Custom Software vs. Off-the-Shelf Solutions: Helping Businesses Make the Right Choice, Part 1
We’re excited to announce a new article series featuring our colleague Alena Boldyrikhina, Business Analysis Lead! Alena will share valuable insights on how to choose the right solutions for your business.
In this article, Alena emphasizes the importance of the analytics phase and offers advice on when and how to choose an off-the-shelf solution.
How Analytics Facilitates Automation Implementation
My primary task in any project is to analyze the customer’s operations, identify pain points, and develop a set of measures to improve performance. I’ve worked on over 40 such projects, each involving a deep dive into the business, identifying inefficiencies in operations and internal processes. The goal is to propose a data-driven action plan to mitigate identified losses.
Sometimes, solving the problem is as simple as rearranging the order of actions in a process. However, more often, the best solution involves implementing an IT product that replaces or automates tasks previously done manually.
In some cases, an off-the-shelf solution may be sufficient, as there are many available on the market. However, in most instances, custom software development is the more appropriate option. For example, at Red Collar, we recently developed a large reporting system for a project financing organization. The unique nature of their operations made it impossible to even consider using an off-the-shelf solution as a base.
So, let’s explore when a more affordable off-the-shelf solution might be suitable, and when it’s better to invest in a custom product that delivers greater long-term benefits.
When to Choose an Off-the-Shelf Solution
Imagine a small agricultural organization with 100 to 200 employees approaches us for assistance. The team is distributed across various cities in Russia. The company's leader has identified the following issues in their current processes:
As a result, the hiring process becomes more complicated, and some new employees feel neglected and quit within the first month.
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We analyze these issues and determine that there are already suitable off-the-shelf solutions available in the software market. It's important to note that the organization does not plan to significantly increase its workforce in the coming years. We compile recommendations for ready-made solutions and present them to the customer.
In this scenario, we recommend an off-the-shelf solution. Such solutions can address multiple areas, including customer management (CRM systems), and automation of accounting and management tasks. Moreover, there are comprehensive solutions tailored to specific industries — from pharma to poultry farming. These solutions are relatively inexpensive, quick to implement, and require minimal involvement from the customer: purchase, install, and you're done.
An out-of-the-box product is justified if the following conditions are met:
When opting for boxed software, remember that even the best off-the-shelf solutions may require some customization to fit your needs. Additionally, they can be difficult to scale, potentially leading to challenges in the future.
And that's all for now! Subscribe to our newsletter and learn more about the difference between custom solutions and off-the-shelf solutions.
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