How custom software solutions are better for growing companies

Introduction

Having a growing business means having growing requirements. For instance, you will need to hire more people for accounting, product marketing, or research and development, among other tasks. At the same time, you must maintain the quality of your products or services as well as the accuracy of your inventory. Preparing for these new requirements is one of the best steps you can take to ensure proper business growth. Thankfully, this is much easier to do now because of customized software solutions.

Before we jump into the hows and whys, let’s first talk about some of the biggest businesses across the globe. One of the things that they have in common is that they all use software to assist their operations. These include reducing inaccuracies stemming from human error, eliminating time-consuming tasks, and even guiding the decision-making of executives. However, with plenty of options on the market, it’s not always easy to choose the right software for your business.

In this article, we’ll help you determine whether to get a customized software solution or a ready-made software product. Let’s start by defining what they are.

What is off-the-shelf software?

Off-the-shelf software refers to ready-to-use and widely available software solutions that cater to specific business problems. Every such piece of software offers a standard set of features, which means that when you purchase one, you will get most of what you need. For example, if you purchase an off-the-shelf accounting system, it will likely come with billing and invoicing, income and expense tracking, and other integral accounting features. Having the features you need as soon as you start using such software means that you can streamline your operations right away. Thus, opting for off-the-shelf software can save you plenty of time.

On the other hand, having standardized features also means that there’s little room for flexibility. Not all features might align with your requirements, for instance. A few features that are specific to you might not even be present or might be locked behind a more expensive subscription. Furthermore, as your business grows, off-the-shelf software might no longer meet your expanding needs, making scaling up inefficient or costly.

Advantages

• Easy to implement (purchase, then use right away)
• Initially cost-effective for smaller organizations (some might even offer free subscriptions)
• Well-documented
• Little to no maintenance required

Disadvantages

• Lack of scalability and flexibility
• Competitive disadvantage (competitors might use the same software)
• Vendor lock-in (switching into another solution in the future will be more complex and costly because of certain vendor-specific differences, e.g., data format mismatches)
• Increased costs over time (recurring license fees, additional subscription fees for more users or features, integration/migration fees)

When should you choose off-the-shelf software?

• You need to implement a software solution to improve business operations as soon as possible
• You already know the features that you need and you’re confident that you won’t need many changes in the future
• You want to start implementing a software solution with as little cost as possible
• You have the budget to purchase a premium plan of a solution and you can fully maximize its features

What is a customized software solution?

A customized software solution, also known as a bespoke solution, is one that is tailor-fit to solve the needs of a specific business. It is different from off-the-shelf solutions in that it is not mass-produced. In other words, instead of purchasing one readily available software solution, you would either hire a development team or a third-party solution provider. This allows you to collaborate with your chosen solution provider regarding the features that you need. Therefore, you would have better control over your software implementation.

For instance, let’s say you want to integrate your accounting system with an existing inventory system. This proves difficult to do with off-the-shelf solutions due to different business rules, incompatible data formats, and diverse or outdated tech stacks. On the other hand, customized solutions allow you to dictate your exact requirements for a smooth integration between systems.

It’s important to note, however, that choosing a customized software solution is not for everyone. Most likely, implementing such a solution will take more time and resources, making it less optimal for startups. However, if you possess the time and financial resources, or if your business is poised for growth, you may discover that it represents the optimal choice. Additionally, compared to previous years, customization is much easier now thanks to an abundance of available development tools.

Advantages

• Tailored to your needs (you get exactly what you need)
• Very scalable (the software can easily adapt or adjust to accommodate new requirements or integrations)
• Full control and ownership of the system and its features, design, development, and codebase
• Predictable costing
• More cost-effective in the long run

Disadvantages

• Longer implementation time (planning, development, testing, and so on)
• Higher upfront costs
• Dependence on skilled developers (if you choose to build your own, you will need to hire professionals, which will take additional resources)
• Harder to maintain (if you choose to build your own, you are responsible for maintaining it through regular bug fixes, checks, and other tedious processes)
• More difficult for companies without well-documented or standardized business processes (this is why you should choose a solution provider that excels in business process analysis)

When should you choose a customized software solution?

• You have unique business needs that off-the-shelf solutions cannot meet
• You want a solution that is scaled for growth, i.e., you need it to adapt to evolving business requirements or increased number of users
• You need to integrate it into your ERP software or other software
• You want to have an edge over competitors that rely on generic solutions
• You want to avoid vendor lock-in or software obsolescence

Now that we’ve delved into both types of software, we can infer that growing companies can benefit more from customized software solutions. This is because of the scalability, flexibility, and control that they provide. And sure, off-the-shelf software might take a shorter time to implement. But when the time comes to handle new requirements, you will have to make plenty of changes. These include upgrading to a more expensive subscription or even using a different off-the-shelf solution. If you have customized software, on the other hand, you will only have to send your new requirements to your solution provider.

So, how exactly can customized software solutions help businesses grow? Let’s explore this in the next section.

How can customized software solutions help growing companies?

Customized software solutions offer different benefits for growing companies. By being tailored to address specific problems, these solutions ensure that businesses will grow as efficiently as possible. Here are some ways that customized software solutions help companies grow smoothly:

• With customized software, you will ensure that intended users will have little to no difficulty performing their operations. For example, you can have your solution provider create a design that is familiar and comfortable for the users within your organization.
• Customized software solutions will give you exactly what you need. This means that you will avoid paying for features that you don’t need, which usually comes with purchasing off-the-shelf solutions.
• Customized software solutions often provide you with a better way of storing and accessing your data. You will have control over where to store your data (e.g., on your own on premise servers or on a cloud server) and even how you store it. Depending on your digital security measures, this might also offer better data security.
• You can easily incorporate your brand into customized software solutions. Some off-the-shelf software solutions allow you to do this as well, albeit for a price. For customized solutions, you can simply discuss the UI with your provider to include splashes of your brand identity.
• As stated earlier, customized solutions can give you more savings in the long run. This is because before you even implement the software, you will already know how much budget is necessary. After that, every future cost will be predictable (e.g., fixed maintenance fees). This is in contrast to paying for recurring and periodically changing license, subscription, support, feature upgrades, and maintenance fees.

Conclusion

With numerous ways to implement a software solution for your business, deciding which one to implement can often pose a challenge. After all, none is better than the other. At the end, you should decide based on your requirements and available resources.

Do you need a quick answer to your operational problems? Have you just started your business? Can you allocate financial resources for premium plans? Then maybe off-the-shelf solutions are for you. Do you seek a long-term solution to your needs? Is your business starting to grow, and are you anticipating many changes in terms of processes, operations, and standardization? Do you have special requirements? Then you should probably choose to build or purchase a customized software solution. Remember that whichever you choose, if you find it working for you in the future, then you will have made the right choice.

Do you need more help in choosing which is better for your business? Talk to our experts, or send us a message at inquiry@stratostechnologies.net.