Years ago, technology like artificial intelligence was confined to cyborgs taking over the world. Now, we interact with AI all of the time without even knowing it, whether it’s watching that movie Netflix recommended, choosing your health care provider, or asking Alexa to add soymilk to your shopping list. But it’s not just artificial intelligence – the same can be said for technology staples like cryptocurrency, ride-sharing, and free GPS on smartphones.
In fact, there are so many products that we’ve come to rely on that weren’t around ten or even five years ago. Products like these have shaped what we’ve come to expect as technology consumers. Also, they’ve propelled some people into success and notoriety. Those folks that have successfully taken a great idea (and made it into a product that people love!), have made big money and even changed the course of history.
And that could be you. Sure, not everyone can be the next Steve Jobs, but everyone can influence their own small piece of the market and generate substantial revenue. If you think about the similarities between big-name products, you’ll often find they involve unique software. It could be as simple as an application that can process customer payments or something more complex like the software needed to keep Siri answering all your questions.
Custom software can be the thing that takes your business to the next level. Companies are seeing firsthand the impact that proprietary software can have when it comes to crushing the competition and delighting their target audience. The time and effort your company puts into custom software development will have a big impact on your business and even your industry as a whole.
Maybe your budget has grown, maybe it hasn’t. Whatever your number might be, we get that it’s important to stick to it – but it doesn’t have to mean that a custom software development project is out of reach.
Three Options for Custom Software Development
In-House Development Team
If your organization has its own in-house IT division, you need to ask yourself two questions:
- Does my team have the capacity to develop new software?
- Does my team have the skill sets needed to develop a new product?
If your team is working at capacity to keep your existing products running smoothly, you may not have the resources available to build a new product. If your team’s skills are strong in day to day operations, you might not have the right roles and experience in-house to build your new product. Considering the time, effort, and extras associated with adding full-time employees, having your own employees do the work might not actually be the most cost-effective option. You may want to consider supplementing your in-house team with an expert custom software development company.
Custom Software Development Company
How much will your product cost if you hire a company to build it for you? That depends on the size and complexity of your product. Typically, you will set a budget and map out which features will fit. Start with the necessities and then add on other features until you’ve maxed the budget. The important thing to consider when receiving any type of quote for your product is to understand exactly what it’s going to get you. Will this cost cover everything you thought? Be sure to investigate how changes will be handled since your vision for your product will evolve as you see your first features and dive deeper into the build. Look for transparency and flexibility in your development partner.
Hybrid Development
Building your new product using a combination of your in-house team and a custom software development company may be the perfect choice for you. You can balance your current capacity with your partner company’s expertise while ensuring you have deep knowledge of the product after the build with the team members who participated in the hybrid team. Decisions specific to your product build include how many members of your in-house team will participate and whether they will start from day one or at a later point. Definitely discuss these questions with your custom software development partner before you begin.
Adjusting the Cost Levers
Now that we’ve outlined the potential ways you might set up your custom software development project, let’s talk about all of the factors involved that have the potential to influence the price no matter which option you’ve selected.
Before You Start
If you’re still in the discovery phase, there are a few things to take into consideration when it comes to the cost of your project. Changing any of these should result in changes to your overall quote.
Needs
Obviously, the more you need, the more money it’s probably going to cost. However, by focusing on what features will deliver the most value to your business, you can streamline your investment and save the rest for enhancements to add in later.
Complexity
Less is sometimes more. Features that are more technically complex require more time, effort, and skill to be able to add to your product. Your tech team should let you know the estimated complexity of anything you want to add so that you can make informed decisions about what really fits in your budget.
Timeline
Think about when it makes the most sense in your business cycle for a new product launch. Then work backward to plan out the entirety of the project, not just development time. Costs can skyrocket if you need to add resources late in the game to make a deadline.
Team
Have the right people on board when you need them. Who owns the responsibility of the entire project—timeline, budget, and communication? Could you benefit from a technical architect throughout the build or only at the start of the build? Will two junior developers or one senior engineer be the best choice for the pace you are setting and the timeline you established? Whether you are staffing in house or partnered with a custom software company, make sure you know who you will need, when you will need them, and what to do if this changes.
While You Work
While it may seem like you’re in the clear, it’s what happens once the work has started that can really impact your bottom line. You might even be surprised to find that it’s often no fault of the technology.
People
Your team is your greatest resource. With the right people, you can ensure the skills you need to do good work, commitment to discovering problems and solutions before they derail your project, and excellent communication between your tech team and business stakeholders. Without the right people, you risk wasting time making mistakes, ignoring red flags, or dealing with miscommunication.
Decisions
Now that you’re dreaming big, it’s important that you reel it in a bit. The great thing about custom software is that you make exactly what you want – the key to success is to create exactly what you need. Organize your ideas into must-haves, nice-to-haves, and future-haves and be prepared for the list to shift a bit as you build. Be flexible, but decisive with your team.
Misalignment
This one is critical. Your business and IT teams need to be in sync from start to finish of your project. Misalignment of these two means that the business doesn’t get what it expected and the IT team is frustrated because they will have to rework or rewrite. Implement checkpoints for both the business and IT throughout the software development life cycle to reduce misalignment costs.
Identifying the above, avoiding them when possible, and communicating contingencies with your tech partner or team can help avoid unforeseen costs as a result of any of these factors.
Is there a cost to NOT developing software?
With the right approach, custom software can provide just the edge your business needs to really stand out. Of course, maybe you’re comfortable. No real issues are keeping you up at night, your clients are happy, and your business is booming. That’s great! But the technology space is always changing, and quickly. The best competitors are always looking for the next big thing. Can your business afford to be complacent?
Even if you can’t justify the price right now, you can start thinking about what products suit your needs. What problems could a completely customized new product fix? Look into both your customers and your employees. What are their frustrations? Odds are that you can increase efficiency, improve customer experience, and tap into new revenue streams with custom software.
You might find that NOT investing in custom software costs you more – more customers, more employees, and more of the market share.
Interested in finding out if custom software is a good investment for you? Our success is your success, so we’ll tell it to you straight. Contact Geneca today for a free consultation and we’ll brainstorm a product to fit your needs and your budget.