Hello everyone, friends! Today at Sailet, we are addressing a topic that will spark interest for many of you: "You don't need personalized development if..."
We have prepared a comprehensive article, but each paragraph in it is an investment in understanding when a personalized approach to development is truly necessary for your business and when standard solutions can suffice. We promise the information will be valuable, providing you with new perspectives on optimizing and strategically planning your projects.
1. Your budget is limited
Custom development is a significant investment. According to industry research, the average cost of developing a small product can start from $30,000 and increase depending on the complexity and functionality.
It is also important to calculate the total cost of ownership. This is the sum of all expenses incurred by the buyer when acquiring and/or using the product. For example, with product development, this includes:
- infrastructure;
- Google, Apple accounts;
- Technical Support
- various additional services;
- user support;
- etc. (depending on the project).
Action Plan:
- Evaluate your actual current budget and determine what funds you can allocate for digitalization.
- Research the market of ready-made solutions, which can meet most of your needs without significant initial investments.
- Consider the possibility of a gradual transition to custom development as your business grows and your available budget increases.
2. You need to launch the project quickly
Market conditions sometimes require a quick project launch, while custom development is a process that can take months or even years. In this case, flexible development and launching an MVP might help, but it still requires time. Most often, the initial hypothesis can be validated with a simple set of steps, generally without resorting to development. You need to check the process and whether clients are willing to pay for it because the product may not be validated.
Action Plan:
- Define the timeline for entering the market, and assess whether you can meet those deadlines by developing the project from scratch.
- Study ready-made platforms as an option for a quick start, with subsequent customization to fit the specifics of your business.
- Plan a feedback phase with users to optimize the product after launch.
3. Your requirements are standard
If you can fully meet your business needs with standard features, it may not be worth investing in custom development. Yes, no two companies are alike, but that doesn't mean you should immediately develop your own CRM. Custom development should be pursued when you encounter limitations from a vendor. If you're an established company and haven't tried anything "ready-made," chances are it will be a very expensive reinvented "wheel."
Action Plan:
- Analyze key business processes and determine if they can be effectively automated using standard solutions.
- Study reviews and case studies of companies with similar needs, that successfully use ready-made solutions.
- Start with an MVP (Minimum Viable Product) based on a standard solution to test its effectiveness without significant initial investments.
4. You are not ready to manage a complex development project
Complex projects require knowledge and resources. If your team lacks these competencies or doesn’t allocate time for interaction with the contractor, managing a custom development project can become an overwhelming task. This doesn’t mean you should do the contractor's job. It means full immersion is required because the contractor doesn't know all the nuances. On average, the responsible person will spend around 20% of the total project time. For instance, if development lasts 1000 hours, the responsible person will spend 200 hours.
Action Plan:
- Evaluate the internal resources and competencies of your team.
- Consider the possibility of involving external experts or outsourcing project management, such as us).
- Plan employee training or hire specialists with the necessary skills to successfully manage the project.
Who truly needs custom development
Custom development becomes critically important when standard solutions are unable to meet the unique requirements of your business. This is especially relevant for companies operating in niche market segments or having specific processes that require a tailored approach to automation and data management.
Companies with unique business processes
Organizations whose operations or services do not conform to the standard and require a special approach will not find an off-the-shelf solution. Custom development allows precise tailoring of functionality to specific requirements and processes, improving efficiency and customer service.
Startups with innovative ideas
For startups looking to introduce innovative products or services to the market, standard solutions are often limiting. Custom development provides the freedom to experiment and implement unique ideas, which can become the foundation for future market success.
Companies in need of integration and automation
Organizations with multiple disconnected systems and applications can significantly improve their operational efficiency by developing a custom solution that integrates data and processes into a unified system, ensuring automation and improved management.
Businesses aiming to comply with specific security and privacy requirements
In industries where data security and privacy requirements are particularly high (e.g., in the financial sector or healthcare), custom development allows for the creation of systems fully compliant with these standards, minimizing risks and ensuring customer trust.
Statistics and Reasons for Choosing Custom Development
- Uniqueness and Competitive Advantage: Custom software can become a significant competitive advantage, distinguishing your business in the market. Around 75% of executives believe that personalizing products and services contributes to increasing their effectiveness and attractiveness to customers.
- Improved Efficiency: According to a study conducted by Gartner, companies that implement personalized IT solutions can achieve a 20-40% increase in productivity through the automation of business processes.
- Flexibility and Scalability: Customized solutions allow for more flexible responses to changes in the business environment and scaling functionality in line with the growth and development of the company.
- Competitive Advantage: Having a unique software product, developed specifically for the needs and goals of the company, can become a significant competitive advantage in the market.
- Investment Optimization: Although the initial costs of custom development may be high, in the long run, they pay off through increased efficiency and reduced operational costs.
Conclusion
The choice between a ready-made solution and custom development depends on many factors, including the specifics of your business, budget, timelines, and strategic goals. It's important to remember that investing in personalized software can yield significant dividends in the form of market uniqueness, flexibility, and operational efficiency.