Custom information system or off-the-shelf software?

Off-the-shelf software is ready straight away, a custom system fits your processes exactly. When does each option pay off and how do you choose between them?

Published
Reading time3 min
AuthorIng. Jaroslav Fikar

When a company outgrows spreadsheets and e-mail, it faces a question: buy ready-made software or have a custom system developed? There is no one-size-fits-all answer. It depends on how specific your processes are and how important they are to your business.

When off-the-shelf software makes sense

For routine areas that work the same way in most companies, a ready-made solution is often a sensible choice. Typical examples are accounting, payroll, company e-mail or document sharing. You get it quickly, there is no development to manage and the vendor takes care of updates.

  • Your processes match the way the software works.

  • You don’t need major customisation or integration with other systems.

  • The area is a necessity for you, not a competitive advantage.

When a custom system pays off

A custom system pays off where off-the-shelf software forces you to bend your processes or keep part of the work on the side in spreadsheets. Signs that it is time to consider your own solution:

  • You use several tools that don’t talk to each other and copy data between them by hand.

  • Your way of working is specific, and that is exactly where your edge over the competition lies.

  • You pay for lots of features you don’t use, while the ones you need are missing.

  • You want to offer customers or partners your own portal or app.

What to focus on when deciding

Don’t compare purchase costs alone. Also consider the time your people spend working around the limits of the current solution, the errors caused by manual copying and how easily the system can be extended as the company grows. With off-the-shelf software, check whether you can export your data and connect it via an API. With a custom system, ask who will own the source code and how ongoing support will be provided.

Combining both approaches

The choice doesn’t have to be black and white. A combination often works best: accounting stays in proven software, while a custom system covers what is key for the company, such as orders, production or customer communication. The two systems are connected, so data doesn’t have to be retyped.

Start with a small first version

A custom system doesn’t have to be built all at once. It works well to start with the part that holds you back the most today, put it into operation and add further modules gradually. The risk is lower, you see results sooner and the system grows with you.

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