Is Bespoke Software a “High Risk” Option? October 26, 2008
Posted by Dan Stuchbury in : Selecting Suppliers, Software , 6commentsBuying software by Apple, Adobe or Microsoft, is probably considered by most to be a “low-risk” decision. These are companies that are likely to be around for many years to come, and support for their products will continue to be available.
The same could be said for buying software from smaller, lesser-known companies, but it requires a slightly different way of thinking. How can software that you specify yourself be high-risk? Unless, of course, you don’t know what you want the software to do – only that you’d know when something is “good”, because of the way it looks, or the write-ups it received in the press. If you don’t know what you want, then the chances are that a few months after your bespoke software is implemented, you’ll find another product with some nice features that you think would be great in your solution – so you approach the developers, telling them you’ve thought of some great new features for your solution, and can they get to work straight-away. Yes, they say, and the cost will be £X. They also tell you that if you had included this requirement in the original specification, the additional cost would have been significantly less.
Of course, the original developers could not be around any more. I’ve been approached by prospects who have had solutions developed in FileMaker, where the developers had gone out of business, moved to Afganistan (yes, really) or just “gone away”. If you don’t know what you want your software to do, then bespoke software is likely to be a more risky purchase than pre-developed software, and the overall cost is also likely to be higher.
On the other hand, a company that has been around for a few years, is run by experienced, talented developers, presents you with an excellent opportunity to have software developed specifically for your business. It is quite possible that they will have a series of “template” solutions on which to base your solution – with FileMaker developers, this is a fairly common occurrence. So, what makes this low-risk? You will get a feel for the company and its style of working during the conversations and meetings you have with them. Whilst gut-feel isn’t a scientific process by any means, and business decisions should be made on solid research and understanding, gut-feel can act as an indication that you are heading in the right direction. The proposal submitted to you, should include details of the company’s experience, both generally and specifically in your sector. Ask for references, preferably where actual conversations take place between your and the client of the developer. How do they handle support? What happens if they do go out of business, or are no longer around for whatever reason?
Nothing will prepare you better than research and experience. When you’ve looked at a number of solutions, and have perhaps reviewed evaluation versions, as well as carried out an analysis of your requirements and created a detailed “wish-list”, you should have a pretty good idea of what you want your software to do.
If you don’t know what you want, then bespoke software could well be a higher risk option. On the other hand, if you’ve done your research, and have well-developed business processes, bespoke software can represent a solid investment.
Small Company, Bespoke Solution or Big London Company? October 14, 2008
Posted by Dan Stuchbury in : Selecting Suppliers, Software , 2commentsWhich, if any, is “better” and why? First, we need to define what “better” actually means, and who “better” is important to.
Cost – Not the most important factor, but well worth a mention here. Chances are that you’ll end up paying less to the smaller company, and at least some support is likely to be included in the basic price you pay. Typically the larger the company, the greater their opportunity to generate a substantial amount of ongoing income through monthly support fees. In-fact, most CRM software resellers make the majority of their money from support contracts & training – the “value added” services. Creative agency software is different in that most developers sell directly to the client, so they make their money from the software itself.
Flexibility of your business processes – If you’ve worked hard, and perhaps spent money refining how your business operates, you should ensure any software solution you choose can handle them. On the other hand, software develoepd by industry experts should be able to guide your process development, if you feel that you are not perhaps as efficient and effective as you could be.
Support & customisation – Often, but not always, the bigger the company, the more personal the service. A smaller company could not be around next year – what if the lead developer gets hit by a bus (yes, I was asked this question recently!). It is important to ensure your investment has a future with the company you work with. As I said above, you’ll be more likely to be paying more for an annual support contract with a larger company.
Trust & risk – You will develop a long-term relationship with the company you select to supply your software. Do you feel you can trust the person you’ll be dealing with? Is bespoke software a “high risk” option?
Ultimately, the decision is yours to make, but don’t write either option off just because they’re the “big London company”, or just because they’re the little guys. Size isn’t everything, especially with FileMaker.