It’s safe to assume that nearly every business today uses some form of technology to help it grow. Whether you’re leveraging email daily, using a dedicated accounting solution, or using architectural platforms to help plan a home remodel, technology is a critical component for streamlining operations.
However, with so many options on the market for new business tools and solutions, businesses will likely need to decide at some point whether to purchase an off-the-shelf solution, partner with a software development team or customize their existing solutions.
Regardless of the decision, there are several things to consider before making the right choice for your business.
Exploring your developement options
Businesses have a wide range of options when structuring their technology solutions. However, before you start down any particular path, it’s important to think about the best implementation format that is right for your business. Developing your software or leveraging and customizing already available solutions each has its own set of advantages and disadvantages, and understanding these nuances is crucial for making the right decision.
Build
Building an in-house technology solution means creating it from the ground up, relying entirely on your internal resources and capabilities to see the project through. This approach gives your business the most control over the final product, allowing you to customize it completely to fit your unique needs.
However, designing an in-house solution also means you’ll be spending significant time, money, and human resources to make it happen. You’ll need access to a skilled development team with the necessary skill sets to create a well-defined project scope and ensure the project goes as smoothly as possible. Because of this, it’s very important to be realistic about your internal capabilities before moving forward.
Partner
Partnering involves collaborating with another company and using their specialized skills and tools to create the right solution for your business. This can be a good strategic move, especially when your business lacks the internal capabilities or resources to build a solution yourself. Partnering with software development teams also offers a faster or more cost-effective route to market for most businesses.
Partnerships can take various forms – from joint ventures and licensing agreements to simple contracted services. Choosing the correct type of partnership depends on your specific needs and objectives. For example, a joint venture might suit a large-scale project requiring shared resources and expertise. At the same time, a licensing agreement might be more appropriate for simply gaining access to a particular solution.
Customize
Customizing an existing technology solution involves modifying a pre-built product to better align with your specific use case. This approach is a great alternative to building something from scratch since it allows you to use an already proven product while making it more applicable to your business. This can potentially save time and resources compared to building a completely custom solution.
However, customization can introduce its own set of challenges. Integrating a customized solution with your existing technology stack may require more effort than you originally thought, and ongoing maintenance and support for any changes you make can sometimes be challenging.
What factors should you consider when deciding your approach?
Choosing the right approach to acquiring new business requires careful consideration. There are a variety of factors that can weigh your decisions, and it’s important to give each one the due diligence necessary before proceeding.
Below are some of the key elements that should influence your decision when deciding on a new software approach:
1) Business needs and objectives
It’s essential to ensure that whatever technology approach you decide on compliments your short- and long-term business objectives. Make sure you think about the specific functionality or core technology features crucial for your operations and workflows. For example, if you’re a construction company and real-time project management is critical for your home remodel projects, you’ll need a solution that can efficiently handle scheduling changes, material orders, and communication with subcontractors.
The next thing to do is to determine your top priorities. These could be the speed of the solution, how cost-effective it is to implement, or the amount of control you have over design and functionality. If your business is in an industry that is constantly evolving, you’ll want to consider having an agile solution that will allow you to shift directions quickly. On the other hand, if you have strict regulatory requirements, control and security might be your primary concern.
2) Internal resources and capabilities
Before making any decisions, you should look at your company’s internal resources and capabilities. This includes evaluating your:
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- In-house Expertise—Assess the availability of your in-house software developers or IT staff and confirm they have the necessary skills and experience to build a solution from scratch or effectively customize an existing one. The size of your organization and software needs will likely dictate whether you can handle the project yourself. You may be able to successfully start more basic projects on your own while getting other teams involved if and when you want to make significant upgrades or add more complex features.
- Financial Capacity—Of course, your business’s budget should be a primary consideration before making any final decisions. While building a solution in-house can give you the most creative control, it’s a good idea to balance costs against the long-term value of having other industry experts assist in the project. Remember that the more customization you add to a solution, the higher the costs. The added costs of hiring external teams may be justifiable, but it’s important to weigh them accurately first before deciding.
- IT Infrastructure—The capacity of your existing IT infrastructure should also come into focus, especially when considering your need for ongoing support or customer integrations for your new solution. You want to make sure you have the necessary hardware, software, and network infrastructure to handle the demands of building or customizing a solution. This includes ensuring you have sufficient server capacity and network bandwidth.
- Solution Flexibility—Depending on where your company is along its growth path, the flexibility requirements of your software should also be taken into consideration. Think about whether you’ll be requiring more complex integrations that might require outside support or whether you’re able to use more self-service third-party API tools. You’ll also want to consider how often your solution will likely require upgrades or maintenance, as these needs will dictate the type of framework your solution is built on and whether or not you can support future developments on your own.
- Risk Tolerance—When setting up your solution, it’s important to analyze your company’s risk of experiencing potential challenges or delays. Building or customizing a solution can be unpredictable, with a high possibility of project delays, budget creep, and integration challenges. You’ll want to think carefully about whether your organization is prepared to handle these risks or if a partnership might be a more suitable approach.
- Security Needs—Security should be another important consideration when deciding how much outside involvement you want in a solution. While many third-party solutions have a wide range of security protocols and follow certain best practices, the sensitivity of your data may require you to take more ownership of how and where company information is stored. You may decide that housing your data with company-controlled access and data encryption is a safer alternative than relying on a third party.
3) Time Constraints
Time is often a critical factor in technology decisions. You’ll want to establish a clear implementation timeline that outlines any key milestones or deadlines you’re trying to reach. Then, carefully assess how each option will support those goals. Building a solution from scratch might not be feasible if you’re facing a tight deadline, such as launching a new product or service by a specific date.
Partnering with a provider who already has a market-ready solution could be a faster option, allowing you to leverage their existing technology and expertise to accelerate your implementation. However, even with a partner, integration and configuration can take time. Customization can also be time-consuming, though, depending on the complexity of the modifications required.
Whatever you decide on, remember to include buffer time for unexpected issues. This will help you choose the most efficient approach and increase your chances of meeting your target launch date.
Make the right choice for your business
Ultimately, the best approach for your business will depend on your unique circumstances. However, by carefully considering your business needs, availability of internal resources, existing technology, budget needs, and time constraints, you’ll be able to choose the best path forward confidently.
