make a big difference long term.

The Takeaway

Software engineering is where the majority of the heavy lifting happens since execution is based on the analysis done during this time. To maximize the results a company sees from software development, prioritizing the planning stage is a crucial step. Lay everything out on the table; current pain points, long-term goals, market research, etc. Putting this in the hands of the right software development team will guarantee the best possible outcome. 

Written By Ben Brown

—

ISU Corp is an award-winning software development company, with over 17 years of experience in multiple industries, providing cost-effective custom software development, technology management, and IT outsourcing.

Our unique owners’ mindset reduces development costs and fast-tracks timelines. We help craft the specifications of your project based on your company's needs, to produce the best ROI. Find out why startups, all the way to fortune 500 companies like General Electric, Heinz, and many others have trusted us with their projects. Contact us here.