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When to Develop Custom Software or Websites: Hire's Innovation test

Written by: Christopher Hire

Article Overview: How do you decide when to develop a custom software and when to buy software? Like everything else in business, it's all about being unique... One question and a bit of thinking time is all you need...

When to Develop Custom Software or Websites: Hire's Innovation test

I know you are excited. You're business is entering a new phase...

Now you are about to get some custom software/website/data base developed. S T O P (Well, only for as long as it takes to read this article).

As someone who has developed more custom applications for big & small companies, here is some simple guidance.

HIRE'S INNOVATION TEST:

Is the software I'm developing INNOVATION or is it merely USEFUL?
(Useful is good, but you don't want to spend your time re-inventing the wheel.)

That's a simple question. But it cuts to the heart of I.T.

IT should give you an edge on your competitors. It's called a sustainable competitive advantage. Any positive unique change of this sort is an innovation.

For example, software that is so integrated into your unique way of doing business, say a unique costing model, or unique customer service model, or unique delivery model is an innovation. Only you will know what is unique for your business.

IS IT INNOVATION?
To determine if it is innovation delivering sustainable competitive advantage ask yourself - how does this make me unique? Will it be copied overnight? Has somebody done it before me? Are my competitors doing the same thing already?

Hint: The best innovations are generally something your competitors would have trouble copying because it is tied to your business.

On the other hand, IT that gives you some useful functionality, is generally not worth the effort and you should buy off-the-shelf.

Examples of useful for most businesses include timesheets, accounting software, budgeting software, network planning, contacts databases and many other programs. Buy off-the-shelf what you can, but do the research on the features first. Price is not an indicator of quality or how the software will fit with your business.

This way you will be able to get your business ticking over faster; and save yourself a lot of time and capital in building custom software when off-the-shelf will do.

If you're still wanting to build a new accounting system, take it from me, it is not worth the grief! I know I tried this many years ago which is how I learnt this lesson...

And when you know you have an innovation application then you can put all your effort into getting it right! And drink a toast to your competitors falling all over themselves as they try to copy your genuine innovation.

To your success!


Christopher

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