Why should software developers be business savvy?
Some software developers take to business like ducks to water, says Juha Huttunen from Rakettitiede on Ite wiki interview. Read the full article below, the original text was published in Finnish here.
Software development isn’t only about writing code. It also involves problem-solving, collaboration, and ultimately supporting business through technology.
But why should software developers understand business? Why isn’t it enough to have technical expertise?
To delve into this question, we decided to talk to Juha Huttunen, CEO of Rakettitiede, a software consultancy known for its senior-level software experts.
“All our consultants are multi-talented and have worked on a wide variety of software projects,” Huttunen says, describing the Rakettitiede crew.
As the interview unfolds, Huttunen sheds light why understanding business is critical in software development and how it impacts the collaboration between developers and clients.
Experienced developers: innovators, not followers
According to Huttunen, everything boils down to a simple fact: “If a software developer doesn’t understand business, they’ll be content simply doing someone else’s bidding. Meanwhile, businesses often operate like startups and want to quickly test the viability of a concept in the market. That’s why the best decisions often involve not developing a certain feature,” he explains.
A developer who’s business savvy knows when to hit the brakes if they see the development heading in the wrong direction.
Software developers’ solutions can either advance or hinder a company’s business goals. And when it comes to digitalisation, the options are endless. Essentially, when a software developer has a solid understanding of business, it guarantees that the right things are being developed.
Huttunen says that a software developer doesn’t even need to understand the challenge in great depth – the key is understanding the customer’s needs.
Juha Huttunen, CEO at software consultancy Rakettitiede, hard at work.
“Everything starts with understanding the product being developed. The trick is to outline how developing function X affects the end product,” Huttunen says.
He makes a distinction between the operations of startups and larger companies in the development context. In startups, everyone usually understands the business and the service being developed, whereas companies that have been in the market longer have more specialised functions, with experts deeply involved in developing specific processes.
“In larger companies, a greater division of labour is necessary and specialists handle different tasks.”
Whether we’re talking about a young startup or a long-established global player, a software developer’s business acumen ultimately means savings for the client.
“At its best, business experience translates to savings. When a developer has business experience, they also have a better grasp of which tasks to prioritise. This is because these people can foresee the broader impact of the function being developed. That’s the key benefit of having business experience,” Huttunen says.
Huttunen stresses that this isn’t rocket science.
“Anyone who has been in the software industry for a while should know these things. Nevertheless, it’s a common pitfall.”
Huttunen uses “pitfall” to describe situations where business requests are not adequately questioned by technically knowledgeable developers, resulting in the development of fundamentally flawed solutions. “And that’s how we end up reading in the news about some public entity squandering two million euros on a failed IT project,” Huttunen says.
Huttunen doesn’t mention how often these pitfalls occur in the private sector, but it’s more than likely that companies’ software projects are not immune to such problems either.
What is required of a business-oriented software developer?
Curiosity is the first thing Huttunen mentions. “Curiosity is the bare minimum, but some developers just take to the business side like ducks to water. Such individuals are ideal for roles such as CTO.”
At Rakettitiede, the importance of business acumen is clear in the company’s efforts to recruit developers who are also keen on the business side.
The client’s interest in what’s happening “under the hood” also enhances communication and understanding of the project.
The key is mutual trust.
“Simply put, the client’s business representative and the software developer must be able to trust each other. The better they understand each other’s language, the better the outcome,” Huttunen explains.
He says the developer needs to trust that the business representative makes the right decision for the business. Likewise, the business side must know that the developer has the guts to be honest about how things really stand. When experts can feel confident that they won’t be thrown under the bus for individual setbacks, it fosters psychological safety. If the software consultant is honest and transparent, it builds trust that the right things are being done, not just those that make the most money for the digitalisation partner.
Only experience helps in understanding the other side.
A bit of exercise during the workday supports creative thinking. Blowing off some steam is also allowed!
“Mistakes in this area need to be made when young. I used to think I knew everything when I was younger as well. However, what you might not yet understand then is that it’s smarter to do things for the general good rather than a single technical solution. Something like this can take ten years to learn; some learn faster, some slower.”
Huttunen adds that an experienced software developer brings experience from multiple client projects to the table.
“The client’s business may have worked in the same industry for an average of, say, five years. A software consultant may have solved problems for five different clients in that same time. While clients always excel in their own fields, external tech experts can offer innovative solutions the business side hasn’t even considered,” Huttunen explains.
“Usually, the developer is the only one who has to think the project through to the end. This can mean having to consider how each function being developed affects everything else in the software, or how much time it really takes to implement each function,” Huttunen says.
“If you don’t have experience, things seem simpler than they really are,” Huttunen concludes.
Turning code into cash
Having a business savvy developer is critical not only for successful technical implementation but also for achieving real business benefits.
This was also emphasised in Rakettitiede’s webinars, where Jussi Hacklin, VP of Digital Development at Elisa, and Petteri Niemi, CEO of 020202 Palvelut, shared their insights.
In his talk, Jussi Hacklin pointed out that understanding is not one-way – business also needs to grasp the technology side. Dialogue, trust, and transparency are key.
“No one can deliver the desired outcome alone,” Hacklin said, emphasising continuous interaction between teams. According to him, a developer’s business understanding opens new perspectives that can lead to simpler, more scalable and more valuable business solutions. Two-way coaching is recommended: developers and business professionals can learn from each other in short, concrete sessions.
Petteri Niemi, on the other hand, highlighted the significance of business acumen, especially a consultancy-based teams. “When the development team truly understands the business, things get done cost-effectively, quickly and to a high standard –this is then directly reflected in the outcome,” he said. Niemi said that when it comes to improving business understanding, the role of consultants in is not only to support the company but to be genuinely part of its core.
Good communication and a desire for mutual understand form the foundation for building a culture where lines of code turn into cash.
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