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Standard software vs. individual software
When you should better have software developed individually
Tailor-made or off the rack? This question does not only arise when buying clothes. Also when it comes to software that is to be used in the company. There are countless standard solutions available for all kinds of purposes. But often the prefabricated applications quickly reach their limits. For example, when it comes to digitizing company-specific business or production processes. We show in which cases companies should better rely on individually developed software.
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Standard and individual software: briefly explained
Probably everyone has used standard software at some point. After all, standard software is an application that is purchased or rented by subscription and usually serves one purpose, such as word processing, spreadsheets or image editing. Whether Microsoft Office, SAP or Adobe Photoshop – standard software is usually used for clearly defined and, above all, frequent use cases. Standard solutions are therefore often developed as a standardized mass product for specific industries and work areas. In some cases, a standard application can also be customized to meet user requirements. The so-called customizing of existing standard software thus creates a hybrid of a prefabricated mass product and individual functions.
Unlike standard software, individual software is developed tailor-made for a company or project. Therefore, custom software is always unique and is tailored exactly to the individual application requirements of the client.
Disadvantages of standard software
When the requirements for standard software become more complex and company-specific, standard solutions reach their limits. For individual requirements, the right functions and features are then often missing to actually be able to work more efficiently. This was also the case for billerbeck Betten-Union GmbH & Co. KG, a traditional manufacturer of high-quality bedding based in Kraichtal, Germany. The company managed its extensive product range using, among other things, a prefabricated PIM software.
This standard software quickly no longer met billerbeck’s requirements and workflows and was also poorly integrated into the existing IT system. This caused unnecessary costs and additional effort for the necessary adjustments. In addition, the new, streamlined PIM needed to be multilingual and usable from all international locations and enable agile cost calculation.
The billerbeck company therefore opted for a custom-developed PIM software that exactly matched the specific requirements profile. In addition to the smart integration into the IT infrastructure and the scalability to new locations and new product groups and sales channels, billerbeck also saved itself the payment of expensive license fees, which can quickly become very expensive for extensive standard applications with many user licenses. In addition, the bedding specialist was now independent of the software manufacturer, could easily integrate new program functions as needed, and became the owner of the commissioned custom software – including source code.
Better than standard software:
When software should be developed individually
Custom Software
Customized:
Individual software is developed exactly according to the customer’s requirements and therefore adapts to the company’s specific processes.
Unique:
Individual software is unique. Companies can offer features and services that set them apart from the competition and give them a competitive edge.
Flexible:
Individual software can be seamlessly integrated into existing IT landscapes, processes and systems.
Scalable:
Individual software grows with the company and can be effortlessly adapted and expanded to new requirements at any time. In addition, there are no expensive user licenses.
Sure:
Individual software can be tailored to specific security requirements. This enables a higher level of security and data protection than with standard software.
Standard software
Limited customizability:
Customization to the specific needs of an individual company is either not possible or involves a lot of effort and enormous costs.
Depends on the manufacturer:
Companies that use standard software are heavily dependent on their software manufacturer. This often leads to problems in maintaining and updating the software.
Only limited flexibility:
Standard software is designed to cover a wide range of functions. Therefore, in some cases, companies even have to adapt their business processes in order to use the software.
Unforeseen costs:
With standard software, the cost of training, license fees, updates and maintenance can increase significantly over time.
Security issues:
Standard software is often a commodity product and can be a popular target for hacking and cybercrime.
Customized:
Individual software is developed exactly according to the customer’s requirements and therefore adapts to the company’s specific processes.
Limited customizability:
Customization to the specific needs of an individual company is either not possible or involves a lot of effort and enormous costs.
Unique:
Individual software is unique. Companies can offer features and services that set them apart from the competition and give them a competitive edge.
Depends on the manufacturer:
Companies that use standard software are heavily dependent on their software manufacturer. This often leads to problems in maintaining and updating the software.
Flexible:
Individual software can be seamlessly integrated into existing IT landscapes, processes and systems.
Only limited flexibility:
Standard software is designed to cover a wide range of functions. Therefore, in some cases, companies even have to adapt their business processes in order to use the software.
Scalable:
Individual software grows with the company and can be effortlessly adapted and expanded to new requirements at any time. In addition, there are no expensive user licenses.
Unforeseen costs:
With standard software, the cost of training, license fees, updates and maintenance can increase significantly over time.
Sure:
Individual software can be tailored to specific security requirements. This enables a higher level of security and data protection than with standard software.
Security issues:
Standard software is often a commodity product and can be a popular target for hacking and cybercrime.
At what point is custom software worthwhile?
Standard software or individual software? Overall, individual software offers more flexibility, customizability and security compared to standard software. In addition, the customer becomes the owner of the software. He receives the source code and can further develop the software with his own programmers or external partners.
In the case of standard software, license fees and, in addition, customizing, i.e. adaptation to the customer’s own business processes, must be paid. In this respect, the higher acquisition costs for individual software compared to standard applications usually pay for themselves after just a few years.
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