There’s a good chance that your business relies on some form of technology each day to stay operational. Most organizations have a healthy dependence on digital solutions to gain access to various products and services, manage their marketing and sales campaigns, and offer ongoing customer support.
However, as helpful as many of these solutions are, at some point, it can be hard to find individual technology products that can meet all your business needs as you grow. When this happens, it’s important to decide if it’s worth investing in multiple solutions or simply designing your own that has all the features your business requires.
This isn’t always a straightforward decision for companies, though. Still, there are some important considerations that can help you choose the best path forward.
Think About Your Timelines
All businesses have important deadlines they need to meet, and the tools and technology at your disposal can make a big difference when hitting essential business milestones. This is why your unique timelines can have a bearing on whether or not you’re able to wait for a custom development project.
If you want a quick solution to get your business going or only have a temporary need for technology to handle short-term projects, continuing to use an off-the-shelf solution probably makes the most sense. These solutions are relatively easy to set up and typically have enough compatibility to support some of the other business products you use.
However, if you’re planning on introducing a new technology solution for a longer-term fix for your business, it might be worth exploring something more custom.
Consider Your Internal Team Capabilities
Before you start stretching your budget on a new technology investment, it’s important to first consider those who will be getting the most use out of it. Depending on your business needs, the technology you may be interested in investing in could be more complex than most people have an aptitude for. This could significantly impact the actual value you’re able to extract from it.
Because of this, if you’ve decided to go that route, you should first be clear on who will be part of a customer software build project. This will help you gauge how much time and energy would be required to get the new technology up and running and the necessary teams trained on how to use it properly.
If you don’t have the necessary skill sets internally, you’ll also need to factor in working with outside teams to help manage the project. This, again, may mean you’ll need to have internal team members capable of coordinating regularly with these partners while helping to keep things on track.
Know Your Total Cost of Ownership (TCO)
When you’re trying to decide between buying an off-the-shelf technology solution or building your own, one of the largest considerations you’ll need to make is the costs. Much like when you’re planning a home improvement project, you never want to start building only to find out you can’t afford to finish.
Ready-made solutions are typically the most affordable option upfront. They require much smaller amounts of upfront spending and usually come with variable pricing structures based on the business’s needs. However, one thing to keep in mind is that some software providers may require longer terms from their customers. This means that you could be locked into using a specific vendor even if the needs of your business change over time.
On the flip side, deciding to build a custom solution can come with considerable upfront expenses, depending on your business needs. However, while there are higher costs at the beginning, over time, you’re often able to get more value from the solution, which gives you a higher return down the road.
Calculating your Total Cost of Ownership (TCO) is an important method of factoring in all the potential costs for each technology format and comparing it against the total value you’re able to extract from each. This can help you decide if the option you’re considering is actually financially viable for your company.
Forecast Your Long-Term Business Needs
Another important consideration when choosing between a custom solution or an off-the-shelf technology product is your short- and long-term business needs. As your company grows, its needs will likely change, and it’s important that your technology can keep up with you.
Naturally, you’ll see a variety of pros and cons when you compare different off-the-shelf solutions. For example, many Software-as-a-Service (SaaS) products are designed by default to be relatively scalable when adding additional users over time. However, while you may be able to add more users, there will still be a certain cap placed on feature usage. If you regularly hit those ceilings as your business grows, it can significantly hinder your ability to scale.
While requiring a larger investment, custom-built solutions give you full control over the technology’s features. Because of this, you have more freedom to develop the solution in a way that’s best for your business and can provide more value before you need to upgrade.
Don’t Forget About Maintenance Needs
Almost all technology solutions need to be maintained over time. This applies to both off-the-shelf solutions and custom design projects. However, whether the maintenance is performed by external or in-house teams will typically depend on how much control your business needs.
If you choose a third-party solution, you’ll be reliant on an outside team to provide the necessary support and maintenance of the solution. While this is relatively common, it does bring a certain amount of risk to your business. If there is a critical business feature that either isn’t working or is still in development with the tools you’ve subscribed to, it could lead to costly downtime while your business waits.
However, if you decide to build your custom solution, all the necessary maintenance falls to you and your team. Still, for some companies, this is actually the preferred way to go. It means you avoid the risks that can come with passing on critical maintenance tasks to an external party. The upside is similar to doing your own home renovations—you get to call all the shots on what features get attention and which areas need more fine-tuning.
Choose What’s Right For Your Business
Deciding whether to purchase a new technology solution or design your own is an important decision. However, by considering the points discussed, you’ll feel much more confident in your decision and ensure that whichever path you choose helps lead your business to success.
