|
When it comes to selecting software to
support business operations,
companies essentially have two choices – standard or custom software.
In the case of ordinary business
operations, a standard software package
makes sense. Companies
get a significant
percentage of what they need to operate their business and they are
able to
purchase that software at a price that is essentially shared by many
other
companies.
In the case of business operations that
are unique to an organization,
custom software makes sense. Typically
the custom software is more expensive, but the business realizes a
significant
benefit by developing software to leverage a company’s competitive
advantage.
Software Industry
Offering:
To maximize profitability, a number of
software companies have utilized a hybrid
approach in how they deliver an application to a customer. The hybrid approach attempts to make
two sales with
each package – the standard software along with a custom implementation. These software companies
realize that they
can attract companies with their “relatively” inexpensive standard
solution and
then charge custom development fees during an implementation phase. In the vast majority of
cases, the fees for
the implementation phase far exceed the initial cost of the standard
software.
Issues:
Further, the implementation phase raises
three additional issues companies
should be aware of.
First, the modifications must work within
the framework of the standard
software. The
greater the competitive
advantage a company has with a particular business process, the less
likely it
can be made to work within the framework of the standard software. The customization effort
is greatly increased. Further,
ongoing support is further
complicated and more expensive. The
greater the unique competitive advantage a company enjoys, the more
costly is
the hybrid solution and the greater chance the implementation will fail
or,
worse, lead to serious financial consequences for the company.
Secondly, it often makes sense for the
vendor to make available to other
companies, in the standard release, that code which has been custom
developed
for a particular client. The
client
often likes the idea that the custom code will be made a part of the
standard
offering because they will avoid the future costly ongoing support for
that
custom code. In
essence, the company
funds development of custom code which is then made available to their
competition.
Finally, the company never owns the
software that is being utilized to run
their business. Ownership of the software belongs to the software
vendor. After
funding a substantial amount of custom development the company is still
required to pay an annual “Software Maintenance Fee”. Usually
unspoken, to take advantage of the “base”
software fixes, modifications and enhancements, a company must
“re-implement” standard
software applications and “re-modify” all those alterations originally
made by the
consulting firm upon the initial implementation.
An Unworkable
Alternative:
To avoid these custom development
(implementation) issues inherent in a
standard software solution, the only real alternative has been to
change
business processes to bring them in line with the standard solution. This method relinquishes
all competitive
advantage in the name of expedience.
This also assumes that the standard
solution actually works. And
that is a point that companies should
seriously consider when purchasing a standard software application with
an
implementation phase included. The
real
history of most major “standard software” applications is that the
underlying
code is often ten, fifteen, or twenty years old.
There are modifications to
modifications. Major
software vendors
almost never do a rewrite of their core application.
That result is that there is often not
actually a standard solution that can be simply installed and will work. Many software vendors have
a set of
predefined functions (the decades old framework) which still need to be
connected (the custom implementation).
Without the custom implementation, the
framework will simply not stand
on its own to provide a fully functioning system.
Packaging Is
Everything:
One might ask, with all these red flags,
why does anyone choose one of
these hybrid solutions? Companies
know
that they need to modernize their information technology systems to see
real
gains in productivity, but often feel at a loss when evaluating the
competing
software offerings and the bold claims the different packages make. They know they need to do
something, but they
are in foreign territory. So
they often
look to the ‘experts’. They
track down
an objective third party to advise them on the best choice. The fox is invited into
the henhouse. Ostensibly
objective consulting firms are
engaged to make a recommendation.
These firms will ask all the right
questions necessary to make a
recommendation. They
have the literature
from all of the major players and package the claims from these major
players
in a very nice presentation. Then
they
will make their recommendation for the best application based upon the
needs of
your company and on the capabilities of the different offerings. Curiously, the recommended
package typically
matches the firm with which the consulting firm has a partnership. They are then in a
position to facilitate the
purchase of the recommended application or actually provide
implementation
services for that application.
In A Nutshell:
When
it comes to enterprise level applications, the options have
been limited, expensive, and very time consuming to
implement. Standard software simply does not exist in a
meaningful way at the enterprise level.
Truly customized software is rare.
The choice has often been limited to a selection of a vendor of a
hybrid
solution with none of the benefits of either a fully customized
application or
of a standard offering, and many of the limitations of both types of
applications. Finally, third party
recommendations are notoriously self-serving. |
Seraph believes that a successful
enterprise knows best how to run its business.
Intelligent enterprise leadership seeks
partners to help implement its plans, not partners who dictate how its
business
should be changed to work with a tool of the business.
The enterprise should dictate the use of a
tool. The tool
should not dictate how
the business should be run.
Software companies are
best at writing software. Businesses are best at running
their
business. Seraph believes that you know
how your business should be run; we write software that matches your
way of
doing business.
For over 17 years, Seraph has offered a
fusion of custom development with
development templates. We
have chosen to
provide customized applications developed much more quickly than from
scratch
with all the benefits that come with a custom application.
Seraph’s approach is to clearly identify
those characteristics that define
an organization and along with the organization, identify those areas
where
software may be able to manage, simplify or streamline an existing
process. Instead of
changing a business
that already enjoys a competitive advantage, we develop the software to
maximize the value those proven processes provide without requiring
extensive
retraining of staff on new processes.
Seraph recognizes the difference between
advantageous business processes
and processes which are simply out of date.
In conjunction with our client, we seek to
achieve the best mix of
modernization with a clear purpose and return on investment through
system
implementation of already optimized processes.
How Seraph Does
It:
While the code is developed specifically
customized to the organization,
the development effort does not start entirely from scratch. Over the years, Seraph has
developed tools
and processes to simplify the development effort and enable consultants
to
focus their time and effort on the specific business solutions. Minimal time is spent on
hand coding
solutions. If we
were building a home,
the difference would be like starting with the forest or starting with
building
materials. You can
cut down the trees,
hew the logs and construct the building one log at a time, or you can
start
with interchangeable building components and construct the home much
more
quickly. In either
case you have a home
that is custom to the homeowner but in the latter case, the home in
constructed
in weeks or months instead of months or years.
Net Results:
Seraph’s approach has been very effective
and we have not had a failed
effort. Our
solutions are customized
specifically to our client’s needs.
Training requirements for staff are minimal
since we follow many of the
processes company personnel are already very comfortable with. Invariably there is some
modernization of
processes, but having some familiarity with elements of a new system
makes
acceptance much more palatable than throwing an entirely unfamiliar
system in
front of valued employees.
Because we are not modifying an existing
application, much of the effort
the package implementers expend is simply not necessary. We don’t try to make a
square peg fit in a round
hole. Our time is
spent solving specific
business needs. Subsequently,
our
development time is typically much shorter then that the standard
software
implementers need to shoehorn their products into your organization.
In the end, time is money.
The
quicker we are able to develop your application, the less it actually
costs. The quicker
we develop your
application, the sooner you are able to realize the return on your
investment.
Because we are working with your business
processes and not a predefined
set of functions, the complexity of the overall application is vastly
simplified. The
resulting application is
only as complex as your business, but easy to use.
Likewise, the application is no less complex
than your business. Reducing
complexity
increases the chance for success and increases the accuracy of
development
cycle estimations.
In the end our clients own the code and
are in a position to maintain that
code using their own personnel, our personnel, or personnel from a
third party. Ongoing
support contracts while available are
not necessary. Because
we develop using
industry recognized tools, methods and languages, any skilled developer
should
be able to make modifications as the business changes.
More acceptable, quicker, less expensive,
simpler, more predictable and entirely yours.
Seraph’s approach just
makes sense.
|