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Packaged vs. tailor-made software: pros and cons
Many business people continue to be confused about a fundamental choice
that computerization always presents: whether to use an off-the-shelf
package or to commission a tailor-made application. The
choice is made more difficult when money is no object. Below, we
present what we hope is an objective listing of the pros and cons of
both options, gleaned from our two decades in systems development.
A.
PACKAGED SOFTWARE
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Advantages of packaged software
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Disadvantages of packaged software
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1) Development time
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Zero development time (by definition);
no waiting; can be installed immediately
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Though ready to install and use, some
may need further tailoring to user’s exact specs. Solution: see if
vendor has local presence.
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2) Debugging time
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Typically zero debugging time needed;
all debugging has been done before product is released. Any bugs
that escape the QA process are corrected via a software upgrade as
soon as discovered.
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3) Completeness of solution
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Usually incorporates all basic
accounting requirements, all classical accounting reports.
Nonstandard user requirements usually stem from MIS reporting needs
peculiar to a customer.
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If a foreign vendor has no local
representative, offering the possibility of customization, the
application package may not readily yield the special MIS reports
the user wants.
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4) Cost
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Relatively low cost to acquire because
development cost is spread out among numerous customers. Cost
overruns are not an issue.
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5) User pool
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Because an off-the-shelf package has
numerous users, there is a sizeable population of skilled users for
it. A source of informal technical support. E.g., Excel, Word.
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6) Technical support
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From experience with a wide user base,
well-managed vendors already know the usual problem areas and have
quick solutions at the ready.
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Unless dealing with a local vendor or a
foreign vendor with local presence, technical support may be
expensive to access (long-distance phone calls) and/or involve
robotic systems with no human touch.
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7) Pace of product evolution
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A wide user base naturally gives more
frequent, varied, critical feedback; package vendors thus able to
improve the software product frequently and in the areas that matter
to customers.
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8) Ease of use
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Some packaged software products can be
very user-friendly. User must choose wisely.
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Some packaged software products can be
very difficult to use. User must choose wisely.
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9) Tailorability
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Some packaged software products can be
highly tailored to the customer/user’s exact specs.
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Highly tailorable packages are usually
difficult to implement and difficult to use, starting with the act
of “tailoring.”
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Some off-the-shelf packages are
deliberately NOT highly tailored to the customer or user’s exact
specs. The designers may have favored user-friendliness over
tailorability.
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10) Uniqueness
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An installation of a packaged
application is one of many thousands of identical installations.
(May be viewed as an advantage or disadvantage.)
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(See box at left.)
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11) Customer-vendor power relationship
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A wide user base puts constant pressure
on the software vendor to maintain product excellence, fair pricing,
and reliable technical support. This is to the customer’s benefit.
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B. TAILOR-MADE SOFTWARE
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Advantages of customized software
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Disadvantages of customized software
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1) Development time
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The substantial waiting time inherent
in customized software development projects gives the customer ample
time to prepare his systems, procedures, organization for the coming
computerization.
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May require significant development
time and cost in the quest to
tailor the application to the
customer. Distinct possibility of missed delivery deadlines.
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2) Debugging time
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May require extensive debugging,
especially in the unique-to-the-customer aspects.
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3) Completeness of solution
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The customized software solution will
be as complete as the vision of the customer organization writing
the specifications.
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Requires that the developer be expert
in both accounting and in software programming. Customer, beware
lest you have to teach accounting to the programmer(s).
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4) Cost
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(a) Cost is usually significantly
higher than that of comparable off-the-shelf packages. Distinct
possibility of cost overruns. (b) If cost is low, customer is
probably dealing with a freelancer; reliability and technical
support may then be suspect.
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5) User pool
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Since a customized application is by
definition unique, only your employees will be familiar with the
software.
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6) Technical support
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If dealing with an established vendor
organization, tech support is available, for a price.
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Unless dealing with an established
organization, technical support for a unique software may not be
systematic, reliable, or even available at all.
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7) Pace of product evolution
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Product evolves as dictated by the
user’s experience, circumstances, and requirements.
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Since the user organization dictates
the pace of the application’s evolution, significant developments in
the user’s industry (best practices) may escape notice.
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8) Ease of use
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Because the customized application is
tailored to the customer’s own specs, ease of use is not an issue.
If software is not easy to use, user accepts it as the result of his
own specs.
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In a customization situation, the
application is by definition unique. Some problems will be
first-time experiences for all involved, and therefore may be
time-consuming to resolve.
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9) Tailorability
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Customized applications by definition
are tailored to user organization’s exact specs.
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Tasks that ought to be reengineered out
of processes may survive precisely because of the custom-tailoring
approach. I.e., inefficiencies may get institutionalized.
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10) Uniqueness
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User may get a competitive advantage if
he has an application that no one else has.
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Since accounting is (and needs to be) a
fairly standard business task, it’s difficult to think of any unique
software features that could constitute a competitive advantage. It
will be in computerizing other processes – marketing, operations,
purchasing, logistics, customer support, etc. – where unique
capabilities will confer competitive advantages.
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11) Customer-vendor power relationship
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User is vulnerable to paralysis of
operations if the customizer-programmer makes himself scarce at a
crucial time, or if the big-corporate vendor decides to shift
strategy.
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.. CONCLUSION:
Both the packaged and the customized approaches to computerization have
their own advantages and disadvantages. It’s up to you, the user whose
business or career is at stake, to decide which approach will be the best
for you. Here’s what savvy business people look for in a computerized
solution:
1. It must
be reliable, so that I don’t end up spending a fortune on technical
support.
2. It must have
local technical support, so that I get guaranteed relief if I ever
have any problems beyond my staff’s abilities
to handle.
3.
It must be
easy to use, so that I’m not hostage to my in-house expert for any report
outputs, and I’m not left dead in the water when my
current user immigrates to Neptune.
4. It must have solid
audit trails, so that I can still
continue to believe and trust my own data two, five, ten years
from now.
The best of both worlds is a solution that contains the low-cost,
easy-to-use elements of off-the-shelf packages, but
with sufficient vendor
support to make customization a real possibility. In the end, you
want to
deploy a solution that will serve your needs
reliably for many years to come. (For more insights
on the experience of
embarking on a software
customization, follow this link:
http://www.cio.com/archive/101503/work.html).
RSR.
(To
request a printer-friendly
version of this
article, e-mail us your request at
balmori@balmorisoftware.com. Please cite your name and company name.)
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