To Buy or Build Software? That’s Not the First Question to Ask

To Buy or Build Software? That’s Not the First Question to Ask

Today’s economy is driven by software, with businesses constantly using applications for a wide range of tasks and processes. One recent survey found that the average knowledge worker uses 9.4 apps in a given day.

The cloud has accelerated application adoption. According to a Produtiv study of Software-as-a-Service (SaaS), the typical department has 40 to 60 applications, with most companies averaging more than 200 apps. A report by the Cloud Security Alliance found that the average enterprise runs more than 464 custom apps, and that number is growing rapidly.

However, user engagement with these apps tends to be low. The Productiv study found that just 45 percent of users actually engage with apps at the feature level. Research by Blissfully revealed that nearly 75 percent of organizations with 100 or more employees have “orphaned” SaaS tools with no billing owner.

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Why Organizations Make Bad Software Buying Decisions

A lot of organizations buy software for the sake of having software, and often the applications are specific to the company’s industry. Whether it’s a pest control company, a dry cleaning company or a law firm, the organization will purchase an app that will supposedly streamline its operations.

Even if the software is “best of breed” for that particular industry, it often fails to deliver value because it’s designed to meet the most common needs. It doesn’t address the products, services or processes that make a particular business unique.

Organizations make bad software buying decisions because they don’t consider what the application should be doing. Why have software in the first place? The key thing to remember is that software is a digital representation of your company’s procedures. Whether you use commercially available software, customize it or build an application from scratch, it should conform to your organization’s operations — not the other way around.

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Start at the Beginning: Understand Procedures

When deciding whether to buy or build software, the first step is to fully understand your company’s procedures. That’s not as simple as it might sound. Often, the people making software buying decisions have a limited understanding of what goes on in the trenches. That’s why users tend to have a higher level of engagement with apps they obtain for themselves than those procured and managed by IT, according to the Productiv study.

Conducting interviews with line-of-business managers and end-users can be an eye-opening experience. What tasks are required for each business process? Does the process involve people from multiple departments or functional areas? What are the pain points?

The answers to these questions may reveal significant shortcomings in the organization’s existing software assets. Often, users will come up with elaborate workarounds to make up for gaps in technology. Worse, they’ll force customers to jump through hoops because that’s how the application works.

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How DeSeMa Can Help

DeSeMa’s consultants can help you improve your software decision-making. We start by ignoring what’s going on in the IT department. It may sound funny for an IT consulting company to ignore technology, but we start by talking to key stakeholders to determine what your business processes look like. Only then can we determine if your software is doing what you need it to do.

If it’s not, we’ll create clear definitions of software features and functionality to help you choose the right solution. Should you use off-the-shelf software? Can we extend off-the-shelf software with a plugin or small modification? Or would custom software be the best fit?

Should you buy or build software? That’s not the first question to ask. Let DeSeMa help you analyze your business processes and evaluate your existing software to identify the right applications for your unique business.

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