What Is Custom Software Development?

Jan 12

In the 21st century, running a company requires deploying technology in one form or another. You may use a combination of automation and manual processes, but technology is at the core of whatever you have in place to help your business run smoother. In a news release published by Cision, 90% of small businesses converted some of their aspects to digital in 2020, and 47% of new software adopted increased productivity. Surprisingly, that doesn't cover what larger organizations invest millions of dollars each year in IoT, AI, Cloud Computing, and custom software.

Now more than ever, CIOs and CEOs must consider how best to adopt technology for the most significant bang for their buck. Investing in technology for your business is precisely that, an investment that will make you money. A few areas where you will see a definite ROI regarding technology include, revenue enhancements, cost reduction, increased productivity, and improved security. Customizing software, in particular, can be an excellent way to keep your business competitive and adaptable. So, what exactly is custom software development, and why should mid-sized companies consider it?

What Is Custom Software Development?

Custom software development is the process of designing, creating, deploying, and maintaining a software application for a specific set of users or organizations. Compared to commercial off-the-shelf software (COTS), custom software is tailored to fit the specific needs of your business processes and specifications, such as customer needs and preferences, data integration, or business rules.

Custom software development is performed by a team of in-house or outsourced third-party engineers, designers, and other professionals that work together to create the perfect solution for your business. While the process of creating custom software entails methodologies and steps such as gathering, designing, coding, and testing, what makes it unique is its tailoring to meet your company's specific needs.

However, tailored software doesn't come at just any price. Many small and mid-sized companies may be hesitant to invest such a large amount of money or resources in custom software development due to the cost and time investment involved. To offset this, many organizations are now turning to an agile methodology for their custom software projects which has proven to be successful in terms of project delivery timelines and cost savings.

What Is the Difference Between Custom Software and Commercial Off-the-Shelf Software?

One of the most common dilemmas companies face when deciding which software solution suits their needs best is creating custom software or purchasing an existing off-the-shelf solution.

The difference is that commercial off-shelf software (COTS) is a standardized, ready-made product that anyone interested in off-shelf solutions can purchase. It's designed to cover the needs of a wide range of users and cannot be personalized. However, COTS has advantages, and most businesses need to pay attention to them.

Scalability

Despite not being tailored to your individual needs, COTS is designed to quickly scale up or down as the needs of the business dictate. For instance, if you require more users or features, you can quickly expand the software without additional development.

Cost Savings

Off-the-shelf solutions are generally much cheaper than custom software since it's already created and ready for purchase. Also, these types of software come with a lot of support from the vendor, making maintenance costs easier to manage.

Ease of Use

While Off-the-shelf serves a larger, more diverse audience, it's usually designed with higher user-friendliness. This means that there's no need for extensive training or setup time.

Predictability

You know what you're getting with COTS: it's already created and tested. You can be sure it will work as expected since the vendor has already invested much time in testing and debugging.

Meanwhile, many start-ups and mid-size companies consider acquiring off-the-shelf software for quick and cost-efficient software solutions. However, as their companies grow, so does their need for software that can integrate and scale with the company's needs. In such cases, custom software development comes as a viable solution.

Custom software allows companies to adjust functionality, add new features, mitigate risks, integrate with existing components, and have complete control over any infrastructure or developments that may arise.

Some benefits a custom software solution may bring are:

Tailor-Made Features

You fully control the features and functionality with custom software. This means that you can add or remove elements according to your exact requirements. In addition, you can tailor the design of the software to match your brand or any desired aesthetic.

Security

As custom software is developed from scratch, it's built with a higher degree of security in mind. This means there are fewer chances of hacking or data breaches compared to off-the-shelf solutions.

Independent

The independence from commercial software vendors cuts with both edges. On the one hand, the business can eliminate price hikes for support and licenses or pay for maintenance of packaged software if the vendor terminates the existing product. On the other hand, you have to be responsible for the in-house maintenance and development of the technology, which can add additional costs.

Lower Integration Cost

With custom software development, you can integrate the software with existing components and systems of a business. But before making any decision, the company needs to ask itself: Will the software help the company achieve its goals? Will the software help the company achieve its goals? Or is the best solution to start from scratch with custom software development?

Efficient Support

There are little or zero adjustments needed to be done after custom software is developed. In contrast, COTS solutions require several adjustments for the program to fit the company's processes and requirements. That can be tedious and time-consuming or even, in the worst scenario, fail to function as expected based on the company's needs. Customer software development ensures that the software works according to the company's needs swiftly and efficiently. Therefore, time is well-spent, and investments are recovered since personalization is done from the beginning.

Key Aspects to Consider When Building Effective Custom Software Development Solutions

Before embarking on a custom-designed software solution, a business must consider some key aspects. This will ensure that the software can meet the company's needs and stay on budget. In addition, a comprehensive and well-thought plan should be in place to guarantee the quality of the software.

When deciding to build and deploy custom software, it is crucial to consider the following:

Decide on Whether to Buy or Build

One of the key aspects to consider is deciding whether to build or buy a software solution. Investing in off-the-shelf software solutions that are already developed and ready to use can often be beneficial. Custom software can be the best option for more specific needs as it's tailored to the company's needs.

According to a software development firm, Geneca, due to confusion, lack of planning, and failure to recognize the need for more involvement from business stakeholders, 75% of businesses and IT decision-makers anticipate that their software development project will fail. Although most software developments do begin, only fewer than a third are completed on budget and on time.

By developing a buy-or-build analysis, companies can decide if an off-the-shelf solution is a viable option if it meets over 80% of the functions required to:

Facilitate integration with existing applications and data
Provide scalability to grow with the company
Improve customer service and technical support
Follow applicable laws and regulations regarding data storage, privacy, tracking, etc.
Support or automate unique business processes and procedures
Consolidates existing solutions to achieve improved customer service and productivity
Enhance employee productivity
Reduce costs or improve return on investment (ROI)

Choose Between In-House or Outsourced Software Development

If the decision is to build custom software, another decision needs to be addressed: whether the project should be done in-house or outsourced. An in-house team of developers might be the best choice if:

The project has a tight deadline
The development team has all the necessary skills and resources
There is internal support for the project
The company values control, privacy, and confidentiality.
The team members have previous experience in this type of software development
There are no risks related to intellectual property or data protection.

However, companies may need to outsource their custom software development needs to save costs and have access to a larger pool of resources. In a report by Deloitte, 70% of companies consider outsourcing a viable option as it helps them access cost-efficient solutions. Beyond that, outsourcing software development helps companies in various ways, including:

Access to good knowledge of DevOPs, cloud computing, and AI
Improved infrastructure
Rapid development capabilities
Cost savings
Automation potential with web-based solutions
Time-to-market advantage
Access to the latest technology and tools
Access to a global talent pool

Define the Requirements

A clear shared vision of the software's purpose and desired outcomes should be established before the development process begins. This includes understanding how the software will function, what data it needs to capture, what scenarios it should provide, and how users will interact with the system.

Companies can determine which features are essential for their success by properly defining requirements and which features can be eliminated from their custom software build. An efficient requirement definition process can help determine which type of team and technology is needed to match the company's goals.

Selecting the Ideal Software Development Methodologies and Technologies

Deciding on the ideal software development methodology and technologies can be difficult, as many options are available. Each software development methodology has its strengths and weaknesses, so it's important to select one that is modern and practical for the particular project.

Some modern development methodologies to consider include:

Agile software development is a popular methodology for its simple consumable requirement functions and rapid response to those functions through Incremental development. Recently, the 15th state of Agile report stated that the adoption of Agile has grown to 86% in 2021 as compared to 37% recorded in the previous year.
Waterfall methodology is a sequential process that follows a more traditional approach to software development. This method can be the right choice for companies that need specific deliverables and results on a tight timeline.
Scaled Agile Framework (SAFe) is a widely used framework for managing and executing programs that involve multiple teams in an Agile environment. This is the best choice for projects requiring larger teams or adhering to specific guidelines and standards.
DevOps is an iterative and incremental software delivery method where developers and operations teams collaborate closely to release quality applications faster. This option might be best for larger companies that rapidly develop and deploy their software while ensuring the highest possible security and performance standards.
Feature-Driven Development (FDD) is an agile software development process that focuses on delivering small, incremental changes to a product. It can be perfect for companies looking to deliver high-value features quickly while keeping costs low.
Rapid Application Development (RAD) is a software development methodology that emphasizes applications' rapid design and prototyping. This method can deliver smaller projects quickly, as developers are expected to work in short, intense bursts of activity.

In terms of technologies, companies should look for innovative tools to help them reach their target audience and create the best experience possible. Some modern technologies used in software development include:

Cloud Computing allows companies to store and access data virtually on a remote server via the internet. This technology has become increasingly popular due to its speed, scalability, and reliability.
Artificial Intelligence (AI) & Machine Learning (ML) are two technologies widely used in software development for their ability to provide more accurate decision-making and automated operations.
Blockchain technology is a digital ledger system used to store data securely. This technology is popular among companies that need to protect their sensitive information from malicious actors.
Internet of Things (IoT) allows physical devices, such as connected home appliances and smart TVs, to be connected to the internet. This technology is helpful for companies who want to automate certain tasks in their business or deliver better customer experiences.
Low code development tools allow developers to build web and mobile applications with minimal coding quickly. This technology is perfect for companies who don't have the time or resources to hire a large software development team but still want to produce high-quality apps quickly.

Creating an Ideal User Experience

Custom software design is about choosing the right technology and creating an ideal user experience. Companies should focus on understanding their customer's needs and designing software that makes it easy for them to interact with their products or services. This includes ensuring the interface is intuitive, user-friendly, discoverable, and accessible to all potential users. Additionally, companies should focus on the best UI/UX design practices to create a seamless and enjoyable experience for their customers.

Best Practices for Custom Software Development

Many companies need to improve the execution of their custom software projects. Poor project management and development practices can lead to costly mistakes and unsatisfactory results. To ensure successful outcomes, companies should follow industry best practices such as:

1. Considering the Current and Future Needs

It is important to define the project scope and objectives at the outset to ensure that the application meets all current requirements while allowing for future growth and expansion. Before building, businesses should ask themselves the following questions:

What are the current and future needs of our business? Making assumptions about how the software should be used without a clear vision of what the application needs to do can lead to costly mistakes.
What problem are we solving? We often rely on consumer reports and forget to question whether our proposed solution solves the problem. Theoretic testing can help identify the most effective solution that meets customer expectations.
What are the potential risks? Companies should always be mindful of potential risks and plan accordingly, accounting for foreseeable issues and building measures to address them.
Are there any existing solutions? It is important to conduct a thorough market analysis before investing in custom software development. There may be existing solutions that could save time and money.

2. Choose the Right Partner Wisely

No matter how skilled your in-house team is, partnering with an experienced software development company is always a good idea. A reliable partner can provide invaluable expertise and guidance throughout the project.

When choosing a partner, businesses should look for companies with a proven track record of success and extensive experience developing custom software applications. Additionally, the partner should be able to demonstrate the technical skills required and provide references that can attest to their reliability.

3. Document the Process for Future Reference

Managing future changes and updates to the application will be a lot easier if you have detailed documentation of the application throughout its lifetime. This should include development processes, project requirements, feature requests, code changes, bug fixes, and other notes related to the software. Documentation can help in future planning and ensure everyone involved is on the same page.

4. Conduct Cost Benefits Analysis

Before investing in custom software development, companies should conduct a cost-benefit analysis to determine if the benefits outweigh the costs. Businesses should continually review the cost-benefit ratio throughout the development process to ensure their investment pays off.

5. Build an MVP and Launch It

When it comes to custom software development, businesses should first focus on developing a Minimum Viable Product (MVP) and launching it before the full product is ready. This will help identify any issues and bugs while providing users with a tangible proof of concept they can explore. MVPs should have the essential features required to make the software usable but don't need to be as feature-rich as the full version.

6. Focus On Usability and the Latest Technology

The focus should always be on creating an intuitive and user-friendly application that is easy to use. Additionally, businesses should ensure the application takes advantage of the latest technology trends to remain competitive. For instance, using cloud-based solutions and mobile-friendly versions of the application can help to ensure that users have access to the features they need when they need them.

When Should My Business Invest in a Custom Software?

Developing custom software for your business can be a great way to increase efficiency and productivity while also reducing costs. However, the process can be complex and time-consuming, so it is important to carefully consider whether this is the right option for your business. Below are signs that your business could benefit from a custom software solution:

Your Existing Software Is Not Meeting Your Needs

An early but crucial indication that a customized software solution is the right choice for you is when your existing software cannot support your business needs. If the current platform no longer meets customer expectations, or if you spend more time and money on manual processes, consider a custom software solution.

You Need to Increase Efficiency and Productivity

The onset of workflow bottlenecks or lack of scalability in your business signifies that a custom software solution is required. A tailor-made application can quickly help automate manual processes, streamline workflow and increase your team's overall efficiency and productivity.

You Have Unique Processes That Require Specialized Solutions

Where your existing software does not provide specialized solutions for unique business processes can signal that you require custom software development. A good example is when your team has specific needs, such as managing complex operations with several stakeholders or segmenting data into multiple departments.

You Are Struggling to Keep Up With the Competition

Whenever you find that your competitors can do more, faster, or better than you, it is worth investigating whether custom software can help. Custom applications tailored to your business's needs can be a great way to stay ahead and remain competitive in the marketplace. In addition, it can also help you to build a loyal customer base by providing them with an enhanced, personalized experience.

Your Customers’ Needs Are Changing Rapidly

Instances where customer needs are rapidly changing and existing software solutions are falling behind can be another indication that custom software is needed. This is especially true when it comes to customer-facing applications, as it helps to ensure that your customers remain happy and engaged with your business. You can better meet customer expectations and always remain relevant in the marketplace by quickly developing new features and functions as needed.

Bottom Line

Custom software can significantly add value to any mid-sized business with careful consideration and planning. Custom software development is no small investment, but it can substantially increase efficiency and productivity while remaining competitive in the market. However, before investing in custom software, businesses should carefully consider their needs and evaluate whether this is the right option.

We specialize in software development at Mach One Digital and can help accelerate your business evolution in weeks. For more information on custom software solutions, contact us today, and our experienced team will be happy to discuss your needs further. We look forward to hearing from you!