Custom software or an off-the-shelf program? A decision guide for businesses

In short: If your business runs on a standard process and an off-the-shelf program covers it, the off-the-shelf program is faster and cheaper. If your process is unique, you enter the same data in several places or your programs don’t talk to each other, custom software costs less and gives you more control in the long run.

When is an off-the-shelf program enough?

Off-the-shelf programs (bookkeeping, inventory, CRM packages) are designed for the common needs of thousands of businesses. They usually do the job when:

• Your process is the same as most businesses in your industry.
• Your team is small and works with a single program.
• The program’s reports are enough for your decisions.
• You don’t need to exchange data with another system (e-commerce, shipping, a dealer network).

In that case, setting up the off-the-shelf program well and training the team makes more sense than investing in custom software.

Signs that you need custom software

If several of the following sound familiar, your off-the-shelf program may be slowing you down instead of helping you grow:

• The same data is entered in several places. If an order is typed into the e-commerce panel, the accounting program and Excel, errors and lost time are inevitable.
• Part of the work happens outside the program. Approvals in messaging groups, job tracking in a spreadsheet, stock in yet another file.
• The process is bent to fit the program. The team has to do the work in the order the program dictates.
• Managers can’t see the current status. Answering "Who has how much work, which order is late?" means asking several people.
• Your dealers or customers can’t access the system. Orders are taken by phone, and people call to ask about their status.

How should you compare the costs?

The licence fee of an off-the-shelf program is visible; its hidden cost is not: hours spent on double entry, wrong orders, missed follow-ups. Ask these questions when comparing:

1. How many hours a week does your team spend entering the same data in different places?
2. How many order or payment problems have you had in the last three months because of data errors?
3. How many extra tools or spreadsheets do you use to cover what the off-the-shelf program lacks?

If these losses repeat regularly, custom software often pays for itself.

Custom software doesn’t have to start as a big project

The most common mistake is trying to do everything at once. A healthier approach is to start with the process that wastes the most time: work orders or dealer orders first, for example. Other modules are added while that one is in use; the panel grows with your needs.

You don’t have to drop your current off-the-shelf program right away either. With programs that offer an API, an integration lets data flow between the two systems automatically.

A short checklist to help you decide

• How different is your process from your industry’s standard?
• How many different programs and spreadsheets do you use?
• Do customers, dealers or a field team need access to the system?
• Do you plan to grow or open new branches in the next two years?

If you answer most of these with "yes" or "a lot", it is time to seriously consider custom software. To review your processes together, take a look at our custom software and SaaS service.