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Customized Software for your Business

Advantages and disadvantages between custom software development and generic software

Martin Kornblum

Nowadays, every business needs software for different purposes, varying from transactions processes to providing the necessary information for decision making. The companies that have those tools allow their business to develop comparative advantages in today�s market.

Every field has its own needs, and at the same time every company generates its own requirements according to the way they work. The selected system has to offer solutions for most of the possible situations, and also, it shouldn�t have to leave any details to chance or to the operator�s memory. Moreover, it has to offer safety and validity in that the information the system provides is absolutely real and trustworthy.

To set up a system that fulfills the requirements of your company, you must evaluate which system will meet all needs and present a significant cost-benefit. Keeping these concepts in mind, the question arises of whether one should choose generic systems for their business or go with custom software development.

Generic systems:

In certain cases, generic systems are an ideal solution mainly in sectors where the tasks are simple and similar for all companies, and there aren�t many confidential business processes. An example would be a system for a grocery store. Because of its magnitude and variety, there are generic software products that cover every need it may have.

In other cases, a business purchases a generic system that caters to their own industry or sector, because the product is, oftentimes, fast to install and inexpensive. However, after using the product for a while, the users realize that there are several job functions that the system does not take into account. In these cases, some major companies modify the product to adjust to their needs and end up spending a lot more than expected. Sometimes we find ourselves trying to adjust our way of working to be able to work with the system, but ideally the system should adjust to the business� needs, as a means to the end of improving internal processes, cutting down on costs and increasing productivity.

Customized systems

Generally, buying customized software is often daunting for entrepreneurs because of the common perception that the end result will be extremely costly and that the process will be stunted by significant delays. However, because customized software is developed by the client and the developer together, it is made exclusively for the company that requires it, and it covers all of its possible situations adapting completely to the way the business works. If there are changes or unexpected circumstances that would mean adjustments in the system, modifying it would be easier and less expensive, since it can be done by the same people that developed it. The disadvantage of this type of software compared to generic software is that the initial price is twice as high and it takes a considerable amount of time to complete the initial development, including the analysis and the design. Both factors, of course, vary according to the project type. In the long run, however, the advantages of customized project development usually exceed the disadvantages, as it benefits the company which grows from more efficient and diversified processes.

Working with precisely designed software is a priceless solution for any company, and over time, the cost of inefficiency supersedes that of the initial investment in customized software