Increasing business efficiency by reducing 'islands of information'

Many organisations invest in, and continue to use, software that simply doesn't work for their business - in fact this software is actually proving counter-productive!

We have also heard of many cases where off-the-shelf systems have failed to deliver what a client really needs and these range from CRM systems (initially attractive because of cost) through to $50K+ inventory management and ordering systems that only achieve 60 to 80% of what was completely required. Why would they do this?!

There are basically two general categories of software. One is off-the-shelf (or packaged) software which is ready-to-use when installed on a computer, server (or device).

The other is custom software developed according to specific requirements.

There is often a vast gap between the two with respect to usability, functionality and performance and these differences can assist with the decision about which one to choose. Many businesses don't even realize that they can have a choice. Our experience has shown that the most important differences that are considered when investing in packaged and customised software is the financial investment required and the organisations needs.

Off-the-shelf software is often a cheaper solution and will normally only meet the broad requirements of an organisation, while custom software, although perhaps initially more expensive, is designed to address complete requirements and proves the more cost beneficial over time.

So, in the light of all these facts why would an organisation acquire customised software?

One of the core differences between off-the-shelf and customised software is the cost. Any off-the-shelf product is typically moderately priced whereas a tailored product will be more expensive to develop. The logic is easy-to-understand - all expenses related to development of the off-the-shelf product are dispersed among a large number of buyers and thus the pricing is spread over multiple licenses that will be sold. The price is determined by the size of the potential market, market segment competition and what the market can bear.

On the other hand, customised software is made for a single customer and consequently all development expenses will be borne by one entity. If this is the case - then we have to ask again - why would an organisation opt for a customised solution?

The answer to this question is obvious. Any off-the-shelf product is designed for a vast audience and it's almost impossible to find a software solution which will include all the features you expect from the software and this is the crucial pro to having your own custom software developed.

Typically an organisation will need some fine tuning to implement or deploy an off-the-shelf product. If any customization is possible (and in many cases this is not the case) these additional costs are often highly prohibitive. As well, the technicians required to make these changes are often solely based in metropolitan areas and therefore cannot get a feel for how your business is operating.

This drawback is the biggest advantage when considering a customised software solution. Customised software consolidates internal processes and information and creates a framework for automation whereby data and processes are integrated rather than remaining disconnected 'islands of information'.

In addition if you have off-the-shelf products you will also have off-the-shelf updates. Every time off-the-shelf software is revised you will need to dip into your pocket for product updates (think accounting software). On the other hand, sometimes off-the-shelf products are not updated for a long period of time so you may also end up with outdated software whereas customised software can be updated as and when needed.

Automation of different business functions raises the question whether to use customised or off-the-shelf software solutions. However developing companies aiming at automation and simplification of business processes to increase business efficiencies are investing more and more money in IT systems. This implies that customised software development is enormous and limited only by imagination and budget.

If an organisation is seeking a competitive advantage, is looking to create a consolidated information solution and has unique requirements, then a customised solution will deliver more comprehensive results over a commercial off-the-shelf packaged solution.