What are the Key Software Development Metrics and KPIs

Published on October 30th, 2023

With the advent of agile methodologies it is now crucial to measure the efficiency of a software development team has increased dramatically. Companies are now interested in using metrics for software development and have also begun tracking various Key Performance Indicators (KPIs) to bridge quality gaps within software products.

Software development metric is a method of measuring specific, quantifiable features of software. Its primary goal is to assess the level of quality of the current process or product, to make plans for future iterations and pinpoint areas of improvement.

Find out how you can measure the essential elements of the progress you make in your software development. This article outlines the fundamentals of software metrics and describes the most crucial ones in depth.

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What are the software development metrics and KPIs?

A software development metrics and KPIs  can be described as an established measure which includes several tasks to determine a software test effort’s progress, quality and overall health. For example, UX method, code in formal form, test metrics, functional etc. will help you define clear business goals and measure the effectiveness of your software.

Additionally, the appropriate metrics let you measure the level of complexity and efficiency of code, as well as simplify the management of projects. In the end, you can pinpoint precisely when your development team performs at its best and identify bottlenecks in the project effectively decreasing risks, and eliminating errors.

You can mix your management capabilities along with software metrics to develop efficient processes, keep the production teams updated, create efficient software maintenance plans and finally simplify the development process.

Why is it important to track the software development metrics and KPIs ?

Implementing a measurable data strategy throughout the entire development process is an effective method of enhancing and innovating the quality of software. As the product’s owner it is also important to examine the baseline data of your development team in order to test the existing workflows and processes.

Here are a few more reasons to track software development metrics

• To assess the quality, health and the progress of software testing
• To evaluate the risks and efficiency of flow
• To minimize the number of changes to code and to ensure greater stability of code
• To determine if the desired software quality was achieved
• To increase team cohesion within the context of a healthy workplace
• To determine the best allocation of resources and to reduce the workload of team members.

How can I track software development metrics and KPIs?

The ability to track software development metrics is essential for tech leaders to gain insight into their team’s performance, and improve their performance. Here’s a brief overview of how to keep track of the development of software metrics:

• Choose the specific areas you wish to improve in, for example efficiency, quality or delivery time. This will help aid in your metric selection as well as analysis.
• Pick metrics that match your objectives and offer valuable information. We’ve discussed a variety of metrics you can pick from in the sections below.
• Incorporate your code repository as well as project management tools and CI/CD pipelines in order to collect precise and current data. This reduces manual work and guarantees data consistency.
• Set benchmarks or goals for each metric based upon previous information, industry standards or the specific requirements of your project. This allows you to evaluate your current performance with targets and identify areas that require improvement.
• Seek out patterns, trends or significant shifts in the measurements. Determine areas of performance that are not as good or areas where improvement is required. Regular analysis helps in making timely decisions or corrective measures.
• Retrospective meetings are a great way to analyze the results and uncover actionable lessons. Talk about successes, challenges and ways to improve.

Some examples of metrics in software

There are numerous types of development-related metrics in software that have been extensively utilized to monitor and evaluate different aspects of the process of development.

The most common examples for software metrics comprise operational metrics, developer measures, tests metrics, agility metrics and much more. Developer metrics are particular measures that are used to evaluate the productivity, performance, and the quality of team members or developers, while operational metrics are focused on the reliability and performance of the system.

In the next sections, we’ll explore each metric category, and discuss particular examples of metrics used in software and their significance in the development of software.

Developer Productivity Metrics

Developer productivity is the measure of a team’s capacity to develop high-quality programs that are efficient and simple to maintain. It’s the term used to describe the efficiency of a developer in a particular period or a set of criteria.

Here are some of the most popular indicators of developer productivity that you can utilize to measure your developer productivity

1. Work log

The log of work provides valuable insight using data generated from commits to code, closed and open merge commits, PRs as well as PR commentaries. It aids in understanding working patterns and interactions. It also helps to increase velocity and speed of delivery by assisting you to identify the bottlenecks.

2. Active days

Active days are days when an engineer in software or a coder contributed their code for the development project.

3. Code Churn

Code churn refers to a code which is modified or deleted within a short time after it was written. It is a measure which indicates the frequency with which an individual piece of code is edited. Coding churn happens when the engineer has to struggle to write the given code piece, usually because of a lack of information or poor communication between the team members.

Operational Metrics

Operational metrics are crucial indicators that let you monitor your business’s actions in real-time. You can utilize them to boost efficiency and analyze the results of your software development. Additionally operational metrics indicate how well a business can perform its day-to-day tasks.

Here are some common operational metrics that can help you monitor your efficiency in operation to measure your operational efficiency.

1. Mean Time Between Failures (MTBF)

MTBF shows the average duration between repairing software-related failures. The longer it takes between sudden outages, the more reliable software has been produced. Furthermore, it aids the developers to know how often incidents happen and how quickly they can address the issues.

To calculate MTBF computation, you need to divide the total hours of operation in a period by the amount failures that have occurred. Typically, MTBF is measured in hours.

As an example, suppose that the software is in operation for 1500 hours over the course of a specific year. Through the course of the year it has experienced 10 unexpected outages with that software. This is why the MTBF will be the same as it was in 2009.

2. Mean Time to Recover (MTTR)

The MTTR is the amount of time needed to fix and troubleshoot the software component that is failing. It calculates the time between the beginning of the issue and when the system is put into production. Additionally, MTTR reflects how quickly an organization reacts to and repairs any accidental breakdowns.

Test Metrics

Test metrics are crucial for agile teams, testers and QA managers who want to improve their testing. The best method to improve your testing is to choose an appropriate test statistic and setting a baseline and then evaluating your progress over the next few months, days or years.

1. Defect distribution

The distribution of defects indicates which portion of your software is the most vulnerable to a defect. In this case, defects can be classified based on their severity, type root cause, module prioritization, testing environments, functional areas, and even responsible testers.

You can make use of the charts of distribution of defects to comprehend the distribution and pinpoint areas that are most likely to be removed of defects. Histograms, pie or Pareto charts can assist you in determining the areas where your development efforts need to take you.

2. Test economics metrics

Each budget for testing consists of time, people’s efforts, tools, and time. However, projects for testing aren’t without limitations in the allocation of resources. Thus, knowing the amount you are planning to spend as well as the amount you actually spend is vital.

Cost per budget variance, Bug fix Cost of not testing, etc. are just a few of the crucial test economics metrics that offer crucial insight into budgeting. Furthermore, these metrics can help you plan the budget for your testing and in assessing the overall value of testing.

3. Test team metrics

Test team metrics track outputs and the allocation of testing work. It’s a method for keeping track of the progress of various components in the development process. Test team metrics comprise distribution of identified defects and test cases assigned per team member, and the number of defects that are returned to each team member.

Usability Metrics

Imagine that you’ve developed a robust application that has many users registered for it. But they haven’t been able to respond after the first few days. You can think about this: your app’s downloads were at an all-time high within the first few days after the launch because of your marketing. However, the majority of users do not ever bother to download the app, or, even more importantly, have deleted the app within the first week.

Making initial conversions is much easier if you combine well-designed marketing and promotional strategies. However, keeping your users interested and committed to your program or app is more than just marketing. Because in this case the user experience is the most important aspect.

You can gather accurate information on the interactions of customers with your product when you understand the methods to gauge the user experience. You can also adjust your branding and marketing efforts to yield greater results by learning more about the experience of users.

Here are some metrics which can help you with analyzing user experience

1. User error rate

The user error rate can help you in determining the amount of times that a user has made mistakes, i.e., the amount of errors that could be triggered. The rate of user error indicates the need for improvement in your software’s UI/UX design. The higher the errors, the greater the amount of usability issues.

For instance, many users have errors when typing an email address. Without email validation this could result in an error. Let’s say ten out of hundred users enter the wrong email address. the error rate for users will be one in ten.

The best option is to ensure proper validation, and then display an error message and ask users to enter the password again.

2. Conversion rate

The conversion rate determines the amount of visitors who have completed various tasks such as making a purchase or filling out a contact form.

For example, if 1000 visitors visit your site but only 100 of the 1000 complete the sign-up process We can conclude that there is an opportunity to improve your product or service offering.

3. PULSE MATERIAL

The PULSE measure is focused on assessing the business performance of enterprise software. This metric measures the technical or business aspects of the software’s performance. The acronym PULSE refers to Page views and Uptime, latency 7-day active users and earnings.

Let’s examine the meaning of these terms. Let us look at what these terms actually mean.

• page views are the amount of users who have visited your website
• Uptime shows the amount of times a server is operational
• Latency is a way to measure your website’s performance on the infrastructure
• 7-day customers demonstrate the capability that your software can gain regular users in just seven days.
• Earnings show whether your product is performing or not.

The most agile and powerful metrics can alter the development process in its entirety!

Agile metrics allow you to identify imperfections, help you understand your workflow, and accelerate project delivery time to allow your team to concentrate on satisfying customers with continuous value-added services.

The primary agile metrics are open/close rates throughput, code coverages lead time, and cycle times. These metrics help prioritize and focus on one particular goal of the business without distracting.

Agile metrics help reduce all software projects into smaller manageable chunks. In the end, it is easier to control all aspects. In addition, Agile metrics evaluate different aspects of the process of developing software.

Here are some crucial agile metrics that will assist you in cutting down the time it takes to transform your idea in to a software product

1. Lead and Cycle Time

The cycle time and the lead are crucial Agile project metrics that show the length of time tasks are being used within a specific process. Lead time measures the entire time that is spent on the project – from the moment of request to the moment when the item is actually delivered. Contrary to this, cycle time is the amount of duration that the development team has to complete the task.

2. Throughput

Throughput is a measurement of software development that determines the amount in tasks, subtasks bugs, features and so on. which were completed within an elapsed time. It’s the measurement of the output from the whole team of developers. Throughput lets project managers examine the work that team members do, and to understand their tasks more precisely.

3. Net Promoter Score

The Net Promoter score was developed by the management consultant Fred Reichheld in 2003, the Net Promoter score is a measurement that focuses on the loyalty of customers. It provides a clear and precise customer satisfaction rating which can be compared across various industries. Additionally the NPS determines the extent to which an individual respondent would recommend a particular company product or service to friends and family.

4. Code Coverage

Code coverage is among the primary performance indicators for agile development which can assist you in determining the amount of code lines that have been validated in a test. It helps software developers keep their code in good quality. Furthermore it allows developers to have constant exposure to code that is flawed which ultimately leads to high quality products.

Key software development KPIs

The software’s performance is dependent on the productivity of the team as well as the ability of team members to finish the tasks assigned to them within the timeframe. Making high-quality digital development is dependent on a skilled set of KPIs for software development which are correctly assessed at different phases of the project.

KPIs also referred to as Key Performance Indicators are the metrics which help you evaluate the overall performance of your business and show how your development processes are closely aligned with the business objectives.

Here are the most important KPIs to measure software development

1. Chart for Sprint Burndown

Sprint burndown is among the most popular metrics for measuring progress employed by scrum teams in managing their process of development. It provides a visual representation that outlines the project’s performance within the specified time and the quantity of work accomplished during each repetition.

Here’s how you can build a reliable sprint burndown chart

• Create a work-management baseline to measure the effectiveness of planned and actual tasks
• Do a gap analysis that is basing your analysis on inconsistencies
• Gather information to be used in future sprint gatherings
• Re-allocate resources to finish sprint tasks on time

Overall, the burndown chart gives you access to current reports on the progress of your project.

2. Velocity

Velocity is the measure of work done by a group during a sprint. There are a variety of methods to determine the speed that are popular. The most well-known one is using story points. The method of evaluating story points measures the dimensions of a software development product as well as the time it takes to create it.

Whatever the size of your project it is essential to run three sprints to determine how quickly your team will be able to complete the project. Additionally, speed can aid in estimating how much development will cost prior to the start of development.

3. Release Burndown

Burndown of the release is an important KPI to software designers. It tracks the entire progress of release. Furthermore, this measurement helps team leaders in guiding their team members in controlling how to release the product. In burndown charts for releases the x-axis displays sprints and the y-axis is for story points.

It is possible to use the release burndown chart to determine if you’re performing as planned. Additionally, you will keep accurate information on hand to inform stakeholders of what they can expect to see in ROI following the release. In addition, you can notify happy customers on delays or earlier releases.

Set out for a progressive approach to software development through Simform!

Teams of software engineers constantly search for ways to enhance their processes and deliver. Without metrics for software development the teams don’t have an objective, reliable way to gauge performance.

The metrics for software development discussed in this article can assist you in improving your customer experience, monitor the progress of your development and show the performance of your team as well as reduce technical debt and provide important information about the overall health of your company.

Simform’s experts at Simform will examine every step of development and assist you establish the proper KPIs to ensure the highest quality results. Simform’s team is experienced in monitoring and enhancing the development process. Join us to get a no-cost meeting with our experts in software today!

How can iTechnolabs help to  create software development metrics and KPIs?

In today’s fast-paced and highly competitive business landscape, effective software development is pivotal for staying ahead of the curve. To achieve excellence in software development, organizations must rely on data-driven insights. Key Software Development Metrics and KPIs (Key Performance Indicators) play a vital role in this regard. They enable teams to monitor progress, make informed decisions, and continuously improve their development processes. In this article, we will explore the significance of these metrics and KPIs, provide examples, and showcase how iTechnolabs can help organizations leverage them to achieve their software development goals.

The Significance of Software Development Metrics and KPIs

1. Quality Assurance Metrics:
   a. Defect Density: Defect density measures the number of defects per line of code. iTechnolabs can help organizations set optimal defect density benchmarks and implement strategies to reduce defects, ultimately leading to higher software quality.
   b. Code Coverage: Monitoring code coverage helps identify untested or under-tested parts of the codebase. iTechnolabs can assist in implementing comprehensive testing strategies to improve code coverage and minimize the risk of critical bugs.
2. Project Progress Metrics:
   a. Burndown Chart: iTechnolabs can help teams track progress through burndown charts, ensuring that the project stays on schedule and that any deviations are promptly addressed.
   b. Velocity: Velocity measures the amount of work a team can complete in a sprint. iTechnolabs can help teams optimize their velocity by refining their Agile processes and identifying bottlenecks.
3. Code Quality Metrics:
   a. Code Review Feedback Time: Swift code review feedback is crucial for maintaining code quality. iTechnolabs can implement streamlined code review processes to reduce feedback time and enhance collaboration among team members.
   b. Code Duplication: Identifying and eliminating code duplication is vital for reducing technical debt. iTechnolabs can assist in implementing tools and practices to detect and refactor duplicated code.
4. Release and Deployment Metrics:
   a. Deployment Frequency: iTechnolabs can help organizations increase deployment frequency through automation and continuous integration practices, reducing the time-to-market for new features and bug fixes.
   b. Change Failure Rate: Lowering the change failure rate is essential for stable software releases. iTechnolabs can help teams improve their release processes and minimize the risk of failed changes.

Examples and Best Practices

1. Defect Density:
   Example: Before iTechnolabs intervention, a project had a defect density of 10 defects per 1,000 lines of code. After implementing best practices and regular code reviews, the defect density reduced to 3 defects per 1,000 lines of code.
   Best Practice: Regularly review code, conduct root cause analysis of defects, and implement automated testing to catch issues early in the development cycle.
2. Velocity:
   Example: A development team’s velocity was initially 20 story points per sprint. iTechnolabs worked with the team to improve their estimation accuracy and refine their Agile processes, leading to a velocity increase to 30 story points per sprint.
   Best Practice: Focus on accurate sprint planning, remove impediments promptly, and continuously improve the team’s capacity and efficiency.
3. Code Review Feedback Time:
   Example: Prior to iTechnolabs involvement, the average code review feedback time was 5 days. After implementing streamlined processes and automation, the feedback time reduced to 1 day.
   Best Practice: Set clear expectations for code reviews, automate repetitive tasks, and establish a culture of timely and constructive feedback.
4. Deployment Frequency:
   Example: An organization used to deploy updates quarterly. With iTechnolabs guidance on automation and continuous integration, they increased deployment frequency to bi-weekly releases.

iTechnolabs’ Expertise in Software Development Metrics

iTechnolabs is an industry-leading software development consultancy with a proven track record of helping organizations optimize their software development processes through the effective use of metrics and KPIs. Here’s how iTechnolabs can assist your organization:

1. Customized Metrics Strategy: iTechnolabs tailors a metrics strategy to your specific needs and goals, ensuring that you are measuring what matters most to your organization.
2. Tooling and Automation: iTechnolabs leverages cutting-edge tools and automation to collect, analyze, and visualize data, making it easier for teams to monitor progress and make data-driven decisions.
3. Process Optimization: iTechnolabs works closely with your teams to identify bottlenecks and areas for improvement in your software development processes, helping you streamline workflows and deliver higher-quality software faster.
4. Team Training and Coaching: iTechnolabs provides training and coaching to empower your teams to understand and act upon the insights derived from software development metrics effectively.

Are You Looking for a Software Development Company?

In today’s competitive software development landscape, the effective use of Key Software Development Metrics and KPIs is indispensable for success. iTechnolabs expertise in this area can help organizations drive improvement in quality, project progress, code quality, and release and deployment processes. By implementing best practices and leveraging iTechnolabs guidance, organizations can optimize their software development efforts and achieve their business objectives with greater efficiency and effectiveness.