Software Design Documentation (SDD)

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A software design document (SDD) is an important factor in the development of a software system that is maintainable and scalable. Each software system has a set of documents in many forms, and the Software Design Document (SDD) is arguably the most important one. In this article, we will look at what the SDD is, what it contains, who creates it, when it is an important consideration in the software development lifecycle, and the difference between an SDD and other forms of documentation.

Table of Contents:

What is SDD (Software Design Document)?

A Software Design Document (SDD) is a detailed technical document developed by a team that is solely focused on creating one product. A Software Design Document (SDD) is developed by a development team after gathering and finalizing the business and functional requirements. The SDD will explain how they will design and build the software product. It gives developers a way to interpret that information and apply it; the development team would define the system architecture, how the system components interact with each other, where the integration points are, the flow of the data, how to handle errors, etc.

The SDD provides a bridge between what the software is supposed to do, as per the Software Requirements Specification (or SRS), and what it will do from a technical perspective. The SDD specifies requirements for hardware and software, the tech stack that will be employed for the implementation, which environment variables need to be configured, as well as many other details necessary for the technical implementation.

Key Components of an SDD

Let us explore the key components that are required in an SDD to make it effective. These are some of the required components that you must add to this document.

  • Technical Architecture: The SDD’s technical architecture section explains how the team has structured the entire software system. It describes the main components, such as front-end, back-end, and database, as well as how they interact and work together.
  • Module and Component Design: This section describes each module and component in more detail. It explains what each component does, how it interacts with other components, how it passes data between them, and how it transforms the data where needed.
  • System Integration: This particular section in the SDD outlines the system-to-system interactions. These may be communication via API calls, database connections, third-party tools, or other internal software applications.
  • Data Flow Diagrams (DFD): A DFD, or data flow diagram, provides a visual representation of additional detail on the data flow in the system. It should clearly show where the system receives the data, where it transforms the data, and where it sends the data.
  • Security Considerations: This section provides further detail on the security of the system around logins, user access, data security, the default encryption settings used by the system, users’ privacy, and legal requirements.
  • Error Handling and Exception Management: This area of SDD is responsible for describing how the system detects, logs, and handles errors or failures. This is helpful to know when trying to resolve an issue or failure.
  • Configuration Settings: This section identifies the settings and values required to run the software or service in different environments, such as development, testing, and production, and indicates system dependencies.
  • Deployment Strategy: This section outlines the approach for the software installation and running of any components in the different environments. It identifies tools and steps that will be used during the deployment process.
  • Testing Approach: This section describes how the software will be tested. It details the unit tests, integration tests, system tests, and user acceptance tests (UAT), data used for testing, and QA responsibilities.

Who Prepares the SDD?

Because the SDD is a technical document, it is written by a team that includes the following representatives:

  • Software Architects: They determine the overall structure of the system and how it will be connected and operate.
  • Senior Developers or Tech Leads: They plan the design of each module and explain how they will operate with reference to each other.
  • Infrastructure or DevOps Teams: They plan for the deployment of the software. They also determine the processes for CI/CD, or server/cloud setup.
  • Security Engineers: They add the security rules and explain how the system will comply with security standards and legal requirements.

SDD vs Other Software Documents

After learning about the Software Design Document (SDD), it is important to know how it is different from an SRS (Software Requirement Specification):

Aspect Software Requirements Specification (SRS) Software Design Document (SDD)
Purpose The SRS explains what the software should do. The SDD explains how the software will be built.
Focus The SRS focuses on functional and non-functional requirements. The SDD focuses on system design and technical architecture.
Audience The SRS is written for stakeholders, project managers, and testers. The SDD is written for developers, architects, and DevOps teams.
Level of Detail The SRS gives a high-level view of the system and user behavior. The SDD gives a detailed view of modules and technical design.
Creation Stage The SRS is created at the beginning of the project. The SDD is created after the requirements are clearly defined.
Note: In some domains like RPA, embedded systems, or regulated industries, you may also encounter domain-specific design documents.

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Importance of an SDD in the Software Development Lifecycle

An SDD is more than just a document. It is the backbone of making sure the software is built correctly, is more easily maintainable, and is ready for future growth. It holds high regard in the software development lifecycle.

  • Serves as a Blueprint: An SDD serves as a blueprint just like a construction blueprint. A blueprint tells developers exactly how to build the software. For example, if developers need to build a login page, the SDD will need to explain how the backend will handle login data, what validations need to take place, and how to access the user database.
  • Facilitates Collaboration: An SDD can help engage all teams collaboratively. Developers, testers, DevOps engineers, and security specialists can all look to the same document. For instance, while developers read the logic part of the SDD, testers prepare test cases using the same steps, and DevOps can plan their deployment complexity around the architecture section of an SDD.
  • Mitigates Development Risks: Having teams develop the SDD early in the project will be useful by identifying potential issues before coding starts. For example, if they are depending on a third-party API with known limits, this knowledge can become part of the SDD, and the developers can plan for a fallback mechanism if the API fails or is slow.
  • Facilitates Testing: The testing is more efficient when the testers know the test criteria. An SDD specifies all the modules, their potential inputs and expected outputs, and the behavior in different conditions. For example, if the SDD indicated that the “password reset” function was supposed to send an email within 5 seconds, the QA team can verify that conditions.
  • Helps in Maintenance: If developers needed to fix a bug or update the system after a long period of inactivity, the SDD would be the reference material for getting back on track. Without it, developers may struggle to know how the original logic was intended. For example, a new team member is assigned to read the SDD to understand the logic behind the “payment gateway” instead of fumbling around to try and guess how things work.
  • Supports Scalability: An SDD should be written in a thoughtful manner that includes future growth considerations. That is to say, if an app is launched with 1,000 users, there is a possibility that this could grow to 1 million users. The SDD should profile design decisions that account for scaling, such as load balancers and splitting databases. This may prevent hours of time lost and double work later down the line.

Common Mistakes to Avoid While Preparing an SDD

Creating a solid SDD requires attention to clarity, accuracy, and completeness. Here are common mistakes you should avoid:

  • Writing unclear or vague design descriptions: If the design is not written, developers may build the wrong features. For example, saying “connect to the database” without explaining which database, what tables, and how to connect will confuse the developer. Each module should have clear details and step-by-step logic.
  • Using overly technical language without context: An SDD should be technical, but it must also be understandable. If you use terms like “stateless RESTful API with token-based auth” without explanation, junior developers might get lost. Always add a small context or example to help the reader understand what you mean.
  • Ignoring edge cases and exception handling: Many bugs happen when something unusual occurs, like a network failure or a wrong input from the user. If the SDD does not mention how the system should behave in such situations, the software can crash. For example, what should happen if a user enters the wrong password five times?
  • Not using version control for the document: If your SDD is updated and shared without version numbers, people may work with the wrong file. This can lead to building outdated features. Always maintain version history, such as v1.0, v1.1, and write what changed in each version.
  • Not involving the right team members in writing or reviewing: An SDD should include input from developers, testers, architects, and sometimes business users. If only one person writes the SDD, important things might be missed. For example, developers might not consider security unless a security engineer reviews it.
  • Using inconsistent terminology or formatting: If you call one module “LoginService” in one section and “Authentication Module” in another, it will confuse readers. Use the same terms throughout the document. Also, use proper headings, bullet points, and diagrams to make it easy to read.

Conclusion

A well-written Software Design Document (SDD) is crucial for bridging business goals and technical execution. It not only guides developers during implementation but also supports smooth collaboration, rigorous testing, and efficient maintenance. By understanding its purpose and using a structured approach, teams can avoid costly rework and build software that scales well and performs reliably. Whether you’re leading a startup project or working in a large enterprise, investing time in preparing an SDD is a decision that pays off throughout the entire software development lifecycle.

Software Design Documentation (SDD) – FAQs

Q1. What is the full form of SDD?

SDD stands for Software Design Document.

Q2. What is the purpose of an SDD?

An SDD is used to document the technical solution, detailing how software or automation will be built and implemented.

Q3. What does an SDD define in a software project?

An SDD defines the technical solution, including workflows, configurations, and the components used to implement the software or automation.

Q4. Who typically prepares the SDD?

The SDD is usually prepared by software developers or solution architects, based on the project requirements.

Q5. What is the main focus of an SDD?

The main focus of an SDD is on the technical implementation of the solution, outlining how the software will be constructed and function.

About the Author

Senior Consultant Analytics & Data Science, Eli Lilly and Company

Sahil Mattoo, a Senior Software Engineer at Eli Lilly and Company, is an accomplished professional with 14 years of experience in languages such as Java, Python, and JavaScript. Sahil has a strong foundation in system architecture, database management, and API integration. 

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