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Off-the-Shelf vs. Custom Software Solutions: Key Considerations for Your Business

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Ferris Bueller taught us that “life moves pretty fast, and if you don't stop and look around once in a while, you could miss it.”

The same could be said about today’s digital landscape—things are evolving pretty quickly, and if you don’t stop to have a look around once in a while, you could be missing out on invaluable opportunities for your business. 

Now, a quick disclaimer: we’re not advocating for you bunking off work for the day. But what we do recommend is having a look around at what software solutions are available to streamline your operations, enhance your customer experiences, and help you stay competitive. Although we’re not sure that would’ve made quite as good of a movie…

When weighing up these options, you’re likely to face one major conundrum even Susie Dent would struggle with: off-the-shelf solution or custom-built software? 

It’s rarely a black-and-white decision. While off-the-shelf solutions are now more advanced and customisable than ever before, some businesses still require the tailored approach offered by custom software. So which is right for your needs?

Understanding off-the-shelf software

Off-the-shelf software is like buying a gadget straight out of a Q’s lab—pre-made, loaded with features, and ready for action. 

However, rather than being tailor-built specifically for James Bond’s escapades, these tools are designed to meet the general technical needs of a broad audience. Think less Dentonite toothpaste, exploding pens, and shooting cigarettes, and more widely-used CRM platforms like Hubspot, project management tools like Asana, and Notion.

The pros 

So what's all the fuss about? Here are the advantages off-the-shelf software brings to your business.

  1. Cost efficiency: Off-the-shelf software is typically less expensive upfront, as the development costs are distributed across many end users—you’re essentially buying a share of a product made for mass consumption, rather than paying for a fully tailored, unique product. This makes it an attractive option for small to medium-sized businesses with limited budgets.
  1. Immediate availability: Wave goodbye to spending time and money on extensive development, testing, and customisation. This software is available straight off the shelf (you know, hence the name), meaning these tools can be deployed immediately after purchase—crucial when time is of the essence. 
  1. Regular updates and support: Most off-the-shelf software providers offer regular updates to improve functionality, security, and performance, and handle all ongoing maintenance and bug fixes. Additionally, the vendors typically provide around-the-clock customer support to ensure that businesses have access to help when they need it, placing significantly less stress on your technical teams without impacting your project’s performance. 
  1. Customisation options: a customisable, off-the-shelf solution isn’t the oxymoron you might think it is. Nowadays, modern off-the-shelf solutions often include customisation options that allow businesses to tweak the software to better fit their processes. For example, CRM systems often allow custom fields, reports, and workflows. Better yet, many off-the-shelf solutions also provide a public API that allows deeper levels of integration with existing tools. To quote innovative technologist Grandpa Simpson, they offer “a little from column A, and a little from column B.” 

The cons

Ferris Bueller wasn’t the only 80s movie character to offer us valuable life lessons. Rocky taught us that “the world ain’t all sunshine and rainbows”, and unfortunately, the same can be said about off-the-shelf software solutions. Here are the downsides to keep in mind when making your decision. 

  1. Limited customisation: yes, yes, we know we’ve just listed customisation in the pros - but hear us out. Despite some customisable features, off-the-shelf software may not perfectly align with a company’s specific needs. Think of it like a LEGO set. With the same set of bricks, you might be able to build a boat or a house (providing nobody is hogging all the slanted pieces), but you’re not going to be able to build the Millennium Falcon - or at least not one that looks like this! As a result of this limited customisation, businesses may have to adapt their processes to fit the software, which can lead to inefficiencies. 
  1. Dependence on the vendor: with off-the-shelf solutions, businesses are dependent on the vendor for updates, support, and future development. This complete reliance means that if the vendor changes their product direction or ceases support, the business could be left in a difficult position.
  1. Integration challenges: off-the-shelf software without a public API might not integrate seamlessly with existing systems, leading to potential data silos or the need for additional middleware. These instances can counterbalance the efficiencies achieved elsewhere—it's all dependent on your use case and requirements. 

Exploring software development

Custom software, on the other hand, is built from scratch. It’s specifically developed for a business to meet its unique needs, and designed to integrate seamlessly with a company’s processes. 

If off-the-shelf software is an IKEA flatpack in a range of colours, then software development is a made-to-measure shelving unit customised to your interior design. 

The pros 

What’s wrong with IKEA? Their meatballs are top-tier, after all. But here are some of the advantages exploring custom software development holds over off-the-shelf solutions. 

  1. Tailored to specific needs: custom software is developed with the specific requirements of the business in mind, meaning that every feature is designed to solve a particular problem or enhance a particular process. This often results in overcoming pain points and reaching objectives with far greater efficiency and effectiveness.
  1. Scalability: this software can be built with the future in mind, allowing for scalability as the business grows - which can be particularly important for businesses with unique needs that are likely to evolve. Who remembers the Stadium of Light’s expansion in 2002, for example? Thanks to the stadium being designed with the future in mind, Sunderland was able to build upon existing features to expand the capacity by almost an additional 10,000. Let’s just not talk about how that season went. 
  1. Competitive advantage: having a software solution that is unique to your business can put you - and just as importantly, keep you - one step ahead of your competition. That’s because custom solutions can be designed to offer capabilities that your competitors, who might be using off-the-shelf solutions, don’t have access to. 

The cons 

Sunshine and rainbows, you know the drill by now. Here are the negatives to custom software that should factor into your decision. 

  1. Higher initial costs: the development of custom software can be a significant investment. The upfront costs are typically much higher than those for off-the-shelf solutions, which can present an immediate barrier for smaller businesses. Diving straight into custom development without first considering these initial costs is a bit like starting a race with your shoelaces undone. Don't trip yourself up!
  1. Longer development time: it’ll come as no surprise to learn that custom software development can be a time-consuming process. It involves detailed discovery and requirements gathering, development, testing, and deployment phases - all of which can take weeks, months or even years, depending on the complexity. Don’t just consider the financial cost; factor in the associated time and resource costs too. 
  1. Maintenance and support: Remember moving out for the first time and realising that leak in your new kitchen was your responsibility? Owning custom software can kind of feel like that. You’re responsible for ongoing maintenance, updates, and support, so you’re going to need a plumber - or in this case, a dedicated IT team or the original development team - which can add to the overall cost.

Making your decision: 4 key considerations 

So with all the pros and cons of each option in mind, which will you pick:

John or Paul? Red pill or blue pill? Off-the-shelf or custom software? 

Before you lock in your final answer, let’s reflect on some of the key considerations you need to keep in mind before deciding which direction to take with your business’s next digital project.

Internal capabilities

Consider the internal capabilities of your business and compare them with the scope of each option’s requirements. Do they align? 

Businesses with strong tech teams and IT departments typically find it easier to manage and maintain custom software, while smaller businesses without such resources may prefer the support provided by off-the-shelf vendors.

Think about the opportunity costs you’ll incur through both options, too. 

With custom software, for example, the opportunity cost includes the time it takes to develop and deploy the solution. During this time, businesses may be unable to fully capitalise on new opportunities or may lag behind competitors who are already a step ahead with ready-made solutions. Conversely, the limitations of off-the-shelf software might prevent a business from fully optimising its operations and lead to missed opportunities, although this is becoming less common as SAAS products really start to mature.

Growth plans

What North Star KPI is guiding your objectives?

If you’re planning significant growth, or if your data indicates your needs look set to change over time, custom software may offer a more suitable solution to your evolving needs. 

That’s because custom software is often more flexible and scalable than off-the-shelf solutions, which may need to be replaced or heavily modified as a business grows.

The key word is significant growth, however. Of course, every business aims to grow, but for those companies with more standard processes that aren’t expanding on a dramatic scale, off-the-shelf software may still tick your boxes. 

Budget constraints

Much like many decisions in life, budget can often be a deciding factor. 

£550* to see Oasis in Manchester or £20 to see Oasish in Newcastle? See you at Riverside.

*prices may go up  

When assessing your business’s best financial option, you’ll likely find off-the-shelf software to be generally more accessible for limited budgets. As we’ve already touched on, the initial costs are usually lower due to development costs being distributed across a wide user base. On top of that, off-the-shelf solutions can also be kinder to your wallet in the longer term by reducing the financial burden of fixes and maintenance.

But watch out M Night Shamalon, there’s a twist…

Businesses also need to factor in the total cost of ownership (TCO) when considering their budget restraints. Yes, off-the-shelf solutions have lower initial costs than building from the ground up, but how do these savings line up against the longer-term TCO? 

From integration and customisation costs to ongoing subscription and licensing fees, there are a bunch of additional costs to off-the-shelf solutions that can be incurred, so make sure you’re breaking down all the right numbers. That’s before you’ve even considered the potential downsides of vendor lock-in, which can create an unavoidable extra burden during price hikes from your chosen provider. 

…it was hardly The Sixth Sense, was it?

Business requirements 

Ultimately, the most crucial factor in deciding between off-the-shelf and custom software is the specific needs of the business. But that wouldn’t have made a very good blog post now, would it?

Companies should conduct a thorough needs assessment to determine whether their requirements can be met by existing software or if a custom solution is necessary.  

And as luck would have it, we have a handy checklist below to help you quantify the decision-making process and make it easier to see which solution aligns best with your business needs  What’re the odds?

Off-the-shelf vs custom software: scoring matrix

Use our scoring matrix to make a more informed and confident choice between off-the-shelf and custom software solutions by carefully evaluating each criterion and assigning appropriate scores. 

Scoring Instructions

  • For each question, rate how important the criteria is to your business on a scale of 1 to 5 (1 = Not Important, 5 = Very Important)
  • Then, rate how well each solution (Off-the-Shelf or Custom Software) meets that criteria on a scale of 1 to 5 (1 = Does Not Meet Needs, 5 = Fully Meets Needs)
  • Multiply the importance score by the solution score for each option
  • Sum the scores for each solution to determine which option is better suited for your business

Example of How to Fill Out the Matrix

  1. Importance: If the question “Do we have very specific business needs that are not addressed by standard software?” is crucial, you would rate it 5 in the Importance column
  2. Scoring Off-the-Shelf: If you believe that off-the-shelf software somewhat meets your needs, you might give it 2 in the Off-the-Shelf Score column
  3. Scoring Custom Software: If custom software perfectly meets your specific needs, you would rate it 5 in the Custom Software Score column
  4. Calculate Total Scores: Multiply the Importance score by the respective solution scores for Off-the-Shelf and Custom Software.

For example, 5 (Importance) x 2 (Off-the-Shelf Score) = 10 for Off-the-Shelf Total. 5 (Importance) x 5 (Custom Software Score) = 25 for Custom Software Total

  1. Final Scores: After filling out all the criteria, sum up the Off-the-Shelf Total and Custom Software Total columns. The solution with the higher total score is likely the better fit for your business.

Download the scoring matrix here

Picking the right software solution could be the key to unlocking your business’s full potential, but choosing between off-the-shelf and custom solutions isn’t always straightforward. The right choice depends on the specific needs, budget, and long-term goals of your business, meaning ultimately, the decision has to align with your strategic vision and operational requirements.

Still unsure which option is right for your business? Why not get in touch to consult with our experts who can help you identify the best option for you through a series of comprehensive discovery sessions? It’s possible you haven’t even realised what opportunities are waiting to be unlocked!

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