Is It Better to Build or Buy Employee Training Software? 5+ Factors to Consider
Happy Monday!
Welcome back to another edition of?Training the Frontline, your new favorite source for all things frontline training.
In today's edition, we're delving into a dilemma which - if you work in the L&D and Ops space - you're likely quite familiar with. Is it better to build training software internally or purchase an existing tool? Read on for some important factors to consider when making such a decision.
Also in today's newsletter: the biggest frontline headlines, a free safety checklist and an exclusive invite to a live event with Microsoft Teams ??
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Thanks for reading,
The eduMe Team
Frontline news ??
Deep dive ??: Is it better to build or buy employee training software?
Investing in innovative software can enable brands to deliver exceptional experiences across multiple channels, drive profit margins and better engage and empower their workforce. It’s not surprising, then, that software spending is forecasted to reach?$674 billion ?in 2022.
It’s not as simple as implementing any old tool, however. Especially when it comes to workforce training, choosing the right software for your company - and ensuring that it’s properly integrated into your systems and processes - can be make or break.?
At?eduMe , we’ve seen many companies deliberate over whether it’s best to build a custom learning solution in-house, or invest in an existing tool such as ours. Many are swayed by the attraction of having full control over its functions amid fears that a third-party solution might not meet their specific needs, and avoiding upfront costs.?
But is this the best course of action for your business? And does building your own training software internally actually save you money in the long run??
Let’s take a look at which factors to consider when choosing whether to build or buy, and an example of why a business might be better placed to opt for a third party learning tool.?
1. Cost
Buying software may require an upfront cost, but it’s often a better investment in the long run. When you purchase a third party tool, it’s a known expense for a product that will be ready to use and implement immediately.
Building internally, on the other hand, often requires a lot of resources and even more unpredictability; according to data from the?Project Management Institute , 43% of IT projects go over budget, 49% come in late, and 14% fail altogether.?
2. Opportunity cost
Your in-house team might be capable of developing and maintaining a custom software solution, but it’s important to consider whether building out that tool will become a distraction from more meaningful work.
What will be the impact of pulling resources away from your company’s main mission? Will building out this tool significantly distract your employees from solving core business problems?
Think about what’s most important to your bottom line, and whether dedicating time and resources to an extra IT project is the best course of action for your business - especially if this new software is well outside the realms of your main product or service.
"It's less about 'could we have done it?', and more about 'how do you prioritize your time?'...we believe that going to a third party partner that focuses on the space and will be able to bring new ideas was a better use of time and money." - Andrew Dinh, Uber
3. Time-to-value
One clear advantage of buying ready-to-use software is a shorter time-to-value. Not only is the tool immediately ready to implement, it’s also likely to come with a dedicated customer success manager ready to help you launch quickly and effectively.?
When it comes to building internally, the time-to-value isn’t just longer, it’s also very difficult to predict. Unforeseen development issues can cause significant delays, with the average schedule overrun for software projects coming in at around?33%
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Keeping time-to-value low helps companies keep their employees and customers engaged, ensuring that their new learning tech aids productivity, rather than hindering it.?
4. Expertise
Most internal teams can handle creating a functional, user-friendly product, but do they have the expertise to implement it effectively within their organization and ensure its ongoing success??
Another question to ask is whether this new software falls within your company’s usual product or service offering, and whether building it yourself might be too ambitious. Whereas building yourself runs the risk of not getting it right (and wasting both time and resource), buying off-the-shelf gives you a fully fledged product that’s backed by knowledge, expertise and experience.?
5. Connectivity
Each company has its own unique ecosystem. By building your own custom software, you can ensure compatibility with your existing tools (provided you have the resources to do so, of course).
Even so, that’s not to say that buying off-the-shelf will always limit your connectivity. The likelihood is that there is already a comprehensive solution on the market which can act as an extension of your existing ecosystem. Opting for a learning solution which?integrates into your tech stack , rather than overhauling it completely, ensures that it becomes an integral part of your company’s architecture.
Extra reading ??
“I Don’t Know, I’m New”: How to Maintain Customer Service Standards During a Labor Shortage
Frontline workers are often the first point of contact that customers will have with your business.?So what happens when customers are met with brand new hires, inexperienced and lacking the necessary knowledge to provide the required service?
This is the challenge that many frontline industries are facing as the labor shortage continues to push businesses to the brink, forcing employers into aggressive hiring practices which fail to provide new recruits with the necessary skills and competencies.?Read this article to find out how the crisis is impacting customer experience and what businesses can do to maximize new hire productivity and retention.
Top 10 Safety Risks in Construction [+ Free Site Safety Checklist]
The health and safety of employees is paramount to any business. However, this is especially true for the construction industry where workers engage in high-risk activities on a daily basis. In fact, total workplace injury costs in construction exceed?$170 billion ?each year, and worker’s compensation claims for non-fatal accidents total?$2.5 billion ?annually.
Whichever way you look at it, everyone benefits from improved health and safety practices and the resulting reductions in injuries. Read this article to find out the top safety risks on construction sites and how to prevent them, and access our FREE construction site safety checklist.
Join the conversation
Technology is essential to the frontline experience.
But - with 91% reporting frustration with software they use, are businesses using technology to the best of their advantage?
We're delighted to be partnering with Microsoft Teams for an exclusive webinar looking at the power of integrated technology for the frontline ??
Join eduMe CEO Jacob Waern and 微软 's Product Marketing Manager, Sarah R. Miller, MBA , as they discuss:
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