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How to decide what type of software application to purchase?

How to decide what type of software application to purchase?

According to a McKinsey study, 45% of individual employee activities could be automated with today's technology. We all know that many tasks performed in companies are repetitive and boring and can lead to errors if not handled carefully. Moreover, how motivated can an employee be if their daily activity resembles that of a robot?

Radu Mărgărit Author: Radu Mărgărit

How to decide what type of software application to purchase?

When purchasing a software application, we are faced with deciding between several options. Should we buy an off-the-shelf software application, also known as COTS (Commercial Off-The-Shelf)? Should we contact a software development company to build the application from scratch exactly as we want it? Or should we opt for a BPMS platform on which we can configure the desired application? Such a decision is not easy at all, as each option has its advantages and disadvantages, and the optimal choice can only be made after evaluating several parameters.

 

 

Let’s analyze the three options together and see how they compare.

 

 

 

 

 

1. OFF-THE-SHELF SOFTWARE APPLICATION

The first option that comes to mind is an “off-the-shelf” software application, and it is often the selected choice. A highly diverse market of ready-made software applications covers almost any organizational need, from ERP to CRM and from WMS to BI. This type of application includes various settings that allow the activation and deactivation of different functionalities or modules, and various customizations based on the client’s specifics. Different providers use a wide range of technologies, and the interfaces and functionalities are highly varied.

 

Advantages of an off-the-shelf application:

 

 

Disadvantages of an off-the-shelf application: 

 

 

 

 

2. CUSTOM SOFTWARE APPLICATION

 

A custom software application is an option that comes to mind when: “What we need is so specific that it can’t be found anywhere ready-made.” Moreover, sometimes managers say, “And if we are going to make the effort to build this application, we want it to be ours and not end up with anyone else,” even if it means paying extra. We will see that a BPMS platform can also meet these requirements, but such an option is newer and much less known.

 

Advantages of a custom software application:

 

 

Disadvantages of a custom software application: 

 

 

 

 

3. BPM PLATFORM

 

The BPM platform, a newer and less known option, is a digital transformation solution that allows businesses to model, implement, execute, monitor, and optimize their processes. It offers an interesting mix between an off-the-shelf application and a custom application. Specifically, the platform includes a user portal, a database, and a graphical interface that uses BPM principles to construct application functionalities without writing code. Once the platform is installed, any number of workflows can be implemented on it. These workflows can be modified quickly, often without the need for provider intervention. The application is dynamically built based on the configurations made, and changes can be published in the user portal in real time.

 

Advantages of a BPM platform:

 

 

Disadvantages of a BPM platform:

 

 

Conclusion

 

Depending on the company’s maturity, business strategy, and available budget, the optimal choice may be an off-the-shelf application, a BPM platform, or a custom application. In the infographic below, we have summarized the options for a synthetic understanding of the phenomenon and for faster decision-making. Whatever decision you make, don’t forget that it’s essential to remain consistent with your business strategy!

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