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Does it make sense to develop your own customized software? Or are you better served by buying an off the shelf solution?

Benefits of off the shelf softare
The benefits of buying a pre-designed application generally lie within the support of the application and the speed at which you can deploy new systems. Off the shelf packages are usually much better tested and thus can in some instances be more reliable. In the past, it was widely accepted that off the shelf packages were less expensive. While this is still true generally speaking, it is not necessarily true when it comes to inventory systems and ERP software.

Benefits of custom designed software
Nothing off the shelf can ever fit your business as well as a custom designed application. The business processes you use, which may have taken years or even decades to develop, can be tightly integrated and mapped in to the custom developed software. You also avoid paying for modules that you will never use. If you build the software in-house, you also get the benefit of having the programmers on-site to fix bugs, and make modifications.

Drawbacks of off the shefl software.
One of the biggest complaints about purchasing off the shelf packages is that you end up paying for things you don't really need. For a small cost application like QuickBooks accounting, this is not an issue. For applications that cost hundreds of thousands or even millions of dollars, it can become a huge dis-incentive. Companies that create pre-packages solutions for specific business segments can also trap you in to a costly support agreement, and force you to upgrade more often than you would like, increasing the costs..

Drawbacks of custom software
Your first reaction to custom software development for your business is probably that it will cost too much. But the statement is not the entire picture. The reason off the shelf development efforts become costly is that every piece of the puzzle needs to be developed from the ground up. But this way of thinking is starting to lose favor. Suppose you own a small distribution center. Instead of developing an entire ERP system, you can today develop just the warehouse and ordering tracking systems internally, and then connect the orders to an off the shelf accounting package like Quickbooks or Peachtree..

The best solution may be a mix of off the shelf and custom developed software.
This approach gives you the best of both worlds. The business specific modules can be custom developed to perfectly fit your needs, while the back office, accounting, and other modules can be purchased pre made, and then integrated. This allows you to spend you dollars wisely by buying best in class software where possible, and creating it yourself when it makes sense.

Developing from scratch, without developing from scratch
If you have an in-house programming staff, they may be inclined to develop an entire application from the ground up. This is not the only approach to take however. Sites like codeproject.com and sourceforge.net may have an open source (free) application that you can use as a foundation for you customized application or solution. A little up front investigation in to these resources could save your business tens of thousands of dollars in cost, and bring the application on-line in a shorter period of time.

The bottom line?
The hybrid approach is usually the best option for small and mid-sized businesses. Spend plenty of time in the planning and evaluation stages before making a decision. The extra effort will more than pay for itself. What you will likely find is that some vendors are more than willing to work with you to implement their off the shelf solution and help you to integrate your custom application..



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