1. When is a Custom App
The Right Choice?
Refuse to Fail
2. Off The Shelf – The Default
• OTS – Default solution for
business automation
• Even when it is not as efficient or
focused as it should be
• How many SMB’s start with MS
Office suite to manage their
business
• ”Graduating” to apps like
Salesforce or Zoho Office
• How many continue with these
solutions long after they no
longer “fit?”
3. Off The Shelf – The Default
• What opportunities are you
missing?
• What are the downsides, risks
and rewards in business
software investment
• Custom & OTS?
4. It Starts with a Simple Need…
• We need to bring together items or costs for a sale
• We grab Excel
• We need to share the punch list with our team
• So we add a little detail and email a copy to each member
• We ask for an update on progress
• Copies of the spreadsheet come back. Some have additional columns
for hours, status & issues. Some don’t
• Eventually the chain of casual spreadsheets becomes a
process
• Bound together with customer, job and version numbers
Our Process
5. It Starts with a Simple Need…
• For a while – it works.
• We add and modify templates
• Versions break into different types for different situations
• Then we wake up
• We’re wasting a lot of time managing our services
• Consolidated reports have to be manually generated from many versions of sheets
across several jobs
• We want to change but…
• We have a process and it works (sorta…)
• Our data is all over the place and not a simple, structured set
• Knowing what we do and what we need are two different things
Our Process
6. We Graduate to Market-Driven Solutions
• Getting past the first hurdle –
• a bunch of ad-hoc adaptions
using an OTS office productivity
apps to a SaaS or OTS app
that is more of a fit is just one
step of many
7. We Graduate to Market-Driven Solutions
• Broad market apps have many
compromises to navigate
• A process step may be critical for one
group but hard to add in ways that
don’t confuse or burden the majority
of users
• More choices and features may be
good for some but feature bloat for
others
• The feature that was advocated by a
small, vocal group can end up being
forgotten – rarely updated or
maintained
8. We Graduate to Market-Driven Solutions
• On the buyer side – selecting
the right application is a
balancing act
• Address critical (but not all your
needs)
• Adapt to a big, we-do-it-all solution
that gives us an overwhelming set of
choices and decisions at every turn
• We might select an app for a specific
need – but when we do we’re often
faced with integration issues. How do
we pass data to other apps?
9. We Graduate to Market-Driven Solutions
• If we select an app that we
need to adapt for
consolidated reporting or that
doesn’t quite fit our process…
• We find ourselves using
workarounds – spreadsheets,
handwritten notes, emails, etc.
• If we’re not careful, we end up
right back where we started but
with more confusion, process
overhead and costs
10. We Graduate to Market-Driven Solutions
• But – it doesn’t always end up
this way.
• A standard OTS solution can be a
perfect fit for accounting & HR
needs
• Companies handling inventory and
shipping can find many
alternatives, some specific to their
industry or easily adaptable
• And there can be side benefits to
adopting industry standard
solutions – like recruiting. You
could have a pool of proven,
skilled users to select from…
11. So – How Do We Know?
When is it time to consider a custom application?
• All software is an investment at some level
• A widely used SaaS or packaged solution is an investment in a specific
set of features, processes and data management
• It may be a recognized expense for accounting purposes, but your business still
needs to adapt processes and procedures to match the assumptions in the app
• Once you have implemented, you need to continue to invest in training, refining
processes and standards to maintain a fit with the application
• Your data and integration possibilities are “locked” in the application solution,
even when you can extract and hold data locally
• If the application addresses a lot of situations beyond your needs – you may be
paying for more value than you can justify over the long run
• As your business and the market evolves over time – the application may or may
not continue to meet your needs. Your business changes and so does the market
the application addresses…
12. So – How Do We Know?
A checklist of considerations for your investment
• If every application you adopt
is an investment, what are
some of the key points to
consider?
• Long term vs short term
• Beyond initial costs
• Strategic fit & competitive
advantage
13. Market Solutions May Be Cheaper…
• At least initially
• Often cited, but rarely examined over
the lifetime of the solution
• What will the lifetime costs be
considering licenses and seats
(consider growth)?
• There are often breaking points that
can push you into enterprise pricing
and costs beyond your reach
• What are the costs of
implementation, training, adaption,
integration, and maintenance?
• What will be the cost to migrate to
another solution if you need to?
14. You Can Buy & Use in the Same Day…
• This is a lot less likely than it once was
• Market-driven solutions conquer markets two ways
• Add features to capture more markets and “edge” cases
• Become more focused and targeted to reach deeper into niche situations
(generally higher license costs)
• Either path requires more from users
• More training and adaption to fit the application
• Longer implementation projects and more effort to maintain internal adaption
without adding workarounds
• If your driver for a selection is quick implementation & low training
costs – it may be a lost cause from the beginning.
• Time from technical implementation to full production is generally longer than
you imagine
15. An Existing Solution May Meet the
Majority of Your Needs
• Certainly true in many
situations and for some
business areas – this is
enough to make the choice
• Do you really want to try to
manage accounting or
personnel issues across many
jurisdictions and changes in
regulations?
16. An Existing Solution May Meet the
Majority of Your Needs
• But – in other situations
• A solution that fits today might not
scale or continue to evolve in the
same direction as your business
• Most companies do not have
enough influence to change the
direction of a packaged solution
• Your size and business maturity
are important issues to consider.
• You may not fully understand your
needs. If that is a consideration,
how much you invest now is a
serious concern
17. Data Portability and Integration
• May not be an issue now – what
about the future?
• If you have one or two core apps
this may not be an issue
• As your business scales and/or
you bring in additional apps
• Moving data between apps may
be possible with APIs and
webservices
• But – integration has a cost and if
your apps are proprietary, they
may require vendor professional
services (with higher costs)
18. Data Portability and Integration
• If you outgrow a solution
• If you need to move to another
system, can your data move with
you?
• If you can extract your data – what
will it cost to transform it to the
structure of the new application?
• There can be may (unpleasant)
surprises in data migration
between proprietary solutions
• Data lock-in can be a nasty animal
to contend with
19. Reporting May Be Good Enough Initially
• Can it continue to grow with you?
• A commercial app will usually have a reasonable reporting package for
the app itself
• As your business grows and you add additional applications and
systems – will it continue to meet your needs?
• In most cases the integration & rationalization of data between
applications will require custom development or manual
processes to extract useful reports
• The larger and more complex a business becomes, the more of a
burden this will be
20. Custom Software is Often More
Expensive Initially
• And development isn’t an end
to your costs…
• All software is an investment
- and not a one-time cost
• Custom apps have a built in
advantage however
• They address your needs
directly and generally require
less adaption
• They can evolve over time to
continue to meet your needs
21. Custom Software is Often More
Expensive Initially
• But – if you don’t budget for
maintenance, updates and
evolutionary change
• Custom apps will eventually
become restrictive and not cost-
effective to retain
• All automation projects have a
lifetime cost and need to
continue to evolve with your
business – without holding you
back
• ROI is always a consideration
22. Integration & Extensibility
• Under your control in custom
applications
• Seldom discussed but can be a
significant time and cost factor
in custom apps
• Key is deciding what is core and
necessary in your app
• Do you need a custom payment
solution?
• Or can you integrate an existing
service that can handle
transactions transparently?
23. Integration & Extensibility
• Integration with 3rd party
solutions can allow custom
apps to only need to provide
the proprietary glue, process
and data to provide
necessary functionality
• Mapping, shipping & delivery,
supply chain management, etc.
• Can greatly reduce initial costs
and flexibility – now and in the
future
24. Unfair Advantage?
• Every businessman wants one.
• A custom app can embody your business value and competitive
advantage if it addresses your core processes and customer services
• Requires careful planning and thought –
• A full scale development project to solve all your problems isn’t a
guaranteed success
• Building functionality incrementally and gaining a better understanding
by leveraging feedback – using agile and lean methodologies – is a
better way to insure custom app ROI and competitive advantage
25. A More Natural Fit?
• A custom app can account for
your processes and
assumptions – requiring less
rethinking and realignment
• But, it is also an opportunity to
streamline and rethink your
assumptions instead of simply
automating a process of
tunnels and dead ends
26. A More Natural Fit?
• And – assuming you cannot
know everything the day
development commences...
• Custom apps can (and should) be
extensible and flexible over time
• Your customers need more
reports, direct access to inventory
levels (etc.) – it is your software.
The need can be addressed.
• And it is an opportunity to leave
some “nice to have” features on
the table
• Allow users to try a more
streamlined version and learn
what they really need.
27. Custom Software is an Important
Opportunity
• But it isn’t necessary for every situation
• It can be an important business advantage
• But only if you address your core business value and avoid features better
addressed by third parties or outside services
• Some will say you need in-house technical expertise to make the
effort successful
• But if you have a clear understanding of your business and market - a
technical development partner can help you avoid the distraction and time
required to acquire and manage resources
• If you decide to move forward with a custom project
• Use Agile & Lean methodologies – build incrementally and evolve
• Understand software is an investment – but if done right – the ROI can be
quite high
28. We’d Like to Help
• Scio provides end-to-end engineering
services
• A collaborative partnership to ensure your
team is an integral part of solutions
• We’re flexible
• From assessing your needs to
developing, implementing, maintaining
solutions – we can offer as much or as
little help as you need
• Our teams can work virtually or on your
site – or a blend of the two
29. United States
Corporate Offices
8920 Business Park Dr.
Suite 250
Austin, Texas 78759
Local: +1 (512) 538 0512
Toll free: +1 (800) 642
6134
Fax: +1 (831) 309 5803
México
Development Center
Las Cañadas 501, Int. 230
Col. Tres Marías
Morelia, Mich. 58254
Tel 1: +52 (443) 310 9601
Tel 2: +52 (555) 350 0585
Email: info@sciodev.com sciodev.com