What can you do if there is no software solution on the market for your industry-specific problem? We have summarised the most important facts for you so that you can make an informed decision for your company!
The world is becoming more and more digital and your company is also increasingly reliant on digitizing processes or rethinking workflows and mapping them using software solutions. The problem, however, is that many of these processes are so industry- or even company-specific that there is no “off-the-shelf” software available on the market that covers all requirements and necessary functions.
So why not take the initiative and have customized software developed? This decision is rightly difficult for many companies. After all, individual software development is a significant investment that needs to be carefully considered. However, there is also the prospect of considerable added value for you and/or your customers.
If you are currently facing this very decision, we will show you the pros and cons, the process and valuable tips for individual software development.
What is customized software?
Customized software is a software solution that is developed specifically for your company. It covers specific technical requirements, processes or functions for which you cannot find a “ready-made” alternative on the market. You can carry out the individual software development yourself or outsource it to a service provider.
Areas of application for customized software & examples
Individual software solutions can be useful in all sectors and all areas of a company. It depends less on the area of application itself than on whether you really cannot implement the set requirements elsewhere and what added value a customized program brings you. You can also use the software internally or market it to customers as a SaaS solution, for example.
Here are a few practical examples of customized software development:
- Digital platforms that evaluate company data according to specific criteria for data-based decisions
- Web applications that map a specific customer journey & strengthen your competitiveness
- Development of AI-supported tools and applications for automating processes or in data management
Commercial or individual software?
Let’s start with commercial software: this is an application that is available on the market as a ready-made program and that you usually use via a license agreement. Whether commercial or individual software is the right choice for your company is always a case-by-case decision. Here is an overview:
| Commercial Software | Customized Software |
|---|---|
| Proven standard solution, but less flexible | Tailor-made solution with maximum flexibility |
| Solutions & functions for general or highly standardized processes | Meets individual requirements for specific processes or business objectives |
| No development costs, but license feesn | High initial resource costs, but lower follow-up costs |
| Immediately ready for use & quick to implement | Time for individual software development must be taken into account |
| Processes often have to be adapted to the software | Customized software is developed to fit your processes |
| Dependence on one software manufacturer | Independent of a software manufacturer |
One scenario is encountered time and again in practice: companies are looking for a quick and (supposedly) inexpensive solution, choose “off-the-shelf” software, only to realize that they have to make too many compromises and do not achieve the desired functionality.
Switching to customized software development is of course possible and advisable. But as you can see, a close, initial review would ultimately have been the more efficient solution.
Advantages & disadvantages:
Individual software development on the test bench
Two advantages of individual software development are obvious and are probably decisive for the decision of most companies: a customized solution and independence from a software manufacturer. But you also benefit in other ways:
- The software you need: specific needs or security requirements that no commercial software has yet addressed can be covered 1:1 with customized software development.
- Flexible, scalable & independent: Cleanly developed software grows with you, you can flexibly add new features or react to market changes – and completely independently of a third-party provider.
- Generate competitive advantages: With customized software, you can create added value that your competitors do not offer – either through greater efficiency and cost savings or for your customers.
- Optimal integration into existing systems: As the existing infrastructure is considered from the outset during custom software development, the finished solution integrates seamlessly into your systems.
- Less maintenance effort: All software needs to be maintained and requires updates – with individual software development, you can implement these in-house or in direct contact with your development partner.
Are there any disadvantages to customized software development?
There are two sides to every coin and of course there are also a few points you should consider before deciding on individual software development:
- Above all, the initial costs for individual software development are high, but can be amortized compared to long-term license payments and through competitive advantages – a full cost calculation is important here, which also takes opportunity costs into account!
- Individual software development does not have to take forever (especially if you use agile methods), but it is not an ad hoc solution. You should therefore allow time for development when planning the project.
- Developing custom software ties up a lot of resources that busy IT teams don’t have and new specialists are hard to find – the solution may be to bring a software development partner on board.
As you can see, individual software development is and remains an individual decision. This makes it all the more important that you seek professional advice in advance and plan your project precisely.
In 5 steps:
this is how individual software development works
Regardless of whether you implement individual software development in-house or decide to work with a software development company – the process usually comprises these five steps:
- Requirements analysis: Analyze individual technical and functional requirements, challenges and desired functions & record them in an initial concept
- Design & planning: Detailed planning of the individual software, prioritization of the functions from the first release to the full function, the system architecture, the UX design and a roadmap for project management as well as putting together the development team
- Individual software development: Start of the actual software development; ideally iterative (development in cycles including continuous optimization and prioritization) and MVP-driven (with a focus on the elementary functions)
- Testing & implementation: Extensive testing & quality assurance (QA) for reliable functionality and performance as well as continuous integration (iterative development cycles) into existing systems until the finished software is rolled out
- Maintenance & further development: Ensuring flawless operation of the individual software; development of additional functions or new features on request
3 important tips:
You should pay attention to these when having customized software developed
Our most important tip first: Before you decide to have customized software developed, you should check carefully whether there really is no standard solution that offers you the same benefits. If this is not the case, we have three important tips for you from years of experience with individual software projects:
#1 Choose the right development partner!
Developing software internally ties up so many resources that many companies decide to outsource software development. It is crucial to success that you choose the right provider.
This includes ensuring that the development partner offers you advice on individual software development, has expertise in the necessary technologies and can provide the required resources and roles as well as meaningful or industry-relevant references.
#2 Pay attention to a transparent cost structure!
As we have already established, individual software development is a significant investment. Of course, this is especially true for the initial phase, because as soon as you start using the product, you save on license costs that you would have to budget for a commercial solution.
If you have software developed, you should nevertheless make sure that the provider presents you with a transparent cost structure. This is the only way you can plan the budget and calculate whether the project is worthwhile for you from a business perspective.
#3 Rely on agile software development!
Agile development methods such as Scrum are not just for start-ups, but have arrived in software development and are not at all at odds with traditional budget and project planning.
If you take an agile approach to individual software development, the development team can work particularly efficiently within the set guidelines, errors are avoided through continuous testing and you achieve the desired result faster.
Future-proof & competitive with individual software solutions from Riwers
As a service provider for the development of individual software, Riwers is at your side as a professional partner. From web apps and databases to AI-supported solutions, we support you in developing optimal software tailored to your company.