Why using off-the-shelf software may be hurting your business
Do you ever get tired of struggling with software that clearly wasn’t designed for your business?
Yet you can’t get by without it and haven’t been able to find a better alternative?
In today’s digital world it’s simply impossible to run a business without reliable software. Chances are you’re using software to manage your finances, your personnel, your inventory, your customer service, and myriad other business operations.
And if you’ve started out like most organizations, a large percentage of your current software applications - maybe even all of them - are off-the-shelf solutions. But are pre-packaged applications truly meeting your needs?
Gartner is forecasting that one of the top strategic technology trends for 2021 will be a focus on total experience: implementing technologies and processes which simultaneously improve customer, employee, and user experience in a holistic way. Total-experience improvements not only help your business run better they also differentiate and create a competitive advantage. But you’ll need more than off-the-shelf software to embrace this opportunity.
What is off-the-shelf software, and why should you care?
Off-the-shelf software is mass-produced, pre-configured commercial software available for immediate use by anyone. It usually requires the purchase of a license or subscription. It is generally favored by those looking for quick implementation of a pre-existing solution, or a relatively low upfront cost.
The alternative to off-the-shelf software, known as custom or bespoke software, is designed specifically for your unique business use case.
How certain are you that your current software is adequately meeting your business needs and providing the highest possible ROI? If you’re questioning whether to keep your off-the-shelf software or kick it to the curb, several key factors should be taken into consideration.
Common disadvantages of off-the-shelf software
Missing features/functionality
Most off-the-shelf software has been mass-produced to generically meet the needs of a wide array of different organizations and end users. Because of this, not every business use case can be covered. Software providers must decide which features and functionality are most important to the largest percentage of their customers and prioritize those in their product development and future upgrades.
Unfortunately, this means that many users will encounter limitations that hinder their ability to perform necessary business operations. Customizing an off-the-shelf application is often difficult and expensive, and in some cases may even be impossible.
Extra features/functionality
On the flip side, off-the-shelf software will most likely contain certain features that your business doesn’t actually need. Which might not sound so bad - except for the part where you’re paying for them anyway. In some cases, you might only actually need a small fraction of the functionality you’re purchasing, but what you need is only available as part of a more complex package. And even in cases where you’re using a majority of a product’s features, you’re still paying for those you aren’t and never will.
Support, licensing, and upgrade costs
Off-the-shelf software typically requires the purchase of a license or subscription, and this cost usually rises in proportion to the number of end-users. What may start out as a reasonable expense can potentially balloon over time as your team and operations grow. You may also find that a software provider doesn’t offer the best licensing model for your particular needs.
Upgrade fees can also add up substantially over time as new features and improvements rollout. And even if you don’t need the upgrades, in some cases you may still be required to pay for them. Ongoing support costs can also stack up, and if you choose not to accept optional upgrades you may risk the eventual loss of support.
Reduced control of business operations
The pre-configurations of an off-the-shelf software system may not be a good fit for your unique business operations and processes. If the software you’re using can’t accommodate your existing workflows, then the workflows will have to be modified to accommodate the software. This is likely to result in procedural inefficiencies and other potentially expensive and time-consuming problems.
No control over development
Though off-the-shelf software providers may welcome your feedback and suggestions, there is no guarantee that they will actually implement your desired features and upgrades. And even if they do, you’ll have no control over the development timeline or how your requests are prioritized compared to others. The more unique your business use cases are, the lower the likelihood the functionality you need will ever make it to production.
There is also a danger that off-the-shelf software providers may be sluggish to adapt to changing market conditions. This is especially of concern for those in industries experiencing high growth or operating within a volatile ecosystem. An off-the-shelf software application may even suddenly become obsolete, leaving users scrambling to find an alternative.
Integration issues
Because off-the-shelf software wasn’t designed for your specific business operations, you may encounter difficulty integrating it with the other software systems you rely on. You could find yourself having to pay for complicated customizations to facilitate the integration, or even having to purchase or replace another application.
No Competitive Edge
Anyone can purchase the same off-the-shelf software as you - including your direct competitors. This leaves little to no opportunity to gain a competitive edge with your software. Even if you invest in innovative customizations, those same customizations can be replicated by others and may quickly become the new normal. There is no real opportunity to differentiate or provide unique value with an off-the-shelf solution.
How custom software is different
Unlike off-the-shelf solutions, custom software is built around your existing business workflows, processes, and requirements. A bespoke application is developed from scratch to your exact specifications and has all of the features and functionality you want - and nothing extra you don’t need.
Because you own the product, there are no ongoing licensing fees, and product ownership also means that you have control over all future upgrades. Desired integrations can be built upfront. And a custom solution creates a competitive advantage - no one else will be able to provide the same unique value.
Are you ready to leave off-the-shelf software behind?
At Basecode we partner with you to create innovative, world-class software that uniquely positions you in your marketplace.
Find out more at https://basecode.ca.