For most businesses, software is a significant investment and one that can play a central role in the overall running of the company. And one of the biggest decisions facing business owners is choosing between off-the-shelf solutions and custom enterprise software. So, what's the difference ?
A good analogy here would be buying a suit - an off the rack suit will do the job and might look OK, but a made to measure outfit will be vastly superior in fit and form.
Off-the-shelf software can be a great solution for businesses with straightforward needs, because it's usually affordable and can be purchased and installed quickly with minimum fuss. Custom software, on the other hand, is made to order and is tailored to meet your unique requirements, processes and goals. It fits your business perfectly, just like a beautifully made suit.
What's the Difference ?
Before making the decision between these two packages, it's important to fully understand the differences so you can make an informed choice that supports your objectives. The decision you make will ultimately impact how efficiently your business operates and evolves.
Although off-the-shelf solutions have a lot going for them including affordability and convenience, they can quickly become limited as your business grows and evolves.
Choosing to instead
develop custom enterprise software may involve extra cost and a longer lead-time. This is, however, usually more than balanced out by the fact that it allows for flexibility and scalability, adapting to your needs over time. Forward thinking businesses with an eye on growth will often choose a bespoke tech package as an investment for sustainable growth as these align more closely with the company's workflows and challenges.
Understanding Off-The-Shelf Software
This is the "usual" method of buying software: it's pre-built, designed to meet the needs of a broad range of businesses and offers quick access to technology without the long development time and hefty price tag of custom solutions.
The definition
Off-The-Shelf Software is is a ready-made solution which can be purchased quickly and easily and is suitable for a wide audience. These mass produced packages perform straightforward functions such as accounting and customer management with minimal set-up. While these products may not have all the bells and whistles of other options, their appeal lies in the fact that they can be accessed, installed and up and running pretty much immediately within a business setting.
Pros And Cons
This type of product isn't for everyone, so here we'll look at a few Pros and Cons:
The Pros
- Budget friendly - This option will usually be affordable for most businesses
- Fast installation - With boxed packages, you'll usually be up and running in no time at all
- User friendly - As a made-for-all product, this purchase will be supported by regularly updated documentation and support, including a community of users helping one another with common issues
The Cons
- Customization - As this is software for the masses, customization will usually be extremely limited
- One size doesn't fit all - This type of product will rarely accommodate unique business needs which may mean that you have to adjust your processes to fit the software rather than the other way round
- Upgrades - Here, you will be entirely at the mercy of the vendor which may not align with your timelines
- Scalability - This usually won't be possible meaning that you will probably have to replace your software once your business outgrows it
Who is it for?
Off-the-shelf software is ideally suited to small to medium sized businesses (SMEs) who want a reliable solution but don't have the time or budget for anything fancy. This option can be a good fit if you want a tried and tested product and don't need any specific or complicated customization. SMEs are often short on cash, time and IT resources and so going this way can be a really good match.
Understanding Custom Enterprise Software
This option puts you and your business firmly in control by providing tailored customization and flexibility, thereby allowing you to address specific challenges and optimize your processes.
The definition
Custom enterprise software is designed from scratch to a brief created around your specific business processes. Unlike mass-produced versions, this process will involve collaboration between developers and business stakeholders to ensure that the final product aligns with the company's goals and objectives.
Pros And Cons Of Custom Software
This type of bespoke technology has some great benefits but also requires a significant time and budget commitment so let's look at some of the pros and cons:
The Pros
- Made to measure - As this product is created to your brief, it will hit the ground running with all the features that you need to support your unique business operations
- Customization - This option gives you comprehensive control over customization and personalization features
- Compatibility - This software can be built to align with your existing systems
- Security - Your unique product can be built with specific security measures for added peace of mind
- Efficiency - As this software works to your parameters, it will make your business run more efficiently; giving you a competitive edge
The Cons
- Initial cost - As you would expect, the initial financial outlay for this option will usually be higher than the alternative
- Time - The design process involves detailed analysis and development which can take several months
- Maintenance - Your product will need ongoing updates and maintenance in order to keep it relevant
Who is it for ?
Custom software solutions are ideal - if not essential - for businesses with unique processes that standard solutions cannot handle. This is also the right choice for those with requirements that include specific features and / or security as well as businesses planning for long-term growth.
Custom development allows for flexibility as the needs of your business change. When considering going down this route, it's important that you:
- Evaluate the balance between cost, functionality, and business goals
- Assess potential return on investment before making a decision
- Set clear objectives to guide development
Conclusion
When making this important decision, it's vital that you carefully consider your requirements and your budget. While off-the-shelf solutions are fast and affordable, they can also be limited in setup and features ... and may only be suited to smaller businesses. In contrast, custom software provides tailored features, making it ideal for businesses with specific and complex needs. This option, though more expensive, offers superior scalability and unique integration abilities.
Key points:
- Off-the-Shelf:
- Ready to use
- Economical
- Limited customization
- Custom Software:
- Tailored fit
- More expensive
- Greater flexibility
Your evaluation isn't something to be taken lightly. And it will require the careful weighing up of the immediate needs of your business against future growth plans and resources.
And if you do this, you will reap the rewards of a well thought out and effective decision, well into the future.
