The question of whether to build or buy enterprise software is a baffling one. Companies that are small and new usually start with standard off-the-shelf products. These are either free or come with a low monthly/ annual cost. As the company grows, it starts crying for tools that can cater to a larger customer base. Companies will start looking for platforms that provide more functionalities, deep analytics, automation, and management of processes. Most of the organizations that are not big MNCs lack a clear idea of the software selection process. It takes years of experience to choose the right software that will fulfill all current and future requirements.
Build vs Buy an Enterprise Software
The question of build vs buy is faced by most organisations and institutions at some point in time. This challenge also requires a high level of rational analysis. Often, the answer is arrived at based on emotional drivers, giving less weight to hard data. Buying an existing off-the-shelf product seems like a safer bet when faced with this indecisiveness. The cost of these canned products is also lower compared to building a new software from scratch or outsourcing it to an agency. Agencies provide the required functionalities and also save a lot of time and money. Customized products, on the other hand, cost more and may also not be available on time for the ongoing project.
As it may seem a safer bet at the moment, off-the-shelf tools may not fulfill the ever-changing needs of a growing and dynamic organization. Standard products come with standard functionalities that are common across the industry and may not fulfill your unique business models.
Customized software, on the other hand, will need time and resources to develop. The choice of in-house development requires a large pool of IT talent dedicated to software development. This may take your focus out of the core business. Leaders need to deeply analyse all the aspects of this indecisiveness. Also, consult with vendors and have multiple brainstorming sessions before arriving at a final judgment.
Requirement Analysis
The foremost step is to create a list of all the features your new tool ought to have; it should cover all the current and future expectations. It’s highly unlikely that a software will fulfill all of your expectations. However, it is imperative to have a list and rank them in order of priority. Requirement analysis is not a simple task; there are always unknown features whose absence might become an obstacle to the overall functioning of the tool in the future. Feedback from customers and employees will shed some light on the features. This will make the tool robust and comprehensive. Peep into your competitors’ solutions and do some reverse engineering. This is another clever thing to do. Extensively scan it and get enlightened on the features that would benefit the business model.
Time And Cost
When you’ve got a list of all the features your software needs to have, it gives you an idea of how much time and resources it takes to build one. If your organization has enough IT talent to spare, and you can wait long for the tool to be developed from scratch, and if the expected outcome justifies every effort that goes into its making, the decision sways towards in-house development. Off-the-shelf products are low-cost and readily available. But a careful analysis needs to be made to determine if it satisfies all the requirements. 70% of satisfaction should sway the decision towards buying a ready-made software.
The hard decision of whether to build or buy a software solution is arrived at, with a careful analysis of all the aspects. The bottom line is that if a standard existing product satisfies most of the requirements and the scope of your project is largely covered by it, then it is the right choice. Investing big money and time to build a custom enterprise software doesn’t make sense. But what if even after rigorous analysis, down the line, new requirements crop up?
iPublishCentral Learn
The flagship online learning management system used by globally renowned institutions, enterprises, and educators. It is a ready-to-use platform that can also be customized as per unique requirements. This learning tool, which has a standard avatar, also has the required framework to add, subtract, or tweak extra features. The perfect blend of standard and customized features allows for flexibility and adaptability to suit any requirements.
Providers of education and enterprise training who want to adopt online learning can amply benefit from mon’k. A robust online learning platform that provides an agnostic online/ offline learning experience with a course builder and assessment management. Features like deep analytics and adaptive learning can also be added as the experience grows. It will make it a more comprehensive online learning experience.
RoI Potential of Enterprise Software
The most important aspect to consider for an organization while acquiring a new tool is whether the enterprise software will help generate enough money to justify its cost. The question for learning institutions is whether the tool will be widely accepted and also successfully add an important dimension to the education programmes. For enterprises implementing online training, the investment should justify its cost by providing enhanced employee training and management.
The decision is influenced by whether the expectations are met by any standard product available. Or is there a need for a customized product that will give satisfactory returns on the time and money invested? Either way, the tool should fit into your vision. It should also help in the long-term goal of your organization. It should also be flexible enough to adapt to future needs and justify its costs.
