28 May 2013
Why Custom Software Can Give a Company a Competitive Advantage
Conventional wisdom dictates that reuse is the best cost-saving strategy; that reinventing the wheel is too costly in terms of initial investment; that the risk of reintroducing problems that were already solved and tested many times over by a third party is absurd. As far as custom software development goes, this attitude towards reuse is pretty dominant and is one of the primary reasons firms are willing to build entire process flows around cloud software applications that are potentially hosted on the other side of the world and handle the requests of countless other clients.
However, there is a strong case to be made that this conventional wisdom does not always hold. After all, software that is commercially available to every business:
- Gives no competitive advantage: it simply puts a company at the same level of capability as all others.
- Is not guaranteed to adapt with the changing needs of the business: instead, it will only adapt to the collective needs of the market as far as the vendor is willing to address them.
- Its use can lead to a nightmare of overhead and dependencies that the buyer was in no way prepared for.
Though many companies would consider full custom software design a high risk, sometimes the risk level in an industry is too high not to pay a premium to innovate in a field. This is what NYSE Euronext found out after building a system called Universal Trading Platform for its own use in 2008, which it now sells to other firms. NYSE Euronext notes that the initial development was fraught with risk and uncertain ROI, but it has paid off given that its IT services group increased its earnings from $363 million to $444 million.Contact a trusted developer of custom software solutions to learn more about the benefits of a system that is tailored to your needs.