When decision makers of companies want to automate business processes, there are a few main factors to consider. Acquiring packaged software or customised software is one of these factors.
The advantages of packaged and customised software are detailed below:
1. Packaged software
1a. Usually cheaper as the development cost is shared by many users.
1b. Usually readily available and can be launched for usage in a short period of time.
2. Customised software
2a. Function and processes: Fit companies better as customised software are designed based on company’s business processes. Unlike packaged software, companies need to change their business processes to fit the software.
2b. Cost-savings: As software can be used for 5-10 years, customised software is cheaper than packaged software in the long run as it is a better fit to company’s needs, i.e., productivity gain.
2c. Competitive advantage: Packaged software can only provide standard functions to all the users. Competitors who use the same software will have the same productivity. In comparison, customised software not only can help improve efficiency in unique ways but it also enables companies to provide unique services, e.g., better customer support, 24 x 7 shopping or other more innovative services.